Grant Administration AgreementWhich governs the relationship between NSFAS & Institutions

PREAMBLE• NSFAS was established in terms of the NSFAS Act, No.56 of

1999 to provide financial aid to eligible students who meet the criteria for admission to a higher education programme.

• Section 20 of the NSFAS Act authorises NSFAS to enter into agreements with designated higher education institutions for the purpose of administering loans and bursaries to students of that institution on behalf of NSFAS.

• The Parties therefore seek to enter into an Agreement in order to regulate their roles and responsibilities in relation to the administration of loans and bursaries granted by NSFAS to students of that designated higher education institution who are eligible for financial aid.

GENERAL OBLIGATIONS OF NSFAS

• To allocate on an annual basis a budget to the Institution for financial aid to students identified by the Institution which meet NSFAS’s requirements for an award of a NSFAS loan.

• To make available 30% of the allocated budget as an upfront in January, February and March of each year to assist with registration and first semester costs.

• To set out and communicate to the Institution parameters for students who apply for the NSFAS loan or bursaries (eg maximum award size).

GENERAL OBLIGATIONS OF NSFAS

• To provide training and other support to the Institution in relation to NSFAS funding programs and parameters.

• No payments will be made to any third parties irrespective of whether those third parties are recognised by the Institution. These includes private accommodation facilities, suppliers of academic materials and/or assistive devices, transport service providers or other financial services providers on campus.

OBLIGATIONS OF INSTITUTIONS

• The Institution shall ensure that it complies in all respects with the NSFAS eligibility criteria.

• The Institution shall be required to communicate on an annual basis the parameters set by NSFAS to each student who applies for the NSFAS loan or bursary.

• The Institution shall ensure that each student applying for financial aid must complete an application form.

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OBLIGATIONS OF INSTITUTIONS• Ensure that the application form is accompanied by all the

required documents and information.

• The institution shall be required to: facilitate the application process identify prospective students who qualify for NSFAS assist selected students to complete & sign all documentation forward all documentation to NSFAS receive payment on behalf of the students from NSFAS transfer such funds to the student fee account within seven

days of receipt.

OBLIGATIONS OF INSTITUTIONS maintain a student administration and financial management

system suitable in all respects to account for, manage and secure the funds.

comply in all respects with the NSFAS handbook and circular minutes as amended from time to time.

distribute information about NSFAS and available financial aid for students.

act as a liaison between students and NSFAS, in particular relating to the student’s academic acceptance or rejection by the Institution and continuing academic progress.

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REPORTING REQUIREMENTS

• Institutions shall be required to submit the following reports: Audited Financial Statements at the end of each financial year. Any other reports that NSFAS may request.

• Institutions shall permit NSFAS or any person authorised by NSFAS to inspect and to audit at any time all records, accounts and supporting documents relating to the implementation of this Agreement and to make copies of these records.

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ESCALATION PROTOCOL

• Should the Institution not fulfil any of its obligations in terms of this Agreement:– NSFAS shall notify the office of the Vice Chancellor in writing of such

requesting a response in writing within 30 days detailing corrective measures taken by the Institution to address the default.

– This shall be escalated to the DG of the DHET if not addressed within 30 days

– NSFAS shall have the right to audit such corrective measures on an annual basis, and these audit reports shall be sent to the Vice Chancellor for written response within 60 days of receiving of the audit report.

• Should the audit reports reflect findings that could place either the Institution or NSFAS at risk, a summary will be forwarded to the DG of the DHET for noting and follow-up action

DEFAULT

• In the event of default, the aggrieved party shall request the

defaulting party to remedy the default within seven days.

RELATIONSHIP MANAGEMENT

• In order to facilitate the smooth and effective management of the relationship, both parties shall nominate a senior member of staff who shall be responsible to –

report to each other for the duration of this Agreement. bring unacceptable performance to the other party’s

attention. meet regularly to provide feedback regarding any specific

requirements•

INDEPENDENT INSTITUTION

• The Institution acts as an independent institution and not as an agent or employee of NSFAS and has no authority from NSFAS to bind NSFAS to any obligation.

• The Institution or its employees may not identify themselves as NSFAS representatives and/or speak on behalf of NSFAS.

Way Forward• To strengthen these agreements, we need to acknowledge

weaknesses of prior agreement, eg– Insufficient emphasis on performance information and management;– Insufficient emphasis on both NSFAS’ and the institutions’ role in

negotiating improved resourcing of the financial aid office;• Requesting input from universities

– How to address these issues in the agreements;– Any other challenges that need to be addressed through these

agreements;– Expected levels of performance/service delivery;

COMMENTS PER INSTITUTION BY 15 JULY 2011