national student financial aid scheme presentation to the portfolio committee on higher education...
TRANSCRIPT
National Student Financial Aid Scheme
Presentation to the Portfolio Committee on Higher Education and Training
Budget and Annual Performance Plan 2014/15
Presentation Overview
1. Introduction • NSFAS mandate and background• Vision, mission, values, partners• Strategic focus• Student-centred model
2. Annual Performance Plan and Budget 2014/2015• Strategic goal and plan• Overview of Programmes • Programme strategic objectives, performance indicators, targets and
associated budget• Budget
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About NSFAS
NSFAS is a public entity reporting to the Department of Higher Education and Training, governed by the NSFAS Act (56 of 1999)
•Since inception in 1991, NSFAS has disbursed more than R 41,5 billion in loans and bursaries to 1,4 million students
•In 2013, NSFAS disbursed R8,7 billion to 416 000 students at the 23 public universities and 50 public Technical and Vocational Education and Training (TVET) colleges throughout the country
– In 2012 , NSFAS disbursed R7,7bn to 383 000 students
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NSFAS Mandate
• to develop criteria and conditions for the granting of loans and bursaries to eligible students in consultation with the Minister
• to raise funds
• to allocate funds for loans and bursaries to eligible students
• to recover loans
• to maintain and analyse a database and undertake research for the better utilisation of financial resources
• to advise the Minister on matters relating to student financial aid
• to perform other functions assigned to it by the NSFAS Act (56 of 1999) or by the Minister
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NSFAS Vision, Mission and ValuesVisionNSFAS is a model public entity that provides financial aid to all eligible public university and TVET college students from poor and working class families.
MissionThe mission statement is made up of three distinct elements which describe why NSFAS exists, what we do, and the impact on our constituency:•NSFAS exists to provide financial aid to eligible students at public TVET colleges and public universities.•NSFAS identifies eligible students, provides loans and bursaries and collects student loan repayments to replenish the funds available for future generations of students.•NSFAS supports access to, and success in, higher education and training for students from poor and working class families who would otherwise not be able to afford to study.
ValuesOur external values are: Accessibility, Transparency, Affordability, Reliability
Our internal values are: Integrity, Accountability, Respect, Innovation
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Partners
• Department of Higher Education and Training – National Skills Fund– Sector Education and Training Authorities
• Department of Agriculture, Forestry and Fisheries • Department of Basic Education• Department of Social Development• Eastern Cape and KwaZulu-Natal Provincial Governments• Non‑governmental Organisations• 26 Universities and • 50 TVET Colleges
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Strategic focus • In 2012, Parliament approved a transformation programme to
introduce a new student-centred model for financial aid. • In the past NSFAS had no relationship with students
• Students had contact with NSFAS only when they became debtors and had to repay their student loans
• In 2013, we introduced new systems to receive applications; manage loans and bursaries; distribute funds to institutions and students; recover loans
• Student-centred model pilot phase started in 2014
• We are positioned to manage more bursaries on behalf of public sector institutions; and will focus on increasing collections and raising funds– Despite a threefold increase in funds for financial aid during the
previous Parliament, we can still assist only half of the students eligible for study loans and bursaries.
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Student-centred modelIn the new student-centred model:•Funding is provided for a qualification, not one year of study at a time
– Students apply once, in the first year of their studies
•The financial means test is automated and linked to other government databases to verify personal, family, income and employment data •Tuition and residence fees are paid to the university or college•Allowances for books, food, private accommodation, transport, electronic and assistive devices are paid directly to students, ensuring that spending can be monitored and accounted for.
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National Student Financial Aid Scheme
Strategic Objectives
NSFAS Strategic goals
Goal 1
•An efficient and effective public entity in student financial aid and administration
Goal 2
•Access, success and progression to contribute to improving both throughput and pass rate
Goal 3
•Improved student financial aid environment
• Last year of implementation of 5 year strategy
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Programme One: Administration
Purpose: To conduct the overall management of the entity and to provide efficient and effective support services to internal departments
Budget: R 102 374 million
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Strategic Plan Overview
Programme Two: Student-Centred Financial Aid
Purpose: To achieve the vision and mission of NSFAS by creating a centralised student financial aid system and to provide funding to eligible students whilst maximising recoveries and striving to increase the pool of funds available.
Budget: R 48 944 million
Funding Sources for Total Budget of R 151 318 millionDHET Administration Grant R 116 200 millionBusiness Transformation Budget R 7 483 millionAdministration Fees R 27 635 million
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Strategic Plan Overview
Programme 1: Administration
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Strategic Objective Performance IndicatorAnnual Budget R‘000
Annual Target
1.1 Improve NSFAS governance to comply with Government legislation and regulations
Full compliance with relevant legislation
64 274(1.1 -1.4)
Full compliance as detailed in NSFAS compliance plan 2014
1.2Ensure each functional unit has a congruent policy and procedures manual so that individual roles and delegations are firmly instilled
Key policies and procedures in place
All prioritised policies and procedures approved
Programme 1: Administration
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Strategic Objective Performance IndicatorAnnual Budget R’000
Annual Target
1.3 Improve the governancesystem to provide a smooth transition from the old to new policy framework
Improved audit outcomes 64 274(1.1 -1.4)
Full implementation of the NSFAS audit improvement plan 2014
1.4 Integrate the new policy into the performance management framework so that executive management and employees are accountable for delivering on the policy
Programme 1: Administration
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Strategic Objective Performance IndicatorAnnual BudgetR‘000
Annual Target
1.5 Ensure staff have the appropriate skills and competency base to fulfill the entity’s vision and mission
Improved employee performance management
9 492
Employee Performance Management system implemented
1.6* Assess the current level of staff skills and competencies to ensure the newly developed operating model is appropriately supported
Improved employee engagement
Employee engagement measured, intervention/s developed and the impact of the intervention/s assessed
1.7 Develop a skilled and trained workforce to provide sustainable delivery
Programme 1: Administration
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Strategic Objective Performance IndicatorAnnual Budget R‘000
Annual Target
1.8*Develop an organisational IT reference architecture to support and enable the new operating model
Achieved Achieved Achieved
1.9*
Procure and implement an improved IT system for efficient and effective delivery of services
Programme 1: Administration
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Strategic Objective Performance IndicatorAnnual Budget R‘000
Annual Target
1.10
Develop and implement processes and procedures for the new operating model to ensure NSFAS fulfils its mandate to students and stakeholders
An increase in the number of students migrated to the new student-centred model
26 799
60% of students migrated to the new student-centred model
An increase in the number of new students at migrated institutions applying online
30% of students at migrated institutions applying online
Allowances paid to all qualifying students on the new student-centred model on time
Allowances paid to all qualifying students on the new student-centred model within 7 days of due date of the allowance
Programme 2: Student-centred financial aid
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Strategic Objective Performance IndicatorAnnual BudgetR‘000
Annual Target
2.1 Improve marketing, communications and support for students and prospective students
Improved processing and payment of claims from Universities and FET colleges
8 413 834
90% claims paid within 30 days of receipt provided funding is available
2.2Develop a student valueproposition per segment to service student needs more effectively
Learners in no-fee schools reached
36 no-fee schools reached through various types of communications media and awareness campaigns
2.3Create a central applications process through regional offices and other appropriate channels of delivery
Improved student satisfaction
Student satisfaction measured, intervention/s developed and the impact of intervention/s assessed
Programme 2: Student-centred financial aid
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Strategic ObjectivePerformance Indicator
Annual Budget R ‘000
Annual Target
2.4 Raise new funding for undergraduate study, for targeted student programmes, including the ‘missing middle’.
An increase in the sources of funding
454Two new sources of funding secured
2.5 Maximise recovery of outstanding loans from all eligible debtors employed in both the formal and informal sectors of the economy
An increase in the amount of funds recovered from debtors
4 540 R467m
2.6
Develop a new programme for unfunded courses of study New
programmes/ products implemented
207One new programme / product implemented2.7 Develop a new product for
specific targeted student segments
Loans and Bursaries Budget
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Department of Higher Education and Training2013/14
R 000 2014/15
R 000
General allocation 3 031 705 2 919 488
Final Year Programme 1 106 162 1 187 200
Teacher (ring-fenced) 106 497 112 360
Students with Disabilities 60 611 66 000
SAICA partnership - Thuthuka Fund 37 169 36 820
Truth & Reconciliation Commission Fund 1 015 3 977
FET College Bursaries 1 939 651 2 107 739
National Skills Fund 837 340 755 186
Department of Basic Education
Funza Lushaka Bursaries 890 104 946 419
Other funders 680 519 715 000
Total 8 690 773 8 850 189
2013/14 R 000*
2014/15R 000
Compensation of Employees 65 394 78 920
Goods and Services 115 801 65 764
Communications 3 394 4 209
Consultants, contractors and special services 13 127 13 083 Outside services and maintenance 13 824 21 568 Staff education, training and development 1 990 3 341 Postage, stationery, computer services 6 741 12 487 Official functions 3 261 3 093
Business development 73 466 7 483
Payments for Capital Assets 5 645 6 634
Total 186 840 151 318
* Revised budget figures
Budget Overview
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