Presentation to
Portfolio Committee on Higher
Education & Training
NSFAS Strategic Plan
and Budget 2011/12
30 March 2011
1
Presentation overview
1 Introduction

Discuss NSFAS strategic plan & budget 2011/12
•
Provide details of performance in 2010/11
2 Strategic plan & budget 2011/12
 Compiled September 2010, while awaiting approval of Ministerial
Review Committee recommendations
• Revised Jan - March 2011 to provide for plans to implement MRC
recommendations, including:
• Turnaround strategy
• New models for funding, central applications process
3 Conclusion
 Strategic plan and budget provide for maintenance of operations and
revisions to provide for new policies, plans
2
Strategic Objectives 2011/12
1
Expanding the pool of funds available for disbursement as student loans and
bursaries
2
Strengthening efficiencies in the processing of student awards/claims to
ensure that funding reaches target population
3
Strengthening the quality of internal management and operations in line
with changing funding patterns
4
Effectively communicating and managing the relationship with all NSFAS
stakeholder groups and targeted audiences
5
Undertaking activities and projects that inform the effective utilisation of
available funds and serves to advise NSFAS and its’ stakeholders on matters
related to student financial aid
6
Effecting the turnaround strategy , implementing MRC recommendations
3
Total Budget 2011/12
R’000
Loan and bursary allocations
Administration
Total
2010/2011
2011/2012
3 340 749
5 450 191
78 093
77 384
3 423 639
5 527 575
4
Strategic objective 1
•
Expanding the pool of funds
available for disbursement as
student loans and bursaries
Strategic objective 1
R 5 450 191 000
5
Detailed budget overview 2011/12
Department of Higher Education and Training (DHET)
General allocation
Final Year Funding
Teacher (ring-fenced)
Students with Disabilities (100% bursaries)
SAICA partnership - Thuthuka Fund
FET College Bursaries
NSFAS administration
R’000
1 708 358
751 826
96 206
60 000
27 831
1 235 244
77 384
Department of Basic Education (DBE)
Funza Lushaka Bursaries (teacher work back)
449 440
Other sources of funding
Department of Labour (Ntabankulu Project - Bursaries)
National Skills Fund (DoL)
Dept of Social Development - Social Work Bursaries***
Department of Agriculture
Communicare
Eastern Cape Provincial Government
1 500
63 200
235 956
5 000
130
22 000
NSFAS re-injection of recoveries and investment income
793 500
Total
5 527 575
Universities
Outcome 1&2 - Increase funding for undergraduate study, maximise recoveries
2011/2
Budget allocation
Additional funding - FYP
R 1 892 395 000
R 751 826 000
R 2 644 221 000
2012/3
2013/4
R 2 644 614 000 R 2 957 234 000
R 733 288 000
R 736 061 000
R 3 377 902 000 R 3 693 295 000
• Additional funding for the Final Year Programme
• 27 482 estimated eligible students in all fields of study
• Available to students who qualify for NSFAS at all universities
•
•
terms & conditions apply
Will produce graduates in 2011 in Engineering, human and animal
health sciences, business management, accounting, ITC
7
Further Education & Training
2011/2
2012/3
2013/4
FETCs
R 387 080 000
R 453 393 000
R 598 900 000
Additional funding
R 848 164 000
R 1 280 900 000
R1 389 534 000
1 235 244 000
R 1 734 834 000
R 1 988 434 000
Full cost bursaries
• Estimated number of students:
• Report 191 student numbers:
• National Certificate (Vocational):
100 000
35 000
65 000
8
Objective 2
Strengthening efficiencies in the
processing of student awards and
claims to ensure that funding
reaches target groups
Strategic objective 2
R
4 405 153
9
Unspent funds 2008 - 2010
Outcome 3 - Maximise the utilisation of allocated donor funds by institutions
2008
2009
DHET-General
R 7 475 963
R 9 528 105
R 418
DHET-Disability
R 11 294 336
R 3 879 354
R0
R 763 745
R 4 785 301
R0
R 49 534 045
R 18 192 760
R 418
DHET-Teacher
TOTAL
2010
10
2010/11 unspent funds redistributed
Date
August 2010
October 2010
November 2010
December 2010
January 2011
March 2011
Amount
R38,8 m
R19m
R7,9m
R20,1m
R3,7m
R689 000
Redistributed to
17 universities
19 universities
6 universities
6 universities
6 universities
NGO partners
11
Outcome 3 (cont) - Maximise the utilisation
of allocated donor funds by institutions
2011/12
• Set targets for all claims to be submitted by
September 2011
• Implemented continuous monitoring of the
variance between the funds allocated and the
funds utilised
• Redistributing all funding unutilised by any
university within the academic year
12
Outcome 4 – Develop training and support interventions to
enable institutions to better utilise the funds allocated
2010/11

Held two training workshops with Financial Aid Offices from
all 23 universities
2011/12

May-July 2011 – 6 regional university training workshops
•
•
•
•
•
•

Gauteng South (VUT, UJ, Wits)
Gauteng North (UNISA, UL, Univen, UP, TUT)
KwaZulu Natal (UKZN, UniZulu, MUT, DUT)
North West and Free State (NWU, UFS, CUT)
Western Cape (CPUT, UWC, UCT, US)
Eastern Cape (NMMU, WSU, UFH, RU)
September-October - training workshops for 50 FETCs
13
Outcome 4 (cont)
2010/11
 Published NSFAS Financial
Aid Office Handbook
 Distributed to FAOs at all 23
universities
2011/12
 Revise, update Handbook
14
Outcome 6 – Provide the required level of information
technology infrastructure and services to stakeholders
2010/11
 Completed development of application and loan agreement
technologies for use by all institutions
• Pilot testing sites at 5 universities:
• University of Cape Town (UCT)
• Cape Peninsula University of Technology (CPUT)
• University of KwaZulu Natal (UKZN)
• University of South Africa (UNISA)
• Vaal University of Technology (VUT)
2011/12
 Extended to all 23 universities
 Electronic statement notifications for NSFAS debtors
15
Objective 3
Strengthening the quality of internal
management and operations in line
with changing funding patterns
Strategic objective 3
R
33 517 509
17
Outcome 7: Assess organisational risk in relation to changing
governance, regulatory requirements & environment
2010/11
• Approved annual and 3-year strategic internal audit plans
• Introduced co-sourced internal audit function with Deloitte
• Risk-based institutional audits at all universities
• Conducted annual audit of organisational operations and
procedures, including universities and colleges
• March 2011 - Completed audits at 20 universities
• Identified 10 high risk FET colleges
2011/12
• April 2011 - remaining 3 university audits to be finalised
• April-May 2011 - risk-based institutional audits at 10 FETCs
18
OUTCOME 8: Minimise organisational risk across the
NSFAS value chain
2010/11
• Fraud prevention plan approved by the Board October 2010
• Fraud prevention strategy and plan being implemented
• Data hosting contract with State Information Technology
Agency (SITA) cancelled in 2010 due to non-performance
2011/12
• Business continuity and disaster recovery plans to be finalised
in first quarter of 2011/12
• Fraud prevention strategy and plan fully implemented
• Ongoing identification, monitoring and reporting on risk
19
Objective 4
Effectively communicating and
managing the relationship with all
NSFAS stakeholder groups and
targeted audiences
Strategic objective 4
R
5 148 522
20
Outcome 10: Achieve awareness of undergraduate funding
opportunities amongst prospective and current students in rural &
urban South Africa, through a variety of communication channels
2010/11
• Radio advertising campaign
• Careers exhibitions and road shows
2011/12
Rural advocacy programme for FETC and university education
•
•
•
•
Partnership with Department of Basic Education – target Grade 10-12
MoUs with rural advocacy partners
Rural career exhibitions, road shows
Media campaign targeted at rural communities
21
Raising awareness
22
Outcome 10: Achieving awareness (cont)
NSFAS funding for students with disabilities
• Partnerships with Disabled People South Africa (DPSA)
• 2011 – Memorandum of Understanding with DPSA
• Working with Disabled Youth South Africa (DYSA)
• Higher Education Disability Services Association
YEAR
BUDGET
AMOUNT
UTILISED
NUMBER OF
STUDENTS
2008
18 568 570.70
7 274 235.31
284
2009
29 559 737.29
25 680 382.19
762
2010
35 538 543.77
35 278 148.18
1 040
23
Financial aid for students with disabilities
24
Objective 5
Improving the effectiveness of
student financial aid through
research and stakeholder
engagement
Strategic objective 5
R
636 000
25
Outcome 12: Strengthening policy and advisory support through
the development of analytical reports on the impact of NSFAS
2010/11 Cohort study commissioned via tender process
 Study of NSFAS funded student cohorts in each of the
years 2000 to 2004
2011/12
 Factors being researched:
• Completion and graduation
• Time taken to complete studies
• Success in finding employment
• Repayment patterns
26
Outcome 13: Collaborate and consult with stakeholders in the
higher education sector to inform policies and to ensure coordinated responses to matters related to student financial aid
•
In line with recommendations of Ministerial Review, research and develop a Central
Applications Process in collaboration with, amongst others
• Higher Education South Africa (HESA)
• Council for Higher Education (CHE)
• Financial Aid Practitioners of South Africa (FAPSA)
• Higher Education Disability Services Association (HEDSA)
• South African Union of Students (SAUS)
• Centre for Higher Education Transformation (CHET)
• Centre for Education Policy Development (CEPD)
27
Outcome 14: Responsiveness of the student and institutional
funding frameworks ensure that deserving students are funded at
the institution of choice
2011/12
• Implementation of the approved recommendations of the
Ministerial Review Committee
• New funding model for FET Colleges and Universities
• Design and development of a new means test
28
Objective 6: Turnaround Strategy
1 Establish good governance
• Fill board vacancies, establish new board committees
2 Review and develop policies, strategies and operational plans
•
Implement recommendations of Ministerial Review Committee
3 Address 2010 Auditor-General findings
• Correct the policies and procedures that resulted in the Audit
Disclaimer in 2010
4 Acquire appropriate IT infrastructure
•
•
New Loan Management System (LMS)
Enable systems integration between functions
5 Improve stakeholder relations & awareness
Strategic objective 6
R
19 741 317
29
Turnaround budget 2011/12
Administration of Final Year Programme &
R
Additional FET college funding
5 000 000
Loan Management System development, IT infrastructure &
8 000 000
maintenance
Disaster recovery
1 000 000
Human resources
2 500 000
Communications
3 000 000
Total
19 500 000
30