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
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2.
NSFAS mandate and background
Vision, mission, values, partners
Strategic focus
Student-centred model
Annual Performance Plan and Budget 2014/2015
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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)
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Since inception in 1991, NSFAS has disbursed more than R 41,5
billion in loans and bursaries to 1,4 million students
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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
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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 Values
Vision
NSFAS is a model public entity that provides financial aid to all eligible public university
and TVET college students from poor and working class families.
Mission
The 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.
Values
Our 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
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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 model
In 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
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Last year of implementation of 5 year strategy
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Strategic Plan Overview
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
DHET Administration Grant
Business Transformation Budget
Administration Fees
R 151 318 million
R 116 200 million
R 7 483 million
R 27 635 million
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Programme 1: Administration
Strategic Objective
1.1
Improve NSFAS
governance to comply
with Government
legislation and
regulations
Performance Indicator
Annual Target
Full compliance as
detailed in NSFAS
compliance plan 2014
Full compliance with
relevant legislation
1.2
Ensure each functional
unit has a congruent
policy and procedures
manual so that individual
roles and delegations are
firmly instilled
Annual
Budget
R‘000
64 274
(1.1 -1.4)
Key policies and
procedures in place
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All prioritised policies and
procedures approved
Programme 1: Administration
Strategic Objective
1.3
Improve the governance
system to provide a
smooth transition from the
old to new policy
framework
1.4
Integrate the new policy
into the performance
management framework so
that executive
management and
employees are
accountable for delivering
on the policy
Performance Indicator
Improved audit outcomes
Annual
Budget R’000
64 274
(1.1 -1.4)
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Annual Target
Full implementation
of the NSFAS audit
improvement plan
2014
Programme 1: Administration
Strategic Objective
1.5
1.6*
1.7
Ensure staff have the
appropriate skills and
competency base to fulfill
the entity’s vision and
mission
Assess the current level
of staff skills and
competencies to ensure
the newly developed
operating model is
appropriately supported
Performance Indicator
Annual
Budget
R‘000
Annual Target
Employee
Performance
Management
system
implemented
Improved employee
performance
management
9 492
Improved employee
engagement
Develop a skilled and
trained workforce to
provide sustainable
delivery
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Employee
engagement
measured,
intervention/s
developed and
the impact of the
intervention/s
assessed
Programme 1: Administration
Strategic Objective
Performance Indicator
Annual
Budget
R‘000
Achieved
Achieved
Annual Target
1.8*
Develop an organisational
IT reference architecture to
support and enable the
new operating model
Achieved
1.9*
Procure and implement an
improved IT system for
efficient and effective
delivery of services
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Programme 1: Administration
Annual
Budget
R‘000
Annual Target
Strategic Objective
Performance Indicator
1.10
An increase in the number of
students migrated to the new
student-centred model
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
Develop and implement
processes and procedures
for the new operating
model to ensure NSFAS
fulfils its mandate to
students and stakeholders
26 799
Allowances paid to all
qualifying students on the
new student-centred model
within 7 days of due date of
the allowance
Allowances paid to all qualifying
students on the new studentcentred model on time
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Programme 2: Student-centred financial aid
Strategic Objective
2.1
Performance Indicator
Improve marketing,
communications and
support for students and
prospective students
Improved processing and
payment of claims from
Universities and FET
colleges
Develop a student value
proposition per segment to
service student needs more
effectively
Learners in no-fee schools
reached
Annual
Budget
R‘000
2.2
8 413 834
2.3
Annual Target
90% claims paid within
30 days of receipt
provided funding is
available
36 no-fee schools
reached through
various types of
communications media
and awareness
campaigns
Student satisfaction
measured,
intervention/s
developed and the
impact of intervention/s
assessed
Create a central
applications process
Improved student
through regional offices and
satisfaction
other appropriate channels
of delivery
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Programme 2: Student-centred financial aid
Strategic Objective
2.4
2.5
Raise new funding for
undergraduate study, for
targeted student
programmes, including the
‘missing middle’.
Maximise recovery of
outstanding loans from all
eligible debtors employed in
both the formal and informal
sectors of the economy
Performance
Indicator
Annual
Budget
R ‘000
An increase in
the sources of
funding
454
Two new sources of
funding secured
An increase in
the amount of
funds
recovered from
debtors
4 540
R467m
New
programmes/
products
implemented
207
One new programme /
product implemented
Annual Target
2.6
Develop a new programme
for unfunded courses of study
2.7 Develop a new product for
specific targeted student
segments
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Loans and Bursaries Budget
2013/14
R 000
2014/15
R 000
General allocation
3 031 705
2 919 488
Final Year Programme
1 106 162
1 187 200
106 497
112 360
Students with Disabilities
60 611
66 000
SAICA partnership - Thuthuka Fund
37 169
36 820
1 015
3 977
1 939 651
2 107 739
837 340
755 186
Funza Lushaka Bursaries
890 104
946 419
Other funders
680 519
715 000
8 690 773
8 850 189
Department of Higher Education and Training
Teacher (ring-fenced)
Truth & Reconciliation Commission Fund
FET College Bursaries
National Skills Fund
Department of Basic Education
Total
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Budget Overview
Compensation of Employees
Goods and Services
Communications
Consultants, contractors and special services
Outside services and maintenance
Staff education, training and development
Postage, stationery, computer services
Official functions
Business development
Payments for Capital Assets
Total
2013/14
R 000*
2014/15
R 000
65 394
78 920
115 801
65 764
3 394
13 127
13 824
1 990
6 741
3 261
73 466
4 209
13 083
21 568
3 341
12 487
3 093
7 483
5 645
6 634
186 840
151 318
* Revised budget figures
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