Portfolio Committee on Higher Education & Training Presentation to Portfolio Committee on Higher Education & Training NSFAS Strategic Plan and Budget 2011/12 30 March 2011

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

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

Total Budget 2011/12 R’000 2010/2011 2011/2012 Loan and bursary allocations 3 340 749 5 450 191 Administration 78 093 77 384 Total 3 423 639 5 527 575

Strategic objective 1 Expanding the pool of funds available for disbursement as student loans and bursaries Strategic objective 1 R 5 450 191 000

Detailed budget overview 2011/12 Department of Higher Education and Training (DHET) R’000 General allocation 1 708 358 Final Year Funding 751 826 Teacher (ring-fenced) 96 206 Students with Disabilities (100% bursaries) 60 000 SAICA partnership - Thuthuka Fund 27 831 FET College Bursaries 1 235 244 NSFAS administration 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) 1 500 National Skills Fund (DoL) 63 200 Dept of Social Development - Social Work Bursaries*** 235 956 Department of Agriculture 5 000 Communicare 130 Eastern Cape Provincial Government 22 000 NSFAS re-injection of recoveries and investment income 793 500 Total 5 527 575

Universities Additional funding for the Final Year Programme Outcome 1&2 - Increase funding for undergraduate study, maximise recoveries 2011/2 2012/3 2013/4 Budget allocation R 1 892 395 000 R 2 644 614 000 R 2 957 234 000 Additional funding - FYP R 751 826 000 R 733 288 000 R 736 061 000 R 2 644 221 000 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

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: 100 000 Report 191 student numbers: 35 000 National Certificate (Vocational): 65 000

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

Unspent funds 2008 - 2010 Outcome 3 - Maximise the utilisation of allocated donor funds by institutions 2008 2009 2010 DHET-General  R  7 475 963  R  9 528 105  R 418 DHET-Disability  R  11 294 336  R  3 879 354  R 0 DHET-Teacher  R  763 745  R  4 785 301  R 0 TOTAL  R  49 534 045  R 18 192 760

2010/11 unspent funds redistributed Date Amount Redistributed to August 2010 R38,8 m 17 universities October 2010 R19m 19 universities November 2010 R7,9m 6 universities December 2010 R20,1m January 2011 R3,7m March 2011 R689 000 NGO partners

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

May-July 2011 – 6 regional university training workshops 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

Outcome 4 (cont) 2010/11 Published NSFAS Financial Aid Office Handbook Distributed to FAOs at all 23 universities 2011/12 Revise, update Handbook

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

Objective 3 Strengthening the quality of internal management and operations in line with changing funding patterns Strategic objective 3 R 33 517 509

Approved annual and 3-year strategic internal audit plans 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

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

Objective 4 Effectively communicating and managing the relationship with all NSFAS stakeholder groups and targeted audiences Strategic objective 4 R 5 148 522

Radio advertising campaign Careers exhibitions and road shows 2011/12 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

Raising awareness

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

Financial aid for students with disabilities

Objective 5 Improving the effectiveness of student financial aid through research and stakeholder engagement Strategic objective 5 R 636 000

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

Outcome 13: Collaborate and consult with stakeholders in the higher education sector to inform policies and to ensure co-ordinated 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)

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

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

Turnaround budget 2011/12 Administration of Final Year Programme & R Additional FET college funding 5 000 000 Loan Management System development, IT infrastructure & maintenance 8 000 000 Disaster recovery 1 000 000 Human resources 2 500 000 Communications 3 000 000 Total 19 500 000