Report from NSFAS Administrator: Portfolio Committee on Higher Education and Training Dr Randall Carolissen September 12, 2018 Portfolio Committee on Higher Education and Training

Education key to address Accessibility Transparency Affordability Reliability Authenticity Education key to address September 12, 2018 Portfolio Committee on Higher Education and Training Inequality Poverty Unemployment

Education Lays Foundation for Inclusive and Sustainable Economic Growth Dissemination and use of Knowledge Maintenance of Knowledge Building of Knowledge Bases Formation of human Capital radio social Media September 12, 2018 Portfolio Committee on Higher Education and Training

Projected figures – TVET T3 applications have just opened Projected volumes Forecast – More students will apply as a result of Fee Free higher education Projected figures – TVET T3 applications have just opened Social Media September 12, 2018 Portfolio Committee on Higher Education and Training

Projected volumes Social Media Forecast based on 2018 budgeted figures Budgeted – TVET T3 applications have just opened Social Media September 12, 2018 Portfolio Committee on Higher Education and Training

Dealing with the Burning platform Although R11bn had been paid as upfront payments to institutions, no remittances were sent as at 31 July 2018. This means that institutions could not properly credit students and maintain accounts. In some cases institutions accumulated large cash reserves by end of July 2018. As an interim measure institutions used data generated during the registration period to determine the amount of payments due to students Appeal process in now in process and given priority Securing support of institutional and student leadership Deployment of senior managers to institutions resolve and reconcile accounts Improving access for students Instituting disbursement procedures to adequately deal with risk controls Dealing with low level of motivation Improving data integrity and systems integration Managing shareholder expectations Improved administration of remittances radio September 12, 2018 Portfolio Committee on Higher Education and Training

Dealing with the Burning platform TVET Colleges 52 000 top-up funding relating to allowances. Will release further sub allowance payment 30 000 unfunded students for variety of reasons being elevated for accuracy 36 228 unsigned TVET contracts remains serious challenge to disbursing funding to sector Closing off unpaid 2017 TVET requires reconsideration of policy and progress Short turnaround times for funding, especially trimester students Lack of system integration process are manual Lack of financial and office structure Variance in allowance values between TVET and University students Dealing with the Burning platform TVET Colleges radio September 12, 2018 Portfolio Committee on Higher Education and Training

Current State Analysis 2017/2018 Administration backlog As at August 21 As at September 10 507 410 funding decisions for students made 6 357 additional funding decisions made for students who were administratively blocked due to incomplete submissions Previously unaccounted students resulted in 43 290 additional payments in August 2018 as a result of fieldwork by NSFAS. 421 831 disbursements processed but most remittances outstanding making it difficult for institutions to pay students This disbursements did not necessarily reach the students. Backlog of remittance reports generated and sent to institutions. New disbursements are accompanied by remittance reports as of August 2018, allowing institutions to unblock allowances to individual students 30 000 pre-funded students with incorrect bursary values, and wrongly matched with institutions; wrongly funded 14 076 records matched and are now ready to receive funds 19 766 students did not receive allowances due to backlog caused by disbursement exception 9 241 students has been unlocked and NSFAS has made disbursements. More cases are being resolved Others social media radio television Social Media

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Payments to sBux institutions To date for the 2018 academic year NSFAS has disbursed a total of R892 741 119 million to 115 909 students at sBux institutions TVETs NUMBER OF STUDENTS   TOTAL AMOUNT DISBURSED  BUFFALO CITY COLLEGE 534 1 899 009 CENTRAL JOHANNESBURG COLLEGE 149 673 612 COASTAL KZN FET COLLEGE 1 683 8 778 372 EKURHULENI EAST COLLEGE 3 288 8 703 548 EKURHULENI WEST COLLEGE 8 063 25 970 500 KING HINTSA PUBLIC FET COLLEGE 1 847 11 757 267 MOTHEO FET COLLEGE 3 244 27 083 840 ORBIT FET COLLEGE 2 208 8 624 691 PORT ELIZABETH COLLEGE 1 344 5 179 789 SEDIBENG COLLEGE 1 611 6 144 297 UMFOLOZI COLLEGE 2 411 8 248 090 VHEMBE FET COLLEGE 9 347 34 525 888 TOTAL  35 729 147 588 903 September 12, 2018 Parliament of the Republic of South Africa

Payments to sBux institutions To date NSFAS has disbursed a total of R892 741 119 million to 115 909 students at sBux institutions UNIVERSITIES Total No. Students Total Disbursed Durban University Of Technology 14 275 212 159 832 Nelson Mandela Metropolitan University 11 206 190 411 431 Sol Plaatje University 266 865 046 University Of South Africa 42 959 122 983 627 University Of Venda 11 474 218 732 280  TOTAL 80 180 745 152 216 September 12, 2018 Portfolio Committee on Higher Education and Training

Summary of payments per institution INSTITUTIONS Upfront Payments over and above upfronts Total paid to date (Cumulative) NMMU 276 403 374,31 375 094 423,22 651 497 797,53 CAPETOWN 130 868 414,19 129 736 709,22 260 605 123,41 DUT 369 721 027,56 244 692 749,01 614 413 776,57 CPUT 327 578 418,99 110 762 444,74 438 340 863,73 CUT 196 226 469,30 63 167 168,93 259 393 638,23 FORTHARE 214 090 516,47 268 837 170,49 482 927 686,96 FREESTATE 543 564 328,37 341 988 424,04 885 552 752,41 JHB 982 678 795,12 458 092 594,62 1 440 771 389,74 KZN 516 338 680,29 631 880 563,25 1 148 219 243,54 LIMPOPO 364 174 686,83 416 189 150,25 780 363 837,08 MANGOSUTHU 107 991 413,68 179 213 926,20 287 205 339,88 MPUMALANGA 34 434 924,60 67 177 171,40 101 612 096,00 NORTHWEST 401 281 452,06 497 959 225,44 899 240 677,50 PRETORIA 296 837 735,85 259 973 209,22 556 810 945,07 RHODES 52 453 480,26 96 753 370,74 149 206 851,00 SEFAKOMAKGATHO 83 343 474,50 2 103 425,64 85 446 900,14 SOLPLAATJIE 20 071 597,53 27 196 010,82 47 267 608,35 STELLENBOSCH 73 051 263,23 48 898 360,77 121 949 624,00 TUT 843 252 027,53 555 806 768,80 1 399 058 796,33 UNISA 287 243 109,52 211 766 586,74 499 009 696,26 VUT 231 953 008,03 29 070 021,68 261 023 029,71 VENDA 277 057 240,56 295 411 801,77 572 469 042,33 Walter Sisulu University 437 668 593,68 408 306 284,37 845 974 878,05 WESTERN CAPE 159 989 485,20 162 097 467,61 322 086 952,81 WITS 679 108 475,88 63 914 366,96 743 022 842,84 ZULULAND 305 618 006,23 305 947 852,91 611 565 859,14 TOTAL 8 212 999 999,77 6 252 037 248,84 14 465 037 248,61 radio

Summary of payments per university College Upfront payments Payments over and above upfronts Total paid to date (Cumulative) BOLAND 40 129 999,71 - 39 868 381,60 BUFFALOCITY 37 116 489,46 1 846 161,96 38 962 651,42 CAPECOLLEGE 53 304 706,36 52 894 083,37 CAPRICORN 83 902 692,47 83 238 394,39 CENTRALJHB 60 173 814,95 245 451,85 60 419 266,80 COASTALKZN 90 988 943,27 8 022 190,40 99 011 133,67 EASTCAPEMID 41 630 929,06 41 391 027,28 EHLAZENI 43 587 327,45 43 229 322,78 EKURHULENIEA 60 781 813,16 7 013 236,33 67 795 049,49 EKURHULENIWE 84 818 926,69 28 684 578,64 113 503 505,33 ELANGENI 66 618 172,19 66 120 678,73 ESAYIDI 63 273 122,86 62 959 927,58 FALSEBAY 36 669 494,27 36 368 309,55 FLAVIUSMAREK 23 664 264,46 23 486 427,45 GERTSIBANDE 58 857 191,67 58 373 767,67 GOLDFIELDS 28 409 616,27 28 176 274,09 IKHALA 26 053 888,05 25 839 893,74 INGWE 41 144 742,35 40 806 799,35 KINGHINTSA 24 224 597,30 13 020 002,45 37 244 599,75 KINGSABATA 42 621 309,41 42 271 238,69 LEPHALALE 16 964 632,72 16 825 293,54 LETABA 34 313 766,05 34 031 929,20 LOVEDALE 22 785 103,30 22 608 273,44 MAJUBA 101 996 464,70 101 158 715,96 MALUTI 46 088 170,23 45 742 185,47 MNAMBITHI 41 731 555,94 1 258 192,50 42 989 748,44 MOPANI 42 692 277,84 42 341 624,42 MOTHEO 83 030 945,92 31 777 466,82 114 808 412,74 MTHASHANA 33 660 220,94 33 559 931,86 NCRURAL 25 548 635,19 25 379 568,41 NCURBAN 27 382 162,87 27 157 258,87 NKANGALA 55 834 148,35 55 464 085,38 NORTHLINK 72 968 257,93 72 381 351,08 ORBIT 82 807 448,32 9 521 271,06 92 328 719,38 PORTELIZABET 43 219 774,54 5 793 727,09 49 013 501,63 SEDIBENG 59 964 087,35 7 933 537,26 67 897 624,61 SEKHUKHUNE 33 320 208,01 33 086 643,91 SOUTHCAPE 31 708 059,47 31 447 624,84 SOUTHWEST 94 601 977,88 93 928 745,42 TALETSO 39 956 285,94 39 628 104,44 THEKWINI 42 410 522,57 1 582 922,16 43 993 444,73 TSHWANE NORTH 85 498 952,55 84 979 530,45 TSHWANE SOUTH 70 691 971,98 70 352 075,45 UMFOLOZI 71 626 213,12 8 388 227,74 80 014 440,86 UMGUNGUNDLOV 35 830 583,86 202 249,35 36 032 833,21 VHEMBE 100 990 195,91 40 479 400,92 141 469 596,83 VUSELELA 43 200 708,39 42 932 029,42 WATERBERG 32 965 365,86 32 732 878,23 WESTCOAST 44 251 464,86 43 888 005,35 WESTERNCOLLE 55 988 795,98 55555210,82 2 582 001 000,00 165 768 616,53 2 735 690 121,12 Summary of payments per university radio

Summary of backlog Highest unsigned NBAs at institutions (Universities) INSTITUTIONS NBA GENERATED NBA SIGNED NBAS NOT SIGNED % UNSIGNED NBAS CAPE PENINSULA UNIVERSITY OF TECHNOLOGY 5163 4288 875 17% UNIVERSITY OF KWAZULU NATAL 9683 8445 1238 13% UNIVERSITY OF THE WITWATERSRAND 3516 3076 440 UNIVERSITY OF PRETORIA 4375 3873 502 11% UNIVERSITY OF FORT HARE 2663 2362 301 radio September 12, 2018 Portfolio Committee on Higher Education and Training

Summary of backlog Highest unsigned NBAs at institutions (TVET Colleges) Institutions NBA Generated NBA SIGNED NBAs Not Signed % Unsigned NBAs NORTHERN CAPE URBAN FET COLLEGE 1574 746 828 53% CENTRAL JOHANNESBURG COLLEGE 2485 1235 1250 50% MNAMBITHI FET COLLEGE 1129 595 534 47% WESTERN COLLEGE 5986 3206 2780 46% NORTHERN CAPE RURAL FET COLLEGE 1770 969 801 45% TSHWANE SOUTH COLLEGE 2385 1327 1058 44% EAST CAPE MIDLANDS 1908 1121 787 41% WEST COAST COLLEGE 2980 1769 1211 EHLANZENI FET COLLEGE 3797 2328 1469 39% COASTAL KZN FET COLLEGE 3115 1912 1203 SEKHUKHUNE FET COLLEGE 2098 1308 790 38% UMGUNGUNDLOVU FET COLLEGE 1713 1112 601 35% MALUTI FET COLLEGE 3016 1977 1039 34% SOUTH WEST GAUTENG COLLEGE 6037 4133 1904 32% TSHWANA NORTH COLLEGE 4318 2969 1349 31% CENTRAL UNIVERSITY OF TECHNOLOGY 3752 2630 1122 30% ESAYIDI FET COLLEGE 1291 905 386 INGWE PUBLIC FET COLLEGE 1504 1057 447 radio September 12, 2018 Portfolio Committee on Higher Education and Training

2019 application status 2019 applications opened – September 03, 2018 and closing date is November 30, 2018 2019 Online applications tested by focus group of matriculants Evaluation of the application will commence as soon as application is submitted to NSFAS The public awareness raised and communication improved More rapid approval process facilitated by third party data providers. e.g. SARS; UIF; SASSA Toll free number 08000 NSFAS Strengthen institutional collaboration Development of students accounts Streamlining of approval processes radio September 12, 2018 Portfolio Committee on Higher Education and Training

2019 application statistics NSFAS Website has recorded 159 268 visits. 47 754 potential applicants have created mynas accounts, which indicates intent to submit applications From opening date September 03, 2018, 33 243 applications for funding were received Over 50 NSFAS officials trained and deployed across the country to assist students Stakeholder engagements TVET College Principals Engagement – September 11, 2018 Financial aid officers and practitioners Engagement – September 10, 2018 University SRC Engagement - September 09, 2018 SAUS - NSFAS Engagement – August 31, 2018 TVET SRC Engagement – September 15, 2018 (next) radio September 12, 2018 Portfolio Committee on Higher Education and Training

Technical Team Necessary technical expertise to provide support during the period of Administration EXPERTISE COMPETENCY AREAS TO ADDRESS Financial management Financial controls and adherence to PFMA Reconciliation of disbursement and adequacy of risk rules and financial controls Process management Lead process engineer Standardization of processes; policies and SOPs Data architecture Data scientists Data integrity and integration across institutions System architecture System design; integration and optimization Responsiveness and real time processing Organization development Design of optimum operational models Organizational redesign and optimization Others social media radio television Social Media September 12, 2018 Portfolio Committee on Higher Education and Training

NSFAS into the future Empowerment of stakeholders Institutional key account managers Students Policy makers Student support and development Process driven organization based on logic business design Systems integration Data integrity Risk assessment using third party validation radio September 12, 2018 Portfolio Committee on Higher Education and Training

THANK YOU radio September 12, 2018 Portfolio Committee on Higher Education and Training