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

2. 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

3. 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

4. Total Budget 2011/12
R’000
2010/2011
2011/2012
Loan and bursary allocations
Administration
78 093
77 384
Total

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

6. Detailed budget overview 2011/12
Department of Higher Education and Training (DHET)
R’000
General allocation
Final Year Funding
Teacher (ring-fenced)
96 206
Students with Disabilities (100% bursaries)
60 000
SAICA partnership - Thuthuka Fund
27 831
FET College Bursaries
NSFAS administration
77 384
Department of Basic Education (DBE)
Funza Lushaka Bursaries (teacher work back)
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***
Department of Agriculture
5 000
Communicare
130
Eastern Cape Provincial Government
22 000
NSFAS re-injection of recoveries and investment income
Total

7. 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 R R
Additional funding - FYP R R R R R R
Additional funding for the Final Year Programme
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

8. Further Education & Training
2011/2
2012/3
2013/4
FETCs R R R
Additional funding R R R R R
Full cost bursaries
Estimated number of students:
Report 191 student numbers:
National Certificate (Vocational):

9. Objective 2
Strengthening efficiencies in the processing of student awards and claims to ensure that funding reaches target groups
Strategic objective 2 R

10. Unspent funds
Outcome 3 - Maximise the utilisation of allocated donor funds by institutions
2008
2009
2010
DHET-General
 R  
 R 
 R 418
DHET-Disability
 R 
 R 
 R 0
DHET-Teacher
 R 
 R 
 R 0
TOTAL
 R 
 R 

11. 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 R
NGO partners

12. 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

13. 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

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

15. 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

17. Objective 3
Strengthening the quality of internal management and operations in line with changing funding patterns
Strategic objective 3 R

18. 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 Completed audits at 20 universities
Identified 10 high risk FET colleges
2011/12
April remaining 3 university audits to be finalised
April-May risk-based institutional audits at 10 FETCs

19. 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

20. Objective 4
Effectively communicating and managing the relationship with all NSFAS stakeholder groups and targeted audiences
Strategic objective 4 R

21. 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

22. Raising awareness

23. 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
284
2009
762
2010
1 040

24. Financial aid for students with disabilities

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

26. 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

27. 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)

28. 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

29. 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

30. Turnaround budget 2011/12 Administration of Final Year Programme & R
Additional FET college funding
Loan Management System development, IT infrastructure & maintenance
Disaster recovery
Human resources
Communications
Total