1. PRESENTATION TO THE Standing COMMITTEE ON EDUCATION AND RecreAtion nsfas annual performance plan 2013/14 29 may 2013

2. Presentation Overview
1 Introduction
Strategic Plan and Budget overview 2013
Provide details of Performance in 2012/2013
2 Strategic Plan and Budget 2013/14
Overview of Programmes
Programme strategic objectives, performance indicators, targets and associated budget
Budget summary
3 NSFAS Transformation Programme

3. 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

4. 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 while maximising recoveries and striving to increase the pool of funds
Budget: R
Funding Sources for Total Budget of R
DHET Administration Grant R Business Transformation Budget R
Administration Fees R
2012/2013 Loans and Bursaries Budget R

5. Performance 2012 2012 Students assisted Amount disbursed 383 114
Universities, FET colleges
FET Colleges R
Universities R

6. Programme 1:2013/14 Strategic plan targets/1
Strategic objective
Performance indicator
Strategic plan target
Budget
’000
2013/14 MTEF target
1.1 Improve NSFAS governance to comply with Government legislation and regulations
NSFAS complies with all applicable legislation and regulations and receives no adverse reports with respect to any of these.
100% compliance R
1.2 Ensure each functional unit has a congruent policy and procedures manual so that individual roles and delegations are firmly instilled
All new procedures implemented by 31 March 2014
Complete procedure manual and competent and capable staff to support the new operating model
R 7 146
New procedures fully implemented in all NSFAS functional units

7. Programme 1:2013/14 Strategic plan targets/2
Strategic objective
Performance indicator
Strategic plan target
Budget’0’000
2013/14 MTEF target
1.3 Improve the governance
system to provide a smooth transition from the old to new policy framework
Implementation of 25% of new policies reviewed and required policy refinements done by 31 March 2014
New policy
Framework
R 7 028
Policy implementation monitored for effectiveness and refinements effected
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 of all employees assessed against new performance framework metrics by 31 March 2014
New performance framework
R 2 611
Employee performance assessed against new performance framework metrics

8. Programme 1:2013/14 Strategic plan targets/3
Strategic objective
Performance indicator
Strategic plan target
Budget
’000
2013/14 MTEF target
1.5 Ensure staff have the
appropriate skills and competency base to fulfil its vision and mission
Training requirements for all staff identified during performance assessment process, by 31 December 2013
Skilled and
capable work force
R 9 076
Ongoing competency improvement plan implemented
1.6 Assess the current level of staff skills and competencies to ensure the newly developed operating model is appropriately supported
Prior year performance target – achieved
Complete
Assessment -
Not applicable – prior year target

9. Programme 1:2013/14 Strategic plan targets/4
Strategic objective
Performance indicator
Strategic plan target
Budget
’000
2013/14 MTEF target
1.7 Develop a skilled and trained workforce to provide sustainable delivery
Staff complete relevant training programmes by 31 March 2014 for all training requirements identified during performance assessments and internship programme evaluated
Training
programme and Internships in place
R 500
Staff complete all identified training programmes and internship programme evaluated
1.8 Develop an organisational IT
reference architecture to support and enable the new operating model
Prior year performance target – achieved
New operating
model and reference architecture approved by February 2012 -
Not applicable – prior year target

10. Programme 1:2013/14 Strategic plan targets/5
Strategic objective
Performance indicator
Strategic plan target
Budget
’000
2013/14 MTEF target
1.9 Procure and implement an improved IT system for efficient and effective delivery of services
New Loans and Bursaries Management System implementation evaluated and refinements effected where required by 31 December 2013
A new functional
LMS system R
Refinements identified during evaluation effected
1.10 Develop and implement
processes and procedures for the new operating model to ensure NSFAS fulfils its mandate to students and stakeholders
Policy review process completed for 25% of all policies by 31 March 2014
Approved
policies and procedures
R 500
Policy reviews completed and policy revisions approved

11. Programme 2: 2013/14 Strategic plan targets/1
Strategic objective
Performance indicator
Strategic plan target
Budget
’000
2013/14 MTEF target
2.1 Improve marketing, communications and support for students and prospective students
At least 3 targeted new media marketing and communications initiatives per defined student segment by 31 March 2014
SCM registered marketing provider appointed and new media
programme
implemented
R 9 747
New media campaign targets and reaches each defined student segment
2.2 Develop a student value
proposition per segment to service student needs more effectively
Service impact assessment of student value propositions completed for all defined student segments by 31 December 2013
Research
complete and proposed segments defined R
Student segmentation and value propositions reviewed and refined where required

12. Programme 2: 2013/14 Strategic plan targets/2
Strategic objective
Performance indicator
Strategic plan target
Budget
’000
2013/14 MTEF target
2.3 Create a central applications process through regional offices and other appropriate channels of delivery
Learners/students in 3 regions able to apply for funding through CAP by 30 September 2013
Operational central
applications
process
R 500
Central applications process implemented in 3 regions
2.4 Raise new funding for
undergraduate study, for targeted student programmes, including the “missing middle”.
2 new funding sources confirmed for targeted undergraduate student programmes by 31 December 2013
Increased
funding by R4bn
R 360
New funding sources identified and confirmed for 2015 academic year

13. Programme 2: 2013/14 Strategic plan targets/3
Strategic objective
Performance indicator
Strategic plan target
Budget
’000
2013/14 MTEF target
2.5 Maximize recovery of
outstanding loans from all eligible debtors employed in both the formal and informal sectors of the economy
15% year-on-year increase in recoveries from debtors achieved by 31 March 2014
Recoveries of
R1,5bn achieved
R 9 289
Recoveries of R600 million achieved
2.6 Develop a new programme for unfunded courses of study
B Tech funding programme implemented in all universities of technology offering the qualification from 1 April 2013
New B. Tech funding programme successfully implemented
R 278
B. Tech funding programme implemented, monitored and evaluated.

14. Programme 2: 2013/14 Strategic plan targets/4
Strategic objective
Performance indicator
Strategic plan target
Budget
’000
2013/14 MTEF target
2.7 Develop a new product for specific targeted student
Segments
Funding model implemented successfully by 31 December 2013
New funding model for report
191 and NCV implemented
R 100
Upfront payment of 30% of total funding allocation made to each FET college by 28 February 2013 with matching claims by 30 June 2013

15. Loans and Bursaries Budget
Department of Higher Education and Training (DHET)
2012/13
R 000
2013/14
General allocation
Final Year Programme
Teacher (ring-fenced)
Students with Disabilities
63 000
66 000
SAICA partnership - Thuthuka Fund
34 000
35 955
Truth & Reconciliation Commission Fund
5 173
4 782
FET College Bursaries
National Skills Fund
Department of Basic Education (DBE)
Funza Lushaka Bursaries
Total

16. Loans and Bursaries Budget / cont.
Other funding
R 000
Dept of Social Development – Social Work Bursaries
Dept of Agriculture, Forestry & Fisheries
9 426
11 718
Communicare
200
TBC
Eastern Cape Provincial Government
19 317
Non-Governmental Organisations
25 325
12 950
Nedbank
12 587
Dept of Labour - Ntabankulu Project
945
SETAs
76 000
Total
Grand Total

17. Budget Overview 2012/13 R 000 2013/14 Compensation of Employees 39 656
52 334
Goods and Services
72 616
Communications
4 749
5 585
Consultants, contractors and special services
16 491
10 998
Outside services and maintenance
10 793
14 939
Staff education, training and development
889
3 643
Postage, stationery, computer services
9 996
10 141
Official functions
2 324
2 611
Business development
72 614
24 426
Policies, procedures and training
886
274
Payments for Capital Assets
4 286
5 380
TOTAL

18. NSFAS Transformation Programme background
NSFAS funding has increased significantly since the NSFAS Act in 1999
Growth from R441 million in 1999 to R8,2 billion in 2013
Financial aid to university and FET college students has increased substantially in the past 5 years:
From R3,1 billion for students in 2009
– to R8 billion for over students in 2013
NSFAS structures, policies and systems have not kept pace with growth in funds
Loan Management System developed for TEFSA is outdated, inadequate
AG Disclaimer of Opinion in 2010

19. Background (continued)
Applications annually through Financial Aid Offices not controlled by NSFAS – process developed over time and is deeply flawed
requires ad hoc adjustments such as 30% upfront payments
Inefficiency, fraud and corruption – all applicants means-tested, including learners from Q1, Q2 schools
NSFAS has no direct relationship with students until they have exited
Makes it difficult to recover loans and replenish the pool of funds
Old systems do not manage information or facilitate reporting
Despite the growth in funds, supply still falls far short of demand
Institutions ignore means test results and “topslice” allocations
This achieves access but hinders success
Students are registered but unfunded shortfall estimate R3 billion

20. The new student-centred NSFAS model

21. IT model - scope of the new systems

22. Benefits Centralised means test
Applications checked against government databases DOHA, DSD, SARS, PERSAL
Standardised process
Alignment with admissions and registrations procedures
Visibility of funded learners and returning students early in process
Centralised allowances distribution helps detect and prevent fraud
Improved governance
Student-centred model ensures funding reaches intended beneficiaries
Ability to develop partnerships to link financial aid to work experience, skills development and employment due to technology capabilities

23. Questions and discussion