1. National Student Financial Aid Scheme Presentation to the Portfolio Committee on Higher Education and Training Budget and Annual Performance Plan 2014/15

2. Presentation Overview 1.Introduction NSFAS mandate and background Vision, mission, values, partners Strategic focus Student-centred model 2.Annual Performance Plan and Budget 2014/2015 Strategic goal and plan Overview of Programmes Programme strategic objectives, performance indicators, targets and associated budget Budget 2

3. About NSFAS NSFAS is a public entity reporting to the Department of Higher Education and Training, governed by the NSFAS Act (56 of 1999) Since inception in 1991, NSFAS has disbursed more than R 41,5 billion in loans and bursaries to 1,4 million students 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 3

4. NSFAS Mandate 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 4

5. 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 5

6. Partners Department of Higher Education and Training –National Skills Fund –Sector Education and Training Authorities 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 6

7. 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. 7

8. 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. 8

9. National Student Financial Aid Scheme Strategic Objectives

10. 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 Last year of implementation of 5 year strategy 10

11. 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 11 Strategic Plan Overview

12. 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 R 151 318 million DHET Administration GrantR 116 200 million Business Transformation Budget R 7 483 million Administration FeesR 27 635 million 12 Strategic Plan Overview

13. Programme 1: Administration 13 Strategic ObjectivePerformance Indicator Annual Budget R‘000 Annual Target 1.1 Improve NSFAS governance to comply with Government legislation and regulations Full compliance with relevant legislation 64 274 (1.1 -1.4) Full compliance as detailed in NSFAS compliance plan 2014 1.2 Ensure each functional unit has a congruent policy and procedures manual so that individual roles and delegations are firmly instilled Key policies and procedures in place All prioritised policies and procedures approved

14. Programme 1: Administration 14 Strategic ObjectivePerformance Indicator Annual Budget R’000 Annual Target 1.3Improve the governance system to provide a smooth transition from the old to new policy framework Improved audit outcomes 64 274 (1.1 -1.4) Full implementation of the NSFAS audit improvement plan 2014 1.4Integrate the new policy into the performance management framework so that executive management and employees are accountable for delivering on the policy

15. Programme 1: Administration 15 Strategic ObjectivePerformance Indicator Annual Budget R‘000 Annual Target 1.5 Ensure staff have the appropriate skills and competency base to fulfill the entity’s vision and mission Improved employee performance management 9 492 Employee Performance Management system implemented 1.6* Assess the current level of staff skills and competencies to ensure the newly developed operating model is appropriately supported Improved employee engagement Employee engagement measured, intervention/s developed and the impact of the intervention/s assessed 1.7Develop a skilled and trained workforce to provide sustainable delivery

16. Programme 1: Administration 16 Strategic ObjectivePerformance Indicator Annual Budget R‘000 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

17. Programme 1: Administration 17 Strategic ObjectivePerformance Indicator Annual Budget R‘000 Annual Target 1.10 Develop and implement processes and procedures for the new operating model to ensure NSFAS fulfils its mandate to students and stakeholders An increase in the number of students migrated to the new student-centred model 26 799 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 Allowances paid to all qualifying students on the new student- centred model on time Allowances paid to all qualifying students on the new student-centred model within 7 days of due date of the allowance

18. Programme 2: Student-centred financial aid 18 Strategic ObjectivePerformance Indicator Annual Budget R‘000 Annual Target 2.1 Improve marketing, communications and support for students and prospective students Improved processing and payment of claims from Universities and FET colleges 8 413 834 90% claims paid within 30 days of receipt provided funding is available 2.2 Develop a student value proposition per segment to service student needs more effectively Learners in no-fee schools reached 36 no-fee schools reached through various types of communications media and awareness campaigns 2.3 Create a central applications process through regional offices and other appropriate channels of delivery Improved student satisfaction Student satisfaction measured, intervention/s developed and the impact of intervention/s assessed

19. Programme 2: Student-centred financial aid 19 Strategic Objective Performance Indicator Annual Budget R ‘000 Annual Target 2.4 Raise new funding for undergraduate study, for targeted student programmes, including the ‘missing middle’. An increase in the sources of funding 454 Two new sources of funding secured 2.5 Maximise recovery of outstanding loans from all eligible debtors employed in both the formal and informal sectors of the economy An increase in the amount of funds recovered from debtors 4 540R467m 2.6 Develop a new programme for unfunded courses of study New programmes/ products implemented 207 One new programme / product implemented 2.7 Develop a new product for specific targeted student segments

20. Loans and Bursaries Budget 20 Department of Higher Education and Training 2013/14 R 000 2014/15 R 000 General allocation3 031 7052 919 488 Final Year Programme1 106 1621 187 200 Teacher (ring-fenced)106 497112 360 Students with Disabilities60 61166 000 SAICA partnership - Thuthuka Fund37 16936 820 Truth & Reconciliation Commission Fund1 0153 977 FET College Bursaries1 939 6512 107 739 National Skills Fund837 340755 186 Department of Basic Education Funza Lushaka Bursaries890 104946 419 Other funders680 519715 000 Total 8 690 7738 850 189

21. 2013/14 R 000* 2014/15 R 000 Compensation of Employees65 39478 920 Goods and Services115 80165 764 Communications3 3944 209 Consultants, contractors and special services 13 12713 083 Outside services and maintenance13 82421 568 Staff education, training and development1 9903 341 Postage, stationery, computer services 6 74112 487 Official functions 3 2613 093 Business development 73 4667 483 Payments for Capital Assets5 6456 634 Total186 840151 318 * Revised budget figures Budget Overview 21

22. 22 The doors of learning and culture shall be opened! Freedom Charter, 1955