2. Presentation to Portfolio Committee on Higher Education and Training NSFAS Strategic Plan and Budget 2012/13 25 April 2012 2012

3. Presentation Overview 2012 1. Introduction Contextualise NSFAS Strategic Plan and Budget 2012/13 Discuss NSFAS Strategic Plan and Budget 2012 Provide details of Performance in 2011/2012 2. Strategic Plan and Budget 2012/13 Vision and Mission Overview of Programmes Programme strategic objectives, performance indicators, targets and associated budget Budget summary

4. The context 2012 Year 1 of the MTEF 2012/13 to 2016/17 Strategic Plan and budget Developed in accordance with National Treasury Framework for Strategic and Annual Performance Plans Gives effect to Ministerial Review Committee recommendations Aims to ensure that NSFAS is structured, governed and resourced to fulfill its mandate in terms of the NSFAS Act of 1999 as amended

5. Strategic Plan Overview 2012 Vision By 2014 NSFAS is a model public entity that provides financial aid to all qualifying public university and FET college students from poor and working class families. Mission To transform NSFAS into an efficient and effective provider of financial aid to students from poor and working class families in a sustainable manner that promotes access to, and success in, higher and further education and training in pursuit of South Africa’s national and human resource development goals.

6. Strategic Plan Overview/cont… 2012 Strategic Outcome Oriented Goal 1 An Efficient & Effective public entity in student financial aid and administration Strategic Outcome Oriented Goal 2 Access, Success & Progression to contribute to improving both throughput and pass rate Strategic Outcome Oriented Goal 3 Improved Student Financial Aid Environment

7. Strategic Plan Overview/cont… 2012 Programme One: Administration Purpose: To conduct the overall management of the entity and to provide efficient and effective support services to internal departments Budget: R104 645 691 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: R53 008 310 Funding Sources for Total Budget of R157 654 000 DHET Administration Grant: R81 954 000 Business Transformation Budget: R75 700 000 2012/2013 Loans and Bursaries Budget: R7 425 137

8. Loans and Bursaries Budget 2012 Department of Higher Education and Training (DHET)2011/122012/13 General allocation2 425 5442 480 614 Final Year Programme851 3091 004 000 Teacher (ring-fenced)105 183101 000 Students with Disabilities33 88963 000 SAICA partnership - Thuthuka Fund29 16434 000 Truth & Reconciliation Commission Fund5 7885 173 Historic Debt Relief52 475 FET College Bursaries1 116 5651 734 834 National Skills Fund760 820867 908 Department of Basic Education (DBE) Funza Lushaka Bursaries464 856671 912 Total5 845 5936 962 441

9. Loans and Bursaries Budget Cont…. 2012 Other sources of funding Dept of Social Development - Social Work Bursaries291 424351 000 Department of Agriculture15 2049 426 Communicare229200 Eastern Cape Provincial Government21 40419 317 Non-Government Organisations12 50025 325 Nedbank12 587 Dept of Labour -Ntabankulu Project1 811945 SETAs99 50076 000 Total454 659482 213 Grand Total6 300 2527 444 654

10. Loans and Bursaries Performance 2011/2012 2012 Students assisted Amount DHET - General 121 991 2,425,543,642 DHET - Teacher 4 950 104,913,448 DHET- Disability 1 064 33,888,651 DHET - Final Year Programme 28 234 851,309,391 DHET- Debt Relief 3 450 52,475,366 TOTAL159 6893,468,130,500

11. Prog 1: Administration 2012 Strategic Objective Performance Indicator 2012/13 Target Budget Improve NSFAS governance to ensure full compliance with Government legislation and regulations Comply with all the Acts that govern NSFAS. Receive no adverse reports with respect to any of the above mentioned 100% Compliance R 20 787 341 Ensure each functional unit has a congruent policy and procedures manual so that individual roles and delegations are firmly instilled Procedure manuals developed and training delivered by conclusion of new LMS implementation March 2013 Complete procedure manual and competent and capable staff trained to support the new operating model R 1 302 400

12. Prog 1: Administration/cont… 2012 Strategic Objective Performance Indicator 2012/13 Target Budget Improve the governance system to provide a smooth transition from the old to new policy framework New policy per functional unit to be developed, implemented and adopted by March 2013. Continuous improvement process. Completed new policy per functional unit implemented R 4 441 802 Integrate the new policy into the performance management framework so that executive management and employees are accountable for delivering on the policy Performance framework developed, implemented and adopted by March 2013 Performance framework developed, implemented and adopted R 1 056 000

13. Prog 1: Administration/cont… 2012 Strategic Objective Performance Indicator 2012/13 Target Budget Ensure staff have the appropriate skills and competency base to fulfil its vision and mission Gap analysis and relevant training programmes assessed and developed based on new operating model (during user training of LMS implementation) Competency and skills assessment of staff and relevant training completed by 30 September 2012 Subject to tender procedures. Assess the current level of staff skills and competencies to ensure the newly developed operating model is appropriately supported “As is “ skills assessment completed Monitor and evaluate staff performance and necessary staff interventions made R 1 689 600

14. Prog 1 Administration/cont… 2012 Strategic Objective Performance Indicator 2012/13 Target Budget Develop a skilled and trained workforce to provide sustainable delivery Continuous training programme developed by functional unit for training by March 2013; this includes an internship programme Training programme developed R 1 774 080 Develop an organisational IT reference architecture to support and enable the new operating model New operating model and reference architecture approved by February 2012 Design and Implement model R 2 972 640

15. Prog 1: Administration/cont… 2012 Strategic Objective Performance Indicator 2012/13 Target Budget Procure and implement an improved IT system for efficient and effective delivery of services Complete process design by March 2013, procure solution by April 2012, and implement new LMS by March 2013 Design and Implement model Subject to tender procedures. Develop and implement processes and procedures for the new operating model to ensure NSFAS fulfills its mandate to students and stakeholders Developed during LMS implementation and workforce transition plan deployed during user training phase November 2012 Roll out new policies and procedures and initiate workforce training Subject to tender procedures.

16. Prog 2: Student Centred Financial Aid 2012 Strategic Objective Performance Indicator 2012/13 Target Budget Improve marketing, communications and support for students and prospective students Consult with digital media provider. Tender issued for new digital media programme February 2012. Appointment of service provider. Media provider appointed and new media plan developed and implemented Subject to tender procedures. Develop a student value proposition per segment to service student needs more effectively Research complete and proposed segments defined. Student value proposition developed per segment Subject to tender procedures.

17. Prog 2: Student Centred Financial Aid/cont… 2012 Strategic Objective Performance Indicator 2012/13 Target Budget Create a central applications process through regional offices and other appropriate channels of delivery Design of CAP aligned with detailed process design for LMS. Pilot for CAP will be aligned with DHET central admissions pilot in KZN. Other provinces will follow as per rollout plan Central applications process piloted on KZN model Raise new funding for undergraduate study, for targeted student programmes, including the “missing middle”. Additional private sector education investment by March 2013 Initial 20% of existing funding for "missing middle" secured by 30 June 2012

18. Prog 2: Student Centred Financial Aid/cont… 2012 Strategic Objective Performance Indicator 2012/13 Target Budget Maximize recovery of outstanding loans from all eligible debtors employed in both the formal and informal sectors of the economy Establishment of new credit management function headed up by a senior credit practitioner. Development of a tracking and collecting initiative by February 2012 Recoveries of R1bn achieved R 18 376 934 Develop a new programme for unfunded courses of study New B. Tech funding programme by June 2012 Develop a new product for specific targeted student segments New funding model for report 191 and NCV by June 2012

19. Budget Overview 2012 2011/12 (000)2012/13 (000) Compensation of Employees24 29535 920 Goods and Services52 257118 789 Communications8 201 9 449 Consultants, contractors and special services15 496 11 566 Outside services and maintenance 2 682 9 860 Staff education, training and development624 889 Postage, stationery, computer services3 344 9 996 Official functions 2 170 2 029 Business development9 881 74 114 Policies, procedures and training118886 Organisational turnaround9 7410 Payments for Capital Assets8322 945 TOTAL77 384157 654