Presentation Overview

PRESENTATION TO THE STANDING COMMITTEE ON EDUCATION AND RECREATION

NSFAS ANNUAL PERFORMANCE PLAN 2013/1429 MAY 2013

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Presentation Overview

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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

PROGRAMME ONE: Administration

Purpose: To conduct the overall management of the entity and to provide efficient and effective support services to internal departments

Budget: R98 551 000

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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: R31 778 000

Funding Sources for Total Budget of R 130 329 000DHET Administration Grant R 87 676 000Business Transformation Budget R 24 700 000Administration Fees R 17 953 0002012/2013 Loans and Bursaries Budget R8 142 376 000

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Strategic Plan Overview

Performance 2012

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2012 Students assisted Amount disbursed

383 114 R7 710 870 823

Universities, FET colleges

FET Colleges

188 610R1 805 509 701

Universities 194 504 R5 905 361 121

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 30 375100% compliance

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

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Strategic objective



Budget’0’000

2013/14 MTEF target

1.3 Improve the governancesystem 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 policyFramework

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

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Strategic objective



Budget’000

2013/14 MTEF target

1.5 Ensure staff have theappropriate 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 andcapable work

forceR 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

CompleteAssessment

-Not applicable – prior year target

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Strategic objective



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

Trainingprogramme and Internships in place

R 500

Staff complete all identified training programmes and internship programme evaluated

1.8 Develop an organisational ITreference architecture to support and enable the new operating model

Prior year performance target – achieved

New operatingmodel and reference architecture approved by February 2012

-Not applicable – prior year target

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Strategic objective



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 functionalLMS system

R 41 314

Refinements identified during evaluation effected

1.10 Develop and implementprocesses 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

Approvedpolicies and procedures

R 500

Policy reviews completed and policy revisions approved

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Programme 2: 2013/14 Strategic plan targets/1

Strategic objective



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 mediaprogrammeimplemented

R 9 747

New media campaign targets and reaches each defined student segment

2.2 Develop a student valueproposition 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

Researchcomplete and proposed segments defined

R 8 153 881

Student segmentation and value propositions reviewed and refined where required

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Strategic objective



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 centralapplicationsprocess

R 500

Central applications

process implemented in

3 regions

2.4 Raise new funding forundergraduate study, for targeted student programmes, including the “missing middle”.

2 new funding sources confirmed for targeted undergraduate student programmes by 31 December 2013

Increasedfunding by R4bn

R 360

New funding sources identified and confirmed for 2015 academic year

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Strategic objective



Budget’000

2013/14 MTEF target

2.5 Maximize recovery ofoutstanding 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 ofR1,5bn achieved

R 9 289Recoveries 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.

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Strategic objective



Budget’000

2013/14 MTEF target

2.7 Develop a new product for specific targeted studentSegments

Funding model implemented successfully by 31 December 2013

New funding model for report191 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

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Department of Higher Education and Training (DHET)

2012/13R 000

2013/14R 000

General allocation 2 480 614 2 754 234

Final Year Programme 1 004 000 1 120 000

Teacher (ring-fenced) 101 000 106 000

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 1 734 834 1 988 434

National Skills Fund 867 908 400 000

Department of Basic Education (DBE)

Funza Lushaka Bursaries 671 912 893 867

Total 6 962 441 7 369 272

Loans and Bursaries Budget

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Other funding R 000 R 000

Dept of Social Development – Social Work Bursaries

351 000 250 000

Dept of Agriculture, Forestry & Fisheries 9 426 11 718

Communicare 200 TBC

Eastern Cape Provincial Government 19 317 TBC

Non-Governmental Organisations 25 325 12 950

Nedbank 12 587 TBC

Dept of Labour - Ntabankulu Project 945 TBC

SETAs 76 000 TBC

Total 482 213 274 668

Grand Total 7 444 654 7 643 940

Loans and Bursaries Budget / cont.

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2012/13 R 000

2013/14 R 000

Compensation of Employees 39 656 52 334

Goods and Services 118 742 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 162 684 130 329

Budget Overview

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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 191 040 students in 2009

– to R8 billion for over 400 000 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

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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 reportingDespite 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 - 2013 shortfall estimate R3 billion

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The new student-centred NSFAS model

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IT model - scope of the new systems

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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

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Questions and discussion

Documents

Presentation Overview