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PRESENTATION TO THE Standing COMMITTEE ON EDUCATION AND RecreAtion nsfas annual performance plan 2013/14 29 may 2013. Presentation Overview. 1 Introduction Strategic Plan and Budget overview 2013 Provide details of Performance in 2012/2013 2 Strategic Plan and Budget 2013/14
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PRESENTATION TO THE Standing COMMITTEE ON EDUCATION AND RecreAtionnsfas annual performance plan 2013/1429 may 2013
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
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: R98 551 000
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 130 329 000 DHET Administration Grant R 87 676 000Business Transformation Budget R 24 700 000 Administration FeesR 17 953 000 2012/2013 Loans and Bursaries Budget R8 142 376 000
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policies and systems have not kept pace with growth in funds • Loan Management System developed for TEFSA is outdated, inadequate • AG Disclaimer of Opinion in 2010
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 - 2013 shortfall estimate R3 billion
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
