Presentation for Set 4: Day One 14 November 2016 Presentation - - PowerPoint PPT Presentation
COMMISSION OF INQUIRY INTO HIGHER EDUCATION AND TRAINING: STUDENT FUNDING Presentation for Set 4: Day One 14 November 2016 Presentation Overview 1 A legacy of investing in human potential 2 Regulatory Framework 3 Historical overview of
14 November 2016
COMMISSION OF INQUIRY INTO HIGHER EDUCATION AND TRAINING: STUDENT FUNDING
A legacy of investing in human potential
Regulatory Framework
Historical overview of funding of NSFAS
Strategic planning within NSFAS
Funding model for university students
Funding model for TVET students
Procedures governing applications for NSFAS funding
Exec Coaching Delegations Staff sessions
TONEFRO M THE TOP BUILDING A TEAM ETHOS
SMF PMO NCOs
Accessibility Transparency Affordability Reliability Authenticity
A model public entity that provides financial aid to all eligible public university and Technical and Vocational Education and Training College (TVET) students from poor and working class families.
Accessibility Transparency Affordability Reliability Authenticity
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.
External Values for our Students and Stakeholders:
allows efficient, effective and direct access to NSFAS and the funding it provides to eligible students.
students and stakeholders.
students to study at public universities and TVET colleges.
strive to deliver on our mandate.
stakeholders by offering quality services and information. Internal Values for our staff and organization:
stakeholders, and support clients that uphold the same values.
actions that drive performance management.
respect and fairness.
communicating with and serving students.
Accessibility Transparency Affordability Reliability Authenticity
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Right student Right amount Right time
succeed
“ in”
“ through”
minimum time
right skills
“
Funding Application/ Origination Service/ Maintain Payment Collection
Applicant Debtor Student
management, governance and administration of NSFAS.
loans and bursaries to eligible students at public HEIs and for the administration of such loans and bursaries.
loans.
advise the Ministry
Helping students build a brighter tomorrow
Accessibility Transparency Affordability Reliability Authenticity
FIVE YEAR STRATEGIC OUTLOOK
culture
AND
bursaries NSFAS Act 56 of 1999 NSFAS’ MANDATE
Providing loans and bursaries to eligible students; Developing criteria and conditions for the granting of
loans and bursaries to eligible students in consultation with the Minister of Higher Education and Training;
Raising funds; Recovering loans; Undertaking research to improve the utilisation of
financial resources;
Advising the Minister of Higher Education and Training
Performing other functions assigned to it by the NSFAS
Act or by the Minister.
20
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Monitors performance of NSFAS in terms of its mandate Requires timely reporting Bilateral discussions on policy – as this relates to the sector and student aid Expenditure must be in line with approved budget Review and monitors performance of NSFAS in terms of its mandate Provides funding for the sector as a whole Compliance with the National Credit Act Registration of student debts Review of financial statements – providing audit assurance Ensuring compliance with legislation irt revenue management, debt recovery and public expenditure Reviews APP plan to ensure alignment in KPIs with strategic plan Reviews performance in respect to NSFAS mandate Requires timely reporting
AUDITOR-GENERAL of SOUTH AFRICA NCR MINISTER OF FINANCE DHET and BOARD
PCHET/ SELECT COMMITTEE/PARLIAMENT
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DISABILITY SERVICES
DEPARTMENT OF HIGHER EDUCATION AND TRAINING (DHET) – GOVERNING THE SECTOR
STUDENTS FINANCIAL AID UNIVERSITY MANAGEMENT
SAUS FAPSA HEDSA Universities SA COUNCIL FOR HIGHER EDUCATION (CHE) – QUALITY ASSURING THE SECTOR
South African Qualifications Authority (register qualifications on the NQF, maintain NLRD)
Quality Council for Trades and Occupations (quality of workplace training)
Human Resource Development Council (ensuring programmes are streamlined)
National Skills Authority (implement NSDS)
Parliament and the Portfolio Committee on Higher Education and Training
National Treasury
2007 2003 1999
R441m 68 362 students funded in this year 29 176 students funded since inception Average loan R6 451
NSFAS Act promulgated
R893m 96 552 students funded in this year 44 300 students funded since inception Average loan R9 255
First task team appointed to determine impact of Scheme by DoE
R1,76bn. 125 897 students funded in this year 57 837 students funded since inception Average loan/bursary R13 979
Introduced new bursary funding – TVET Colleges, Teachers (Funza Lushaka), Social Workers (DSD)
R21m 7 220 students Average loan R2 977
Inception - TEFSA
2009
R3,15bn 191 035 students funded in this year (TVET and university) 97 700 students funded since inception Average loan/bursary R16 513
10 years as NSFAS
1991 2010
Ministerial Review report released
6 universities + 22 TVET colleges (approximately 30%) #FeesMustFall escalates despite increase in funding for historic debt Secondment of the banking sector skills to increase capacity February budget: Additional R4.5bn is made available for student funding October mid-term budget: Additional R9,2bn is made available for student funding over the MTEF period.
Phase II of implementation of student centred model
6 universities + 11 TVET colleges 414 949 students funded in this year R59,8m disbursed since 1991 #RhodesMustFall #FeesMustFall Increase in recoveries late in year as a result of new strategy
Continued implementation of student-centred model
6 universities and 11 TVET colleges using the new student-centred model – Pilot year 15% of students - +- 65 000 students R8,96bn 414 802 students funded in this year 229 600 students funded since inception Average loan/bursary R21 906
First year of implementation of student-centred model
R8,7bn 416 180 students funded in this year 201 495 students funded since inception Average loan/bursary R20 907 Over R41,2bn since 1991 SETA funding introduced
Design phase of student-centred model
2016 2015
2014 2013
Exec Coaching Delegations Staff sessions
TONEFRO M THE TOP BUILDING A TEAM ETHOS
SMF PMO NCOs
Accessibility Transparency Affordability Reliability Authenticity
Parliament Department of Higher Education and Training Other State Donors: DBE, DSD, SETA,
Private Donors University
NSFAS
Debtors SARS Employers
Appropriated Funds Ring-fenced grants and/or levy-funded grants 3-yr rolling grant allocation Tranche payments
Sets aside funding commitments – DHET, NSF
Repayments via universities
Students enter labour market Recoveries – capital + interest (re-injected) Employment trigger for repayment
LN1 FL1 LN2 FL2 LN4 FL3
Slide 17 LN1 I dont under the ring-fenced section....what are we trying to communicate here?
Lerato Nage, 12-Nov-2016
FL1 We are trying to differentiate between the appropriation of funds which is what NSFAS receives through DHET (in other words, Treasury/Parliaments makes the determination of how much of the money goes to NSFAS), and the ringfencing of funds by other state donors for NSFAS - this ring-fencing is out of their appropriated funds, but in the appropriation from Treasury, these depts do not get a specific allocation for NSFAS - they create an allocation for NSFAS
Fiona Lewis, 12-Nov-2016
LN2 Recoveries - capital + interest....i dont quite follow how this calc works and what we are trying to communicate? would it not be best if we said: Net Amount Gross disbursed - bursary component - credit refund - interest benefit + interest = re-injection
Lerato Nage, 12-Nov-2016
FL2 It should actually read: recoveries = capital + interest
Fiona Lewis, 12-Nov-2016
LN4 we need to add a link to the HOME AFFAIRS over and above the SARS link.
Lerato Nage, 12-Nov-2016
FL3 But I am not sure how Home Affairs help us to trace debtors? This loop is meant to demonstrate how the SARS connection helps NSFAS identify employers so that we can trigger repayment.
Fiona Lewis, 12-Nov-2016
funded over 25 years
increased from less than 5% in 2000 to 70% in 2013
students received 87%
from NSFAS
DHET R6,3bn
(PY R4,3bn)
DBE R995m
(PY R941m)
Universities
R311m
Other gov. depts. R483m
(PY R292m)
SETAs
R259m Deferred income recognised R254m
NSF R785m
Funza
LN6 FL4
Slide 19 LN6 WHERE IS KGODISO AND HISTORIC DEBT NUMBERS?
Lerato Nage, 12-Nov-2016
FL4 This was not part of the 2015/16 funding cycle. I have not used current 2016/17 numbers, only the audited 2015/16 as per the annual report.
Fiona Lewis, 12-Nov-2016
1 2 3 4 5 6
centred model……
Helping students build a brighter tomorrow
Accessibility Transparency Affordability Reliability Authenticity
Strategic Goal 1
An efficient and effective public entity in providing student financial aid GOAL STATEMENT: To implement effective and efficient processes and operations to ensure stakeholder objectives are met PERFORMANCE INDICATOR: NSFAS receives a clean audit report annually.
Strategic Goal 2
Increased access to higher education and improved student financial aid environment GOAL STATEMENT: To increase access to funding for eligible students by raising funds, maximizing loan recoveries and creating a student-centred loans and bursaries model through improved communication support for students and a central application process. PERFORMANCE INDICATORS: Increased total number of student loans and bursaries; and Augmented capital available for disbursement.
FIVE YEAR STRATEGIC OUTLOOK
laws and regulations
Helping students build a brighter tomorrow
and the NSFAS Executive Management
includes external and internal environmental scanning
chain
in accordance with SMART principles
Strategic Outcome Oriented Goals Goal 1: An efficient and effective public entity in providing student financial aid Goal 2: Increased access to higher education and improved student financial aid environment Goal Statement To implement effective and efficient processes and operations to ensure stakeholder objectives are achieved To increase access to funding for eligible students by raising funds, maximising loan recoveries and creating a student centred loans and bursaries model through improved communication support for students and a central application process Outcomes
and controls
governance structures
employees
students
communications and relations
Performance Indicator NSFAS receives a clean audit report annually
loans and bursaries
disbursement
Accessibility Transparency Affordability Reliability Authenticity
Funding for first opportunity access
First undergraduate degrees or diplomas, AND postgrads limited to that required for professional registration and employment in a professional field
Funding the “right” amount
Tuition fees, accommodation fees, meals, learning support materials costs, and allowances for students with disabilities. Loans/bursaries from NSFAS capped at an average calculated on the basis of projected costs for the following year.
Increased from R13 00 (1999) to R71 800 (2016)
What does “free” mean?
All education must be paid for – by someone, through some means. Policy choice therefore “who pays”, “when do they pay” and “how much”
Who should receive?
Need to prioritise applicants with appropriate mix of academic excellence and financial need. Using means testing for targeted assistance AND to determine how much each receives. Use of multiple proxies to be considered (race, income, schools etc).
Receives allocation Receives upfront payment Awards loans Pays allowances Submits claim to NSFAS Checks claim Pays claim
loan value determined by NSFAS means test.
Student applies
and other channels Ranked after results and provisionally funded Registration Signs online Loan Agreement/ Schedule of Particulars Allowances paid within 48 hours Confirm returning student listing – no application required Ranked after results and provisionally funded Registration Allowances paid within 48 hours
NSFAS
status before registration
course of study
What is changing?
The process of applying for financial assistance through NSFAS through multiple platforms –
( Loans and Bursaries)
Our ability to track and keep in contact with students from time
Our ability to track and keep in contact with students from time
Disbursement process for fees and allowances Disbursement process for fees and allowances The process of signing for loan and bursaries The process of signing for loan and bursaries Student Experience Student Experience
Helping students build a brighter tomorrow
Academic eligibility Financial eligibility Registration Origination
Grade 12 learners who receive Bachelors pass
meet the university academic admission requirements Students may be means-test waived (quintiles and/or SASSA grant status) or means- tested Determine EFC Once advised of their provisional funding status, students MUST register at the university BEFORE they will be able to access loan funding Grade 12 learners considering university and applying for NSFAS Funded NSFAS students
Evaluation Ranking & Funding
Check if all supporting documents are received If docs are missing, send e- mail and sms to students Match Application information with supporting documents Perform means test
Process Registration Online Loan Agreement Loan Creation Disbursement Verified App List of registered students Registered Students On NSFAS Online Application Supporting docs Signed SOP LAFS Loan agreement in place
Rank students per institute and per study cycle Identify which students will funded and not funded Send funded & unfunded list of students to the institutions and request registration details of funded Upload list of registered students from institutes Check and fix errors that arises from the uploaded list Match quotation fees to the actuals Send notification to students that LAFs (Loan Agreement Form)
SOP (Schedule
bursary) are ready for sign off. One agreement for duration of qualification N+2 Create a profile
system and record loan agreement (All systematic) Send vouchers to students via SBUX for :
Tuition gets paid directly to the institutions. Loan a/c debited per disbursement
Recommended loan size Full cost
Expected family contribution Other bursaries
% of African students.
% of African students in universities has increased from 4,84% in 2000 to 70,1% in 2013. African students account for 87% of NSFAS funding.
Types of qualifications.
3-year and 4-degrees make up 52% of the qualifications from universities since 2005. Diploma programmes represent 40%, with the balance being a small number of postgraduate programmes.
11%
% of students funded.
In 2000, NSFAS funded 83 251 students in higher education of 441 504 (19%). In 2015, NSFAS funded 178 961 students in higher education of 756 356 (24%)
Increase in average FCS.
From 2003 to 2015, NSFAS annual cap has increased from R20 000 to R67 200 (average annual growth of11%). CPI in same time = 5,6%
Programme costs are approved by the DHET annually ito funding norms DHET makes allocation to each college on the basis of enrolment for Report 191 and NCV Bursary covers the 20% student own contribution to tuition
Accessibility Transparency Affordability Reliability Authenticity
NCV and Report 191 programmes (both highest NQF level = 4)
learners into vocational education and training
students in these programmes are funded by NSFAS
A guide for administering student financial aid
Accessibility Transparency Affordability Reliability Authenticity LN7 FL5
Slide 37 LN7 i would suggest you add salient features of the NSFAS Handbook...... Make reference to Circulars as a form of communication by NSFAS to Institutions The new SLA between the NSFAS and Institutions to govern the workings of the student centered model......
Lerato Nage, 12-Nov-2016
FL5 Good point - added a new slide. (see next slide)
Fiona Lewis, 12-Nov-2016
NSFAS deploys a number of strategies during the year to reinforce the implementation of the processes and procedures
Administration Agreements:
NSFAS has MoAs in place with the institutions – both TVET colleges and universities – to administer the funding allocated by NSFAS. Will be updated this year for 2017 to govern processes for the student- centred model.
Regular update via Circulars:
Circulars throughout the year reinforce and remind universities and TVET colleges of the obligations in respect to the Handbook.
Regular workshops:
Training sessions – both regionally and nationally – with Financial Aid Offices, ICT, Disability units.
Stakeholder Forums:
Including Universities South Africa, student bodies, monthly engagements with the Registrars, regular communications with the Marketing and Communications depts of the universities.
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Audits:
Annual compliance audits. Forensic and/or risk audits.
Visits to Institutions:
Regular visits from different units within NSFAS to the universities and TVET Colleges - sBux, Loans and Bursaries, Contact Centre, Communications