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 funding of NSFAS 4 Strategic planning within NSFAS 5 Funding model for university students 6 Funding model for TVET students Procedures governing applications for NSFAS 7 funding
A legacy of investing in human potential The journey from 1991 to 2016
Accessibility Transparency Affordability Reliability Authenticity Vision A model public entity that provides financial aid to all eligible public university TONEFRO and Technical and Vocational Education BUILDING M THE and Training College (TVET) students from A TEAM TOP ETHOS poor and working class families. SMF Exec Coaching PMO Delegations NCOs Staff sessions
Accessibility Transparency Affordability Reliability Authenticity 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.
Accessibility Transparency Affordability Reliability Authenticity Values External Values for our Students and Internal Values for our staff and organization: Stakeholders: • • Accessibility - We create an environment that Integrity - We act with integrity towards all allows efficient, effective and direct access to stakeholders, and support clients that uphold the NSFAS and the funding it provides to eligible same values. • students. Accountability - We take responsibility for our • Transparency - We are open and honest with all actions that drive performance management. • students and stakeholders. Respect - We treat all our staff members with • Affordability - We offer affordable solutions for respect and fairness. • students to study at public universities and TVET Innovation - We strive to innovate in colleges. communicating with and serving students. • Reliability - We honour our commitments and strive to deliver on our mandate. • Authenticity - We protect our students and stakeholders by offering quality services and information.
Translating our vision into a value chain Right Right time student “ through ” • • Right Potential to Within succeed • minimum time amount Support • • Employable – Poor households • Funding success right skills • Coverage of cost “ in ” “ out ” Application/ Service/ Funding Payment Collection Origination Maintain Debtor Applicant Student 17
NSFAS ’ regulatory framework Demonstrating our commitment to delivering our mandate within the broader national legislative context
NSFAS Act 56 of 1999 Purpose of Helping students build a brighter tomorrow the Act � Provide for the management, governance and administration of NSFAS. � Provide for the granting of loans and bursaries to eligible students at public HEIs and for the administration of such loans and bursaries. � Provide for the recovery of loans. � Carry out research and advise the Ministry
Accessibility Transparency Affordability Reliability Authenticity NSFAS Act 56 of 1999 FIVE YEAR STRATEGIC OUTLOOK NSFAS ’ MANDATE � Improved stakeholder satisfaction � Providing loans and bursaries to eligible students; � Enhanced employee engagement and organisational � Developing criteria and conditions for the granting of culture loans and bursaries to eligible students in consultation � Focus on policy and research with the Minister of Higher Education and Training; � Turning around negative trajectory of loan recoveries � Raising funds; � Effective roll out of the student centred model to 100% � Recovering loans; of all public Institutions by academic year 2018 � Undertaking research to improve the utilisation of � Strengthening compliance with laws and regulations financial resources; � Advising the Minister of Higher Education and Training AND on matters relating to student financial aid; and � Improve fund-raising capability � Performing other functions assigned to it by the NSFAS � Improve efficiencies in the disbursement of loans and Act or by the Minister. bursaries 20
Timeline – NSFAS Act 56 of Regulatory Framework 1999
Key Regulatory Stakeholders � Monitors performance of NSFAS in terms of its mandate � Requires timely reporting DHET and BOARD � 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 MINISTER OF FINANCE � Provides funding for the sector as a whole � Review of financial statements – providing audit assurance � Ensuring compliance with legislation irt revenue management, debt recovery AUDITOR-GENERAL of SOUTH AFRICA and public expenditure � Reviews APP plan to ensure alignment in KPIs with strategic plan � Reviews performance in respect to NSFAS mandate PCHET/ SELECT � Requires timely reporting COMMITTEE/PARLIAMENT � Compliance with the National Credit Act NCR 22 � Registration of student debts
Who are key Parliament and the Portfolio Committee on Higher Education and Training • performance in terms of the NSFAS mandate partners and • timely submission of required documents stakeholders DEPARTMENT OF HIGHER EDUCATION AND TRAINING (DHET) – GOVERNING THE SECTOR in PSET? Universities SA HEDSA FAPSA SAQA – � South African SAUS Qualifications Authority (register qualifications on the NQF, maintain NLRD) QCTO – � Quality Council for Trades and Occupations (quality of workplace training) DISABILITY UNIVERSITY STUDENTS HRDC – FINANCIAL AID � Human SERVICES MANAGEMENT Resource Development Council (ensuring COUNCIL FOR HIGHER EDUCATION (CHE) – programmes are QUALITY ASSURING THE SECTOR streamlined) NSA – � National Skills National Treasury Authority (implement • expenditure against the approved budget 23 NSDS) • performance in terms of the NSFAS mandate
Historical overview of funding of NSFAS Mapping our funding platform over 25 years – making a difference to the lives of students from 1991 to 2016
25 years of funding students First task team appointed to determine impact of Scheme by DoE 1991 R893m 96 552 students funded in this year Inception - TEFSA 44 300 students funded since inception Average loan R9 255 R21m 7 220 students Introduced new bursary funding – TVET Colleges, Teachers Average loan R2 977 (Funza Lushaka), Social Workers (DSD) 2003 R1,76bn. 125 897 students funded in this year 57 837 students funded since inception Average loan/bursary R13 979 2007 1999 10 years as NSFAS R3,15bn 191 035 students funded in this year (TVET and 2009 university) 97 700 students funded since inception Average loan/bursary R16 513 NSFAS Act promulgated R441m 68 362 students funded in this year 2010 29 176 students funded since inception Ministerial Review Average loan R6 451 report released
25 years of funding students First year of implementation of student-centred model 2013 6 universities and 11 TVET colleges using the new student-centred model – 2014 Pilot year 15% of students - +- 65 000 students R8,96bn 414 802 students funded in this year Design phase of student-centred 229 600 students funded since inception model Average loan/bursary R21 906 R8,7bn 416 180 students funded in this year Phase II of implementation of student 201 495 students funded since inception centred model Average loan/bursary R20 907 Over R41,2bn since 1991 6 universities + 22 TVET colleges (approximately 30%) SETA funding introduced #FeesMustFall escalates despite increase in funding for historic debt Continued implementation of Secondment of the banking sector skills to increase 2016 2015 capacity student-centred model February budget: Additional R4.5bn is made available for student funding 6 universities + 11 TVET colleges October mid-term budget: Additional R9,2bn is made 414 949 students funded in this year available for student funding over the MTEF period. R59,8m disbursed since 1991 #RhodesMustFall #FeesMustFall Increase in recoveries late in year as a result of new strategy
Accessibility Transparency Affordability Reliability Authenticity LN4 LN1 NSFAS: Sources FL3 FL1 LN2 FL2 Parliament of Funding Appropriated Ring-fenced grants Funds and/or levy-funded grants Other State Donors: Department of Higher University Private DBE, DSD, SETA, Education and Training own-funding Donors others TONEFRO Sets aside funding BUILDING commitments – M THE A TEAM DHET, NSF TOP 3-yr rolling grant ETHOS allocation SMF Tranche payments Exec Coaching PMO Delegations NSFAS NCOs Staff sessions Recoveries – capital + Repayments interest (re-injected) via universities Debtors Students enter labour market Employment trigger for repayment Employers SARS
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