Briefing by NSFAS to the Portfolio Committee on Higher Education and Training (PCHET) - Presentation by Dr Randall Carolissen, NSFAS Administrator
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Briefing by NSFAS to the Portfolio Committee on Higher Education
and Training (PCHET)
Presentation by Dr Randall Carolissen, NSFAS Administrator
February 13, 2019
Portfolio Committee on Higher Education and Training1. INTRODUCTION [Role of the Administrator]
INVOKING SECTION 17A (3)(A) OF THE NSFAS ACT (ACT 56 OF 1999, AS AMENDED), THE
MINISTER OF HIGHER EDUCATION AND TRAINING (DHET) PLACED NSFAS UNDER
ADMINISTRATION AS PER THE FOLLOWING TERMS OF REFERENCE.
1. Ensure the effective close out of the 2017 and 2018 student funding cycles.
2. Oversee the opening of the 2019 online applications process.
3. Develop, in consultation with the Department, universities and TVET colleges, an
effective and realistic plan for the 2019 funding cycle.
4. Put in place the necessary management and governance controls.
5. Ensure that adequate plans are in place to make funding decisions at the earliest
possible time of the year as close to the period of registration as possible.
6. To manage the day-to-day work of the entity, and steer NSFAS to address its
operational challenges fully.
7. To work closely with the Ministerial Committee of Inquiry appointed by the Minister.
8. To maintain a close and productive working relationship between NSFAS and the
universities and TVET colleges.
February 13, 2019
Portfolio Committee on Higher Education and Training
23
2. CLOSE OUT OF THE 2017 & 2018 STUDENT FUNDING CYCLES
§ NSFAS has disbursed more than R21 Billion of the 22 Billion budgeted for 2018 funding cycle.
§ The success was due to a different approach that the Administrator adopted when he started with NSFAS:
§ Deploy senior managers to the regions to more effectively address institutional issues closer to institutions
§ Collaborate with student leadership to assist NSFAS trace students that did not sign contracts
§ Prioritise Remittances to ensure that allowances actually reach the students
§ Establish central “Nerve Centre” where issues are prioritised and resolved timeously
§ The table below shows the breakdown per institution type. A total of 707 332 Students have been funded in 2018.
INSTITUTION TYPE NEW STUDENTS CONTINUING STUDENTS TOTAL
UNIVERSITY 167 966 208 397 376 363
TVET 164 789 166 180 330 969
TOTAL 332 755 374 577 707 332
DATA ISSUES SINCE 2016
§ NSFAS has accumulated and failed to resolve data issues since 2016. The Administrator has established a focus team
“war room” to resolve all data issues and progress has been made.
§ In order to ensure that affected students are not disadvantaged going into 2019, NSFAS has shared detailed
information with institutions to all these students to register.4
3. UPDATE ON THE 2019 ONLINE APPLICATIONS PROCESS
[Applications & Funding Decisions]
§ NSFAS has received 546 449 Applications for 2019 Application cycle. This includes the
TVET walk-ins in January 2019.
Progress on funding decisions is shown below:
INSTITUTION SUCCESSFUL UNDER REVIEW REJECTED TOTAL
UNIVERSITY 276 063 30 138 58 173 364 374
TVET 166 317 7 408 8 400 182 125
TOTAL 442 380 37 546 66 573 546 499
February 13, 2019
Portfolio Committee on Higher Education and Training4. REALISTIC PLAN FOR THE 2019 FUNDING CYCLE
§ In partnership with DHET, allowances were standardised with improved equity between TVETS and
Universities. Institutions and students have been consulted and new rules and guidelines updated,
canvassed and communicated.
§ All universities and TVETS have been trained and additional on-campus support will be provided by NSFAS,
NYDA and DHET.
§ Data integration with Institutions tested and operational. This will enable much quicker determination of
registration and hence funded status for students.
§ Institutions were assessed for ability to distribute allowances and special measures have been introduced for
those at risk.
§ All voucher system of disbursements had been scrapped and students are to manage their own finances
through opening bank accounts. This will pave way for direct payments to students where required.
February 13, 2019
Portfolio Committee on Higher Education and Training 55. APPEALS PROCESS
[Opened on January 28 and will close on March 08, 2019]
• There is a process in place to manage the appeals
• First-Time Entering Students (FTENs) can appeal directly with NSFAS by
completing the appeal form,and attach supporting documents.
• Returning Students can appeal directly at the institution (Financial Aid Office
or Student Support Services) not with NSFAS.
• Appeals will be considered by the Institutions Financial Aid Committee or
designated committee for recommendation to NSFAS.
February 13, 2019
Portfolio Committee on Higher Education and Training 66. REASONS OF APPEALS
[NSFAS Funding is governed by national policy, therefore appeals for
post- graduate studies or unfunded programmes cannot be considered]
• Exceeded permitted number of years of study
• Change in programme of study
• Change in financial circumstances
• Completed a GAP year due to academic performance
• Loss of bursary sponsor (due to incorrect academic results submitted)
• Failure to meet academic performance requirements
• Any other reason not listed or mentioned above
February 13, 2019
Portfolio Committee on Higher Education and Training 77. PROGRESS ON APPEALS
[ Thus far, 6 200 appeals qualify for funding…number to increase daily]
• To date, the NSFAS has received 14 000 appeals through email channel. 13 292 of
these have been processed
• 2 000 not valid due to duplication of records – submitted more than once.
• 1 200 not valid due to applicants already approved for funding
• 4 600 have missing supporting documents. NSFAS Call Centre is contacting the
students to submit the missing information.
• 3 330 were valid, successfully reviewed and awaiting the Appeals Committee for
approval
• 2 870 were successfully approved by the Committee within 7 working days,
communicated the status via the portal and students are cleared for funding
• Appeals team process approximately 2 000 emails a day
88. 2019 UPFRONT PAYMENTS TO INSTITUTIONS 9
a) UNIVERSITIES
§ 15% has been paid as advance payment to Universities: R3.4 billion.
§ In order to ensure that institutions allocate money to students, NSFAS
has provided Remittances to Institutions.
b) TVET COLLEGES
§ 20.0% of the tuition funding amounting to R224 million was paid to
TVETs in advance.
§ Payments for allowances to TVET colleges was made on receipt of
registration details from TVET colleges, for students eligible for
NSFAS funding.
February 13, 2019
Portfolio Committee on Higher Education and Training
99. 2019 PAYMENT OF ALLOWANCES TO STUDENTS 10
§ NSFAS has eliminated the voucher system for all students studying in 2019. All
allowances has been paid by cash to students – mobile cash.
§ Due Diligence – Institutions were categorised according to their ability to disburse
cash to students.
1. Institutions that are able to disburse – NSFAS response: Disburse
allowances via institution
2. Institutions that are not able to disburse – NSFAS response: Disburse
mobile cash
3. Institutions on SBUX – NSFAS response: Disburse mobile cash
§ NSFAS has engaged institutions, and third party providers like Intellimali and Fundi
to ensure that all disburse cash to students in 2019.
§ A standard Allowance of R1 950 per student was to be paid on 8th February 2019
across all TVETs. Further payments of allowances are scheduled to be paid on the
21st February 2019
February 13, 2019
Portfolio Committee on Higher Education and Training
1010. 2019 PAYMENT OF ALLOWANCES TO STUDENTS – KZN INSTITUTIONS 11
Institution Upfront Paid (20% or 15%) No Students Received Allowances
University of Kwazulu-Natal R286,676,101.10 (Upfront)
Mangosuthu University of Technology R70,802,826,98 (Upfront) 7076
University of Zululand R122,456,116.89 (Upfront) 10 500
Durban University of Technology R167,330,725.39 (Upfront) 11 200
Coastal TVET College R11,417,250.00 (Allowance) 5855
Mnambithi TVET College R4,736,550.00 (Allowance) 2429
R17,420,822.00 (Upfront)
Majuba TVET College 9103
R17,750,850.00 (Allowance)
R11,095,587.00 (Upfront)
Elangeni TVET College 5781
R11,272,950.00 (Allowance)
Esayidi TVET College R6,801,600.00 (Allowance) 3488
R136,280.00 (Upfront)
Umgungundlovu TVET College 2302
R4,488,900.00 (Allowance)
Umfolozi TVET College R8,264,100.00 (Allowance) 4238
R3,572,398.00 (Upfront)
Thekwini TVET College 2680
R5,226,000.00 (Allowance)
R4,663,935.00 (Upfront)
Mtshashana TVET College 2574
R5,019,300.00 (Allowance)11. COMMUNICATIONS, PUBLICITY AND AWARENESS
• Communications to students regarding SMS fraud
• Communications to students regarding review process and appeals for all
rejected applications
• NSFAS is attending Orientation Week at most of the Universities and TVET
Colleges
• Developed NSFAS Student Guide (NSFAS Squad) for all FTEN, Senior
Students
• Collaborating with GCIS to communicate the success of NSFAS intervention
• Collaborating with all Universitiesradio
and TVET Colleges through the
Communicators Forum to share information on NSFAS using social media
platform
• Working of basic financial literacy and wellness campaign for students
• Developing Teacher’s Guide (Life Orientation) targeting Learners Gr 08 – 12
February 13, 2019
Portfolio Committee on Higher Education and Training 1212. STAKEHOLDER ENGAGEMENT & COMMUNICATIONS
The Administrator has held the following engagements with the
stakeholders:
• Meeting with SAUS NEC members and Western Cape SRCs
• Meeting with SAUS & Western Cape SRCs Workshop on Allowances and
the Appeals process
• Meeting with KZN Universities VCs, SRCs and DHET
• Meeting with TVET College Principals, Financial Aid Practitioners, CFOs
February 13, 2019
Portfolio Committee on Higher Education and Training 1313. STAKEHOLDER ENGAGEMENT & COMMUNICATIONS…continued
Official External Communication/ Instructions to Institutions:
• Guidelines on the Preparations for Funding Cycle
• Guidelines on the Applications process
• Guidelines on the Funding process
• Instruction on the Upfront payments
• Guidelines on the Appeals process
• Instruction on unblocking of continuing students
• Guidelines on the NSFAS Wallet
February 13, 2019
Portfolio Committee on Higher Education and Training 1414. STEER NSFAS TO ADDRESS ITS INTERNAL CHALLENGES
[OPERATIONAL EFFECIENCY]
§ Developed comprehensive plan to address AG Audit findings and implement
NOCLAR recommendations to de-risk the organisation.
§ Redrafting of APP & 2019/20 Strategic Plan; reprioritised 2018/19 Administrative
budget
§ NSFAS adopted a project basis approach and identified and prioritised key projects
to immediately address Administrators’ Terms of Reference
§ Specialised Resources to support key areas including IT, Data and Project
Management Office.
§ Re-engineer core processes with emphasis on Remittance and Disbursement.
February 13, 2019
Portfolio Committee on Higher Education and Training 1515. STEER NSFAS TO ADDRESS ITS INTERNAL CHALLENGES …CONTINUED
[OPERATIONAL EFFECIENCY]
§ Develop ISO compliant quality management framework ISO focussing on key
policy and SOP’s.
§ Policy Review - Policy dialogue and coherence ensuring standardisation of
allowances across sector for improved administration.
§ Deployment of Key Account Managers teams at Region level for rapid
resolution of issues and support and established a Nerve Centre for resolution
of issues.
§ Data Remediation, to resolve e.g. wrong funded qualifications; students funded
below 50% mark;
§ Management Development program to improve staff morale
1616. STEER NSFAS TO ADDRESS ITS INTERNAL CHALLENGES…CONTINUED
[OPERATIONAL EFFECIENCY]
INFORMATION & CYBER SECURITY
§ The Administrator has appointed a team of experts to establish short term
initiatives to implement information and Cyber security recommendations.
• Update to the Information Security policies, processes and standards
• Script Bank to ensure that all changes to the databases are managed
• Segregation of Duties,
• Physical/Logical access to information, training, etc.
SYSTEM PERFORMANCE
§ A priority for the Administrator was to ensure that critical IT systems are
available for operations at least 98% of the time. The current system availability
for the myNSFAS portal is 96.3%
§ Core disbursement system (Phoenix) availability has also been successfully
improved – been running for months with minimal downtime. February 13, 2019
Portfolio Committee on Higher Education and Training 1717. LOOKING INTO THE FUTURE – [re-imagining NSFAS]
The Administrative team will work with DHET and the Ministerial Team on
certain key thoughts around a re-envisioned NSFAS:
§ NSFAS should be more than just a disbursement entity and will in future place the student
success at the centre in its re-envisioning of the “new NSFAS”.
§ NSFAS must Leverage student data and related intelligence to provide thought leadership to
all stakeholders and prompt policy reform.
§ NSFAS should monitor student throughput against investment (RoI).
§ NSFAS is already building research and modelling capacity to inform policy, strategy and
operations
§ Monitoring, Evaluation and Auditing of all Institutions funded by NSFAS must be introduced.
§ Work closely with higher education and labour sector to ensure resource allocation address
skills shortages
February 13, 2019
Portfolio Committee on Higher Education and Training
1818. LOOKING INTO THE FUTURE – CONTINUED
[re-imagining NSFAS]
§ The Administrator met several times with student leadership in order to engage
on numerous issues affecting students on campuses.
§ The Administrator has had numerous meetings with University Administrations
and TVET principals in which vexing logjams were resolved.
§ The Administrator regularly briefs PCHET, the Minister and DHET on progress
and discuss developments and planning.
§ NSFAS re-established relationship with DHET and other funders and improved
coordination is becoming evident.
§ Several media interviews provided the general public with a degree of confidence
that NSFAS has begun turning the corner.
February 13, 2019
Portfolio Committee on Higher Education and Training
1919. CURRENT CHALLENGES
• Close out issues remains a challenge despite significant work already done in
clearing the issues. However institutions have been advise to enable qualifying
students to proceed with academic year until issues have been resolved;
• NSFAS inundated with policy related queries - Institutions not paying students the
same allowance amounts and is requested to resolve these issues;
• NSFAS employees require skills upliftment and training, these issues have been
addressed and a training and education committee has been established;
• Call Centre turn around time to be improved, with the appointment of 100
additional call center staff to deal with high volumes of call.
February 13, 2019
Portfolio Committee on Higher Education and Training
2020. PROGRESS OVERVIEW /1
• TVETs WALK-INS: Bulk processed within one week of application process with
95% having had a funding decision made;
• Improving TVET allowances – move toward student across the higher education
sector;
• Overall 90% funding decision made for all applications – 33K outstanding
documents;
• TVETs has been placed on the NSFAS Wallet, students received allowance during
first week of Feb 2019
• All universities agree to pay allowance directly to students with NSFAS assisting
the KZN Institutions to disburse to students;
• All student allowances are on a cash basis, enabling students to better manage
finances;
• NSFAS engaged with student leadership and institutions on a regular basis
February 13, 2019
Portfolio Committee on Higher Education and Training
2121. PROGRESS OVERVIEW /2
• The ICT systems have been upgraded and consistent up time of 99% + had been
maintained
• Part of NSFAS brief is to advise the Minister. To this end the Research and Policy
unit will be strengthened by 3 post doctoral positions to ensure evidence based
decision making internally and informed advice on policy developments for the
Minister;
• Connectivity between NSFAS and Institutions allows for live interaction on data
dissemination and integration of systems;
Payments into student pockets at as 10 Feb an approximate 50% disbursement
rate:
ü Total Students: 229,877
ü Total Amount : R 345,616,900
Institutions who has not paid students to date have agreed with students to pay
then on or before 28 Feb February 13, 2019
Portfolio Committee on Higher Education and Training 2222. CONCLUSION
• First time in NSFAS history that payments to Institutions and students were
successfully done during the first week of February
• Much work had been done to address burning platforms and more must be done
in stabilising the institution and place it on a sustainable basis.
• Forensic investigations had been instituted based on prima facie evidence of
fraud and unauthorised spending. The results will assist in improving controls as
well as root out the prevalent culture of entitlement.
• The redesign of NSFAS must proceed once calm had been restored to the sector
to ensure that the imperatives of social inclusion, poverty reduction and equity is
realized.
• We owe it to our young people and to our broader society to make NSFAS work.
February 13, 2019
Portfolio Committee on Higher Education and Training
23“Placing NSFAS under
Administration was a
positive move and, while
there are many challenges
remaining, NSFAS is on
the right track”
- Mrs Naledi Pandor, Minister of
Higher Education and Training
February 13, 2019
Portfolio Committee on Higher Education and Training
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