1. PRESENTATION TO THE PORTFOLIO COMMITTEE ON HIGHER EDUCATION AND TRAINING NSFAS ANNUAL PERFORMANCE PLAN 2013/14 24 APRIL 2013 1

2. Presentation Overview 2 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. 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 3 Strategic Plan Overview

4. 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 whilst maximising recoveries and striving to increase the pool of funds available. Budget: R31 778 000 Funding Sources for Total Budget of R 130 329 000 DHET Administration GrantR 87 676 000 Business Transformation Budget R 24 700 000 Administration FeesR 17 953 000 2012/2013 Loans and Bursaries BudgetR8 142 376 000 4 Strategic Plan Overview

5. Performance 2012 5 2012Students assistedAmount disbursed 405 070R7 710 870 823 Universities, FET colleges FETCs187 115R1 805 509 701 Universities217 955R5 905 361 121

6. 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 30 375 100% 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 6

7. Programme 1:2013/14 Strategic plan targets/2 Strategic objective Performance indicator Strategic plan target Budget’0 ’000 2013/14 MTEF target 1.3 Improve the governance system 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 policy Framework 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 7

8. Programme 1:2013/14 Strategic plan targets/3 Strategic objective Performance indicator Strategic plan target Budget ’000 2013/14 MTEF target 1.5 Ensure staff have the appropriate 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 and capable work force R 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 Complete Assessment - Not applicable – prior year target 8

9. Programme 1:2013/14 Strategic plan targets/4 Strategic objective Performance indicator Strategic plan target 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 Training programme and Internships in place R 500 Staff complete all identified training programmes and internship programme evaluated 1.8 Develop an organisational IT reference architecture to support and enable the new operating model Prior year performance target – achieved New operating model and reference architecture approved by February 2012 - Not applicable – prior year target 9

10. Programme 1:2013/14 Strategic plan targets/5 Strategic objective Performance indicator Strategic plan target 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 functional LMS system R 41 314 Refinements identified during evaluation effected 1.10 Develop and implement processes 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 Approved policies and procedures R 500 Policy reviews completed and policy revisions approved 10

11. Programme 2: 2013/14 Strategic plan targets/1 Strategic objective Performance indicator Strategic plan target 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 media programme implemente d R 9 747 New media campaign targets and reaches each defined student segment 2.2 Develop a student value proposition 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 Research complete and proposed segments defined R 8 153 881 Student segmentation and value propositions reviewed and refined where required 11

12. Programme 2: 2013/14 Strategic plan targets/2 Strategic objective Performance indicator Strategic plan target 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 central applications process R 500 Central applications process implemented in 3 regions 2.4 Raise new funding for undergraduate study, for targeted student programmes, including the “missing middle”. 2 new funding sources confirmed for targeted undergraduate student programmes by 31 December 2013 Increased funding by R4bn R 360 New funding sources identified and confirmed for 2015 academic year 12

13. Programme 2: 2013/14 Strategic plan targets/3 Strategic objective Performance indicator Strategic plan target Budget ’000 2013/14 MTEF target 2.5 Maximize recovery of outstanding 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 of R1,5bn achieved R 9 289 Recoveries 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. 13

14. Programme 2: 2013/14 Strategic plan targets/4 Strategic objective Performance indicator Strategic plan target Budget ’000 2013/14 MTEF target 2.7 Develop a new product for specific targeted student Segments Funding model implemented successfully by 31 December 2013 New funding model for report 191 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 14

15. Department of Higher Education and Training (DHET) 2012/13 R 000 2013/14 R 000 General allocation2 480 6142 754 234 Final Year Programme1 004 0001 120 000 Teacher (ring-fenced)101 000106 000 Students with Disabilities63 00066 000 SAICA partnership - Thuthuka Fund34 00035 955 Truth & Reconciliation Commission Fund5 1734 782 FET College Bursaries1 734 8341 988 434 National Skills Fund867 908400 000 Department of Basic Education (DBE) Funza Lushaka Bursaries671 912893 867 Total6 962 441 7 369 272 Loans and Bursaries Budget 15

16. Other fundingR 000 Dept of Social Development – Social Work Bursaries 351 000250 000 Dept of Agriculture, Forestry & Fisheries9 42611 718 Communicare200TBC Eastern Cape Provincial Government19 317TBC Non-Governmental Organisations25 32512 950 Nedbank12 587TBC Dept of Labour - Ntabankulu Project945TBC SETAs76 000TBC Total482 213274 668 Grand Total7 444 654 7 643 940 Loans and Bursaries Budget / cont. 16

17. 2012/13 R 000 2013/14 R 000 Compensation of Employees39 65652 334 Goods and Services118 742 72 616 Communications 4 7495 585 Consultants, contractors and special services16 491 10 998 Outside services and maintenance 10 79314 939 Staff education, training and development 8893 643 Postage, stationery, computer services 9 996 10 141 Official functions2 324 2 611 Business development 72 61424 426 Policies, procedures and training886274 Payments for Capital Assets4 2865 380 TOTAL162 684130 329 Budget Overview 17

18. 18 QUESTIONS & DISCUSSION 24 APRIL 2013