1. NSFAS update & future plans
27 June 2019
Dr Randall Carolissen, NSFAS Administrator

2. Fee Free Pronouncement Background
On 16 December 2017, the pronouncement for fee free education for students from poor and working class families whose household income is up to a maximum of R per annum form the 2018 academic year.
This fee free education will be phased in over a period of five years.
The announcement has made provision for a portion of the missing middle students who were previously not eligible for funding within the NSFAS criteria.
The NSFAS student’s loan scheme has now been replaced by bursary scheme, as a result of this change to the funding model, disbursed funds will no longer be recoverable.
This change in policy has a direct bearing on the sustainability of the scheme.
The NSFAS mandate is to administer funding to students in HEI (Higher Education Institutions).
Due to the increased burden on the pool of funding and the expected increase in FTENs’ (first time entrants), it is prudent for NSFAS to incorporate fundraising strategies into its core mandate.
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3. Root Cause Analysis and Key Risks Identified at NSFAS
Extremely poor data integrity and integration with institutions
Inappropriate and unstable ICT systems
Poor governance and lack of controls
Toxic corporate culture and breakdown in Human Resource Administration
Policy uncertainty
Cyber security
Administration capacity at some institutions
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4. Relevance of NSFAS
Ongoing debate about the welfarization of education, however without NSFAS, of our young people will be condemned to unemployment, statistic reaching 50%.
All states that embrace development agenda, invested in skills and training of young people.
Education is the only means to militate against scourge of race-based unemployment, inequality and poverty.
Great strides have been made to increase throughput and success rate of black students over past years. Gains have been registered in postgraduate completion, SET graduation and participation of females.
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5. Funding for Student Financial Aid
Total funding for student financial aid increased from R9.4 billion in 2016/17 financial year to R22,1 billion in 2019/20

6. Terms of Reference of Administration (See Government Gazette, Notice No 41851, 866, pg. 4)
1. Short Term
Clear out 2017 and 2018 backlog.
Open up 2019 Registration and put in place the necessary Administration to preclude all lapses that contributed to the failures of 2018
2. Medium Term
Stabilise NSFAS over the next two to three (2-3) years and build integration of data and information within necessary governance and requisite protocols.
Further strengthen stakeholder relationships to ensure system stability.
3. Long Term
Redesign Optimal Operating Model for NSFAS
Appoint Executive Board.
Risk analysis and Root cause Analysis
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7. Summary of 2018 Qualified Audit of NSFAS
The AGSA performance audit team at NSFAS for financial year found the following:
The NSFAS agreements signed with institutions administering student financial aid grants are not enforceable where there are deviations or non-performance.
NSFAS relies heavily on institutions (implementing partners) to assist in executing its mandate without having measures to ensure that the deliverables are enforceable. The audit team however, note that this will be mitigated to some extent in the student centred model.
NSFAS does not have a dedicated functionality for monitoring, evaluation and reporting of students financial aid grants advanced to institutions.
The function is currently embedded in all project management responsibility and as such there is a risk that it is not given the necessary attention.
The NSFAS information management system is not configured to capture and reproduce data in a way that would satisfy the reporting to student financial aid funding partners.
The delay in addressing the vacancy rate has made it difficult for the NSFAS to meet the expectations of its funding and implementation partners in financial year.
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8. Outstanding Destabilizing Factors
Current challenges in the sector:
Post graduate funding and unfunded courses
Funding Missing Middle student population
Student accommodation
Forensic investigations and closing out historical debt
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June 27, 2019
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9. NSFAS preparing for 2020 Funding Cycle
Initiatives
Partnership with Department of Basic Education (DBE)
Improving the disbursement value chain and removal of all commercial interest
Portal integration
Data integration to the next level
Student Accounts and Reconciliation
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June 27, 2019
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10. Questions and comments