ATC120509: Report Budget & Strategic Plans 2012/13 of the National Student Financial Aid Scheme (Nsfas) & Council on Higher Education (Che) dated 09 May 2012

Higher Education, Science and Innovation

REPORT OF THE PORTFOLIO COMMITTEE ON HIGHER EDUCATION AND TRAINING ON THE BUDGET AND STRATEGIC PLANS 2012/13 OF THE NATIONAL STUDENT FINANCIAL AID SCHEME (NSFAS) AND COUNCIL ON HIGHER EDUCATION (CHE) DATED 09 MAY 2012

 

The Portfolio Committee on Higher Education and Training, having considered the Budget and Strategic Plans 2012/13 of the National Student Financial Aid Scheme and the Council on Higher Education, reports as follows:

 

1. Introduction

 

The Portfolio Committee on Higher Education and Training considered the Budget and Strategic Plans 2012/13 of NSFAS and CHE on 25 April 2012. This report gives a brief summary of the presentations made by NSFAS and CHE to the Committee, focusing mainly on the 2012/13 Budget and Operational Plans and an overview of allocations per programme. The report also provides the Committee’s observations and recommendations.

 

The following members and officials were present:

 

Portfolio Committee on Higher Education & Training: Adv I Malale (ANC) (Chairperson), Ms N Gina (ANC), Mr S Makhubele (ANC), Prof S Mayatula (ANC, Mr C Moni (ANC), Mr S Radebe (ANC), Dr L Bosman (DA) Prof A Lotriet (DA) Mr M Bhanga (COPE) and Mr A Mpontshane (IFP).

 

National Student Financial Aid Scheme: Mr Z Sogayise : Chairperson, Mr N Khena : Chief Executive Officer, Mr M Daca : Chief Financial Officer and Mr N Johnstone : Chairperson Finance Committee.

 

Council on Higher Education: Mr A Essop : Chief Executive Officer, Ms V Matsam : Director Corporate Service, and Dr M Hay: Executive Director Quality Assurance.

 

Department of Higher Education and Training: Mr T Tredoux : Chief Financial Officer, Ms L Tlou : Director, Mr Z Hlongwane : Director and Ms B Whittle: Acting Director.

 

 

 

2. Summary of presentations

2.1 National Student Financial Aid Scheme

The Chairperson of the NSFAS board, Mr Z Sogayise , made the following introductory remarks to the presentations:

· NSFAS presented its turn-around strategy last year during the same period to the Committee and it was noted that a number of predetermined objectives reported then had been achieved. NSFAS was able to appoint a new Chief Executive Officer (CEO) and Chief Financial Officer (CFO) as promised. The bursaries distributed by NSFAS had doubled during this Parliamentary term to R7 billion. The current strategic plan tabled before the Committee was aimed at distributing bursaries and loans to academically deserving students in a very effective and efficient way. The strategic plan took into consideration the recommendations made by the NSFAS Review and Recommendations Report. In addition, the goal of NSFAS in the current financial year was to ensure that learners are aware of NSFAS while still at school and the application process should be simple.

Mr N Johnstone , Chairperson of the Finance Committee, continued with the presentation which highlighted the following key issues:

· Programme 1 Administration: The purpose of this programme was to conduct management of the entity and to provide efficient and effective support services to internal departments. The total budget allocated to this programme was R104 million. A budget of R21 million was allocated to improve governance to ensure full compliance with government regulations. NSFAS was involved in a policy overhaul process where 116 policies would be developed over a period of 18 months. Staff development was critical for the entity to improve its capacity and a budget of R1.7 million was allocated for this exercise.

· Programme 2 Student Centred Financial Aid: NSFAS was in the process of creating a central applications process through regional offices and other appropriate channels of delivery. There was a project underway with the Public Investment Cooperation (PIC) and the Government Employees Pension Fund (GEPF) to assist those learners above the threshold limit of NSFAS whose parents were unable to pay for their studies.

· Budget Overview: The total budget allocation of NSFAS for this current financial year was R7 billion compared to R6 billion in the previous financial year. Compensation of employees budget increased from R24 million to R35 million owing to an increase in the staff compliment. The FET college bursary allocation was R1.7 billion. The final year programme was allocated R1 billion.

2.2 Council on Higher Education

Mr A Essop , Chief Executive Officer (CEO), led the presentation which highlighted the following key issues:

· The CHE has undergone a period of transition from the previous financial year especially in senior management positions. The Auditor-General (AG) report of the 2010/11 financial year reported on a number of weaknesses such as insufficient capacity in the Council which had a negative impact in delivering its core mandate of monitoring and evaluation. The strategic plan of the current financial year aimed to reshape the Council to deliver on its core mandate.

· Goal 1 Research and analysis to inform the development of Higher Education policy: This goal had been a challenge for the Council owing to insufficient capacity. The Council advised the Minister on the unbundling of the Medical University of South Africa ( Medunsa ), the establishment of universities in Mpumalanga and the Northern Cape , the feasibility of introducing a 4 year undergraduate diploma / degree and graduate community scheme. The Council would undertake research of all HEI’s under administration with the view to address the challenge of repeated poor governance in these institutions.

· Goal 2 Development of qualification standards: The first institutional audit cycle began in 2005 and the second cycle would begin in 2013. The Council was in the process of reviewing its audit process to make it more efficient. The Council accredited 500 programmes in 2011 and was in the process of reviewing the Teacher Education programme.

· Goal 3 Efficient and effective provision of corporate services: The recruitment and retention of senior staff remained a serious concern for the Council owing to inadequate remuneration packages compared with HEIs .

· Budget: The total budget of the Council was R45 million and 10% cut as compared with the previous financial year 2011/12

 

3. Committee Observations

3.1 It emerged that NSFAS was in the process of establishing a Centralised Application Process (CAP) for NSFAS bursaries aimed at making the process of application effective and efficient. The full roll-out of the process was expected to commence in 2014.

3.2 It was noted with concern that the uptake of students with disabilities grant had been very low consistently although there were many poor disabled students who were not studying.

3.3 With regard to upfront payment, it was highlighted that HEIs did not apply the same policy on this matter and poor students were most affected.

3.4 It emerged that NSFAS would offer bursaries for the Truth and Reconciliation Commission (TRC) beneficiaries in the current financial year.

3.5 The Committee was extremely concerned that there was no funding from NSFAS for B Tech students and this affected poor students.

3.6 The filling of vacant posts, especially in senior management positions remained a serious concern for the CHE. The vacancy rate was 12% and the Council aimed at seconding people from HEIs to assist the Council.

3.7 It was raised with concern that the inter university relations between the country’s HEIs was inadequate. Students coming from previously disadvantaged HEIs were required to complete additional assessment before being accepted in the well-established HEIs .

3.8 The Committee was concerned with the low enrolment of local black PhD students in HEIs and this required urgent attention.

 

4. Committee resolutions

NSFAS would be requested to present the proposed Central Application Process in a separate meeting with the Committee together with timeframes and other full details of the project.

 

5. Recommendations

The following formed part of the recommendations:

· The Department should consider a policy aimed at funding poor students in their fourth year of study at Universities of Technology for the B Tech programme,

· There is a need for NSFAS to advertise on national television to enable it to reach a wide range of audience for the public to be informed of its programmes, and

· A special meeting with the Department, CHE, South African Qualification Authority and Higher Education South Africa should be convened to discuss the shortage of local black postgraduate students in HEIs .

 

Report to be considered.