ATC130531: Report of the Portfolio Committee on Higher Education and Training on the Strategic and Annual Performance Plan 2013/14 of the South African Qualifications Authority (SAQA) and National Student Financial Aid Scheme (NSFAS) dated 22 May 2013
Higher Education, Science and Innovation
REPORT
OF THE PORTFOLIO COMMITTEE ON HIGHER EDUCATION AND TRAINING ON THE STRATEGIC
AND ANNUAL PERFORMANCE PLAN 2013/14 OF THE SOUTH AFRICAN QUALIFICATIONS
AUTHORITY (SAQA) AND NATIONAL STUDENT FINANCIAL AID SCHEME (NSFAS) DATED 22 MAY
2013
The Portfolio Committee on Higher Education and Training, having
considered the Strategic and Annual Performance Plan (APP) 2013/14 of SAQA and
NSFAS reports as follows:
1. Introduction
The Portfolio Committee on Higher Education and
Training considered the Strategic and Annual Performance Plan 2013/14 and
budget of SAQA and NSFAS on 24 April 2013. This report provides a brief summary
of the presentation made by both entities to the Committee, focusing mainly on the
2013/14 Annual Performance Plan including an overview of budget allocations in
various programmes. The report also provides the Committees observations and
recommendations.
Portfolio Committee on Higher Education & Training:
Present:
Ms D
Chili
(ANC), Ms N Gina (ANC), Mr S
Makhubele
(ANC), Adv I
Malale
(Chairperson), Prof S
Mayatula
(ANC), Mr C
Moni
(ANC),
Mr S Radebe (ANC), Dr L Bosman (DA), Mr A Mpontshane (IFP) and Mr J
Dikobo
(AZAPO).
Apologies:
Prof A
Lotriet
(DA) and Ms D
Sibiya
(ANC).
Support Staff:
Mr A
Kabingesi (Committee Secretary), Ms M Modiba (Content Adviser), Mr L
Komle
(Researcher) and Ms T
Majone
(Committee Assistant).
The following were present:
South African Qualifications Authority:
Mr J Samuels: Chief Executive
Officer, Dr V
Penxa
: Deputy Chairperson, Mr M
Albertyn
: Chief Financial Officer, Dr J Reddy: Deputy Chief
Executive Officer and Ms N
Gumbe
: Director.
National Student Financial Aid Scheme:
Mr Z
Sogayise
:
Chairperson, Mr M
Daca
: Chief Executive Officer, Ms S
Masinga
: Board Member, Mr E Johannes: Acting Chief
Financial Officer and Ms X Peter: Chief Information Officer.
Department of Higher Education and Training:
Mr M
Manana
:
Deputy Minister, Mr S Makgoba: Chief Director: University Financial Planning,
Mr T
Coombe
: Chief Director, Ms H van
Rensburg
: Director University Academic Planning, Mr Z
Hlongwane
: Director Public Entities.
2. Summary of
presentations
2.1 South African
Qualifications Authority (SAQA)
Dr V
Penxa
: Deputy Chairperson
made the following opening remarks:
·
SAQA board comprised of 12 members
nominated from the Education and Training Development (ETD) sector and
appointed by the Minister. The board comprised of 10 sub-committees which
reported to every board meeting on their terms of reference.
Mr J Samuels: CEO led the presentation which highlighted the
following key issues:
·
SAQA received an unqualified audit for the
15
th
time in 2012/13 financial year. Some of the highlights for
2012/13 included; development of the Apply Now Campaign, Mandela Day Careers
Festival, revised policy on Recognition of Priory Learning (RPL), draft
articulation policy, development of Fraud Combat Strategy and assistance with
Central Applications Clearing House (CACH) (90 000 calls received, 85% advice
offered and 15% of learners assisted through CACH got accepted in institutions
of higher learning).
·
The National Learners Records Database
(NLRD) 2012/13 included; 13 million learners with 12.8 million qualifications,
1236 registered qualifications, 10 143 accredited providers and 48 recognised
Professional Bodies.
Mr M
Albertyn
: CFO presented the
budget summary:
·
The total budget for 2013/14 of SAQA was
R116 million and insufficient to
fulfill
its mandate.
The estimated budget shortfall was R10 million for the current financial year.
The Career Advice Service (CAS) ends 31 August 2013 and there was no provision
to continue with this project. The government grants average annual increase to
SAQA from 2008/09 to 2012/13 was 5%. As a result, personnel costs in 2013/14
budget comprised 62, 5% of total budget. To balance 2013/14 budget, SAQA had to;
cut 7 permanent staffing posts, not fill current vacancies, start charging
conference fee attendance, reduce research activities and no staff incentive
provision. Accumulated surplus funds in prior years were used to supplement
SAQAs
income and then the funds were depleted.
·
The R10 million
shortfall
would impact on the following: outreach programme to rural areas, filling of
vacancies, National Qualifications Framework (NQF) website, advocacy campaigns,
digitisation of learner records prior 1992, verification of qualification and
programmes process and many other related programmes.
Dr J Reddy: Deputy CEO: presented the APP 2013/14:
·
The strategic imperatives of SAQA included;
leadership in the transition of the NQF Act, ensure research credibility to direct
and steer policy, ensure effective governance, implementation of all
requirements of the NQF, enhance relations with stakeholders, publish research
reports and articulation.
Ms N
Gumbe
: Director presented the
Career Advice Portal Self Help Tool:
·
SAQA was in the process of developing a
self-help portal that would provide learners, parents and teachers with
information on different types of occupations and institutions that offer those
occupation related programmes. It was reported that the portal would be
integrated with employment services of
2.2 National
Student Financial Aid Scheme (NSFAS)
Mr Z
Sogayise
: Chairperson made
the following opening remarks:
·
The 2012/13 financial year was the record
year in terms of number of students assisted in higher education and
institutions by NSFAS. NSFAS assisted more than 405 070 students with loans and
bursaries worth R7.7 billion. The proposed student centred model would be
implemented in the current financial year and it aimed at improving
disbursement of funds more efficient and effective.
Mr M
Daca
: CEO led the
presentation which highlighted the following key issues:
·
Programme 1: Administration was aimed at
conducting the overall management of the entity and to provide efficient
support service to internal departments. The total budget for this programme
was R98.5 million.
·
NSFAS aimed to improve governance system to
provide a smooth transition from the old to new policy framework so that
executive management and employees were accountable for delivering on the
policy. Staff development would be prioritised to implement the new student
centred model.
·
Programme 2: Student-Centred Financial Aid
aimed at achieving the vision and mission of NSFAS by creating a centralised
student financial aid system and to provide funding to eligible student whilst
maximising recoveries and striving to increase the pool of funds
available.
The total budget for this
programme was R31.7 million.
·
The Central Application Process (CAP) would
be created through regional offices and other appropriate channels of delivery
by and learners would be able to apply for funding through CAP by 30 September
2013.
·
New funding sources had been identified
(Government Employees Pension Fund & Public Investment Corporation) to
raise
new funding for targeted student programmes including
the missing middle.
·
New programme for funding Bachelor of
Technology (B Tech) would be implemented. Loan recovery would be maximised to
recover outstanding loans (R1.5 billion
target
for
2013/14) from all eligible debtors employed in both formal and informal sectors
of the economy.
·
Budget Overview: The total budget of NSFAS
for the 2013/14 MTEF period was R8.2 billion as compared to R7.4 billion in
2012/13. Bulk of the allocation R8.1 billion was allocated to the
Student-Centred Financial Aid to achieve
NSFASs
vision and mission. Administration was allocated R98.5 million as compared to
R125 million in 2012/13.
3. Observations
The Committee having considered the Strategic and Annual
Performance Plans 2013/14 of SAQA and NFSFAS, made the following observations:
a) South African
Qualifications Authority (SAQA)
·
The Committee was seriously concerned with
underfunding
of SAQA which would lead to retrenchment of critical
personnel and inadequate implementation of certain key targets.
·
It emerged that more 10 million learner
records prior 1992 were not yet digitised by SAQA and inaccessible in the
National Learners Records Database (NLRD).
·
It was noted with concern that while the
country is in dire need of career guidance, the Career Advise Service (CAS)
(Ministerial flagship programme) would come to an end by 30 August 2014. It was
further noted with concern that expertise and infrastructure created for CAS
will be lost with the disestablishment of the service.
·
SAQA was commended for having clean audit
for the 15
th
time consecutively.
·
It emerged that SAQA would charge
conference attendance fees to delegates for future conferences and the
Committee was not pleased with new arrangement.
b) National Student
Financial Aid Scheme (NSFAS)
·
It emerged that NSFAS advertised a tender
where information was requested on distribution of laptops to students. The
tender was to establish whether laptops would reduce the costs of buying textbooks.
The view of the Committee was that special focus should be put on effective and
efficient administration of funds to students.
·
It was noted with concern that though NSFAS
reduced the costs of consultants from R14 million to R10 million, the costs of
outside services increased from R10 million to R14 million for 2013/14.
·
Student hunger in higher education and
training institutions remained a serious concern for the Committee and it
requested NSFAS to prioritise this matter.
·
It emerged that NSFAS would conduct
research on top slicing with the view of assisting universities to effectively
distribute bursaries to students.
·
Late allocation of the
Funza
Lushaka
bursary to students was highlighted as a
major concern which contributed to high drop out rate in this programme.
·
The Committee was pleased with the proposed
date of 30 September 2013 for implementation of the Central Application Process
whereby students from rural areas would be able to apply for NSFAS from their
surroundings.
·
It emerged that the Government Employees
Pension Fund (GEPF) would be approached by NSFAS to assist the missing middle
(students whose parents earn above the current threshold of R122 000 but cannot
afford to pay for their fees) with study loans.
·
The Committee was concerned with inadequate
funding from
SETAs
and provincial government
departments in assisting students with bursaries.
·
It was noted with concern that
Funza
Lushaka
students majoring
in Afrikaans in the
·
It emerged that NSFAS had a shortfall of
R2.5 billion to adequately assist needy students in the 2013/14 MTEF period and
targeted to recover R1.5 billion in outstanding loans from eligible debtors
employed in the formal and informal sectors of the economy.
4. Recommendations:
The Portfolio Committee on Higher Education and Training Committee
recommended that the Minister should:
·
Funding:
Apply
for additional funding to Treasury to allocate the R10 million required by SAQA
to implement its priority projects and prevent the envisaged job losses.
·
Career
Advice Services:
Make Career Advice Service (CAS) project a permanent
service funded through National Treasury voted funds.
·
Recognition of Prior Learning (RPL):
Prioritise effective implementation of RPL to
improve the lives of skilled workers.
·
Capacity:
Assist NSFAS to develop and strengthen its internal capacity to limit the
extensive utilisation of consultants which would cost the entity R10 million in
the 2013/14 financial year.
·
Non-alignment of academic year and
financial year:
C
onsider applying to
National Treasury to release a portion of the allocation for NSFAS bursary at
the beginning of academic year to enable institutions to transfer allocation
for students accommodation, meals, transport and books.
·
Funza
Lushaka
:
Prioritise
improvement
in administration of the NSFAS bursary to
Funza
Lushaka
beneficiaries to reduce the drop-out rate which was
caused by late allocation of funds to this programme and, the bursary should
not discriminate against students majoring in Afrikaans.
·
Ensure that NSFAS
beneficiaries do not re-apply for the bursary annually while they were
progressing well with their academic studies.
·
Appeal to Sector
Education and Training Authorities (
SETAs
) to assist
financial needy students with bursaries.
5. Conclusion
The Committee commended good
governance structures in place at SAQA which was resembled by clean audit for
the 15
th
time consecutively. Of great concern to the Committee was inadequate
allocation of funds to SAQA and it promised to pledge support for more funding
to be allocated so that key projects may not be affected. Besides shortage of
funding, SAQA was a well managed entity with strong leadership and governance.
The Committee supported NSFAS in
its proposed student centred model in which money would be allocated directly
to the students to reduce the administration involved in distribution of loans
and bursaries. The envisaged model would allow learners / students in rural
areas to apply for NSFAS in their respective surroundings and be informed
whether they qualify or not before being admitted to any higher education
institutions.
Report to be considered.
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