national student financial aid scheme strategic plan for
TRANSCRIPT
NSFAS Strategic Plan for the fiscal years 2015/16 – 2019/20
National Student Financial Aid SchemeStrategic Plan for the fiscal years
2015/16 – 2019/20
1 NSFAS Strategic Plan for the fiscal years 2015/16 – 2019/20
Table of contents
Official Sign-off 2
Abbreviations 3
Foreword by the Chairperson 4
Part A: Strategic Overview 5
1. Mandate 5
2. Vision 5
3. Mission 5
4. Values 5
5. Legislative and Other mandates 6
6. Situational Analysis 8
7. Description of the Strategic Planning Process 11
Part B: Strategic Objectives 12
8. Strategic Outcome Oriented Goals 12
9. Strategic Objectives 13
10. Resource Considerations 18
11. MTEF Allocation Estimates 19
12. Risk Management 20
13. Links to the Long-term Iinfrastructure and other Capital Plans 20
Annexure A: Framework of Acceptable Levels of Materiality and Significance 23
2NSFAS Strategic Plan for the fiscal years 2015/16 – 2019/20
Official Sign-offIt is hereby certified that this Strategic Plan:
• wasdevelopedbythemanagementoftheNationalStudentFinancialAidScheme (NSFAS)undertheguidanceofitsBoard;• takesintoaccountalltherelevantlegislation,regulationandpolicies;• accuratelyreflectsthestrategicoutcome-orientatedgoalsandobjectivesthatNSFAS willendeavourtoachieveintheyears2015/16to2019/20.
LeratoNageChief Financial Officer Signature:
Joy SixholoSenior Manager: Strategic Planning and Performance Signature:
MsulwaDacaExecutive Officer Signature:
Approved byProf. Themba MosiaActing Chairperson Signature:
3 NSFAS Strategic Plan for the fiscal years 2015/16 – 2019/20
Abbreviations
AGSA Auditor-General South Africa
CFO Chief Financial Officer
CIO Chief Information Officer
COO Chief Operations Officer
CGICTAS Corporate Governance of Information and Communication Technology Assessment Standards
DBE Department of Basic Education
DHET Department of Higher Education and Training
EO Executive Officer
EXMA Executive Management
GM General Manager
NDP National Development Plan
NSDS National Skills Development Strategy
NSF National Skills Fund
NSFAS National Student Financial Aid Scheme
PCHET Portfolio Committee on Higher Education and Training
PPPFA Preferential Procurement Policy Framework Act
SARS South African Revenue Service
SETA Sector Education and Training Authority
SMART Specific, Measurable, Achievable, Realistic and Timebound
TVET Technical and Vocational Education and Training
4NSFAS Strategic Plan for the fiscal years 2015/16 – 2019/20
Foreword by the ChairpersonThisdocumentsetsouttheStrategicPlanoftheNationalStudentFinancialScheme(NSFAS)forthefiscalyears2015/2016to2019/2020 inaccordancewithnational imperativesandrepresentstheaspirationsofNSFAStodeliveronitsmandate.TheStrategicPlandefinesthestrategicobjectives, targetsandkeyperformance indicators(KPIs)whichwillbeutilisedtomeasureperformance.TheStrategicPlanalsoidentifiesthefunding required to achieve the stated strategic objectives.This document sets out priorities for NSFAS in a manner that emphasises the outcomes-orientated monitoring and evaluation approach of the Presidency and has been guided by:
• NSFASAct(Act56of1999);• NationalSkillsDevelopmentStrategy(NSDS)III;• MinisterialReviewofNSFAS;• WhitePaperforPost-SchoolEducationandTraining;• NationalDevelopmentPlan;and• otherrelevantlegislation,regulation,policiesandthechangingpost-schoolenvironment inwhichNSFASoperates.
This Strategic Plan outlines a disciplined approach to supporting the ongoing transformation ofNSFASbycontinuingtobuildonthefoundationthathasbeenlaidoverthepasttwoyears.Itisbasedonthetwostrategicgoalsguidingtheentity’sstrategicdirection,namely:
Goal 1:Anefficientandeffectivepublicentityinstudentfinancialaid;Goal 2: Access to higher education and improved student financial aid environment.
In delivering the objectives set out in this plan, NSFAS will be working with many otherorganisationswhichshareitsdedicationtoprovidingaccesstohighereducationandtraining.
Prof. Themba MosiaActing Chairperson
5 NSFAS Strategic Plan for the fiscal years 2015/16 – 2019/20
Part A: Strategic Overview1. Mandate
NSFASisresponsiblefor:• providingloansandbursariestoeligiblestudents;• developingcriteriaandconditionsforthegrantingofloansandbursariestoeligible studentsinconsultationwiththeMinisterofHigherEducationandTraining;• raisingfunds;• recoveringloans;• maintainingandanalysingadatabase;and• undertakingresearchforthebetterutilisationoffinancialresourcesandadvisingthe Minister on matters relating to student financial aid.
2. Vision
A model public entity that provides financial aid to all eligible public university and Technical andVocationalEducationandTraining(TVET)collegestudentsfrompoorandworkingclassfamilies.
3. Mission
TotransformNSFASintoanefficientandeffectiveprovideroffinancialaidtostudentsfrompoorandworkingclassfamiliesinasustainablemannerthatpromotesaccessto,andsuccessin,higherandfurthereducationandtraining,inpursuitofSouthAfrica’snationalandhumanresource development goals.
The mission statement is made up of three distinct elements which describe why NSFASexists,whatwedo,andtheimpactonourconstituency: • NSFAS exists to provide financial aid to eligible students at public TVET colleges and public universities.• NSFASidentifieseligiblestudents,providesloansandbursariesandcollectsstudent loan repayments to replenish the funds available for future generations of students.• NSFASsupportsaccessto,andsuccessin,highereducationandtrainingforstudents frompoorandworkingclassfamilieswhowouldotherwisenotbeabletoaffordtostudy.
4. Values
External Values for our Students and Stakeholders:
Accessibility- Wecreateanenvironmentthatallowsefficient,effectiveanddirectaccess toNSFASandthefundingitprovidestoeligiblestudents.Transparency-Weareopenandhonestwithallstudentsandstakeholders.Affordability- Weofferaffordablesolutionsforstudentstostudyatpublicuniversities and TVET colleges.
6NSFAS Strategic Plan for the fiscal years 2015/16 – 2019/20
Reliability- Wehonourourcommitmentsandstrivetodeliveronourmandate.Authenticity- Weprotectourstudentsandstakeholdersbyofferingqualityservicesand information.
Internal Values for our staff and organization:
Integrity- Weactwithintegritytowardsallstakeholders,andsupportclientsthat uphold the same values. Accountability-Wetakeresponsibilityforouractionsthatdriveperformancemanagement.Respect - Wetreatallourstaffmemberswithrespectandfairness.Innovation- Westrivetoinnovateincommunicatingwithandservingstudents.
5. Legislative and Other mandates
TheNationalStudentFinancialAidScheme,establishedintermsoftheNationalStudentFinancialAidScheme(Act56of1999),isresponsibleforprovidingloansandbursariestoeligible students at all public universities and technical and vocational education and training (TVET)colleges(formerlyknownasfurthereducationandtraining[FET]colleges)throughoutthe country. Further mandates for the entity include the recovery of student loans and raising funds for student loans and bursaries.
InadditiontomanagingfundsgrantedbytheDepartmentofHigherEducationandTraining(DHET),NSFASadministersfundingonbehalfoftheDepartmentofBasicEducationandtheDepartmentofSocialDevelopment,amongstothernationalandprovincialgovernmentdepartments. 5.1. Constitutional mandate
TheBillofRightsstatesinsection29:
Education:
(1)Everyonehastheright-a)toabasiceducation,includingadultbasiceducation;andb)tofurthereducation,whichthestate,throughreasonablemeasures,mustmakeprogressively available and accessible.
NSFAScontributestotheattainmentoftherightsdescribedinsection29byprovidingfinancialaidtostudentsfrompoorandworkingclassfamilies.NSFASenablesthesestudentstoaccesspost-schooleducation,therebyredressingtheresultsofpastraciallydiscriminatorylawsandpractices.Themandateincludestherecoveryofstudentloansandraising funds for student loans and bursaries.
5.2. Legislative mandates
TheNationalStudentFinancialAidSchemeAct,1999(Act56of1999),providesforthegrantingofloansandbursariestoeligiblestudentsattendingpublicuniversitiesandcolleges,and for the administration of student loans and bursaries.
7 NSFAS Strategic Plan for the fiscal years 2015/16 – 2019/20
InadditiontotheNSFASAct,legislationandregulationapplicabletoNSFASincludesthefollowing:• BasicConditionsofEmploymentAct,1997• EmploymentEquityAct,1998• EducationLawsAmendmentActs,2007,2011• FurtherEducationandTrainingAct,1998• HigherEducationAct,1997• LabourRelationsAct,1995• NationalCreditAct,2005• NationalEducationPolicyAct,1996• NationalQualificationsFrameworkAct,2008• NationalEnvironmentalManagementAct,1998amended2003• OccupationalHealthandSafetyAct,1993• PreferentialProcurementPolicyFrameworkAct(PPPFA),2000• PromotionofAccesstoInformationAct,2000• PromotionofAdministrativeJusticeAct,2000• ProtectionofPersonalInformationAct,2013• PublicFinanceManagementAct,1999• SkillsDevelopmentAct,1998• SkillsDevelopmentLeviesAct,1999• LearnershipRegulations• PPPFARegulations• NationalTreasuryRegulations• SETAGrantRegulations• HealthandSafetyRegulations
5.3. Policy Mandates
5.3.1. National Development Plan - 2030
TheNationalDevelopmentPlan(NDP)-2030providesthepolicyframeworkwithinwhichNSFAShasdevelopeditsstrategicplan.ItdetailsthechallengesthatthecountryisfacingaswellasthestrategicchoicesthatmustbemadetocreateabetterlifeforallSouthAfricans.
TheNDPprovidesextensivedetailontheninechallengesfacingSouthAfrica,amongsttheseandofparticularimportancetoNSFASisthechallengethat“Thequalityofschooleducationforblackpeopleispoor”.Asaresponsetothesechallenges,theNDPaimstoeliminatepoverty and reduce inequality by 2030 by:
•Raisingemploymentthroughfastereconomicgrowth; •Improvingthequalityofeducation,skillsdevelopmentandinnovation;and •Buildingthecapabilityofthestatetoplayadevelopmental,transformativerole. Onimprovingeducation,skillsdevelopmentandinnovation,theNDPfurtherprovidesa
8NSFAS Strategic Plan for the fiscal years 2015/16 – 2019/20
broadframeworkforstudentfinancialaidinSouthAfrica: (i) Funding for qualifying students “ProvideallstudentswhoqualifyfortheNationalStudentFinancialAidScheme withaccesstofullfundingthroughloansandbursariestocoverthecostsof tuition,books,accommodationandotherlivingexpenses”.
(ii) Collections “TheNationalStudentFinancialAidScheme…shouldberecoveredthrough arrangementswiththeSouthAfricanRevenueService”.
5.3.2. The National Skills Development Strategy III
TheNationalSkillsDevelopmentStrategyIII-Thekeydriverofthisstrategyisimprovingtheeffectiveness and efficiency of the skills development system. This strategy represents an explicitcommitmenttoencouragingthelinkingofskillsdevelopmenttocareerpaths,careerdevelopmentandpromotingsustainableemploymentandin-workprogression.
6. Situational Analysis
6.1. Performance environment
This section identifies the key factors about the external and internal environments that informed the strategic planning process. The trends in the higher education and training sectorandSouthAfrica’seconomiclandscapewereconsidered.ThefactorslistedbelowwillhaveadirectimpactwithinthenextfiveyearsontheabilityofNSFAStodeliveronitsmandate. In addition a stakeholder identification and value analysis is provided.
i. Changing Strategic Landscape: External Environment
Overthenextfiveyears,theoperatingenvironmentwillbeaffectedbythefollowingexternalfactors:
A. Increase in number of students who will require NSFAS funding
(i) Basic education
TheDepartmentofBasicEducation’sActionPlanto2014“Towardstherealisation ofSchooling2025”,outlineshowtheDepartmentwillincreasethenumberofGrade 12learnerswhobecomeeligibleforaBachelorsprogrammeatauniversity(Goal4). Ifthegoalsarerealised,250000youthswillbeeligibletoenrollatauniversityby 2019,withinthetimeframeofthisStrategicPlan.
(ii) Post-school education
Inaddition,governmentplanstoraiseuniversityenrolmentsfromthecurrent 937,000to1,6millionby2030,toachieveaparticipationrateinhigher educationof25%,accordingtotheWhitePaper.ThetargetforTVETcollegesand otherpost-schoolinstitutionsis3,5millionstudents-afour-foldincreaseover
9 NSFAS Strategic Plan for the fiscal years 2015/16 – 2019/20
current numbers. (iii) Unfunded students
InadditionthereisagrowingconcernbyDHETtoincludestudentswhosefamily incomesfallabovetheNSFASthresholdforsupport,butbelowthenecessary threshold to obtain commercial loans.
B. Youth unemployment-SouthAfrica’sunemploymentforpeoplebetweenthe agesof15-24isthethirdhighestintheworldaccordingtotheWorldEconomic Forum(WEF)GlobalRisk2014Report.TheNDP’sresponsetotheseandother challengesistoimprovethequalityofeducation,skillsdevelopmentandinnovation asoneofthethreeprioritiestowardsreducingpovertyandinequalityby2030.This implies a more concerted effort at ensuring success for students at institutions. PartnershipswiththeNationalSkillsFund(NSF),SETAsandothergovernment institutionswillbecrucialinprovidingtherightskillsandimprovingtheprospectsof employment.
C. Limited resources – Limited financial resources remain the greatest challenge forNSFASannually.Theavailableresourcesarenotsufficienttosupportall applicants,thevastmajorityofwhomarefrompoorfamiliesandunabletopay fortheirownstudies.Whilstgovernmentspendingonhighereducationandpost- school skills development is set to increase over the MTEF period as announcedbyFinanceMinisterNhlanhlaNene(Mediumtermbudgetpolicy statement,2014),thiswillstillnotbesufficienttoreducethe funding gap. This implies the need for a collaborative fund raising and collections strategy to increase the pool of funds to ensure that students from poor and workingclassfamilieshavetheopportunitytoattenduniversityorcollege.
ii. Changing Strategic Landscape: Internal Environment
Overthenextfiveyearstheoperatingenvironmentwillbeaffectedbythefollowinginternalfactors:
• Rollingoutthestudent-centredmodelofprovidingfinancialaiddirectlytothe students. • Improvingend-to-endsystemintegrationwithothergovernmentsystemssuchas SARS and the Central Application system.• Improvinginternalcontrolsandpreventingfraudinthesystem.• Strengtheningthehumanresourcecapacity.• PositioningNSFAStomanagemorebursariesonbehalfofpublicsectorinstitutions and private foundations in an effort to raise more funding for student financial aid.• Renewingthefocusoncollections–implementingacomprehensivecollections strategythatwillre-examineamongstotherissues,lendingratesandcollections through SARS.
10NSFAS Strategic Plan for the fiscal years 2015/16 – 2019/20
6.2 Stakeholder Value Analysis
ThissectionliststhekeystakeholdersofNSFAS,andtheirexpectations.Thisanalysisformedthecornerstoneofdevelopingthestrategicobjectiveswithaviewtoimprovingstakeholdersatisfaction.NSFASwillmonitorprogressonsatisfyingstakeholderneedswithinthe next five years.
Stakeholder What this Stakeholder needs from NSFAS to be satisfiedNSFASfundedstudents Efficient administration of financial aid
Timeous disbursement of tuition and residence fees to institutionsandallowancestostudentsImproved communication
StudentswhoareeligibleforNSFASfunding but are not funded
Financial aidInformation on access to loans and bursaries
Universities and TVET Colleges Efficient claims processingTimeous disbursement of tuition and residence fees to institutionsandallowancestostudentsImproved communications
Funders Improved communicationDeliveryofservicesintermsofthefundingcontractbetweenNSFASandFunders
DepartmentofHigherEducationandTraining
Performance in terms of mandateProvide policy adviceImproved communicationTimely reporting at agreed intervals
NationalTreasury Expenditure in terms of approved budgetPerformance in terms of mandate
ParliamentandPCHET Performance in terms of mandateTimely submission of required documents
Employees and staff trade union ContinuousimprovementinworkingconditionsImproved staff consultation and communication
NationalCreditRegulator Compliance
Private sector Partnership potential
FinancialServicesBoard The Treating Customers Fairly outcomes
11 NSFAS Strategic Plan for the fiscal years 2015/16 – 2019/20
7. Description of the Strategic Planning Process
Asastartingpointtotheplanningprocess,NSFAShostedstrategicplanningworkshopsfortheSeniorManagementTeam(SMT)onFriday20June2014andfortheBoardon27June2014.Thepurposeoftheseworkshopswasto:
1. reviewthestrategytoensurethatitisrelevant,wellfocusedanddeliversrealvalue tostakeholders,and;2. involve the SMT in the process of strategic planning by obtaining their inputs and viewsforthenextfiveyearplan.
Theworkshopsinvolvedthefollowingprocesses:
1. External environmental scanning 2. Internal environmental scanning3. Stakeholdervalueanalysis–identificationandanalysisofstakeholders,and clarification of their expectations and needs4. NSFASresultsvaluechainandtheidentificationofthemostcriticalresults5. Formulationoftheshort,mediumandlongtermvalueproposition6. Focusonshortterm(3-5years)valuepropositionandidentificationofstrategicpriorities7. Identification of enabling elements to ensure delivery8. Defining measures of success
Thefirstpartoftheprocesswasnecessarilyiterativeinnatureandfocusedoncriticallyexaminingthegoalsandobjectivessothattheyrespondtoopportunitiesandthreats,anddevelopingperformancemetrics,toensurethattheorganisationisfocusingonandmeasuring the relevant activities and deliverables.
Thesecondpartoftheprocessinvolvedareviewofthestrategicobjectivestoensurethattheyarespecific,measurable,achievable,realisticandtimebound–inaccordancewith“SMART”principles,andtoformulatetheoutcomesaccordingtotheBalancedScorecardFramework.
Thiswasfollowedbytargetsetting,takingintoconsiderationtheresources,capabilities,strengthsandweaknessesoftheorganisation.Thefinalworkshopwasconductedtodevelop a five year budget that is aligned to the identified strategic targets and to develop a frameworkformanagingassociatedrisks.TheoutcomesoftheworkshopwereconsolidatedintotheNSFASfiveyearStrategicPlan,whichwaspresentedtotheBoardandtotheMinisterofHigherEducationandTrainingforapproval.
12NSFAS Strategic Plan for the fiscal years 2015/16 – 2019/20
Pa
rt B
: Str
ateg
ic Ob
ject
ives
Stra
tegi
c Out
com
e Or
ient
ed G
oals
Stra
tegi
c Ou
tcom
eOr
ient
ed G
oals
Goal
1Go
al 2
An e
fficie
nt a
nd e
ffect
ive
publ
ic en
tity
in p
rovi
ding
st
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t fin
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l aid
Incr
ease
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to h
ighe
r edu
catio
n an
d im
prov
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tude
nt fi
nanc
ial
aid
envi
ronm
ent
Goal
St
atem
ent
To im
plem
ent e
ffect
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and
effic
ient
pro
cess
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nd
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atio
ns to
ens
ure
stak
ehol
der o
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tives
are
ac
hiev
ed
Toin
crea
sea
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sto
fund
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fore
ligib
les
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byra
ising
fund
s,
max
imisi
ng lo
an re
cove
ries
and
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ting
a st
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tred
loan
s an
d bu
rsar
ies
mod
el th
roug
h im
prov
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mm
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tion
supp
ort f
or
stud
ents
and
a ce
ntra
l app
licat
ion
proc
ess
Outc
omes
•Ro
bust
syst
ems,
pro
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ndco
ntro
ls•
Effe
ctiv
ean
def
ficie
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over
nanc
est
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•Pr
oduc
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and
enga
ged
empl
oyee
s
•In
crea
sed
fund
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•Im
prov
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cove
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•Fi
nanc
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uppo
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xten
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stud
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•Im
prov
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take
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tions
and
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•Cl
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vice
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agem
ent
Perf
orm
ance
In
dica
tor
NSFA
Sre
ceiv
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repo
rt a
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ntlo
ans
and
burs
arie
s•
Augm
ente
dca
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lava
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efo
rdisb
urse
men
t
13 NSFAS Strategic Plan for the fiscal years 2015/16 – 2019/20
9. Strategic Objectives
NSFASisorganizedintotwoprogrammesnamelyStudentCenteredFinancialAidandAdministration.
9.1. Programme: Student Centred Financial Aid
The aim of this programme is to improve the provision of financial aid to an increasing numberofeligiblestudentsbydesigningandimplementinganewstudentcentredoperatingmodelandenhancingthefinancialaidenvironmentwithpolicyrecommendationsfornewfinancialaidprogrammes.Thisprogrammeconsistsofthefollowingserviceunits:
Loans and Bursaries Administration – Responsible for comprehensive loans and bursaries operations sBux –ResponsibleforelectronicdisbursementsofallowancesContact Center – Responsible for student relationship management Communications – Responsible for stakeholder and student communications and marketing
9.2. Programme: Administration
Theaimofthisprogrammeistoconducttheoverallmanagement,administrationandgovernance of the entity and to provide efficient and effective support services to sustain thenewstudentcentredoperatingmodel.Thisprogrammeconsistsofthefollowingserviceunits:
Executive Office –Responsibleforstrategy,organisationalperformance,communicationsand stakeholder relationsFinance–Responsibleforallfinancialaccountingandrelatedprocesses,collectionsanddebtor management and risk managementCorporate Services – Responsible for all people and facilities related matters Information and Communications Technology – Responsible for all system related enablers
Each of the Programmes has a set of strategic objectives that drive its performance. These strategicobjectiveshavebeenderivedusingtheBalancedScorecardapproach.TheBalancedScorecardisaperformancemanagementtool,thatallowsformonitoringandevaluationofperformanceusingthefourperspectivesasdescribedbelow:
Stakeholder Perspective –ThisrelatestooutcomesandoutputsNSFAShastoachieveforits stakeholders Financial Perspective –Thisrelatedtomeetingservicedeliveryneedsinaneconomic,efficient and effective manner Internal Process Perspective – ThisrelatestothosecriticaloperationsthatwillenableNSFAStodeliveronitsmandateLearning and Growth Perspective –ThisrelatestothecapacityandskillsNSFASneedstoachieve its objectives
14NSFAS Strategic Plan for the fiscal years 2015/16 – 2019/20
For government departments and public entities the balanced scorecard is customised so that service delivery is the ultimate goal rather than profits therefore the stakeholder perspective is placed on top instead of the financial perspective. The overall aim of the balancedScorecardistoprovideaframeworkinwhichNSFAScanmeasureandmonitorperformanceandcreatesynergybetweenresourceallocation(humanandfinancial),internalprocesses and service delivery.
15 NSFAS Strategic Plan for the fiscal years 2015/16 – 2019/20
Programme: Student Centred Financial Aid
STAKEHOLDER PERSPECTIVE
Strategic objective 1 Improvethedisbursementoffundsandallowancestostudents
Objective statement Toprogressivelyimprovetheefficiencyofpaymentsoftuition,residencefees,allowancesandclaimstostudentsandinstitutions
Indicator Baseline (2013/14)
Increase in percentage of students in the student-centred model paid tuition and residence fees on the due date New indicator
Increase in percentage of students in the student-centred modelpaidallowancesontheduedate New indicator
Percentage of claims paid to institutions outside of the student-centred model on the due date New indicator
Upfront payment made to institutions outside of the student-centred model on the due date New indicator
Strategic objective 2 Provide policy inputs on student financial aid
Objective statement To provide policy inputs on student financial aid by conducting research programmes and publishing the outcomes
Indicator Baseline (2013/14)
Numberofresearchreportsproduced Newindicator
Numberofresearchprojectspublished Newindicator
Numberofpolicybriefsproduced Newindicator
Strategic objective 3 Improve key external stakeholder satisfaction
Objective statementTo improve stakeholder satisfaction by improving stakeholder relations and communication for those stakeholders identified in section 6.2 of the Strategic Plan
Indicator Baseline (2013/14)
Increase in percentage of satisfied stakeholders Newindicator
16NSFAS Strategic Plan for the fiscal years 2015/16 – 2019/20
FINANCIAL PERSPECTIVE
Strategic objective 4 Improve loan collections
Objective statement To improve loan collections incrementally each year
Indicator Baseline (2013/14)
Increase in loan collections R338 820.613
Strategic objective 5 Increase funding raised
Objective statementTo increase the pool of funding available for eligible student loans and bursaries incrementally each year through various fund raising mechanisms
Indicator Baseline (2013/14)
Increaseinnumberofnewfunderssecured 14
Increase in funding raised from current fundersR1,051,163billion(excludesspecial additional R1 billion grant)
17 NSFAS Strategic Plan for the fiscal years 2015/16 – 2019/20
Programme: Administration
INTERNAL PROCESSES PERSPECTIVE
Strategic objective 6 Roll-outnewstudentcentredmodel
Objective statement Toroll-outthenewstudentcentredmodelbyincreasingthepercentage of students on the model
Indicator Baseline (2013/14)Increaseinpercentageofstudentsmigratedtonewstudent-centredmodel 15% of students
Strategic objective 7 Improve governance
Objective statement Improve governance standards by maintaining an unqualified audit withzeromaterialstatements
Indicator Baseline (2013/14)
AGSA audit opinion Unqualified audit
LEARNING AND GROWTH PERSPECTIVE
Strategic objective 8 Striveforahighperformancecultureandimprovedworkingenvironment
Objective statement Strive for a high performance culture by improving productivity and increasing employee engagement
Indicator Baseline
Increase in percentage of productive employee Newindicator
Increase in percentage of engaged employees Newindicator
Strategic objective 9 Ensureinformationtechnology(IT)andorganisationalstrategicalignment
Objective statementAlign organisational processes and information technology by achieving CGICTAS phase 3 status and maintaining the status thereafter
Indicator Baseline (2013/14)
Status level for CGICTAS achieved Newindicator
18NSFAS Strategic Plan for the fiscal years 2015/16 – 2019/20
Headcount
2015/16 2016/17 2017/18
Permanent Employees 299 314 320
Temporary Employees 25 25 25
Total 324 339 345
10. Resource Considerations
NSFASexpenditureovertheMTEFisexpectedtoincreaseasaresultofadditionalfunders,thegrowthinfundsforloansandbursaries,andagreaternumberofstudentstoservice.Expenditurewillbeconcentratedinthefollowingareas:
10.1. Programme: Student Centered Financial Aid
IntegrationoftheNSFASstudent-centredmodelwithuniversityandcollegeadmissionssystems.
10.2. Programme: Administration
Recruitmentandemploymentofskilledhumanresourcesincertaincore,criticalandscarceskillsroles,includingcollections,funderrelationshipmanagement,communicationsandstakeholderrelations,dataanalyticsandmodelling.
Theprojectedheadcountoverthenextthreeyearsisreflectedinthetablebelow.
19 NSFAS Strategic Plan for the fiscal years 2015/16 – 2019/20
11. M
TEF
Allo
catio
n Es
timat
es
Prog
ram
me
Audi
ted
outc
ome
Adju
sted
app
ropr
iatio
nM
ediu
m-t
erm
exp
endi
ture
est
imat
e
R th
ousa
nd20
1120
1220
13
2014
/15
2015
/16
2016
/17
2017
/18
1. A
dmin
istra
tion
38,7
63
89,
022
151,
379
83,4
10 35
,680
1
19,0
9065
,658
82,2
0980
,332
2. S
tude
nt C
ente
red
Fina
ncia
l Aid
5,4
00,7
17
7,3
50,3
95
7,87
1,14
18
,419
,037
-
8,
419,
037
8,89
1,49
49,
365,
708
9,83
5,35
0
2.1
Stu
dent
Cen
tere
d Fi
nanc
ial A
id -
Oper
atio
ns38
,620
23
,397
35
,460
43
,270
-
43
,270
11
5,22
012
9,79
613
7,64
2
2.2
Loa
ns&
Bur
sarie
s5,
362,
097
7,32
6,99
87,
835,
681
8,37
5,76
7-
8,
375,
767
8,77
6,27
49,
235,
912
9,69
7,70
8
Subt
otal
5,43
9,48
07,
439,
417
8,02
2,52
08,
502,
447
35,6
80
8,53
8,12
78,
957,
152
9,44
7,91
79,
915,
682
-
- -
-
-
- -
Dire
ct ch
arge
s ag
ains
t the
Nat
iona
l Re
venu
e Fu
nd -
-
-
-
-
-
-
-
Tota
l5,
439,
480
7,43
9,41
78,
022,
520
8,50
2,44
735
,680
8,
538,
127
8,95
7,15
29,
447,
917
9,91
5,68
2
Chan
ge to
201
3 bu
dget
est
imat
e -
-
-
- 35
,680
-
-
-
20NSFAS Strategic Plan for the fiscal years 2015/16 – 2019/20
12. R
isk
Man
agem
ent
The
tabl
ebe
low
repr
esen
tsth
em
ain
stra
tegi
crisk
s.St
rate
gicr
iska
sses
smen
tsa
reco
nduc
ted
annu
ally
toa
scer
tain
any
shi
ftin
the
mag
nitu
de
ofri
ska
ndth
ene
edfo
rfur
ther
man
agem
enta
ctio
n.M
onito
ring
isth
roug
hon
goin
gac
tiviti
eso
rsep
arat
eev
alua
tions
toa
scer
tain
whe
ther
ris
km
anag
emen
tis
effe
ctiv
ely
prac
ticed
ata
lllev
els
ofth
eor
gani
satio
nin
acc
orda
nce
with
the
risk
man
agem
entp
olicy
,str
ateg
yan
dpl
an.
The
risks
will
bere
view
eda
nnua
llya
ndth
em
itiga
tion
stra
tegi
esfo
reac
hof
the
five
year
sof
the
Stra
tegi
cPla
nw
illbe
pro
vide
din
det
ailin
the
corre
spon
ding
Ann
ual P
erfo
rman
ce P
lans
.
Link
to o
bjec
tive
NoRi
sk
Risk
Des
crip
tion
Risk
Miti
gatio
n
Impr
ove
disb
urse
men
t of
fund
s an
d al
low
ance
s to
st
uden
ts1
Inab
ility
to d
isbur
se fu
nds
to
stud
ents
and
inst
itutio
ns o
n tim
e
The
risk
that
stu
dent
sw
illno
trec
eive
fu
ndin
gfo
rtui
tion
and
allo
wan
ces
timeo
usly
due
tola
cko
fcap
acity
with
in
NSFA
Sto
del
iver
on
the
man
date
.
Mon
itorin
gan
dev
alal
uatio
npr
oces
sw
illbe
put
in
plac
e to
ens
ure
paym
ents
are
mad
e tim
eous
ly.
Prov
ide
polic
y in
puts
on
stud
ent f
inan
cial a
id
2In
abilit
y to
pro
vide
str
ateg
ic in
sight
s on
fina
ncia
l aid
issu
es
The
risk
that
NSF
ASw
illno
tbe
able
to
colle
ct a
nd a
naly
se d
ata
on s
tude
nt
finan
cial a
id in
ord
er to
pro
vide
pol
icy
prop
osal
s to
sta
keho
lder
s.
Ane
wre
sear
chu
nitw
ithd
efin
edo
utpu
tsw
illbe
put
in
pla
cein
201
5/16
Impr
ove
key
exte
rnal
st
akeh
olde
r sat
isfa
ctio
n3
Repu
tatio
nal d
amag
e
Repu
tatio
nal d
amag
e ca
n oc
cur a
s th
e re
sult
of a
ctio
ns b
y th
e or
gani
satio
n its
elf
orb
yth
eac
tions
ofo
ther
par
ties,
suc
has
su
pplie
rs.
NSFA
Sin
the
proc
ess
ofd
evel
opin
ga
com
mun
icatio
ns s
trat
egy
for a
ll its
sta
keho
lder
s
Impr
ove
loan
colle
ctio
ns4
Inab
ility
to re
cove
r fro
m d
ebto
rs
The
risk
that
NSF
ASw
illfa
ilto
reco
ver
stud
ent l
oans
resu
lting
in co
mpl
ete
or
part
iallo
stp
rincip
ald
ebta
ndin
tere
st,
disr
uptio
nto
cash
flow
s,a
ndin
crea
sed
colle
ctio
n co
sts.
NSFA
Sis
the
proc
ess
ofd
evel
opin
ga
new
co
llect
ions
str
ateg
yfo
rim
plem
enta
tion
2015
/16
21 NSFAS Strategic Plan for the fiscal years 2015/16 – 2019/20
Link
to o
bjec
tive
NoRi
sk
Risk
Des
crip
tion
Risk
Miti
gatio
n
Incr
ease
fund
ing
rais
ed5
Redu
ctio
n in
fund
sDo
nors
redu
cing
fund
ing
as a
resu
lt of
ch
ange
sin
thei
row
nen
viro
nmen
ts.
Ane
wfu
ndra
ising
str
ateg
yis
bein
gde
velo
ped
for
impl
emen
tatio
nin
201
5/16
.Fur
ther
mor
e,N
SFAS
will
be ca
pacit
atin
g th
e St
akeh
olde
r man
agem
ent s
ervi
ce
unit
with
peo
ple,
syst
ems
and
proc
esse
sto
mee
tthe
ne
eds
ofth
egr
owin
gdo
norp
ortfo
lio.
Roll-
out n
ew s
tude
nt- c
entr
ed
mod
el
6La
ck o
f ski
lls
Lack
of s
kills
to s
ucce
ssfu
lly ro
ll-ou
t th
ene
ws
tude
nt-c
entre
dm
odel
toa
llin
stitu
tions
with
inth
esp
ecifi
edti
me
fram
es.
Trai
ning
and
up-
skilli
ngw
illbe
pro
vide
dfo
rcur
rent
em
ploy
ees.
Impr
ove
gove
rnan
ce7
Insu
fficie
nt in
tern
al co
ntro
lsFa
ilure
toin
tegr
ate,
doc
umen
tand
co
mm
unica
te in
tern
al co
ntro
ls in
all
oper
atio
ns.
Vario
usin
itiat
ives
will
bep
utin
pla
cea
spa
rto
fthe
in
tern
al a
udit
plan
to im
prov
e th
e co
ntro
l env
ironm
ent
with
inN
SFAS
.Thi
sin
clude
sth
ere
view
oft
heF
raud
Po
licy.
Striv
e fo
r a h
igh
perf
orm
ance
cu
lture
and
impr
oved
wor
king
en
viro
nmen
t8
Inab
ility
to m
anag
e pe
rform
ance
Empl
oyee
s no
t hel
d ac
coun
tabl
e fo
r pe
rform
ance
out
com
es.
NSFA
Sis
inth
epr
oces
sof
impl
emen
ting
anim
prov
ed
perfo
rman
ce m
anag
emen
t sys
tem
and
Em
ploy
ee
Wel
lnes
sPr
ogra
mm
e.E
mpl
oyee
ben
efit
prog
ram
mes
ar
eal
sou
nder
goin
ga
revi
ew.
22NSFAS Strategic Plan for the fiscal years 2015/16 – 2019/20
Link
to o
bjec
tive
NoRi
sk
Risk
Des
crip
tion
Risk
Miti
gatio
n
Ensu
re IT
and
org
anis
atio
nal
stra
tegi
c alig
nmen
t10
IT n
ot m
eetin
g or
gani
satio
nal
requ
irem
ents
Failu
reto
del
iver
on
man
date
,and
im
plem
ent p
olici
es a
nd re
port
ing
due
ton
on-a
lignm
entb
etw
een
ITa
nd
orga
nisa
tiona
l str
ateg
ies.
IT G
over
nanc
e tr
aini
ng to
be
cond
ucte
d fo
r all r
elev
ant
stak
ehol
ders
13. L
inks
to th
e lo
ng-t
erm
Iinf
rast
ruct
ure
and
othe
r cap
ital p
lans
Nolo
ngte
rmin
frast
ruct
ure
and
othe
rcap
italp
lans
are
env
isage
din
the
MTE
Fpe
riod.
23 NSFAS Strategic Plan for the fiscal years 2015/16 – 2019/20
An
nexu
re A
: Fra
mew
ork
of A
ccep
tabl
e Le
vels
of
Mat
eria
lity
and
Sign
ifica
nce
Fort
hep
urpo
seo
fthe
inte
rpre
tatio
nof
and
com
plia
nce
with
the
Publ
icFi
nanc
eM
anag
emen
tAct
,No.
1o
f199
9
Intr
oduc
tion
Inte
rms
ofR
egul
atio
n28
.3.1
oft
heTr
easu
ryR
egul
atio
nsis
sued
inte
rms
ofth
ePu
blic
Man
agem
entF
inan
ceA
ct(P
FMA)
,Act
no.
1of
199
9,fo
rthe
pu
rpos
eof
mat
eria
l[Se
ctio
n55
(2)o
fthe
PFM
A]a
nds
igni
fican
ce[S
ectio
n54
(2)o
fthe
PFM
A],t
heA
ccou
ntin
gAu
thor
itym
ustd
evel
opa
nda
gree
on
afra
mew
ork
ofa
ccep
tabl
ele
vels
ofm
ater
ialit
yan
dsig
nific
ance
with
the
rele
vant
Exe
cutiv
eAu
thor
ityin
cons
ulta
tion
with
the
Exte
rnal
Aud
itors
.
Fidu
ciar
y du
ties
of th
e A
ccou
ntin
g A
utho
rity
Qua
ntita
tive
(Am
ount
)Q
ualit
ativ
e (N
atur
e of
the
even
t)
Sect
ion
50
(1)
The
acc
ount
ing
auth
ority
fora
pub
lice
ntity
mus
t:
c)U
pon
requ
est,
disc
lose
toth
eex
ecut
ive
auth
ority
re
spon
sible
fort
hatp
ublic
ent
ityo
rthe
legi
slat
ure
tow
hich
th
epu
blic
entit
yis
acco
unta
ble,
allm
ater
ialf
acts
,inclu
ding
th
ose
reas
onab
lyd
iscov
erab
le,w
hich
ina
nyw
ayin
fluen
ceth
ede
cisio
n or
act
ion
of th
e ex
ecut
ive
auth
ority
or t
hat l
egisl
atur
e.
a)
Any
fact
disc
over
edo
fwhi
chth
eam
ount
exc
eeds
the
mat
eria
lity
figur
eof
R20
5,48
1,74
0.00
¹b)
An
yun
budg
eted
tran
sact
ion
ofw
hich
the
amou
nt
ex
ceed
s 2%
² of t
he to
tal v
alue
of a
sset
s pe
r Ann
ual
Fina
ncia
l Sta
tem
ents
.c)
An
ybu
dget
ede
vent
whe
rein
com
eis
ale
gitim
ate
e
xpec
tatio
nw
here
the
actu
alin
com
eis
less
that
1%³
oft
he
tot
al e
xpen
ditu
re.
d)
Tota
lact
ualin
com
ew
hich
isle
ssth
anb
udge
ted
inco
me
by
mor
eth
an1
%³o
fbud
gete
din
com
e.e)
To
tala
ctua
lexp
endi
ture
whi
chis
mor
eth
anb
udge
ted
inco
me
bym
ore
than
1%³
ofb
udge
ted
expe
nditu
re.
a)
Any
unpl
anne
dev
entt
hata
ffect
sth
eco
rep
urpo
seo
r
m
anda
te o
f the
ent
ity.
b)
Any
activ
ityth
atis
out
side
the
para
met
ers
ofth
e
pr
ovisi
ons
ofth
eNa
tiona
lStu
dent
Fin
ancia
lAid
Sche
me
ActN
o56
of1
999,
as
amen
ded.
c)
Any
item
ore
vent
ofw
hich
spe
cific
disc
losu
reis
requ
ired
byla
w.
d)
Any
fact
disc
over
edo
fwhi
chit
som
issio
nor
miss
tate
men
twill
affe
ctth
efu
nctio
ning
oft
hee
ntity
.
¹2%
ofTo
talA
sset
sas
disc
lose
don
the
2013
/14
Annu
alF
inan
cialS
tate
men
ts² T
reas
ury
Pres
crib
ed th
resh
old
as p
er th
e pr
actic
e no
te o
n ap
plica
tion
unde
r sec
tion
54 o
f PFM
A³T
reas
ury
Pres
crib
edth
resh
old
asp
erth
epr
actic
eno
teo
nap
plica
tion
unde
rsec
tion
54o
fPFM
A
24NSFAS Strategic Plan for the fiscal years 2015/16 – 2019/20
Fidu
ciar
y du
ties
of th
e A
ccou
ntin
g A
utho
rity
Qua
ntita
tive
(Am
ount
)Q
ualit
ativ
e (N
atur
e of
the
even
t)
Info
rmat
ion
to b
e su
bmitt
ed b
y A
ccou
ntin
g A
utho
rity
Sect
ion
54
(2)
Befo
rea
pub
lice
ntity
conc
lude
san
yof
the
follo
win
g
tran
sact
ions
,the
acc
ount
ing
auth
ority
fort
hep
ublic
en
tity
mus
tpro
mpt
lya
ndin
writ
ing
info
rmth
e
rele
vant
tre
asur
y of
the
tran
sact
ion
and
subm
it re
leva
nt
part
icula
rs
of th
e tr
ansa
ctio
n to
its
exec
utiv
e au
thor
ity fo
r
ap
prov
al o
f
the
tran
sact
ion:
a)
Esta
blish
orp
artic
ipat
ion
inth
ees
tabl
ishm
ento
fa
co
mpa
ny;
b)
Part
icipa
tion
ina
sig
nific
antp
artn
ersh
ip,t
rust
,
unin
corp
orat
edjo
intv
entu
reo
rsim
ilara
rran
gem
ent;
c)
Acqu
isitio
nor
disp
osal
ofa
sig
nific
ants
hare
hold
ing
in
a
com
pany
;d)
Ac
quisi
tion
ord
ispos
alo
fas
igni
fican
tass
et;
e)
Com
men
cem
ento
rce
ssat
ion
ofa
sig
nific
ant
busin
ess
ac
tivity
;and
f)
An
ysig
nific
antc
hang
ein
the
natu
reo
rext
ento
fits
in
tere
stin
as
igni
fican
tpar
tner
ship
,tru
st,
unin
corp
orat
ed jo
int v
entu
re o
r sim
ilar a
rran
gem
ent.
(a),
(b),
(d),
(e)a
nd(f
)are
not
app
licab
leto
the
NSFA
S.
Info
rmat
ion
will
bes
ubm
itted
by
the
Acco
untin
gAu
thor
ityw
ith
resp
ectt
o(c)
,whe
reth
eco
sto
fthe
ass
ets
acqu
ired
ord
ispos
ed
ofe
xcee
ds1
%of
the
tota
lcos
toft
heN
SFAS
’sas
sets
.
Info
rmat
ion
shal
lbe
prov
ided
as
follo
ws:
a)
Any
tran
sact
ion
toe
stab
lish
aco
mpa
ny.
b)
Any
part
icipa
tion
ina
sig
nific
antp
artn
ersh
ip,t
rust
,
un
inco
rpor
ated
join
t ven
ture
or s
imila
r agr
eem
ent.
c)
Any
tran
sact
ion
toa
cqui
reo
rdisp
ose
ofs
hare
hold
ing
ina
com
pany
.d)
Th
eco
sto
fthe
ass
eta
cqui
red
ord
ispos
edo
fexc
eeds
10%
of th
e to
tal c
ost o
f ass
ets.
e)
Any
busin
ess
activ
ityth
atw
ould
impa
cto
nth
eNS
FAS’
s
ab
ility
tofu
lfilli
tsm
anda
te,o
utsid
eof
the
appr
oved
stra
tegi
c pla
n an
d bu
dget
.f)
Whe
reth
ech
ange
inth
ein
tere
stre
sults
ina
chan
gein
the
acco
untin
g tre
atm
ent o
f the
arr
ange
men
t.
25 NSFAS Strategic Plan for the fiscal years 2015/16 – 2019/20
Fidu
ciar
y du
ties
of th
e A
ccou
ntin
g A
utho
rity
Qua
ntita
tive
(Am
ount
)Q
ualit
ativ
e (N
atur
e of
the
even
t)
Annu
al re
port
and
fina
ncia
l sta
tem
ent
Sect
ion
55
(3)
The
annu
alre
port
and
fina
ncia
lsta
tem
ents
refe
rred
toin
subs
ectio
n(1
)(d)
mus
t–
a)
Fairl
ypr
esen
tthe
sta
teo
faffa
irso
fthe
pub
lice
ntity
,its
busin
ess,
its
finan
cialr
esul
ts,it
spe
rform
ance
aga
inst
pre-
dete
rmin
ed o
bjec
tives
and
its
finan
cial p
ositi
on a
s at
the
end
ofth
efin
ancia
lyea
rcon
cern
ed;
b)
Inclu
dep
artic
ular
sof
–
i. An
y m
ater
ial lo
sses
thro
ugh
crim
inal
cond
uct
an
d an
y irr
egul
ar e
xpen
ditu
re a
nd fr
uitle
ss a
nd
w
aste
fule
xpen
ditu
reth
ato
ccur
red
durin
gth
e
fin
ancia
lyea
r;
ii)
Any
loss
esre
cove
red
orw
ritte
nof
f
Info
rmat
ion
shal
lbe
prov
ided
with
resp
ectt
o:
a)
Loss
esth
roug
hcr
imin
alco
nduc
t–a
nylo
sses
iden
tifie
d.b)
Lo
sses
thro
ugh
irreg
ular
/fru
itles
s/w
aste
fule
xpen
ditu
re
-
if th
e co
mbi
ned
tota
l exc
eeds
the
mat
eria
lity
figur
e of
R205
,481
,740
.00
c)
Any
reco
very
ofl
osse
san
dda
mag
esth
roug
hvi
sm
ajor
or
ot
heru
navo
idab
leca
uses
as
perS
ectio
n76
(1)(
a-b)
oft
he
Ac
t.
Info
rmat
ion
shal
lbe
prov
ided
with
resp
ectt
o:
a)
Qual
itativ
eas
pect
sas
refe
rred
inS
ectio
n54
abo
ve.
b)
Alllo
sses
rela
ting
toir
regu
lara
ndfr
uitle
sse
xpen
ditu
re
ar
e re
gard
ed a
s m
ater
ial d
ue to
the
appl
icatio
n of
thes
e
lo
sses
.
Res
tric
tions
on
borr
owin
g, g
uara
ntee
s an
d ot
her
com
mitm
ents
as
prov
ided
in S
ectio
n 66
The
NSFA
Ssh
alld
isclo
sea
llcom
mitm
ents
with
fina
ncia
lim
plica
tions
.Th
eNS
FAS
shal
ldisc
lose
any
bor
row
ings
,gua
rant
ees
and
finan
cial c
omm
itmen
ts.
26NSFAS Strategic Plan for the fiscal years 2015/16 – 2019/20
Ope
ratio
nal C
onsi
dera
tions
Prop
osed
Fra
mew
ork
Res
ultin
g fig
ures
for
2013
/ 14
Und
erly
ing
prin
cipl
es
[Mat
eria
lfor
Sec
tion
55(2
)(b)
(I;ii
;iii)
ofth
ePF
MA]
Disc
losu
re in
the
Annu
al R
epor
t of:
•Lo
sses
due
to cr
imin
al co
nduc
t.
•Irr
egul
ar e
xpen
ditu
re.
•Fr
uitle
ssa
ndw
aste
fule
xpen
ditu
re.
•Lo
sses
reco
vere
dor
writ
ten
off.
Quan
titat
ive
Stud
entl
oans
(R7
,444
,489
,000
.00)
:1
% of
the
tota
l Stu
dent
loan
s re
port
ed in
the
Annu
al F
inan
cial
Stat
emen
ts.
Capi
talE
xpen
ditu
re(R
10,
274,
087,
000)
:1
% of
the
Tota
l Ass
ets
in th
e An
nual
Fin
ancia
l Sta
tem
ents
.Op
erat
iona
lExp
endi
ture
(R5
,846
,344
,000
.00)
:2
% of
the
Tota
l Rev
enue
in th
e An
nual
Fin
ancia
l Sta
tem
ents
The
mat
eria
lity
leve
ls a
bove
are
sub
ject
to a
min
imum
of
R205
,481
,740
.00
Qual
itativ
e
Over
and
abo
veth
efin
ancia
lcon
sider
atio
nso
fmat
eria
lity,
any
loss
es
due
tocr
imin
alco
nduc
tare
cons
ider
edto
be
mat
eria
lby
natu
re,
irres
pect
ive
of th
e qu
antu
m th
ereo
f.It
is,th
eref
ore
impo
rtan
tto
note
that
the
quan
titat
ive
mea
sure
sof
m
ater
ialit
yw
illon
lya
pply
toir
regu
lare
xpen
ditu
rea
ndfr
uitle
ssa
nd
was
tefu
lexp
endi
ture
,whe
reas
the
qual
itativ
em
easu
rew
illap
ply
to
loss
es d
ue to
crim
inal
cond
uct.
R74,
444,
890.
00
R102
,740
,870
.00
R173
,403
,400
.00
•Ea
chlo
ssd
ueto
crim
inal
cond
uct,
irr
egul
are
xpen
ditu
reo
rfru
itles
san
dw
aste
ful
ex
pend
iture
,as
iden
tifie
d,w
illbe
eva
luat
ed
inco
ntex
toft
hee
xpen
seca
tego
ryto
whi
ch
it
rela
ted
tod
eter
min
ew
heth
erit
qua
lifie
sfo
r
disc
losu
re in
the
Annu
al R
epor
t as
requ
ired
by
Se
ctio
n 54
.
•In
line
with
goo
dbu
sines
spr
actic
e,
asw
ella
sth
ere
quire
men
tso
fthe
Act
,
NS
FAS
isco
mm
itted
toth
e
pr
even
tion,
det
ectio
nof
and
taki
ng
appr
opria
tea
ctio
non
alli
rregu
lare
xpen
ditu
re,
fru
itles
san
dw
aste
fule
xpen
ditu
re,lo
sses
re
sulti
ng fr
om cr
imin
al co
nduc
t and
ex
pend
iture
not
com
plyi
ngw
ithth
e
oper
atio
nalp
olici
eso
fNSF
AS.
To
this
end
NSFA
Ssy
stem
san
dpr
oces
ses
are
desig
ned
and
cont
inua
llyre
view
edto
en
sure
the
prev
entio
n an
d de
tect
ion
of
alls
uch
expe
nditu
re,ir
resp
ectiv
eof
the
size
ther
eof.
27 NSFAS Strategic Plan for the fiscal years 2015/16 – 2019/20
Ope
ratio
nal C
onsi
dera
tions
Prop
osed
Fra
mew
ork
Res
ultin
g fig
ures
for
2013
/ 14
Und
erly
ing
prin
cipl
es
Sign
ifica
ntfo
rSec
tion
54(1
)(2)]
Info
rmat
ion
and
appr
oval
by
the
Min
ister
of
“qua
lifyi
ngtr
ansa
ctio
ns”i
.e.:
•Pa
rtici
patio
nin
as
igni
fican
t
pa
rtne
rshi
p,tr
ust,
unin
corp
orat
ed
jo
intv
entu
reo
rsim
ilara
rran
gem
ent;
•
Acqu
isitio
nor
disp
osal
ofa
sig
nific
ant
as
set;
•Co
mm
ence
men
torc
essa
tion
ofa
signi
fican
tbus
ines
sac
tivity
;and
•
A sig
nific
ant c
hang
e in
the
natu
re
or
ext
ent o
f its
inte
rest
in a
sign
ifica
nt
pa
rtne
rshi
p,tr
ust,
unin
corp
orat
ed
jo
int v
entu
re o
r sim
ilar a
rran
gem
ent.
Quan
titat
ive
Qual
ifyin
gtr
ansa
ctio
nso
fan
oper
atio
naln
atur
e⁴:
•0
.25%
ofT
otal
Rev
enue
as
disc
lose
din
the
Annu
alF
inan
cial
Stat
emen
ts.
Qual
ifyin
gtr
ansa
ctio
nso
fas
trat
egic
natu
re²:
•
1%o
fTot
alA
sset
sas
disc
lose
din
the
Annu
alF
inan
cial
Stat
emen
ts.
Qual
itativ
e
A qu
alify
ing
tran
sact
ion
may
als
o be
cons
ider
ed s
igni
fican
t bas
ed o
n co
nsid
erat
ions
oth
erth
anfi
nanc
ialw
hen,
inth
eop
inio
nof
the
Boar
d,
it is
cons
ider
ed to
be
signi
fican
t for
the
appl
icatio
n of
sec
tion
54. T
he
decis
ion
onw
hich
non
finan
cialis
sues
may
be
cons
ider
eda
tany
tim
ere
quire
sca
refu
ljudg
men
tata
str
ateg
icle
vel,a
nds
houl
dth
eref
ore
rest
with
the
Boar
das
the
acco
untin
gau
thor
ity.A
san
exa
mpl
e,th
eBo
ard
may
cons
ider
aq
ualif
ying
tran
sact
ion
ass
igni
fican
twhe
nit
coul
d im
pact
sig
nific
antly
on
a de
cisio
n or
act
ion
by th
e M
inist
er.
R21,
675,
425
R102
,740
,870
.00
•Th
ePF
MA
isno
tint
ende
dto
affe
ctth
e
auto
nom
yof
the
entit
y,bu
tits
sta
ted
ob
ject
ives
are
toe
nsur
etr
ansp
aren
cy,
acco
unta
bilit
y an
d so
und
man
agem
ent o
f
reve
nue,
exp
endi
ture
,ass
ets
and
liabi
litie
sof
the
inst
itutio
nsto
whi
chth
eAc
tapp
lies.
Th
eref
ore,
the
legi
slat
ure
coul
dno
thav
e
in
tend
ed fo
r the
pub
lic e
ntiti
es to
repo
rt a
nd
se
ek a
ppro
val o
n m
atte
rs o
f a d
aily
op
erat
iona
lnat
ure;
•
The
busin
ess
ofN
SFAS
isco
nduc
ted
with
in
th
efra
mew
ork
ofth
em
anda
te,o
bjec
tsa
nd
po
wer
sco
ntai
ned
inth
eNS
FAS
Act,
asw
ell
as
the
busin
ess a
nd fi
nanc
ial d
irect
ion
set
out
in
the
stra
tegi
cand
ann
ualp
erfo
rman
cep
lan;
•
NSFA
Sal
soh
asd
efin
eda
ccou
ntab
ility
and
appr
oval
str
uctu
res
from
the
NSFA
SBo
ard,
as
the
acco
untin
gau
thor
ity,t
oth
eCh
ief
Exec
utiv
eOf
ficer
and
man
agem
ent;
•Th
ere
spon
sibilit
yfo
rthe
day
-to-
day
m
anag
emen
tofN
SFAS
ves
tsin
line
w
ithm
anag
emen
tthr
ough
acl
early
def
ined
orga
nisa
tiona
l str
uctu
re a
nd th
roug
h fo
rmal
ly
de
lega
ted
auth
oriti
es.
4Qu
alify
ing
tran
sact
ions
are
cons
ider
edto
be
ofa
nop
erat
iona
lnat
ure
whe
reit
isco
nclu
ded
asp
arto
fthe
nor
mal
bus
ines
sof
NSF
ASa
ndis
conc
lude
dw
ithin
the
fram
ewor
kof
the
NSFA
SAc
t,its
man
date
and
del
egat
ions
of
auth
ority
,as
wel
las
the
agre
emen
tsw
ithth
edo
nors
cont
aine
din
the
dono
rcon
trac
tand
corp
orat
epl
an.
2Qu
alify
ing
tran
sact
ions
are
cons
ider
edto
be
ofa
str
ateg
icna
ture
whe
reit
isn
otp
arto
fthe
nor
mal
bus
ines
sof
NSF
ASa
ndis
conc
lude
dou
tsid
eth
efra
mew
ork
deta
iled
abov
eor
whe
nit
links
toN
atio
nalP
riorit
ies.