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FET Colleges Finances and Financial Aid Scheme

FET Colleges Finances and Financial Aid Scheme. 20 February 2007. Overview of college finances. Audited statements show strong growth in income over recent years Growth in income from variety of resources from R409 million in 2000/1 to R736 million in 2003/4.

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FET Colleges Finances and Financial Aid Scheme

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  1. FET Colleges Finances and Financial Aid Scheme 20 February 2007

  2. Overview of college finances • Audited statements show strong growth in income over recent years • Growth in income from variety of resources from R409 million in 2000/1 to R736 million in 2003/4

  3. Income 2000 to 2003 at FET Colleges

  4. Reasons for re-capitalisation of FET Colleges • Colleges offering outdated programmes that did not meet the needs of the economy • Need to plan new programmes and provide infrastructure and equipment to offer new programmes

  5. Key principles of re-capitalisation The re-capitalisation process will be driven by • programmes that meet the needs of society and the economy • research and information • redress strategies

  6. Allocation of Funds • R50 million planning grant for 2005/6 • R500 million in each of 2006/7; R600 million in 2007/8 and R800 million in 2008/9 for re-capitalisation

  7. Budget proposals by province

  8. Principles for allocation At provincial level • Weighted formula using youth population, contribution of province to GDP and student FTEs / enrolment at colleges At college level • Programmes where there is evidence of need and part of Growth and Development Plan of province

  9. Funds allocated

  10. Budget items for funding All allocations in relation to programmes offered • Infrastructure – new and development of • Equipment and ICT • Development of professional staff in relation to programmes offered • Administrative systems • Curriculum development

  11. Allocation by line item

  12. Implementation in 2006 • Funds transferred • Curriculum preparation • Lecturer training • Preparation of LTSM • Tenders and specifications for infrastructure and equipment • Appointment of examiners • Recruitment of students

  13. Monitoring of re-cap and readiness • State of readiness instrument developed • Provincial Departments of Education • National Department and Treasury • Independent Ministerial Task Team

  14. Progress on re-cap spending December report As at Friday, 26 January 2007, 35 colleges had submitted their reports. January report As at Monday, 12 February 2007, 46 colleges had submitted their reports.

  15. SPENDING BY COLLEGES AS AT THE END OF JANUARY 2007 1. Actual spending per Province: Amount Amount % Allocated Spent Spent EC R 61 000 000 R 41 970 234 68,8% FS R 30 000 000 R 15 403 067 51,3% GP R106 000 000 R 37 963 126 40,4% KZN R 90 000 000 R 54 278 669 60,3% LP R 43 000 000 R 18 419 040 47,2% MP R 32 000 000 R 17 048 291 53,3% NC R 10 000 000 R 6 761 898 67,6% NW R 28 000 000 R 3 319 085 30,2% WC R 70 000 000 R 44 186 160 63.1% TOTAL R470 000 000 R239 349 570 54.8%

  16. SPENDING BY COLLEGES AS AT THE END OF JANUARY 2007 2. Uncommitted funds per province: Allocated Amount % Amount Uncommitted Uncommitted EC R 61 000 000 R 2 172 560 3,6% FS R 30 000 000 R 4 619 608 15,4% GP R106 000 000 R10 521 472 11,2% KZN R 90 000 000 R 6 071 894 6,7% LP R 43 000 000 R 6 089 951 15,6% MP R 32 000 000 R 8 010 966 25,1% NC R 10 000 000 R 1 349 183 13,5% NW R 28 000 000 R 372 915 3,4% WC R 70 000 000 R 6 888 435 9,8% TOTAL R470 000 000 R46 096 984 10,5%

  17. Bursary scheme • Recent changes in FET sector geared at increasing access (merger, recapitilisation, NC(V) programmes) • New curriculum addressing SA’s skills shortage • R600 million allocated for FET Colleges Financial Aid Scheme – over 3 years • 2007 = R100 million • 2008 = R200 million • 2009 = R300 million

  18. NSFAS - Mode of Operation • Financial Aid Offices: • Bursary applications • Send batches of forms with interim reports to NSFAS claiming money on behalf of the students • NSFAS processes the claims and makes payment • Financial Aid Offices credit student fee accounts

  19. NSFAS • NSFAS – administration & management of funds on behalf of DoE • NSFAS is a loan and bursary scheme operating in terms of Act 56 of 1999 • It was set up by the SA Government in 1996 • It was set up to create access to education for students with potential but who could not afford to fund their own studies

  20. Allocation of Bursaries • Only South African students registered for NC(V) courses will be eligible for bursaries • Provincial & College allocation done using the Crouch model • Crouch model considers NC(V) enrolments and the % of poor population per province • Allocation method approved by the Minister of Education on 5 December 2006

  21. Bursary Allocations

  22. Notification to Colleges • Provinces & Colleges advised on 8 December 2006 of allocations • Training for DoE, PDE & Colleges conducted from 31 January to 6 February 2007 • A total of 122 officials & College staff trained

  23. Provincial Allocation

  24. Conditions & Process for awarding bursaries • College bursaries based on approved NC(V) programmes & student enrolments • College to allocate a dedicated staff member to administer the scheme – student support officer recommended • Awarding of bursaries to be based on Means Test – evidence thereof required • Approved & signed bursary agreements required

  25. Conditions & Process for awarding bursaries • Colleges to set up a Financial Aid Committee, suggested members: • student support services officer/manager • finance officer / manager • student administration officer / manager • student representative council (SRC) member (s) • Committee makes bursary awards recommendations • College CEO – Accounting Officer

  26. Role of Colleges • Serve as DoE, PDE & NSFAS agencies (accountability & reports) • Advertise bursaries to all students • Counsel & advise students • Administer bursary application forms and Means Test • Issue receipts to students as proof of applications received

  27. Monitoring & Support • DoE, PDE & NSFAS – monitoring & support • Colleges to provide reports to DoE, PDE & NSFAS • NSFAS – regular audit

  28. Thank you

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