Student Centred Model Implementation: Funding Principles and Status Update

1. 2017 Rollout of the Student Centred Model: Application Process and Status Update 3 May 2017 JOINT MEETING OF THE PORTFOLIO COMMITTEE ON HIGHER EDUCATION AND TRAINING and THE SELECT COMMITTEE ON EDUCATION AND RECREATION 3 May 2017

2. Presentation Overview 2 Project implementation 1 Principles for funding in the student centred model 3 Funding decisions high-level summary Emerging risk LAFSOP & Student Allowances 4 Universities & TVETs – Funding analysis per Province 5 6 Emerging risks – funding variances, LAFSOPs 7 Questions

3. Principles for funding and project implementation Impacting significantly on improving how students are funded has been central to implementing the student centred model

4. Helping students build a brighter tomorrow Project implementation Two application cycles, closed in Feb 2017 Volume higher than anticipated Check ID, academic results, income documentation University applicants matched to admission  Parallel process of review Overtime and shift work to address backlog No verification to third party data sources Rejected all those not admitted Extensive Stakeholder communication in the quarter Only TVET apps funded through manual process evaluated

5. Allocations in 2017: Universities • Allocation for universities grown from R9,2bn in 2016 to R 10,6bn in 2017, which includes R1,7bn additional for FTE 2017 • The allocation includes a portion that had been set aside as a centralised fund to manage “funding following the student” –ring-fenced value R1,2bn • Based on an assessment of average cost per student at each university, this represents a growth in the number of students that could be funded from 205 000 in 2016 to 262 000 in 2017 • Upfront payment of 15% paid on 16 January 2017 (for DHET and NSF Scarce Skills categories) • Second upfront payment of a further 15% will be paid on/before 21 April 2017

6. FUNDING DECISIONS: ALLOCATION AND LAFSOP/Sbux – to date Provisional funding decisions – based on the funding model Actual funding confirmed Number of students funded: The actual students funded differ to provisional students funded due to changes arising from confirmation of registration from institutions as well as final data clean up. The process will be finalised during the month of April. Registration data: All institutions are required to submit registration information for all students to NSFAS. The registration information confirms that the student is registered at the institution and the funding required. First time entrants are required to signed LAFSOP before they can receive funding from NSFAS.

7. Emerging risks and mitigation plans By listening to stakeholders and analysing our data, NSFAS has identified some short-term and medium-term risks

8. Helping students build a brighter tomorrow Dependency onRegistration data • NSFAS has received registration data for only 64% of the university students that were provisionally funded and registration data for only 13% of the TVET students that were provisionally funded. • Without registration information for funded students provided to NSFAS, LAFSOPs cannot be generated • Timing of the delivery of the registration handler and integration services resulted in delays in receiving registration information • Resource challenges being experienced include: • Insufficient ICT resources to manage service calls logged • Insufficient data/business process specialists in L&B • Inadequate monitoring by L&B of ICT delivery • Technical challenges being experienced include: • Course code mismatches • Some institutions experiencing internal delays in prepping data • Adapt-It institutions logging calls with Adapt-IT which are not resolved timeously • Incorrect qualifications presented on LAFSOP

9. Payments to Universities and TVETs – to address the challenges The payment made to Institution is for the tuition fee and payment of the student allowances.

10. Payments to Universities - Detail

11. Payments to TVETs - Detail

12. Payments to TVETs – Detail (Cont’d)

13. Additional 15% upfront payment made to institutions on 21/04. Two payments to date. A team of Cordys specialists deployed to Universities and TVETs to address registration data challenges starting on 18/04 Contact centre agents are contacting students to sign LAFSOPs Capacity of CC will be increased from 5 agents to 24 agents from 24/04 Targeted media campaign. Communications Forum 24/25 April with Universities and TVETs. Adverts on 67 community radio stations for full month of May. LAFSOP Risk Mitigation Plan

14. Funding decisions per Province Statistical analysis of students funded per University & Province

15. Helping students build a brighter tomorrow Universities % of FTE students funded – by province 15% 9% 27% 6% 22% 7% 1% 9% 5%

16. Helping students build a brighter tomorrow TVETs % of FTE students funded – by province 13% 8% 20% 4% 7% 20% 3% 12% 14%

17. Unfunded student cohort The number of unfunded students referred to the DHET for funding.

18. Universities – late and unfunded applications These are the students who are not funded. They do not form part of the funding allowance as articulated under the funding decision slide.

19. QUESTIONS