NSFAS - Strategic Plan 2020-2025

Strategic Plan
2020/2025
STRATEGIC PLAN 2020/2025
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TABLE OF CONTENTS
1. EXECUTIVE AUTHORITY STATEMENT ........................................................................................ 6

2. ACCOUNTING AUTHORITY STATEMENT ........................................................................................ 7
3. OFFICIAL SIGN OFF.........………........................................................................................................... 9
PART A: OUR MANDATE

1 Constitutional Mandate. .................................................................................................................... 12
1.1. The Constitution of the Republic of South Africa, 1996 ............................................................... 12
1.2. The National Student Financial Aid Scheme Act (Act 56 of 1999 as amended) ......................... 12
2. Legislative and Policy Mandates ...................................................................................................... 12
2.1.The NSFAS Act ................................................................................................................................. 12
2.2.The National Credit Act (NCA) ........................................................................................................ 13
3. Institutional Policies and Strategies Governing the Five-Year Planning Period ........................... 13
3.1.State of the Nation Address ........................................................................................................... 13
3.2. National Development Plan 2030 ................................................................................................. 13
3.3. The Medium-Term Strategic Framework ...................................................................................... 13
4. Relevant Court Rulings ...................................................................................................................... 14
PART B: OUR STRATEGIC FOCUS

1. Vision .................................................................................................................................................. 18
2. Mission ............................................................................................................................................... 18
3. Values ................................................................................................................................................. 18
4. Situational Analysis .......................................................................................................................... 19
4.1. External Environment Analysis ...................................................................................................... 20
4.2. Internal Environment Analysis ....................................................................................................... 21
PART C: MEASURING OUR PERFORMANCE

1. Institutional Performance Information ............................................................................................. 26
1.1. Impact Statements ......................................................................................................................... 26
1.2. Measuring our outcomes ............................................................................................................... 28
1.3. Explanation of Planned Performance Over the Five-Year Planning Period ................................ 30
1.4. Strategic Responses to Internal Environment Factors ................................................................. 31
2. Key Risks and Mitigation ................................................................................................................... 34
PART D: TECHNICAL INDICATOR DESCRIPTION (TID) ......................................................................... 40
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iGENERAL INFORMATION
Country of incorporation Republic of South Africa

and domicile
Nature of business and The nature of the activities of the entity is to provide financial
principal activities assistance in the form of loans or bursaries to eligible
students at public higher education institutions and Technical
and Vocational Education and Training (TVET) colleges, to
administer such loans and bursaries, and to recover the loans
from the students once they are employed and earning in
excess of R30,000 per annum. Following the announcement of
the new bursary funding programme by the former President
of South Africa in December 2017, financial assistance to all
eligible students is now in the form of bursaries from the 2018
academic year.
Registered office 18 - 20 Court Road

Wynberg
Cape Town
7800
Business address 2nd Floor House Vincent

Wynberg Mews
10 Brodie Road
Cape Town
7800
Postal address Private Bag X1

Plumstead
Cape Town
7801
Bankers FNB Corporate Bank (Cape Town) a division of FirstRand Bank

Limited
Standard Bank of South Africa Limited
Absa Bank Limited a subsidiary of Barclays Africa Group Limited
Auditors Auditor-General of South Africa
Website Address www.nsfas.org.za
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II. ABBREVIATIONS/ ACRONYMS

AFS Annual Financial Statements IT Information Technology
AGSA Auditor - General of South Africa KPI Key Performance Indicator
AIP Audit Improvement Plan LRA Labour Relations Act
AOPO Audit of Predetermined Objectives MEC Member of the Executive Council
AP Annual Performance MoA Memorandum of Agreement
APP Annual Performance Plan MoU Memorandum of Understanding
AR Annual Report MTEF Medium-Term Expenditure Framework
ARC Audit And Risk Committee MTSF Medium-Term Strategic Framework
ASB Accounting Standards Board MTT Ministerial Task Team
ASISA Association for Savings and NBA NSFAS Bursary Agreement
Investment South Africa NCA National Credit Act
B-BBEE Broad-Based Black Economic NCOP National Council of Provinces
Empowerment NCR National Credit Regulator
CAMS Corporate Access Management NCV National Certificate (Vocational)
Services NDP National Development Plan
CACH Central Application Clearing House NOCLAR Non-Compliance to Laws and
CCSO Chief Corporate Services Officer Regulations
CEO Chief Executive Officer NSDS National Skills Development Strategy
CFO Chief Financial Officer NSF National Skills Fund
CGICTAS Corporate Governance of Information NSFAS National Student Financial Aid Scheme
and Communications Technology OHSA Occupational Health and Safety Act
Assessment Standards PACS Payment and Collection Services
CIO Chief Information Officer PAIA Promotion of Access to Information Act
COO Chief Operations Officer PAJA Promotion of Administrative Justice Act
CRO Chief Risk Officer PCHET Portfolio Committee on Higher Education
CSIR Council for Scientific and Industrial and Technology
Research PFMA Public Finance Management Act
DBE Department of Basic Education PIC Public Investment Corporation
DHET Department of Higher Education PPP Public Private Partnerships
and Training PPPFA Preferential Procurement Policy
DMV Department of Military Veterans Framework Act
DOH Department of Home Affairs PWD Persons with Disabilities
DOL Department of Labour PSET Post School Education and Training
DSD Department of Social Development QMS Quality Management System
DSU Disability Support Unit QSE Qualifying Small Enterprises
ECPG Eastern Cape Provincial Government RMA Rand Mutual Assurance
EE Employment Equity SAICA South African Institute of Chartered
EEA Employment Equity Act Accountants
EES Employment Engagement Survey SAMSA South African Maritime Safety Authority
EME Exempted Micro Enterprises SAQA South African Qualifications Authority
EO Executive Officer SARS South African Revenue Service
ESS Employee Self-Service SCER Select Committee on Education and
ETDP Education, Training and Development Recreation
Practices SCM Supply Chain Management
EXCO Executive Committee SCOPA Standing Committee on Public Accounts
EXMA Executive Management SETA Sector Education and Training Authority
FRM Funder Relationship Management SIEM Security Information and Event Management
FTENs First-Time Entering Students SOP Standard Operating Procedures
GDP Gross Domestic Product SRC Student Representative Council
GIP Graduate Internship Programme TEFSA Tertiary Education Fund of South Africa
GM General Manager ToR Terms of Reference
GRAP General Recognised Accounting TR Treasury Regulations
Practices TVET Technical and Vocational Education and
HE Higher Education Training
HR Human Resources UIF Unemployment Insurance Fund
HRMS Human Resources Management System
ICT Information and Communication
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Technology
ISO9000 International Standards on Quality
Management
EXECUTIVE AUTHORITY STATEMENT
• Medium-Term Strategic Framework; and

• Other relevant legislation, regulations, policies and
the changing post-school environment in which
NSFAS operates.
NSFAS was placed under Administration on August

20, 2018 with the primary aim of achieving stability
within the organisation and set the foundation for
sustainable operational capabilities. In addition
to the guidance above, this Strategic Plan is also
informed by the findings of the Administrator.
These findings indicate that there are four primary
strategic outcomes that must be achieved for
NSFAS to attain stability, sustainability, and deliver
on its mandate over the next five years, namely:
Outcome 1: NSFAS is compliant with all Governance

requirements in the delivery of its mandate.
Outcome 2: NSFAS empowers the Minister with

advice on matters relating to financial aid.
Outcome 3: NSFAS core mandate is enabled by

effective internal support services.
This document sets out the Strategic Plan of the
National Student Financial Scheme (NSFAS) for the Outcome 4: NSFAS delivers on its core mandate to
fiscal years 2020/21 to 2024/2025 in accordance provide financial aid to eligible students at public
with national imperatives and represents the universities and TVET colleges.
aspirations of NSFAS to deliver on its mandate.
In delivering these outcomes, NSFAS will
The National Student Financial Aid Scheme collaborate with relevant stakeholders which
(NSFAS) provides financial aid to eligible students share its dedication to providing access to higher
from poor and working-class families who study education and training and supporting student
at a public university or Technical and Vocational success.
Education and Training (TVET) college.
Dr. Bonginkosi E Nzimande, MP
The Strategic Plan defines the strategic objectives,
targets and key performance indicators (KPIs)
which will be utilised to measure performance. The
Strategic Plan also identifies the funding required
to achieve the stated strategic objectives.
This document sets out priorities for NSFAS in a Minister of Higher Education, Science and
manner that emphasises the outcomes-orientated Technology
monitoring and evaluation approach of the
Presidency and has been guided by:
• NSFAS Act (Act 56 of 1999);

• National Skills Development Strategy (NSDS) III;
• White Paper for Post-School Education and
Training;
• National Development Plan 2030
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ACCOUNTING AUTHORITY STATEMENT

for monthly disbursements to students, stabilising
campuses and ensuring predictability of funding
with positive implications for both the student and
institutional experience.
We have now identified the extent of irregular and

wasteful expenditure, as well as having clear proof
of gross maladministration and fraud through
ongoing forensic investigations. Much of this was
achieved on the back of the stabilisation of sub-
optimal information technology systems, weak
data validation, poor exchange of information
with institutions, and through the employment of
technical experts.
Despite the achievements to date, there are several

significant challenges that remain and require
continued attention. These challenges will require:
1.The review, design and implementation of stable

ICT systems, leveraging modern technologies
and capabilities to deliver the NSFAS mandate
seamlessly,
The mandate of the National Student Financial 2. A review of all processes as well as the NSFAS
Aid Scheme (NSFAS) is to provide financial aid to operating and disbursement model,
all eligible students from poor and working-class
families studying in approved courses at public 3. Transfer of skills from Advisors and Consultants
universities and Technical and Vocational Education to a new Executive team,
and Training (TVET) colleges. The achievements of
NSFAS in terms of providing loans and bursaries 4. Review of overall governance design and
over the prior two years have been shadowed by assessment of appropriateness thereof to execute
damning audit findings and serious shortfalls in the mandate,
delivery, causing failure against the organisational
mandate. To address the failures of NSFAS to 5. Rebalancing of management and technical
provide financial aid effectively, Minister Naledi human capital,
Pandor, on the recommendation of the NSFAS
Board, appointed myself as the Administrator in 6. Entrenchment of quality management and
August 2018 (National Gazette no 41851 of August governance processes,
2018). Giving effect to the promulgated Terms
of Reference (ToR), NSFAS arrested a complete 7. Further improvement in the integration of
institutional collapse and made remarkable systems with institutions and re-evaluating roles of
progress towards a sustainable turnaround. The institutions and stakeholders in the NSFAS value
organisation disbursed R10bn of R21bn earmarked chain,
for 2018 disbursements, the bulk of it in the final
quarter of 2018, post the appointment of the 8. Introduction of a performance management and
Administrator. During that quarter, NSFAS also had accountability framework in a bid to establish a
a successful 2019 enrolment season, attracting high-performance culture.
450 000 applications, followed by 120 000 walk-ins
from the TVET College sector in January 2019.
In 2019, NSFAS established a regularised structure
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I am confident that the NSFAS will continue to

improve to deliver on its mandate and vision of
providing an efficient and effective delivery model
to meet the provision of financial aid to qualifying
students. The five-year Strategic Plan is the road
map that the entity will use to achieve its vision,
mission, goals and strategic objectives.
Dr. Randall Carolissen
Administrator of the National Student Financial

Aid Scheme
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OFFICIAL SIGN-OFF
It is hereby certified that this Strategic Plan:
• Was developed by the management of the National Student Financial Aid Scheme under the guidance of the
Minister of Higher Education, Science and Innovation,
• Considers all relevant policies, legislation and other mandates for which the National Student Financial Aid
Scheme is responsible,
• Accurately reflects the impact and outcomes which the National Student Financial Aid Scheme will endeavour
to achieve over the period 2020/2025.
Signature: Ms Nthuseng Mphahlele: Chief Operating Officer
Signature: Mrs Sibongile Mncwabe: Chief Corporate Services
Signature: Itayi Daringo: Acting Chief Financial Officer
Signature: Mrs Sibongile Mncwabe: Interim official responsible for

planning
Signature: Dr. Randall Carolissen: Accounting Officer
Signature: Approved by Dr. Bonginkosi E Nzimande: Executive Authority
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PART A:
OUR MANDATE
In this section
1 Constitutional mandate. ....................................................................................................................... 12
1.1. The constitution of the republic of south africa, 1996 ................................................................... 12
1.2. The National Student Financial Aid Scheme Act (Act 56 of 1999 as amended) .......................... 12
2. Legislative and policy mandates ........................................................................................................ 12
2.1.The NSFAS act ................................................................................................................................... 12
2.2.The National Credit Act (NCA) .......................................................................................................... 13
3. Institutional policies and strategies governing the five-year planning period ................................. 13
3.1.State of the nation address .............................................................................................................. 13
3.2. National development plan 2030 .................................................................................................... 13
3.3. The medium-term strategic framework ........................................................................................... 13
4. Relevant court rulings .......................................................................................................................... 14
PART A: OUR MANDATE
CONSTITUTIONAL MANDATE
1.1. The Constitution of the Republic of South Africa, 1996
The Bill of Rights of the Constitution of the Republic of South Africa Act (108 of 1996, as amended) states in
section 29 (1) (a): “Everyone has the right…to a basic education, including adult basic education; and to further
education, which the state, through reasonable measures, must make progressively available and accessible.”
NSFAS contributes to the attainment of the rights described in section 29 by providing financial aid to students
from poor and working-class families. NSFAS enables these students to access post-school education, thereby
redressing the results of past racially discriminatory laws and practices. The mandate includes the recovery of
student loans and raising funds for student loans and bursaries.
1.2 National Student Financial Aid Scheme Act (Act 56 of 1999 as amended)
NSFAS was established according to the NSFAS (Act 56 of 1999 as amended) and incorporated Tertiary
Education Fund of South Africa (TEFSA) from 1993 to 2000. TEFSA was the primary non-profit company in terms
of Section 21 of the Companies Act and ceased to operate in July 2000. All existing loans on the TEFSA books
were transferred to NSFAS.
The Constitution of the Republic of South Africa, (Act 108 of 1996, as amended) also established two key bodies
that play an oversight role over NSFAS. The Portfolio Committee on Higher Education Science and Technology
(PCHET) is established by the rules of the National Assembly as enshrined in Section 57(2) (a). The Committee
is therefore an extension of the National Assembly and derives its mandate from Parliament. The Select
Committee on Education and Recreation is a Committee of the National Council of Provinces (NCOP). Functions
of the committee amongst others are to; monitor the financial and non-financial performance of government
departments and their entities, to ensure that national objectives are met.
2. LEGISLATIVE AND POLICY MANDATES
2.1. THE NSFAS ACT
The NSFAS is established in terms of the NSFAS Act 56 of 1999 as amended and is a Schedule 3A national public
entity in terms of the Public Finance Management Act (Act No. 1 of 1999 as amended).
In terms of the NSFAS Act, NSFAS is established to provide the following:
• Provide bursaries to eligible students,

• Develop criteria and conditions for the granting of bursaries to eligible students in consultation with the Minister
of higher education and training,
• Raise funds,
• Recover loans,
• Maintain and analyse a database and undertake research for the better utilisation of financial resources,
• Advising the Minister on matters relating to financial aid for students, and
• Undertaking other functions assigned to it by the NSFAS act 56 of 1999 as amended or by the Minister.
The Minister of Higher Education and Training has published regulations (Government Gazette Vol. 631, No.
413901) to the NSFAS Act for public comment which confirms NSFAS’ mandate, in consultation with the Minister
(Government Gazette Vol. 634, No. 415542) in that it may determine and revise:
• Criteria for eligibility for financial aid; and

• Set different eligibility criteria for different forms of financial aid.
The regulations also expand NSFAS’ mandate to include:
• Entering into Public Private Partnerships (PPPs) to enable NSFAS to extend, and/or administer, and/or recover
loans granted for financial aid, and
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• Making payment of such amount of the loan or bursary as is not payable to the institution, to the borrower or
bursar or to the approved service provider for payment to the borrower or bursar.
2.2. THE NATIONAL CREDIT ACT (NCA)
Other legislation that impact on NSFAS operations is the National Credit Act (Act 34 of 2005). NSFAS is subject
to the National Credit Act (NCA) (Act 34 of 2005), which requires all credit providers to register with the National
Credit Regulator (NCR). The NCA prevails over all other legislation dealing with the provision of credit. NSFAS is
registered as a credit provider under registration number NCRP 2655.
3. INSTITUTIONAL POLICIES AND STRATEGIES GOVERNING THE FIVE-YEAR PLANNING PERIOD
3.1. STATE OF THE NATION ADDRESS
The main government priority that NSFAS contributes to as per the 2019 SONA is Priority 2 which is, Education,
Skills and Health. DHET has identified the following outcomes for the 2020-2025 planning period:
• Expanded access to Public Sector Education and Training (PSET) opportunities

• Improved success and efficiency of the PSET system
• Improved quality of PSET provisioning; and
• A responsive PSET system
3.2. NATIONAL DEVELOPMENT PLAN 2030
The National Development Plan (NDP) provides extensive detail on the nine challenges facing South Africa,
amongst these and of importance to NSFAS is the challenge that “The quality of school education for black
people is poor”. As a response to these challenges, the NDP aims to eliminate poverty and reduce inequality by
2030 through:
(1) Raising employment through faster economic growth

(2) Improving the quality of education, skills development and innovation; and
(3) Building the capability of the state to play a developmental, transformative role.
On improving education, skills development and innovation, the NDP further provides a broad framework for
student financial aid in South Africa:
(i) Funding for qualifying students
“Provide all students who qualify for the National Student Financial Aid Scheme’s funding with access to full
funding through loans and bursaries to cover the costs of registration, tuition, books, accommodation and other
living expenses”.
(ii) Collections
“The National Student Financial Aid Scheme past loans should be recovered from beneficiaries through
arrangements with the South African Revenue Service”.
3.3 THE MEDIUM-TERM STRATEGIC FRAMEWORK
The MTSF 2019-2024 is the translation of the government priorities outlined by the president at the 2019 SONA
that are derived from the electoral mandate for the next five-year period. The seven priorities of this strategic
framework are embedded into the three pillars. The priorities, which will be achieved through more focused
implementation, coordination and integration by the various levels of government including state owned
enterprises, the private sector and civil society, are as follows:
Priority 1: Capable, ethical and developmental state

Priority 2: Economic transformation and job creation
Priority 3: Education, skills and health
Priority 4: Consolidating the social wage through reliable and quality basic services
Priority 5: Spatial integration, human settlements and local government
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Priority 6: Social Cohesion and Safer communities
Priority 7: A better Africa and the world
4. RELEVANT COURT RULINGS
NSFAS is an institution that adheres to statutory requirements. Court rulings inform or assist in the interpretation
and clarification of the scope and mandate of NSFAS. NSFAS will in the period of this Strategic Plan continue to
observe court rulings and the impact they may have on its mandate.
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PART B:
OUR STRATEGIC FOCUS
In this section
1. Vision .................................................................................................................................................... 18
2. Mission ................................................................................................................................................. 18
3. Values ................................................................................................................................................... 18
4. Situational analysis ............................................................................................................................. 19
4.1. External environment analysis ........................................................................................................ 20
4.2. Internal environment analysis ......................................................................................................... 21
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1. VISION
A model public entity that enables access to public universities and TVET colleges through financial aid to
students that are financially and academically eligible.
2. MISSION
To be an effective and efficient provider of financial aid to deserving students from poor and working-class
families in a sustainable manner, that facilitates and promotes access to and success in further higher education
and training. This will be achieved by actively collaborating with all relevant stakeholders.
The mission statement is made up of three distinct elements which describe why NSFAS exists, what we do, and
the impact on our constituency:
• NSFAS exists to provide financial aid to eligible students at public TVET colleges and public universities.
• NSFAS identifies eligible students, provides financial aid and recovers student loan repayments to replenish the
funds available for future generations of students.
• NSFAS supports access to, and success in, higher education and training for students from poor and working-
class families who would otherwise not be able to afford to study.
3. VALUES
VALUE BEHAVIOUR
We create an environment that allows efficient, effective and direct access to

ACCESSIBILITY
NSFAS and the funding it provides to eligible students.
TRANSPARENCY We are open and honest.
STEWARDSHIP Going beyond the call of duty and valuing the organisational resources.
INTEGRITY Displaying ethical behaviour and having the courage to do the right thing.
ACCOUNTABILITY We take responsibility for our actions that drive performance management.
RESPECT Collegiality, professionalism, work ethic and tolerance for diversity.
INNOVATION Anticipating change and being a learning organisation.
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4. SITUATIONAL ANALYSIS
NSFAS UNDER ADMINISTRATION
Since the introduction of the student-centred model (STUCEM), (the full rollout of which was completed during
the 2017 academic year), NSFAS has experienced challenges in delivering on its core mandate. The student-
centred model was a concept that intended to shift the NSFAS operating model from a decentralised model
(where students applied through the universities for funding) to a centralised model (where students applied to
NSFAS directly for funding). This ultimately led to NSFAS being placed under administration on August 20, 2018
in terms of Government Gazette Vol 638 No 41851 dated August 21, 2018.
The Administrator took over the governance, management and administration of NSFAS for a period of one year
initially. The first year of administration was completed successfully with significant improvements noted at
NSFAS.
However, a second year of administration is critical to consolidate work done at the entity, facilitate the appointment
of new Executive Management and Board, and the review of the NSFAS business processes needed to provide
advice to the minister on the future development of the entity and to ensure that an effective transition can be put
in place towards a new executive management and Board. The following terms of reference are applicable to the
period of administration from August 21, 2019 to August 20, 2020:
• Finalise the close out of the 2017 and 2018 student funding cycles, including finalisation of all data exchange
and final payments,
• Ensure the effective close out of the 2019 funding cycle and provision of accurate data to the Department of
Higher Education and Training (DHET),
• Ensure effective preparation for and implementation of the 2020 student funding cycle in consultation with the
DHET,
• Ensure that the entity pays adequate attention to both TVET colleges and universities in all aspects of its core
business processes,
• Maintain a close and productive working relationship between NSFAS and the universities and TVET colleges,
• Put in place the necessary management and governance controls to ensure that all risks of the 2020 student
funding cycle are appropriately managed with the support of the DHET and institutions as necessary,
• Manage the day-to-day work of the entity and steer NSFAS to address its operational challenges fully. This will
include continuation of the strengthening of structures, systems and policies that will ensure good governance
and effective management of the core operational mandate of NSFAS,
• Oversee the process of appointing new Executive staff at NSFAS, in terms of the process agreed with the DHET,
• Ensure a smooth transition between the administration team and the new Executive staff.
• Oversee all forensic and other investigations necessary for the effective operation and management of the
entity and any follow-up required,
• Provide support to the Ministerial Task Team (MTT) appointed by the minister to review the business processes
of the entity which will make long-term recommendations on the future models, structures, systems and business
processes necessary for an effective NSFAS,
This strategic plan is thus also informed by the findings of the Administrator. The NSFAS Strategic Plan for the
next five years is thus focused on attaining stability, sustainability, and deliver on its mandate within its core
operations by gearing NSFAS for the future.
RELEVANT STATISTICS RELATING TO ACCESS TO FINANCIAL AID
NSFAS actively analyses the applicant profile to determine the extent to which access to funding, and thus post-
school education, is being broadened. In 2018, NSFAS received over 500 000 new applications and currently
funds over 600 000 students.
In addition to the large volumes of applicants and beneficiaries that must be effectively processed, NSFAS has a
very clear social mission: to alleviate financial constraints for admission to Post School Education and Training
(PSET) for those that are academically qualified. Thus, core in assessing the extent to which the organisation is
reaching its mandate, is also the extent to which it is supporting marginalised groups in the South African society.
In this regard, it is notable that in 2018, the majority of NSFAS beneficiaries are female (61%) and overwhelmingly
African (95%). The majority of NSFAS funded students can be found at universities. In terms of location, the
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majority of NSFAS applications come from the province of KwaZulu-Natal, while most beneficiaries are found in
institutions in the province of Gauteng.
A very positive finding in recent statistics on South African graduates suggest that, NSFAS funded students
constituted roughly a quarter of graduates in 2016. Furthermore, in alignment with national targets, it is
encouraging to find that NSFAS funded graduates are relatively equally distributed in terms broad fields of study,
namely:
• Education (26%),
• Business, Economics and Management studies (23%),
• Science and Engineering related studies (24%) and
• Humanities (27%).
4.1. EXTERNAL ENVIRONMENT ANALYSIS
RECENT POLICY CHANGES
In the presidential response to the findings from the Heher Commission, there was a commitment to increase
higher education funding from 0.68% to 1% of Gross Domestic Product (GDP) over a five-year period and the
extant NSFAS’ loan and bursary support to poor and working-class students was modified in two specific ways:
• Firstly, the former loan and bursary scheme was changed to a pure bursary scheme with no repayable loan
component.
• Secondly, the financial definition of poor and working-class households was redefined from those with a
household income of less than R122 000 per annum to those with an income of up to R350 000 per annum.
Further refinements were introduced through collaborative work between NSFAS and DHET in 2019; as student
allowances were adapted across institutions and between universities and TVET colleges to achieve greater
levels of equity.
This complexity has increased the administrative requirements, and reporting requirements as well as the volume
of applications and funding decisions required.
FISCAL ENVIRONMENT
NSFAS continues to recover loans from debtors. There has been a decline of the recoveries target for the past two
financial years 2017/18 and 2018/19. Contributing factors are:
• The current fiscal environment in which household incomes are under stress,
• The introduction of the DHET bursary scheme as many debtors believe that they no longer need to repay their
loans,
• The historic debt settlement announcement by DHET towards the end of the financial year has also contributed
to unpaid debit orders as NSFAS debtors were under the impression that their debts would be written off, and
• Collections from the public sector, which was the key driver of performance in this area, stagnated despite
several efforts made to increase collections.
FUNDING RE-PRIORITISATION
NSFAS continues to raise funding from government and the private sector to overcome the imbalances of the
past by providing grants to individuals coming from poor and working-class families in terms of its mandate.
The presidential pronouncement on fully-subsidised free higher education for students from poor and working-
class backgrounds has had a direct bearing on efforts by NSFAS to raise funds from the public and private
sector in South Africa. Due to the broader reach of the DHET bursary scheme, many funders no longer believe it
is necessary to set aside additional funding for bursaries. This is as a result of the DHET bursary scheme being
viewed as addressing their previous target pool of students. NSFAS has since seen limited success in increasing
funding from other funders, despite this being a legislated mandate.
INSTITUTIONAL CAPACITY
NSFAS has a clear dependency on institutions for accurate and complete data to enable an efficient funding
process and disbursement of funds. The differing institutional (technical and administrative) capacity at
institutions will continue to impact on NSFAS’ ability to meet the required levels of efficiency in both these core
processes. The poor capacity within the TVET college sub-system is a challenge that puts additional pressure on
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NSFAS.
RELEVANT COURT RULINGS
Court rulings inform or assist in the interpretation and clarification of the scope and mandate of NSFAS. The
intention to review relevant court rulings over the period is to highlight particularly those that significantly affect
the mandate of the organisation. In the main, these cases highlight or assist in further understanding the roles
and responsibilities of all stakeholders. During the period, many cases did not result in any significant implication
for the nature and scope of the NSFAS mandate.
4.2. INTERNAL ENVIRONMENT ANALYSIS
At the commencement of administration in August 2018, NSFAS was in a chronic state of maladministration with
almost zero performance against the legislated mandate. Critical governance processes failed, a climate of non-
compliance to statutory reporting was prevalent, decentralised and disaggregated decision-making prevailed,
and a dysfunctional organisational climate stymied service delivery. ICT systems failed unpredictably and were
(and remain) not fit-for-purpose, business process workarounds for ICT automation failures and system errors
were, and to a great extent remain the order of the day. Relevant process documentation did not exist for core
business processes. This existed alongside a poor culture and work ethic, and general collegial disrespect. The
disproportionate irregular expenditure disclosed in the 2018/19 annual report portrays the malaise of NSFAS.
While tactical improvements have been implemented to de-risk the entity, critical short comings remain.
ICT SYSTEM CHALLENGES
The ICT systems supporting the core operations of the entity are not fit-for-purpose. This is indicated by:
• Insufficient user interfaces and accurate operational reporting that allows operational staff to execute and
manage business process. This results in a continued and extensive reliance on ICT for the day-to-day running
of operational business processes and creates avenues for business process and control deviations,
• The data redundancy in the database designs means that maintaining data quality is compromised and requires
extensive effort and exception reporting,
• The systems are expensive to maintain. Support teams are based internationally and foreign exchange
differences impact on the cost of ICT support to the entity. Local skills are also hard to procure and recruit,
• Because of the scarce available skills in the local market, key dependencies have been created creating
significant people related risks within the entity, and
• The systems lack agility to adapt to policy changes. Any policy change, even if minor, often requires extensive
ICT system development and testing which, in turn, pressurises the delivery schedule for funding and
disbursements.
In 2017, an independent assessment of the NSFAS cybersecurity maturity rated the entity at a sub-zero level.
This means the entity does not meet baseline requirements. Additionally, the entity scored a level one rating
when assessed in terms of the Department of Public Service and Administration’s (DPSA) Corporate Governance
Information and Communication Technology (CGICT) framework.
OPERATIONS
Core operations are driven by the NSFAS mandate and the value chain that facilitates a student application
through to payment, which is primarily ICT driven. These core business operations continue to be hamstrung by
technology inefficiencies (as described above) and the lack of documented and optimised business processes
and standard operating procedures.
The operations landscape is further constrained by staff who have inconsistent and poor understanding of the
policy environment, do not adhere to good governance protocols consistently and work within a silo mindset.
There are also inadequate technical skills within the operations environment.
This impacts on the timeliness of funding decisions, disbursements and the extent of queries from students and
institutions alike, which in turn burdens the Contact Centre and the entity’s general ability to resolve and manage
issues.
21
HUMAN RESOURCE CAPACITY
The 2018/19 financial year was a challenging time for Human Resource (HR) practice within NSFAS. Not only was
the Board dissolved and the entity placed under administration, it also saw the organisation deal with significant
system, operational and labour challenges.
Furthermore, the HR unit experienced difficulties with its document management processes and information
management technology as highlighted in the Auditor-General’s report for the previous financial year. The unit was
also not immune to the key person dependencies that continue to be symptomatic throughout the organisation
and have manifested through a variety of inefficiencies, delays and inaccuracies, compromising the integrity of HR
data. Poor adherence to HR policies leads to irregular appointments and a top-heavy management structure. This
depleted the operating budget, limiting the organisation’s ability to acquire the necessary technical capacity. The
organisation has been without permanent and effective leadership capacity for a protracted period. The levels of
engagement within the organisation were characterised by distrust between organised labour and management,
low staff morale, a climate of fear and harassment, and an organisational culture of grievances and entitlement.
The area of HR thus remains a key inhibitor of improved organisational performance. The organisation continues
to have major human capacity constraints, which are manifested in a plethora of organisational challenges,
including: 1) Low employee productivity, 2) High absenteeism rate, 3) Poor customer service, 4) Diminished
employee engagement, 5) Toxic organisational culture, 6) Increased healthcare costs, and 7) Escalation of labour
tensions.
GOVERNANCE AND RISK MANAGEMENT
Various internal audit reports have indicated the lack of governance, policies, standards and operating procedures.
The internal auditors have assessed the effectiveness of the NSFAS lines of defence as poor, characterised by a
poor culture towards risk management and controls. Management oversight was poor with little attention paid
to the implementation of basic controls, such as reconciliations and compliance to key legislative prescripts.
The internal auditors recommended that all lines of defence be strengthened, including that of internal audit and
Board oversight committees. The prevalence of the risk of fraud has been acknowledged with several fraud cases
handed over to the authorities and various forensic investigations launched.
While administration implemented certain governance initiatives to improve risk management, developed and
implemented key policies (especially within HR), and strengthened executive oversight significantly, governance,
risk and control gaps remain. This is further indicated by the most recent Auditor-General audit opinion and
various audit qualifications.
22
23
24
PART C:
MEASURING OUR PERFORMANCE
In this section
1. Institutional performance information ............................................................................................... 26
1.1. Impact statements ........................................................................................................................... 26
1.2. Measuring our outcomes ................................................................................................................. 28
1.3. Explanation of planned performance over the five-year planning period ..................................... 30
1.4. Strategic responses to internal environment factors ..................................................................... 31
2. Key risks and mitigation ...................................................................................................................... 34
25
NUMBER OUTCOME STATEMENT
To implement governance, risk and compliance

1 A compliant NSFAS in delivering its mandate. processes such that external audit outcomes are
improved.
To provide relevant insights and thought

2 An empowered minister on matters relating to leadership to the minister and DHET to assist in
financial aid. developing policy impacting on financial aid.
3 To provide effective support services that enable

An effective internal support services. NSFAS to deliver on its mandate.
4 Financial aid for all poor and working-class students To manage the funding application process,
at public universities and TVET colleges. funding decision process, and disbursement and
payment processes efficiently and effectively.
INSTITUTIONAL PERFORMANCE INFORMATION
1.1 IMPACT STATEMENT
South Africa’s historical injustices are redressed, and its citizens have
Impact statement access to improved quality of life through the provision of financial aid for
post school education to the poor and working-class communities.
South Africa's levels of unemployment, poverty and inequality are

Long-Term Outcome Statement
reduced.
26
27
1.2. MEASURING OUR OUTCOMES
Strategic Outcome Outcome Indicator
1.1. Unqualified audit opinion per year
A compliant NSFAS 1.2 Level of maturity in terms of CGICT Framework per year
in delivering its
mandate
1.3 Level of maturity with respect to cybersecurity maturity across all domains in
organisation per year
An empowered
minister on matters 2.1 Number of policy advisory briefs related to the NSFAS mandate provided to the
relating to financial minister per year
aid.
3.1 Percentage employee turnover rate per year
An effective internal
3.2 Number of communication campaigns to increase brand awareness per year
support services
3.3 Percentage of payments to institutions
completed within 7 working days of receiving the approved disbursement file from
Operations per year
4.1 Number of qualifying NSFAS students funded in approved programmes at

public universities and TVET colleges per year
4.2 Percentage of funds disbursed consistent with the NSFAS value proposition
Financial aid for all per year
poor and work-
ing-class students 4.3 Total Rand value in funding administered, in addition to funding received from
at public universities DHET, for financial aid annually
and TVET colleges.
4.4 Total Rand value recovered and allocated to loan accounts annually.
4.5 Percentage of partner collaboration with NSFAS per year

4.6. Number of operational reports on student queries across all channels within
the contact centre per year
28
Baseline 5-Year Target
Unqualified Clean audit

Audit rating with matters of emphasis
Level 1 Level 3
New Indicator Level 2
4 20
New Indicator Less than 5%
73 400
New Indicator 100%
University: 414 399 University: 439,659
TVET: 94 843 TVET: 346,258
University: 95% University: 99%
TVET: 95% TVET: 99%
New indicator R2.1 billion
R551.3m R0.98 billion
100% 100%
New indicator 60
29
1.3. EXPLANATION OF PLANNED PERFORMANCE OVER THE FIVE-YEAR PLANNING PERIOD
DEALING WITH THE IMPACT OF POLICY CHANGES:
The policy changes have impacted on NSFAS systems and processes. These matters are dealt with more
extensively under the internal environmental analysis.
RECOVERIES STRATEGY
The recoveries strategy includes obtaining payroll deduction agreements from public sector employees and
debit order mandates from private sector debtors via the engagement of external debt collectors. The entity has
continued engagement with the long and short-term insurance companies and have onboarded a service provider
to provide a platform for the integration between the entity and the insurance companies for payroll deductions.
The following strategies will be used to strengthen debt collection:
• The entity will continue to work with SARS to determine our current debtors that are in the employ of both private
and public sector,
• NSFAS will engage with the public sector for all new employees (NSFAS debtors) to sign a consent form for
NSFAS salary deductions,
• The entity will engage with the private sector to assist in identifying NSFAS debtors to collect monies that are
still owed to the entity, and
• NSFAS will engage with the broader community on different platforms to create awareness and encourage its
debtors to pay.
FUND RAISING STRATEGY
NSFAS continues to build internal fundraising capability. This will allow the organisation to fully implement the
fundraising strategy which is based on the following pillars:
• Raising funds from the private sector;

• Increasing the amount of funding obtained from Sector Education and Training Authority (SETAs);
• Increasing the amount of funding obtained from other government departments; and,
• Entering into PPPs with a variety of entities in the private or public sectors
STAKEHOLDER ENGAGEMENT STRATEGY
The NSFAS has and continues to strengthen relations with its stakeholders. The entity will continue to work
closely with DHET, its funder community, the university sector through Universities South Africa (USAf), the TVET
college sector through the South African College Principals Organisation (SACPO, and the student movements
such as South African Union of Students (SAUS) and South African Further Education and Training Students
Association (SAFETSA). This initiative is to ensure common understanding of the key issues, alignment on
strategies to monitor, implement and communicate our responsiveness.
NSFAS developed a framework for stakeholder engagement which is the central coordinating mechanism for
identified stakeholder groupings. With the support of the DHET, two coordinating structures in the university and
TVET colleges were established and will be maintained. Institution servicing teams for the university sector has
already been operationalised, and plans are in progress to operationalise a similar team for the TVET sector.
These teams play a pivotal role in ensuring that synergy is created between NSFAS and institutions by providing
support and service for all pre and post funding queries timeously. Additional focus will be directed at improving
query handling and management.
30
1.4. STRATEGIC RESPONSES TO INTERNAL ENVIRONMENT FACTORS
ORGANISATIONAL RENEWAL
Whilst it is recognised that a comprehensive organisational transformation and renewal is required, the minister
has indicated his intention to appoint a task team that will determine longer term strategic direction for the entity.
The appointment of this task team is yet to be finalised.
With this context, this strategic plan is focused on tactical short to medium-term initiatives, aimed at stabilising
the entity during and post-administration ending August 21, 2020. These are deliberations; thus no specific plans
for the complete replacement of the current ICT systems, the development of an alternative operating model that
is more fit-for-purpose, and the design of an organisational structure that is aligned to the organisational service
delivery mandate. These are all required to establish a sustainable and effective organisation.
MAINTAINING ICT SYSTEMS STABILITY AND IMPROVING OPERATIONAL EFFECTIVENESS
The NSFAS operations are highly dependent on ICT. Initiatives and projects will be focused on the following:
1. Maintaining system stability and availability
2. Reducing dependency by business operations on ICT for the running of business processes through the
development of increased user interfaces, process automation and improved business intelligence and
management reporting
3. Continuously enhance integration with institutions, with a specific focus on TVET colleges
4. Improving security and efficacy of payments channels to students
5. Improving the management of student query handling through the Contact Centre optimisation project
6. Improve data integrity:
6.6. Developing and implementing a Master Data Management strategy
6.7. Defining and implementing Data Governance model
7. Reduce risk:
7.6. Improve maturity on ICT governance and cybersecurity
7.7. Improve ICT compliance to governance standards and policies
8. Improve ICT capabilities and capacity to support the business
9. Documenting and optimising the core operational processes, together with the development of operational
policies, standards and operating procedures
10. Enhanced handling and management of student and institutional queries
11. The development and implementation of an operational calendar, with scheduled operational milestones for
applications, funding and disbursements
LONGER TERM INITIATIVES THAT ARE DEPENDENT ON BUDGET AVAILABILITY AND/ OR THE RECOMMENDATIONS
OF THE MTT ARE:
1. Developing a business-led Enterprise Architecture

2. Standardizing and simplifying the IT operating model and governance
3. Implementing a fit for purpose ICT core operational systems, as well as supporting ICT infrastructure that will:
• Enable the business to service TVET colleges and universities seamlessly,
• Allow for the management of multiple products, i.e. both loans and bursaries, with ease,
• Lower the Total Cost of Ownership (TCO),
• Eliminate the need for manual interventions,
• Enable full audit trails and accountability, and
• Improve the ease with which students and institutions are served
4. Continuous and sustainable data integrity improvement together with the implementation of enhanced business
intelligence capabilities that enables a consistent NSFAS wide-view of financial and operational performance with
ease and provides front-line staff with an integrated view of students and institutions.
31
BUILDING CAPACITY AND TALENT MANAGEMENT
Some of the key initiatives that have been implemented by the Administrator include:
• A skills and qualifications audit to identify and address the capability gaps across the organisation,
• Introduction of in-service training and rotation of employees within the organisation to enhance delivery and
employee growth, and
• The establishment of a national bargaining forum to regularise employee relations.
KEY AREAS OF FOCUS FOR THE HUMAN RESOURCES FUNCTION FOR THE SHORT-TERM INCLUDE:
• Recruitment of critical technical and business resources to enable the organisation to deliver on its mandate,
• Training and development for both technical and soft skills,
• Review of policies and enhancement of governance to manage and mitigate people risks,
• Alignment of the performance management system to skills and deliverables of the organisation,
• Review of retirement funding and benefits regime and
• Implementation of an integrated HR Management Information System.
NSFAS will be compelled to increase the technical staff component to address the severe shortage of systems
functionality, integration and data integrity. It remains important to ensure that the resources in the organisation
are optimally engaged and deployed, to further the achievement of the organisational objectives. In this regard,
NSFAS needs to optimise the performance management policy, career laddering for young entrants and
career development opportunities, processes and practices in the organisation as well as training and talent
management.
Consistent policy development and alignment with the Department of Planning, Monitoring and Evaluation
(DPME) frameworks will continue, it is critical to improving consistency in human resource practices.
In the longer term, a new organisational design may be required to respond to a renewed operating model and
vision.
IMPROVING GOVERNANCE AND RISK MANAGEMENT
The Administrator has invested in the capacitation of the Governance, Risk and Compliance Unit. In addition, he
has insourced the internal audit capability to improve assurance coverage and depth. Both the second and third
lines of defence has thus been strengthened.
Effort will thus be directed at embedding the governance, risk management and compliance processes as well
as strengthening the first line of defence, i.e. management and operations. Increased focus will be directed at
the implementation of, and adherence to, policies, standards and standard operating procedures, as well as the
implementation of risk management capabilities and processes and a risk and compliance culture across the
entity.
PROCESSES WILL BE ENHANCED TO MITIGATE FRAUD RISK
Anti-fraud and corruption policies implemented. to this end, the following will be focused on:
• Maintaining the independent fraud hotline and improving the internal support processes to deal with the reported
cases on the hotline,
• Maintaining and enhancing the relationships with law enforcement authorities to address the actual fraud
instances and the consequences of irregular expenditure, and
• Improving risk and control management across all money out processes.
32
33
2. KEY RISKS AND MITIGATION
Strategic Outcome Risk Mitigation
1.The banking project will shift NSFAS away from

using mobile technology as a direct allowance
payment mechanism to one that uses a banking
solution. This will also student ID and bank account
information to be verified.
2. Where an affected TVET student is in the next
payment run and has had one or more number
change, the mobile number will be blocked for
payment and the student will have to be verified at
the institution to be re-instated.
3. Two fraud hotlines is now active, one independent
Funds may be lost due to fraud,
and one manned by the call centre. Processes have
including syndicated fraud
been implemented to deal with cases as they arise.
4. Analytics has been performed to identify at risk
transactions. These are being handed over to the
authorities for further investigation.
5 Forensic investigations have been initiated to
address the risk of fraud initiated from with NSFAS.
This will also assist in understanding the controls
needed to close fraud risks.
6. Money out processes are being mapped to
identify critical control gaps so that these can be
addressed.
This project has been defined and is in progress.

The aim is to provide increased reporting and UI
Financial aid for all poor and interfaces to support operations and reduce the
The continued lack of user
working-class students at dependency on ICT. It’s not possible to deliver
interfaces results in poorly
public universities and TVET on all requirements immediately due to the high
controlled business processes
colleges. demand for IT functionality and limited resources.
The project has thus defined specific milestones
to track progress.
1.The MTT is to evaluate the longer-term viability

of the current systems.
2. Tactical solutions that will be undertaken are:
2(a). Maintain and strengthen this technical
The core operational systems are skills base, including building the necessary
not fit for purpose due to poor skills redundancy that is sufficiently capable
design, and may result in material of addressing the current systems deficiencies
errors as well as inefficient and as well as innovating within the existing
ineffective fund administration technologically constrained environment.
2(b). Map out and execute a critical path to
optimise existing systems and aligned to
business requirements, such as the UI and
Reporting project and
1.The MTT is to evaluate the longer-term viability

2. Tactical measures that will be undertaken are:
The continued poor data
2(a). Implement additional data integrity checks in
architectures may result in poor
the source code
student and fund management,
2(b). Build/ implement monitoring tools to
material disbursement errors and
alleviate data contamination where database
ineffective fund administration
design changes are not viable.
2(c). Appoint a data scientist to assist with data
quality and integrity management.
34
1.There is a plan to reorganise the Senior

Management structure in the interim (as key
component of org structure) to address critical
organisational matters. This is to be completed in
parallel with handover and transition to the new
NSFAS executive.
2. See action in point 9
There may be an inability to 3. Implement ongoing functional and technical
sustain an efficient and effective training for the entire NSFAS population according
fund administration due to a lack to a training library/ catalogue, the catalogue is to
of appropriate skills, appropriate develop, commencing November 2019.
capacity and an organisational 4. Align Performance Management System and
design that is not aligned to the Process to facilitate the necessary alignment of
business requirements skills and deliverables to meeting organisational
requirements.
5. Develop a NSFAS Skills Library and manage the
existing gaps to facilitate sustained organisational
efficiency and effectiveness.
6. Align interim organisation structure to the
deliverables within the Strategic Plan to facilitate
the delivery of the Plan.
1.Expand on collections from new (non-paying)

debtors by continuing the use of External Debt
Collectors.
Financial aid for all poor and 2. Introduce targeted employee deductions at
working-class students at industry bodies (e.g. ASISA).
public universities and TVET 3. Continue state payroll deductions.
colleges. 4. Leverage SARS data to confirm employment
The inability to recover pre 2018
and initiate deduction campaigns.
loans due to the introduction
5. Regular statement runs to interrupt/extend the
of the bursary scheme and the
prescription period.
different eligibility criteria.
6. Maintain the currently onboarded debtors (i.e.
following up on unpaid debit order etc.).
7. Review of current recoveries strategy, including
collection approach.
8. Consider the possibility of integrating the
current debit orders into the new “Debi check”
platform (previously NAEDO).
1. Confirm all statutory Occupational Health and

Safety (OHS) appointments by end November.
2. Functional and compliant OHS Committee
entrenched in the NSFAS governance structures.
3. Ongoing, regular formal compliance inspections
Non-compliance to occupational and testing on the facility, equipment.
health and safety may result in 4. Ongoing evacuation drills implemented.
harm to personnel and others, and 5. Implement refresher and ongoing training for all
our ability to operate OHS officials.
6. Ongoing communication to employees.
7. Formal, ongoing reporting on the EXCO on OHS
matters.
8. All the above applicable to the other tenants in
the building.
35
1. Implement programme of Governance and

Ethics Training January 2020.
2. Determine, communicate and roll out ongoing
training on NSFAS Values to the entire organisation
by January 2020.
There may be an inability to
3. Incorporate into all employees’ IPCs by Q1 2020.
sustain an efficient and effective
4. Conduct baseline Culture and Engagement
fund administration due to a poor
survey financial year end.
culture and work ethic.
5. Develop and implement remedial interventions
to address survey outcomes by Q1 2020.
6. Continue with Ongoing Communication with
Staff on all internal and external NSFAS matters
and key organisational indicators.
There is an inability to pay

students timeously and to
1. Cash flows are analysed on an ongoing basis,
project disbursement cashflows
including projections for Universities and TVETs.
accurately due to the dependency
2. Data received from institutions to be monitored
on the submission of complete and
through the data exchange solution.
accurate data that is submitted
timeously by institutions
NSFAS is highly dependent on

institutions for many processes,
Develop a Monitoring and Evaluation Plan as part
including the submission of
of BAU for academic results, academic offers,
data and the disbursement of
dual reg data, qualification data, and all other
allowances and which may not be
data submission requirements. This plan is to
done accurately or timeously, or
include identification of high-risk institutions and
may be subjected to fraud, leading
Financial aid for all poor and mitigation plans.
to the NSFAS brand being affected
working-class students at negatively
public universities and TVET
colleges. Material errors may arise due IT developments to help manage different
to systems and processes not business rules and associated reporting to
being able to administer different monitor. Academic results Project underway for
products with different business university and TVETcollege results to include
rules easily management of the N+ rules.
1. Constant dialogue with key stakeholders (DHET

& NT) in terms of future available bursary funding
Current fiscal challenges may to be undertaken.
result in limited availability of 2. A financial model to be developed to project
funds to meet the full demand for future funding requirements
bursaries. 3. The ministerial review may provide insight into
the impact of budgetary constraints that may
apply.
Poor records management may

lead to data and information being
Project to be scope and defined (and initiated if
lost, leading to non-compliance
deemed feasible) by February 2020.
to laws and regulations as well as
material audit findings
NSFAS is highly dependent on

institutions for many processes,
including the submission of
data and the disbursement of Develop a plan to manage the receipt of
allowances and which may not be accurate results data from DHET for TVETs
done accurately or timeously, or for each funding cycle.
may be subjected to fraud, leading
to the NSFAS brand being affected
negatively
36
1. The appointment for the CEO, CIO, COO and

CFO to be finalised by end January 2020 with start
date for CEO being February 01, 2020. Remaining
Executives start dates no later than 1 March 2020.
2 to 3-month handover to be implemented between
March and May 2020.
The possibility of NSFAS 2. Onboarding and Handover Reports to be
An effective internal support operations being unsustainable prepared by Advisors and finalised by mid-February
services due to dependency on the 2020.
Administrator and his team 3. Interim reorganisation of the Senior Management
structure ( as key component of org structure)
to be completed in parallel with handover and
transition to the new NSFAS executive.
4. Align interim organisation structure to the
deliverables within the Strategic Plan to facilitate
the delivery of the Plan.
Service delivery to TVET colleges

Set clear lines of delivery for each incumbent in
may be compromised due to a
new TVET college structure. To be aligned to TVET
lack of a team focused on TVET
college delivery programme.
delivery
1. Ongoing communication with internal staff and

urgent attention to contentious issues,
There may be a severe resistance 2. Ongoing conversation with labour and staff
to change and disgruntled on the plans and progress of the Executive
employees that may lead to the Administrator,
NSFAS brand being tarnished in the 3. Keep up to date the Ministry and DHET on the
media and the community at large issues facing the entity,
4. Highlight/ identify priority areas for immediate
action by the entity and labour. L24
1. The MTT is to evaluate the longer-term viability

There is inadequate budget
to establish and maintain
2. Critical ICT resources have been identified and
functional and fit for purpose ICT
prioritised for appointment.
infrastructure and organisational
3. Critical business projects has been identified
structure.
and is underway.
1.Complete the forensics investigation into the

The current arrangement
existing pension fund
for pension benefits may be
2. Determine the impact of the forensic findings
underfunded leading to disgruntled
3. Explore alternative funds, and plan the
employees
transition, if required, by the end of March 2020
The task team to:

1. Identify individuals who are deemed to be key
people and the extent of dependency on these
individuals by November 30, 2019
The continued dependency on key
2. Engagement the relevant Executives to
persons may hamper the efficient
formulate a plan to reduce dependency on key
and effective fund administration,
individuals by December 15, 2019
create employee empires and
3. Implement the plan (in terms of point 22) and
contribute to a dysfunctional
monitor progress
culture
4. Establish a panel of suppliers (through SCM)
to provide for key skills when required as part of
a backup plan. This should be set up by January
2020.
1.Cybersecurity project has been defined and

is in progress
2. Continuous security scanning of the
Data and information
network and workstations to be performed,
A compliant NSFAS in confidentiality and integrity may
including penetration testing
delivering its mandate be compromised due to poor
cybersecurity maturity 3. Web application security testing to be
performed by January 2020.
4. All additional issues to be addressed as 37
part of the cybersecurity project
38
PART D: TECHNICAL INDICATOR

DESCRIPTIONS (TID)
39
PART D: TECHNICAL INDICATOR DESCRIPTIONS (TID)
Indicator Title 1.1. Unqualified Audit opinion per year
• The external audit opinion is arrived at through a rigorous audit

Definition process providing a composite indication of the level of compliance
with the governance requirements for NSFAS to deliver its mandate
• The external audit opinion will be provided by the Auditor-General

Source of data
of South Africa in an audit report to NSFAS.
Method of Calculation / Assessment • The Auditor-General of South Africa will conduct an audit
• Report from AGSA based on portfolio of evidence provided

Means of verification
by NSFAS in relation to predetermined objectives
• Due audit processes and procedures are followed, and

Assumptions all sets of information and data provided to the auditors are consid-
ered.
Disaggregation of beneficiaries (where

• None
applicable)
Spatial transformation (where applicable) • None
Calculation type • Cumulative (year-end)
Reporting Cycle • Annual
Desired performance • Higher
Indicator Responsibility • Administrator
40
Indicator Title 1.2 Level of maturity in terms of CGICT Framework per year
• This is a report that will be generated by the Governance Risk and

Compliance (GRC) Unit on the extent to which ICT within NSFAS
Definition has progressed towards achieving its target level of maturity for ICT
Governance in terms of the Corporate Governance for ICT (CGICT)
framework as issued by the DPSA.
• Report on the level of maturity in terms of the CGICT framework as

Source of data
issued by the GRC unit by the March 31 annually
• The CGICT framework as issued by the DPSA will be used as the

Method of Calculation / Assessment
method for determining the level of ICT governance maturity
Means of verification • Report
• The GRC unit will either have the skills in house to perform this
Assumptions
assessment, or source the skills externally.

• None
applicable)
Reporting Cycle Annual
Indicator Responsibility • ICT Head
41
1.3 Level of maturity with respect to cybersecurity

Indicator Title
maturity across all domains in organisation per year
• This is a report that will be generated by the Governance Risk and

Compliance (GRC) Unit on the extent to which NSFAS has pro-
Definition gressed towards its target cybersecurity maturity level in terms of
the Federal Financial Organisations Examination Council (FFIEC)
framework.
• Report on the level of maturity in terms of the Federal Financial

Source of data Organisations Examination Council (FFIEC) framework as issued by
the GRC unit by the March 31 annually.
• The Federal Financial Organisations Examination Council (FFIEC)

framework will be used as a basis for determining the maturity level.
Assumptions

• None
applicable)
Reporting Cycle Annual
Indicator Responsibility • ICT Head
42
2.1 Number of policy advisory briefs related to the NSFAS

Indicator Title
Mandate provided to the minister per year
• A policy advisory brief is a document that considers research evi-

dence and makes policy recommendations to the Minister of Higher
Definition Education Science and Innovation, either generally towards student
funding at a national level, or with regards to a funding instrument
or student type
• EXCO approved research policy/ advisory briefs of research con-

Source of data ducted for the period where applicable, including documents such
as meeting notes or supply chain documents
Method of Calculation / Assessment • Simple count of policy advisory briefs approved by EXCO
Assumptions

• None
applicable)
Reporting Cycle • Quarterly
Indicator Responsibility • Administrator
43
Indicator Title 3.1 Percentage employee turnover rate per year
• The percentage of employees who leave the employ of NSFAS,

Definition
expressed as a percentage of headcount.
Source of data
• HR employee master data
• Number of employees who have left the employ of NSFAS for the
period under review (nominator) divided by the total employment
headcount as at the reporting date (denominator) expressed as a
percentage.
• The number of employees who have left the employ of NSFAS

includes those who have been dismissed. Short-term contract em-
ployees are excluded from this calculation.
Assumptions • None

• NSFAS has a HR employment target for people with disabilities
applicable)
Calculation type • Cumulative
Desired performance • Lower
Indicator Responsibility • Head of Corporate Services
44
3.2 Number of communication campaigns to increase brand

Indicator Title
awareness per year
• The extent to which the NSFAS brand is recognised within poor and
working-class communities for providing financial aid for post-school
Definition
education, with a focus on students who are eligible for post-school
education.
Source of data • Media reports, social media contacts, awareness campaigns, etc.
Method of Calculation / Assessment • Simple count of communication campaigns

• Women, youth with particular focusing on the poor and working-class
applicable)
Indicator Responsibility • Head of Corporate Services
45
3.3 Percentage of payments to institutions completed

Indicator Title within 7 working days of receiving the approved
disbursement file from Operations per year
• Payments to institutions are paid for tuition and allowances

(where applicable). Allowances are determined by DHET and allow-
ance types are reflected in the relevant DHET Rules and Guidelines
Definition for universities and TVET colleges. On receipt of an approved
disbursement file from Operations, Finance will make the necessary
payments to the institutions listed in the file within 7 working days,
except for those institutions for whom
• Email correspondence of approved disbursement file sent from

Source of data Operations to Finance. EFT history records of confirmed payments
or, alternatively, bank statements
• Nominator/ denominator multiplied by 100, where: Nominator =

Total number of institutions paid within 7 working days/.
• Denominator = total number of institutions due for payment in
terms of the disbursement file less those institutions where pay-
ment has been authorised to be blocked
Means of verification • Records, Bank statements, correspondence, files

• Women, youth with focus on the poor and working class
applicable)
Indicator Responsibility • CFO
46
4.1 Number of qualifying NSFAS students funded in approved

Indicator Title
programmes at public universities and TVET colleges per year
• This is the number of students who are funded by NSFAS from poor
and working-class communities attending university and TVET col-
leges. A funded student is determined as being financially eligible/ and
Definition or academically eligible, meet the N+ progression rule and who has
registered at a university for a DHET funded course. Funded students
include both new applicants and continuing students. This measure
applies to NSFAS funded students only per academic year
• Business intelligence report on the number of students funded for

Source of data
that academic year
• Count of funded students at universities and TVET colleges for the

relevant academic year as determined as at December 31 each year

applicable)
Indicator Responsibility • COO
47
4.2 Percentage of funds disbursed consistent with the

Indicator Title
NSFAS value Proposition per year
A disbursement in line with the NSFAS value proposition is a dis-

bursement at the correct value for tuition and allowances, in terms
of the applicable DHET rules and guidelines to a student who is
financially eligible, academically eligible and who has registered
at a public university or TVET college for a DHET funded course.
Definition
Funded students include both new applicants and continuing
students.
This measure applies to DHET funded students only per academic

year.
• The Disbursement Report. This is a custom report that is devel-

Source of data
oped using source data from both the Phoenix and Cordys systems.
• Nominator/ denominator multiplied by 100, where: Nominator =

Rand value of disbursements (in line with the NSFAS value proposi-
tion as defined) to public University or TVET College students, as at
Method of Calculation / Assessment 31 December, for the active process cycles for the relevant academ-
ic year Denominator = Total Rand value of projected disbursements
to public University or TVET College students, as at December 31,
for the relevant academic year.
Means of verification • Reports
• All data received from institutions is accurate and complete and

Assumptions
are submitted timeously to NSFAS for processing

applicable)
Reporting Cycle • Annual
48 Indicator Responsibility • COO

4.3 Total Rand value in funding administered, in addition to

Indicator Title
funding received from DHET, for financial aid annually
• This is the total Rand value of funds administered by NSFAS on

behalf of funders other than DHET on an annual basis. Funds adminis-
tered refers to all funds received from funders that are deposited into
Definition NSFAS account for student funding by December 31 each year.
This excludes all monies received from funding arrangements that are
now dormant/ expired for more than two years old.
Source of data • NSFAS bank statements in support of commitments.
Method of Calculation / Assessment • Total amount of commitment funds banked
Assumptions • All funds committed will be paid over to NSFAS

applicable)
49
4.4 Total Rand value recovered and allocated to loan

Indicator Title
accounts annually
Total Rand value recovered from student debtors and allocated to

Definition loan accounts annually. This specifically excludes funds received
that are not allocated to a specific loan accounts, and thus remains
unallocated
Source of data
• Phoenix Collections Report
• Total value of recoveries per the Phoenix Recovery Report across

all payment types

applicable)
Indicator Responsibility • CFO
50
Indicator Title 4.5 Percentage of partner collaboration with NSFAS per year
Extent to which collaboration with third parties are contributing to the

efficacy of the NSFAS operations. This is a composite indicator that
aggregates levels of collaboration, as it relates to data exchange or
Definition
validations, with both institutions and third parties. The third parties
specifically include the Department of Home Affairs, the South African
Social Security Agency, and the South African Revenue Services.
• Collaboration index tool will accumulate data collected through ran-

Source of data
dom surveys
• A survey instrument based on two dimensions, i.e. quality and on

time delivery. Each dimension will have a scale from 1 to 5, where 1 is
“never met standard”; 2 is “sometimes met standard”; 3 is “standard
met most of the time”; 4 is “met all the time”; and 5 is “standard met
Method of Calculation / Assessment all the time and exceeded”. A sample of 10 transactions for 10% of the
partners will be used to determine collaboration performance. The av-
erage scores for each dimension will be considered for each partner.
An overall average will determine the collaboration figure.

applicable)
Indicator Responsibility • Senior Manager: Enterprise Solutions - ICT
51
4.6 Number of operational reports on student queries

Indicator Title
across all channels within the contact centre per year
• Reduction in the number of complaints received from students

Definition
annually that have been escalated to NSFAS Tier 2 student query
resolution team as at March 31 each year
• Total number of cases as reported in the Service Now Incident

Source of data
Report. The reports from the external ethics and fraud hotline
Method of Calculation / Assessment • Simple counting of reports • Simple counting of reports
• The Contact Centre optimisation project is implemented and en-

Assumptions
ables richer reporting

applicable)
52
53
[email protected] | www.nsfas.org.za
Postal Address: Private Bag X1, Plumstead 7801, South Africa
Physical Address: 10 Brodie Road, House Vincent 2nd Floor, Wynberg, Cape Town 7700
54

NSFAS - Strategic Plan 2020-2025

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Strategic Plan

1. EXECUTIVE AUTHORITY STATEMENT ........................................................................................ 6

PART A: OUR MANDATE

PART B: OUR STRATEGIC FOCUS

PART C: MEASURING OUR PERFORMANCE

PART D: TECHNICAL INDICATOR DESCRIPTION (TID) ......................................................................... 40

Country of incorporation Republic of South Africa

Registered office 18 - 20 Court Road

Business address 2nd Floor House Vincent

Postal address Private Bag X1

Bankers FNB Corporate Bank (Cape Town) a division of FirstRand Bank

Auditors Auditor-General of South Africa

Website Address www.nsfas.org.za

II. ABBREVIATIONS/ ACRONYMS

EXECUTIVE AUTHORITY STATEMENT

• Medium-Term Strategic Framework; and

NSFAS was placed under Administration on August

Outcome 1: NSFAS is compliant with all Governance

Outcome 2: NSFAS empowers the Minister with

Outcome 3: NSFAS core mandate is enabled by

• NSFAS Act (Act 56 of 1999);

ACCOUNTING AUTHORITY STATEMENT

We have now identified the extent of irregular and

Despite the achievements to date, there are several

1.The review, design and implementation of stable

In 2019, NSFAS established a regularised structure

I am confident that the NSFAS will continue to

Dr. Randall Carolissen

Administrator of the National Student Financial

Signature: Ms Nthuseng Mphahlele: Chief Operating Officer

Signature: Mrs Sibongile Mncwabe: Chief Corporate Services

Signature: Itayi Daringo: Acting Chief Financial Officer

Signature: Mrs Sibongile Mncwabe: Interim official responsible for

Signature: Dr. Randall Carolissen: Accounting Officer

Signature: Approved by Dr. Bonginkosi E Nzimande: Executive Authority

PART A: OUR MANDATE

1.1. The Constitution of the Republic of South Africa, 1996

2. LEGISLATIVE AND POLICY MANDATES

2.1. THE NSFAS ACT

In terms of the NSFAS Act, NSFAS is established to provide the following:

• Provide bursaries to eligible students,

• Criteria for eligibility for financial aid; and

The regulations also expand NSFAS’ mandate to include:

2.2. THE NATIONAL CREDIT ACT (NCA)

3. INSTITUTIONAL POLICIES AND STRATEGIES GOVERNING THE FIVE-YEAR PLANNING PERIOD

3.1. STATE OF THE NATION ADDRESS

• Expanded access to Public Sector Education and Training (PSET) opportunities

3.2. NATIONAL DEVELOPMENT PLAN 2030

(1) Raising employment through faster economic growth

(i) Funding for qualifying students

3.3 THE MEDIUM-TERM STRATEGIC FRAMEWORK

Priority 1: Capable, ethical and developmental state

4. RELEVANT COURT RULINGS

We create an environment that allows efficient, effective and direct access to

TRANSPARENCY We are open and honest.

RESPECT Collegiality, professionalism, work ethic and tolerance for diversity.

INNOVATION Anticipating change and being a learning organisation.

RELEVANT STATISTICS RELATING TO ACCESS TO FINANCIAL AID

4.1. EXTERNAL ENVIRONMENT ANALYSIS

RECENT POLICY CHANGES

RELEVANT COURT RULINGS

4.2. INTERNAL ENVIRONMENT ANALYSIS

ICT SYSTEM CHALLENGES