FET Colleges Finances and Financial Aid Scheme

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

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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. - PowerPoint PPT Presentation

Transcript of FET Colleges Finances and Financial Aid Scheme

Page 1: FET Colleges Finances and Financial Aid Scheme

FET Colleges Finances and FET Colleges Finances and Financial Aid SchemeFinancial Aid Scheme

20 February 200720 February 2007

Page 2: FET Colleges Finances and Financial Aid Scheme

Overview of college financesOverview of college finances

Audited statements show strong growth in Audited statements show strong growth in income over recent yearsincome over recent years

Growth in income from variety of Growth in income from variety of resources from R409 million in 2000/1 to resources from R409 million in 2000/1 to R736 million in 2003/4 R736 million in 2003/4

Page 3: FET Colleges Finances and Financial Aid Scheme

Income 2000 to 2003 at FET CollegesIncome 2000 to 2003 at FET Colleges

0

100

200

300

400

500

600

700

800

2000 2001 2002 2003

Page 4: FET Colleges Finances and Financial Aid Scheme

Reasons for re-capitalisation of FET CollegesReasons for re-capitalisation of FET Colleges

Colleges offering outdated programmes Colleges offering outdated programmes that did not meet the needs of the that did not meet the needs of the economyeconomy

Need to plan new programmes and Need to plan new programmes and provide infrastructure and equipment to provide infrastructure and equipment to offer new programmesoffer new programmes

Page 5: FET Colleges Finances and Financial Aid Scheme

Key principles of re-capitalisationKey principles of re-capitalisation

The re-capitalisation process will be driven by The re-capitalisation process will be driven by

programmes that meet the needs of society and the programmes that meet the needs of society and the economy economy

research and informationresearch and information redress strategiesredress strategies

Page 6: FET Colleges Finances and Financial Aid Scheme

Allocation of FundsAllocation of Funds

R50 million planning grant for 2005/6R50 million planning grant for 2005/6

R500 million in each of 2006/7; R600 million in R500 million in each of 2006/7; R600 million in 2007/8 and R800 million in 2008/9 for re-2007/8 and R800 million in 2008/9 for re-capitalisationcapitalisation

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Budget proposals by provinceBudget proposals by province ProvinceProvince CollegesColleges Pop 15 - 24Pop 15 - 24 % population% population RequestRequest

Free StateFree State 44 550 000550 000 6%6% R574 millionR574 million

E. CapeE. Cape 88 1 350 0001 350 000 14%14% R578 millionR578 million

GautengGauteng 88 1 800 0001 800 000 18%18% R517 millionR517 million

KZNKZN 99 2 200 0002 200 000 22%22% R535 million R535 million

LimpopoLimpopo 77 1 600 0001 600 000 16%16% R567 millionR567 million

MpumalangaMpumalanga 33 600 000600 000 6%6% R212 millionR212 million

N. CapeN. Cape 22 150 000150 000 1%1% R100 millionR100 million

N. West N. West 33 730 000730 000 7%7% R301 millionR301 million

W. CapeW. Cape 66 870 000870 000 9%9% R604 millionR604 million

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Principles for allocationPrinciples for allocation

At provincial levelAt provincial level Weighted formula using youth population, contribution of Weighted formula using youth population, contribution of

province to GDP and student FTEs / enrolment at collegesprovince to GDP and student FTEs / enrolment at collegesAt college level At college level Programmes where there is evidence of need and part of Programmes where there is evidence of need and part of

Growth and Development Plan of provinceGrowth and Development Plan of province

Page 9: FET Colleges Finances and Financial Aid Scheme

Funds allocatedFunds allocated

ProvinceProvince Number of Number of collegescolleges

Amount requestedAmount requested Amount allocatedAmount allocated

Free StateFree State 44 R574 millionR574 million R118 200 000R118 200 000

E. CapeE. Cape 88 R578 millionR578 million R225 550 000R225 550 000

GautengGauteng 88 R517 millionR517 million R409 080 000R409 080 000

KZNKZN 99 R535 million R535 million R367 930 000R367 930 000

LimpopoLimpopo 77 R567 millionR567 million R224 245 000R224 245 000

MpumalangaMpumalanga 33 R212 millionR212 million R109 500 000R109 500 000

N. CapeN. Cape 22 R100 millionR100 million R25 620 000R25 620 000

N. West N. West 33 R301 millionR301 million R122 570 000R122 570 000

W. CapeW. Cape 66 R604 millionR604 million R227 305 000 R227 305 000

Page 10: FET Colleges Finances and Financial Aid Scheme

Budget items for fundingBudget items for funding

All allocations in relation to programmes offeredAll allocations in relation to programmes offered Infrastructure – new and development of Infrastructure – new and development of Equipment and ICT Equipment and ICT Development of professional staff in relation to Development of professional staff in relation to

programmes offered programmes offered Administrative systems Administrative systems Curriculum development Curriculum development

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Allocation by line itemAllocation by line item

InfrastructureInfrastructure R1 156 000 R1 156 000

Site upgradingSite upgrading R 32 105 R 32 105

New land buildingsNew land buildings R 84 330R 84 330

EquipmentEquipment R 378 788R 378 788

CurriculumCurriculum R 107 235R 107 235

HRDHRD R 76 670R 76 670

Admin systemsAdmin systems R 25 000R 25 000

TotalTotal R1 860 000R1 860 000

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Implementation in 2006Implementation in 2006

Funds transferredFunds transferred Curriculum preparationCurriculum preparation Lecturer trainingLecturer training Preparation of LTSMPreparation of LTSM Tenders and specifications for infrastructure and Tenders and specifications for infrastructure and

equipmentequipment Appointment of examinersAppointment of examiners Recruitment of studentsRecruitment of students

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Monitoring of re-cap and readinessMonitoring of re-cap and readiness

State of readiness instrument developedState of readiness instrument developed

Provincial Departments of EducationProvincial Departments of Education

National Department and TreasuryNational Department and Treasury

Independent Ministerial Task Team Independent Ministerial Task Team

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Progress on re-cap Progress on re-cap spendingspending

December reportDecember reportAs at Friday, 26 January 2007, 35 As at Friday, 26 January 2007, 35 colleges had submitted their colleges had submitted their reports. reports.

January reportJanuary reportAs at Monday, 12 February 2007, As at Monday, 12 February 2007, 46 colleges had submitted their 46 colleges had submitted their reports.reports.

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SPENDING BY COLLEGES AS AT THE SPENDING BY COLLEGES AS AT THE END OF JANUARY 2007END OF JANUARY 2007

1.1. Actual spending per Province: Actual spending per Province: Amount Amount %Amount Amount % Allocated SpentAllocated Spent Spent Spent EC EC R 61 000 000 R 61 000 000 R 41 970 234R 41 970 234 68,8% 68,8% FSFS R 30 000 000 R 30 000 000 R 15 403 067 R 15 403 067 51,3% 51,3% GP R106 000 000GP R106 000 000 R 37 963 126 R 37 963 126 40,4% 40,4% KZNKZN R 90 000 000 R 90 000 000 R 54 278 669 R 54 278 669 60,3% 60,3% LPLP R 43 000 000 R 43 000 000 R 18 419 040 R 18 419 040 47,2% 47,2% MPMP R 32 000 000 R 32 000 000 R 17 048 291 R 17 048 291 53,3% 53,3% NCNC R 10 000 000 R 10 000 000 R 6 761 898 R 6 761 898 67,6% 67,6% NWNW R 28 000 000 R 28 000 000 R 3 319 085 R 3 319 085 30,2% 30,2% WCWC R 70 000 000 R 70 000 000 R 44 186 160 R 44 186 160 63.1% 63.1% TOTAL R470 000 000 TOTAL R470 000 000 R239 349 570 R239 349 570 54.8% 54.8%

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SPENDING BY COLLEGES AS AT THE SPENDING BY COLLEGES AS AT THE END OF JANUARY 2007END OF JANUARY 2007

2. Uncommitted funds per province: 2. Uncommitted funds per province: Allocated Amount %Allocated Amount % Amount Uncommitted UncommittedAmount Uncommitted Uncommitted ECEC R 61 000 000R 61 000 000 R 2 172 560 R 2 172 560 3,6% 3,6% FSFS R 30 000 000R 30 000 000 R 4 619 608 R 4 619 608 15,4% 15,4% GP R106 000 000GP R106 000 000 R10 521 472 R10 521 472 11,2% 11,2% KZNKZN R 90 000 000 R 6 071 894R 90 000 000 R 6 071 894 6,7% 6,7% LPLP R 43 000 000 R 6 089 951R 43 000 000 R 6 089 951 15,6% 15,6% MPMP R 32 000 000R 32 000 000 R 8 010 966 R 8 010 966 25,1% 25,1% NCNC R 10 000 000R 10 000 000 R 1 349 183 R 1 349 183 13,5% 13,5% NWNW R 28 000 000R 28 000 000 R 372 915 R 372 915 3,4% 3,4% WCWC R 70 000 000R 70 000 000 R 6 888 435 R 6 888 435 9,8% 9,8%TOTALTOTAL R470 000 000R470 000 000 R46 096 984 10,5% R46 096 984 10,5%

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Bursary schemeBursary scheme Recent changes in FET sector geared at Recent changes in FET sector geared at

increasing access (merger, recapitilisation, increasing access (merger, recapitilisation, NC(V) programmes)NC(V) programmes)

New curriculum addressing SA’s skills shortageNew curriculum addressing SA’s skills shortage R600 million allocated for FET Colleges R600 million allocated for FET Colleges

Financial Aid Scheme – over 3 yearsFinancial Aid Scheme – over 3 years 2007 = R100 million2007 = R100 million 2008 = R200 million2008 = R200 million 2009 = R300 million2009 = R300 million

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NSFAS - Mode of OperationNSFAS - Mode of Operation Financial Aid Offices: Financial Aid Offices:

Bursary applicationsBursary applications Send batches of forms with interim Send batches of forms with interim

reports to NSFAS claiming money reports to NSFAS claiming money oon n behalf of the students behalf of the students

NSFAS processes the claims and makes NSFAS processes the claims and makes paymentpayment

Financial Aid Offices credit student fee Financial Aid Offices credit student fee accountsaccounts

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NSFASNSFAS

NSFAS – administration & management of NSFAS – administration & management of funds on behalf of DoEfunds on behalf of DoE

NSFAS is a loan and bursary scheme NSFAS is a loan and bursary scheme operating in terms of Act 56 of 1999operating in terms of Act 56 of 1999

It was set up by the SA Government in It was set up by the SA Government in 19961996

It was set up to create access to education It was set up to create access to education for students with potential but who could for students with potential but who could not afford to fund their own studiesnot afford to fund their own studies

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Allocation of BursariesAllocation of Bursaries Only South African students registered for Only South African students registered for

NC(V) courses will be eligible for bursariesNC(V) courses will be eligible for bursaries Provincial & College allocation done using Provincial & College allocation done using

the Crouch modelthe Crouch model Crouch model considers NC(V) enrolments Crouch model considers NC(V) enrolments

and the % of poor population per provinceand the % of poor population per province Allocation method approved by the Minister Allocation method approved by the Minister

of Education on 5 December 2006of Education on 5 December 2006

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Bursary AllocationsBursary Allocations

ItemItem CostCost NotesNotes

Registration feesRegistration fees R200R200 Standard for all NC(V) Standard for all NC(V) programmesprogrammes

Tuition feesTuition fees Cost of NC(V) Cost of NC(V) programmesprogrammes

As per DoE approved As per DoE approved student feesstudent fees

BooksBooks R120 per bookR120 per book Maximum 7 booksMaximum 7 books

Academic leviesAcademic levies Engineering – R500Engineering – R500 Hospitality – R500Hospitality – R500 Internet – R300Internet – R300

Not applicable to all Not applicable to all studentsstudents

Accommodation & TravelAccommodation & Travel R 3000R 3000

All the above amounts are All the above amounts are MAXIMUMMAXIMUM amounts that can be allocated. amounts that can be allocated.

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Notification to CollegesNotification to Colleges

Provinces & Colleges advised on 8 Provinces & Colleges advised on 8 December 2006 of allocationsDecember 2006 of allocations

Training for DoE, PDE & Colleges conducted Training for DoE, PDE & Colleges conducted from 31 January to 6 February 2007from 31 January to 6 February 2007

A total of 122 officials & College staff trainedA total of 122 officials & College staff trained

Page 23: FET Colleges Finances and Financial Aid Scheme

Provincial AllocationProvincial Allocation

ProvinceProvince 2007 Allocation 2007 Allocation R’000R’000

Free StateFree State 7 5007 500

North WestNorth West 5 5005 500

KwaZulu-NatalKwaZulu-Natal 18 50018 500

MpumalangaMpumalanga 7 0007 000

LimpopoLimpopo 15 00015 000

Northern CapeNorthern Cape 3 0003 000

Western CapeWestern Cape 9 5009 500

GautengGauteng 18 50018 500

Eastern CapeEastern Cape 15 50015 500

TOTALTOTAL 100 000100 000

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Conditions & Process for Conditions & Process for awarding bursariesawarding bursaries

College bursaries based on approved NC(V) College bursaries based on approved NC(V) programmes & student enrolmentsprogrammes & student enrolments

College to allocate a dedicated staff member to College to allocate a dedicated staff member to administer the scheme – student support officer administer the scheme – student support officer recommendedrecommended

Awarding of bursaries to be based on Means Test – Awarding of bursaries to be based on Means Test – evidence thereof requiredevidence thereof required

Approved & signed bursary agreements requiredApproved & signed bursary agreements required

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Conditions & Process for Conditions & Process for awarding bursariesawarding bursaries

Colleges to set up a Financial Aid Committee, Colleges to set up a Financial Aid Committee, suggested members:suggested members: student support services officer/managerstudent support services officer/manager finance officer / managerfinance officer / manager student administration officer / managerstudent administration officer / manager student representative council (SRC) member student representative council (SRC) member

(s)(s) Committee makes bursary awards Committee makes bursary awards

recommendationsrecommendations College CEO – Accounting OfficerCollege CEO – Accounting Officer

Page 26: FET Colleges Finances and Financial Aid Scheme

Role of CollegesRole of Colleges

Serve as DoE, PDE & NSFAS agencies Serve as DoE, PDE & NSFAS agencies (accountability & reports)(accountability & reports)

Advertise bursaries to all studentsAdvertise bursaries to all students Counsel & advise studentsCounsel & advise students Administer bursary application forms and Administer bursary application forms and

Means TestMeans Test Issue receipts to students as proof of Issue receipts to students as proof of

applications receivedapplications received

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Monitoring & SupportMonitoring & Support

DoE, PDE & NSFAS – monitoring & DoE, PDE & NSFAS – monitoring & supportsupport

Colleges to provide reports to DoE, PDE & Colleges to provide reports to DoE, PDE & NSFASNSFAS

NSFAS – regular auditNSFAS – regular audit

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Thank youThank you