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FET Colleges Finances and FET Colleges Finances and Financial Aid SchemeFinancial Aid Scheme
20 February 200720 February 2007
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
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
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Colleges offering outdated programmes Colleges offering outdated programmes that did not meet the needs of the that did not meet the needs of the economyeconomy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
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
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
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
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
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
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
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
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
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
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.
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%
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%
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
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
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
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
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.
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
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
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
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
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
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