Thursday, 24 November 2016

CPUT CAPE TOWN CAMPUS 2016 FIRST TERM GC FINANCE REPORT

Central Student Representative Council (CSRC) delegates present among us
Chairperson of the Local Student Representative Council (LSRC) of the biggest Cape Peninsula University of Technology (CPUT) campus
The LSRC of the CPUT Cape Town campus
Leaders from respective student structures present among us
Student and alumnus attending as observers

Humbly receive my greetings.

It can’t be argued that thus far, this has been one of the most challenging times our institution has ever faced. In 2015 we all witnessed the rise of young people across the country, taking a stand under a unified banner of the #FeesMustFall movement, where they audibly stated that Fees Must Fall and free education must be the result thereof. It is at this point in time where the English and the late MK veteran, Solomon Mahlangu, would in chorus agree, that the struggle for a free qualitative education system in South Africa must continue as Rome was not built in a day. Nevertheless, the channels we utilise to get to the land over flowing with milk and honey, which is a South Africa with a free and qualitative education system, will determine our tomorrow, as we have seen violent students protest have led to the arrest of 78 students and suspension of 34 students including myself.

NATIONAL FINANCIAL AIDS SCHEME (NSFAS)
It is no undisclosed matter that the National Student Financial Aid Scheme (NSFAS) lacks funds. It was estimated in 2013 by the former acting CEO of NSFAS, Nathan Johnstone, that NSFAS needs to triple its budget in order to cater for all the students who require financial assistance. As a result of NSFAS not paying for over 2 000 students in the previous year a number of students’ dreams were shattered this year after they were financially excluded by CPUT. This shortfall amounted to R 36, 7 million.
I would like to make it clear that the Cape Peninsula University of Technology (CPUT) does not have NSFAS offices within any of its campus. It only has the financial aid offices whereby the National Financial Aid Scheme (NSFAS) acts as a donor to. By filing in the Financial Aid form for financial assistance, it does not mean a student is directly applying for NSFAS but for financial assistance be it bursaries, scholarships or loans.  NSFAS has offices in Wynberg, where all their admin is operated.
Challenges we face with NSFAS this year were:
·         Late applications
·         First year applications
·         Applications for returning students that took a gap year
·         NSFAS not dispatching book and meal vouchers in due time to its beneficiaries  
·         Late payments

LATE APPLICATIONS
NSFAS applications for returning students for the academic year 2016 closed on the last working day of August 2015. Countless students could not submit their application forms for various reasons, with a large number of students who could not submit due to incomplete required documents. Those that could not apply for NSFAS in the previous year were not granted the opportunity to submit their documents for financial assistance for this academic year. The LSRC engaged countless times with the Financial Aid office Head of Department (HOD) Ms. K. Ntabiseng, and the Acting Director of Finance, Ms. M. Jeftha with regards to this matter, unfortunately, CPUT was not in control of this matter and we were directed to NSFAS of which NSFAS refused.
What has been advised to students by the Finance and Projects Office, is that if they go back home in June, they ought to gather all the documents they will require for NSFAS application for 2017. Those are documents that they know they are difficult to get hold of when they are far away from home.  To help ease the congestion of students who could not be assisted by NSFAS, we are currently interacting with departments and corporates to fund students financially. 

FIRST YEAR APPLICATIONS
A great number of first year students applied for NSFAS this year. The service they received was a poor one whereby we had to interfere and assist with verifying of documents just to ease up the congestion of long lines for submission of application of financial aid. Initially, there were only 2 workers present and gradually moved to four workers who were accepting forms from students.  This assisted by students being assisted faster than before.  It’s sad to see a tradition emerging whereby even some first years could submit their forms in due time because of the many documents required by NSFAS.

APPLICATION FOR STUDENTS WHO TOOK A GAP YEAR
There were cases of students who last studied at CPUT more than 5 years ago and the people meant to assist them where not willing because those applicants where somewhat classified as “old” and were told NSFAS would not assist them due to age and an old student number. We had to intervene in such cases and students who brought this matter to the attention of their constitutionally recognized Student Representative Council were assisted.


BOOK AND MEAL VOUCHERS NOT DISPATCHED IN DUE TIME TO ITS BENEFICIARIES  
It is with utmost disgust that I have to report that all eligible students have not yet received their due meal and book vouchers yet we approaching an end towards an end of the first semester. I fail to understand how students are expected to flourish when it comes to academics yet they do not have the necessary support.  This is not only faced by students of NSFAS but also some students that are beneficiaries of a number of bursaries.  This left us with no choice but to shoot straight to the Acting Director of Finance who stated that students have not been properly allocated funding and still have to sign Loan Agreement Forms. The Selections process is currently underway. The process was delayed due to the 2015 examinations and reassessments taking place in 2016 as well as 2016 registrations only being finalized in March 2016. Nevertheless qualifying students will be receiving communication from the Financial Aid Office shortly about an interim meal allowance as well as a book account to be opened on their behalf.

CERTIFICATES BEING WITHHELD
Students whose debts were cleared where not granted the opportunity to have their respective certificates, be it an ND or BTech certificate. We engaged with the HOD of Students Debtors and told us that this is the strict instruction they had received from the VC and they were obliged to follow it. When we consulted the VC in the presence of the Acting Director of Finance in a Crisis Committee this was rectified and all students whose debts were cleared can now receive their certificates.

CREDIT MANAGEMENT UNIT (CMU)
The CMU process was one that was straining. Its processes for the academic year 2016 worked in a way that if your debt is over R50 000.00, you were are required to pay 50% of your debt upfront and the remaining balance would be settled within a period of 10 months by means of a debit order. Example, if you owe the institution R70 000.00, it is required that you pay R35 000.00 upfront and the rest you will settle over ten months period. Meaning you expected to pay R3 500.00 per month to the institution. If your debt is less than R50 000, they push for you to pay 50% of your debt but took what was offered to them and the remaining balance still has to be paid over a period of 10 months. Example, if you owed R40 000 to the institution, they pushed for you to pay round about R18 000 and the rest will paid over a period of ten months. If you make a counteroffer of R5 000, they are forced to take it and the remaining balance of R35 000 will be paid over a period of ten months by a debit order of R3 500 per month.
We saw this 10 months period as an unreasonable one more especially if your debt is over R10 000. These are measures put in place to reduce the dignity of the poor and to deprive them of their basic constitutional right to education. We had countless talk with the management for financial exclusion not to take place for the academic year 2016 and for also called for an extension in the payment period to 24 months instead of 10 months and regrettably they refused.
The CMU processes this year was not meant to assist students but rather to exclude them where even the Financial Aid office was not part of the process and they did not even consider you academic output but only the amount due to the institution.
The late former president of the Republic of South Africa, Dr Nelson R. Mandela, once said education is the most powerful weapon one can use to change the world. How are we expected to change the world when we are being deprived of that same education? I do not understand how the youth is expected to change the world if they are constantly deprived of their right to education due to their economic status.

FINANCIAL LIST
There was a financial assistance list we had taken where all students that needed financial assistance were noted down and their names were sent to the Dean of Students. The aim was of this was to hang the debt of students that are hampering them from becoming registered students in this academic year. Unfortunately, not all students could be assisted. Somewhere and some could not be.

DEBT CLEARANCE CRITERIA
Debt clearance took place in the first two weeks of November 2015 after council had reach consensus on October 30, 2016. The clearance of debts happened for over 5 000 students. The criterion used for the clearance of debts is something we constantly questioned, as we found that the clearance of debt did not happen as per the council resolution of October 2015. Some students who did not fit in that criterion had their debt written off. We were asked to bring fourth all the names of students whose debts were written off yet they did not meet the requirements for debts clearance. We refused to bring any name forward for we felt that this would be selfish of us.

CSRC AND MANAGEMENT FUNDRAISING COMMITTEE (CMFC)
2016 saw the establishment of the CMFC which is a fundraising task team with the aim to assist all needy, academically deserving students who cannot afford to pay fees. This committee seeks to assist by means of coverage for registration fee and funding BTech’s as most students don’t have funds to cover their BTech tuition fees. This is evidence by the number of BTech certificates CPUT is still withholding. The committee also feels that there are fair opportunities for first to third year students as they are most likely to be covered by NSFAS of a bursary. Bearing in mind that NSFAS only covers your first qualification, this among the reason why the committee felt the need to put BTech student s first on the platter.

FUNDING
On January 13, 2016, a communique was sent by the Department of Higher Education to all Vice-Chancellor's with regards to the shortfall of funds as the result of the no fee increment as declared by the President on January 8. From that communique it was stated that, there is R2.543 billion that has been allocated as a loan to 71 753 students NSFAS had identified that were eligible to receive funding from the NSFAS but were either partially paid or not funded at all. An additional R2.039 billion was to be also paid as additional support to ensure they complete their studies.
Since a total debt of R 111 million was cleared of 5 301 students, CPUT could not receive funding from NSFAS to cover for this. To access the funds the institution would need to reinstate the debt to each students fee account, the student would then have to sign the required Loan Agreement Form, and the form would then be submitted this to NSFAS in order to claim the funds.
We also faced a challenge of students who debts had been handed over to debt collectors have to settle their debts before they can be permitted to register for this academic year. Our proposal was that the normal CMU processes apply to them as well. It would work in a way that students would bring forth their proof of arrangement made with the debt collectors and an upfront payment that a student can afford. However the issue of policy was brought up again that we cannot go against the Debt Management Policy which states that students who have been handed over have been handed over after due process has been followed internally over a period of more than six months
CPUT was allocated R 289 million for the academic year 2016 of which it received 30% of it, R 86 700 000, was paid upfront on January 7. The remaining portion of CPUT’s allocation from NSFAS will only be received once students have been properly allocated funding and have signed the required Loan Agreement Forms. Even though the institution also received R 73 million from NSFAS to assist with the upfront payment which was not an essential requirement for registration for this year there was still a detrimental loss of R 86 million in upfront cash receipts for 2016. A further R 78 million was allocated to CPUT from the Department of Higher Education and Training (DHET) in respect of the 0% fee increment.
At present CPUT is still owed R 265 659 992.40 in tuition fees by past and present students. The total impact our institution faced as a result of no fee increment and -3% on residence fees was Total impact –R 99 088 783. With that being said the budget across all departments were cut by 60% and the SRC budget went from R 1,8 million in the past to R 700 000 of which is allocated as follows
The amount allocated to the LSRC is R788 400 less the amount committed to assist students to register R106 700 = R681 700, which is subdivided as

KEY PERFORMANCE AREAS (KPA)
AMOUNT
Administration (10%)
R68 170.00
Entertainment (25%)
R170 425.00
Transport & Accommodation (15%)
R102 255.00
Structure Subsidies (30%)
R204 510.00
Community Partnerships/Social Responsibility (10%)
R68 170.00
Student Developments Projects (10%)
R68 170.00
TOTAL
R681 700.00

Drafted by
LUCHULUMANCO NANTO

FINANCE AND PROJECTS OFFICER
ACTING FACULTY OF INFORMATICS AND DESIGN (FID) REPRESENTATIVE
CAPE TOWN CAMPUS
LOCAL STUDENT REPRESENTATIVE COUNCIL (LSRC)

CAPE PENINSULA UNIVERSITY OF TECHNOLOGY (CPUT)

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