National Student Financial Aid Scheme NSFAS Public Finance Management Act
As a public entity, NSFAS is also subject to the Public Finance Management Act (PFMA), Act 1 of 1999, in terms of which NSFAS is listed as a Schedule 3A entity.
The NSFAS Act specifies that the board must manage, govern and administer NSFAS. The Act requires the board to establish a five-member board executive committee and a board finance committee.
NSFAS is listed as a Schedule 3A national public entity in terms of the PFMA. These entities are extensions of a department with the mandate to fulfil a specific economic or social responsibility of government. Boards of public entities have considerable fiduciary responsibility including the “reasonable protection of the assets and records of the public entity” and prevention of “any prejudice to the financial interests of the state”.
National Student Financial Aid Scheme NSFAS Higher Education Act.
The government conceptualized NSFAS as a loan and bursary scheme in order to address the rising student debt problem in higher education institutions (HEIs) and to give effect to the government’s commitment to redressing the inequities of the past.
The Republic of South Africa (1997) Higher Education Act, No. 101 of 1997 aims to:
- Regulate higher education
- Provide for the establishment, composition and functions of a Council on Higher Education;
- Provide for the establishment, governance and funding of public higher education institutions;
- Provide for the appointment and functions of an independent assessor;
- Provide for the registration of private higher education institutions;
- Provide for quality assurance and quality promotion in higher education;
- Provide for transitional arrangements and the repeal of certain laws; and to provide for matters connected therewith.
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