Mr M Daca: CEO highlighted the following key issues: . The growth from R441 million in 1999 when the NSFAS Act was passed to R8 billion in 2012 was significant. Despite growth in funds, supply still fell short of demand. The entity and its systems had not kept pace with the growth in funds. In 2010, the Ministerial Review recommended the need for transformation design principles at NSFAS. . In response, NSFAS proposed the following: direct relationship with students from Grade 9, central application process and administration for loans and bursaries, analytical focus to support financial aid policy development, appropriate governance and controls, and new NSFAS student centred model operating by the end of 2013. . The biggest challenge of NSFAS was that available funding was still far short of the need. For 2013, NSFAS institutional shortfall was about R700 million. . NSFAS only managed to transfer 7% of 35% upfront payment to FET colleges and institutions of higher. The Scheme could only use funds from recoveries of loans and interests from previous beneficiaries because it was still waiting on the budget for the 2013/14 financial year. . An improved management system for loans and bursaries management system would be in place by September 2013 and the central applications process for financial aid in 2014 would be implemented this year. 4.4 Auditor-General (Presentation on Audits of Higher Education Institutions)