For discussion EC(95-96)49
on 2 November 1995
ITEM FOR ESTABLISHMENT SUBCOMMITTEE
OF FINANCE COMMITTEE
HEAD 173 - STUDENT FINANCIAL ASSISTANCE AGENCY
Subhead 001 Salaries
Members are invited to recommend to Finance Committee an increase in the ceiling placed on the total notional annual mid-point salary value of all non-directorate posts in the permanent establishment of the Student Financial Assistance Agency in 1995-96 from $29,054,000 by $3,542,040 to $32,596,040 to permit the creation of 18 non-directorate posts.
The Student Financial Assistance Agency (SFAA) does not have sufficient staffing resources to carry out more detailed-vetting of applications under the Local Student Finance Scheme (LSFS) and to replace the temporary staff now hired for simple-vetting under the Scheme.
2. The Controller, Student Financial Assistance Agency (C, SFAA) proposes to increase the ceiling placed on the total notional annual mid-point salary (NAMS) value of all the non-directorate posts in the permanent establishment of SFAA in 1995-96 from $29,054,000 by $3,542,040 to $32,596,040 to enable the creation of 18 non-directorate posts to strengthen the detailed-vetting (DV) team, and at the same time, allow full replacement of temporary staff by permanent clerical officers for simple-vetting (SV) of applications1995-96 application exercise. Upon approval of the increase in NAMS ceiling, C, SFAA will examine and create the additional posts through the machinery of the Departmental Establishment Committee in the usual way.
3. The SFAA has experienced considerable increase in workload in the past years due largely to the significant growth in the number of applications received under the LSFS (from 17 237 in 1992-93 to 34 130 in 1994-95 representing an increase of 98% in two years). With the introduction of various improvements to the Scheme in 1995-96, the increasing trend is expected to accelerate; the number of applications for 1995-96 is now being estimated at 42 690. To cope with the additional workload, SFAA has introduced since 1992-93 the SV method using temporary staff to vet simple applications with a view to reducing processing time and hence enabling earlier payment of financial assistance to students. Audit (D of A) has estimated that based on his review of the processing of the 1993-94 applications, a total of $23,120,000 ($11,250,000 in grants and $11,870,000 in loans) could have been overpaid in that academic year. Although simple vetting by temporary staff has helped to alleviate the workload, inaccuracies may arise.method has been useful in alleviating the workload, we cannot expect temporary staff to achieve the same standard of accuracy in their vetting work as the permanent staff. This may have resulted in overpayment of financial assistance to students. In this respect, tThe Director of Audit (D of A) has estimated that based on his review of the processing of the 1993-94 applications, a total of $23,120,000 ($11,250,000 in grants and $11,870,000 in loans) could have been overpaid in that academic year. He recommended the Administration to replace temporary clerical staff by suitably graded permanent staff, and to apply DV to as many high level assistance cases as possible.
4. C, SFAA concurs in principle with D of As recommendations. However, he considers that the application of DV to all applications would not be practical for the following reasons -
- its full implementation would require inordinate additional staff resources which can only be put into full use during the peak period; and
- to subject applications from the same applicant in successive years to DV would be a waste of manpower resources, since the financial circumstances of the applicant and his/her family should be well established after thorough checking of his/her application submitted in the first year.
5. Hence, having regard to the cost-effectiveness consideration and in the light of the projected workload, C, SFAA proposes to replace all the temporary staff by permanent staff in performing SV to applications from new students, who will submit their applications to SFAA from September to November. He estimates that there will be about 8 400 of such applications in the 1995-65. Hence, having regard to the cost-effectiveness consideration and in the light of the projected workload, C, SFAA proposes to replace all the temporary staff by permanent staff in performing SV to applications from new students, who will submit their applications to SFAA from September to November. He estimates that there will be about 8 400 of such applications in the 1995-96 academic year. He also proposes to increase the number of high level assistance cases to be detailed-vetted by permanent staff from an estimated number of 10 520 to 13 000. To implement the proposals, C,SFAA would require an additional 18 staff. Details of the posts and their duties are shown in the Enclosure. The proposal will enhance accuracy in assessment and achieve cost-effectiveness through minimising overpayments arising from the high incidence of error committed by temporary staff. Under these arrangements, the SFAA will continue to meet its performance pledge in the processing of applications, i.e. four months for current students and three months for new students.
6. We have not included any provision in the 1995-96 Estimates to meet the cost of this proposal, which is estimated at $1.3 million for the remainder of 1995-96. If Members approve this proposal, we will approve under delegated authority the supplementary provision required under Head 173 Student Financial Assistance Agency Subhead 001 Salaries.Head 106 Miscellaneous Services Subhead 251 Additional commitments. This provision is for filling the 18 posts in 1995-96 for four months from December 1995 to March 1996. We shall include sufficient provision in make arrangement to include the necessary provision in the 1996-97 draft Estimates for this purpose.
7. LSFS is a means-tested scheme, which provides grants and/or loans to eligible local needy students. The grants are intended to cover tuition fees, academic expenses and student union fees. The maximum grant varies depending on the course of studies pursued. The loans are intended to help towards students living and personal expenses. The financial assistance payable in each case is determined by the financial circumstances and the size of the students family, as measured by its Annual Disposable Income and the course of studies pursued. Its objective is to ensure that no qualified students will be denied access to tertiary education because of lack of means.
8. The Civil Service Branch supports the proposal.
Education and Manpower Branch
October 1995
Enclosure to EC(95-96)49
|
Additional Staff
|
Number
|
Duties of
Additional
Staff
|
Expected Results
|
|---|
|
Senior Clerical Officer
|
4
|
To perform detailed-
vetting to high level
assistance applications
from students.
|
To increase the
number of high level
assistance applications
to be detailed-vetted
from 10 520 to 13 000.
|
|
Clerical Officer II
|
12
|
To perform simple-
vetting to the
applications of new
students.
|
More permanent staff
will be used to perform
simple-vetting to
applications from new
students estimated at a
total number of
applications of 8 400.
|
|
Executive Officer I
|
2
|
To supervise the
vetting teams, handle
additional appeal cases,
co-ordinate workflow
among various sections
of the Agency and
assist in planning and
development activities.
|
Closer supervision
can be exercised to
the vetting teams to
reduce possibility of
mis-assessment,
quicker response to
appeal cases and
improve workflow
among sections.
|
|
Total
|
18
|
|
Last Updated on 3 December 1998
