MicroVision and SLC were contracted by the National Students Financial Aid Scheme (NSFAS) to develop a software application capable of modelling and restating its loan debtors’ book for financial statement reporting purposes. This was in response to an audit disclaimer of opinion issued by the Auditor General for the NSFAS 2010 Annual Report.
The NSFAS loan book comprises in excess of 800,000 debtors with transaction histories spanning over 20 years. The model developed is capable of analysing and re-calculating all student and debtor balances, on a loan by loan basis. The calculator also provides an analysis of the capital and interest components of these balances.
The application takes into account the common law rule of In-Duplum and existing NSFAS policies when calculating this split. It is designed with the flexibility to incorporate future NSFAS policies and to respond to enhanced financial reporting requirements. Based on the results of the calculations performed by the MVS / SLC application, NSFAS was able to restate the balances of its student loans and provide sufficient evidence to ensure a clean year-end audit for its 2011 Annual Report.