DEPARTMENT HIGHER EDUCATION AND TRAINING NSA CLOSE OUT REPORT 2009 - 2014 Presentation to the Portfolio Committee on Higher Education and Training 29 October 2014

Content Background and Legislative Context Functions of the NSA in terms of the SDA Key of Areas of Advice Progress and Achievements Administration and Management Support Strengthening the NSA Current Status and Focus Areas White Paper Recommendations Budget and Funding

Background and Legislative Context The National Skills Authority (NSA) is a statutory body that was first established in 1999 in terms of Chapter 2 of the Skills Development Act (SDA) 97 of 1998 and Act 37 of 2008 as amended The Presidential Proclamation No. 44 of 2009, Government Gazette Number 32367 and subsequent proclamations (No. 48 of 2009, Government Gazette No. 32387 of 7 July 2009 and No. 531 of 2009, Government Gazette Number 32549 of 4 September 2009) assigned the SDA to the Minister for Higher Education and Training The third term of the NSA Board commenced on 31 May 2009 and expired on 30 June 2014

Functions of the NSA in terms of the SDA NSA Functions Advice Liaison (SETAs) Consultation Other Advise the Minister on: National Skills Development Policy National Skills Development Strategy (NSDS) NSDS Implementation Guidelines NSF Funding Allocation Strategic Framework and Criteria SDA Regulations (excl QCTO regulations) Liaise with SETAs on: The National Skills Development Policy The National Skills Development Strategy Sector Skills Plans Consult with the Minister on: SETA Changes, Amalgamations, Dissolutions and Administration SETA SLA Regulations SETA Plans and DG Reporting requirements SETA Grants NSF Administration and Operations Provincial Skills Development Forums Skills Development Levies Act Regulations The Authority must: Perform its functions in accordance with this Act and its constitution Conduct investigations on any matter arising out of the application of this Act Exercise any other powers and perform any other duties conferred or imposed on the Authority by this Act Receive, from the Department, information on skills The Authority has: The prescribed powers of entry and to question and inspect Liaison (QCTO) Liaise with the QCTO on: occupational standards and qualifications the suitability and adequacy of occupational standards and qualifications the quality of learning in and for the workplace The NSA EO must be a QCTO board member Reporting Report to the Minister on the: NSDS implementation progress Comment Comment on the NSF annual financial statements

Key Areas of Advice Review the skills development legislative framework to support integration of education and training and national government (inclusive of the NSF framework) Mobilisation of business, government, community and labour to take full ownership of the NSDS III Support development of a post-school education and training system that encourages society to support and build a developmental state, with specific focus on rural development and state owned entities Strengthen monitoring and evaluation functions, particularly in respect of the performance and governance of the NSDS III Coordinate and promote research, development and innovations so that business enterprise opportunities are created to benefit communities and vulnerable in particular

Progress and Achievements NSDS - Advice to extend the NSDS II for a year to allow time to transition and review NSDS II Advice to release draft NSDS III for public consultation NSA consolidated inputs and provided advice on the NSDS III NSDS III implementation report 2011 - 2013 Stakeholder Management and Mobilisation NSDS III consultations workshops were convened in provinces through the Provincial Skills Development Forums National Skills Conference 2011 and 2013 Recognition Awards NSA actively participated and led the skills summit in conjunction with DHET that resulted in a declaration of commitment by stakeholders (Minister’s agreement)

Progress and Achievements Advice on the performance of skills development institutions National Skills Fund NSF funding allocation framework Training lay off scheme NSA constituency capacity building Performance of SETAs Poor performing SETAs placed under administration The discrepancy in the misalignment of the SETA performance information, particularly the scorecard and financial reporting SETA standard constitution Sector Skill Plans

Progress and Achievements Legislation and policies NSA advised the Minister on the review of: Skills Development Bill SETA Regulations Investigative function Two investigations were conducted: Scope creep by Service SETA The matter was referred back to DHET after the findings of the preliminary report CHIETA investigation Investigation into the alleged mismanagement was conducted. The board was requested to conclude the implementation of recommendation by the end of November 2011

Collaboration and Liaison JICA, SASCE and SAGDA GIZ and ILO National departments Centre for Scientific Research (CSIR) Engineering Council of South Africa (ECSA) NSA/QCTO TVET dialogue SETA Liaison INAP, HRD Summit and Skills Summit

Administration and Management Support NSA Secretariat responsible for supporting the work of the committees and managing day-to-day operations of NSA including: Assisting the NSA to perform its roles and functions Ensuring the implementation of NSA decisions Preparing NSA reports for the Minister Ensuring that reports on NSDS implementation are prepared and submitted to the NSA Establishing and maintaining links between the NSA and other relevant bodies including the HRD Council, QCTO and SAQA Dealing with NSA members’ queries to enable them to fulfill their functions Dealing with public enquiries on the functions and activities of the NSA Liaising, in an agreed manner, with the Research agency working with the HRD component of the DHET

Committee Structure of the NSA

Strengthening the NSA The NSA and DHET have agreed to strengthen the NSA in order to reduce dependence on DHET processes, e.g. a dedicated allocation for the use on NSA activities The new NSA board is scheduled for an orientation and a capacity building workshop upon appointment (roles, functions, NSA Constitution, Code of Conduct, NSA work, meeting and events schedule, update on DHET work, etc.)

Current Status and Focus Areas NSA Board term of office ended on 30 June 2014 and the 4th term Board nominations are being considered Urgent focus areas for the NSA include advice on: Skills system review process that will include (SETA re-establishment and NSDS) SETA panel review process Appointment of SETA Council members, Regulations, etc. Result of the investigative function of NSA Recommendation of the White Paper on the NSA How to strengthen the NSA’s capacity to monitor and evaluate the role as envisaged by White Paper

White Paper Recommendations on the NSA “Monitoring and evaluation must make it possible to understand the levels of efficacy that are being achieved, and to identify where any blockages in the system may be emerging... It should enable a more detailed and informed understanding of the skills deficits and the areas for focused growth linked to the country’s needs....It assumes, therefore, that varied sources of data will be available and will be integrated into the monitoring and evaluation framework. This has to take place against defined indicators which will draw on successive National Skills Development Strategies and on the indicators in the Minister’s delivery agreement with the President.” Section 8.6 of the White Paper also envisages a new role for the National Skills Authority, namely: “A restructured and refocused National Skills Authority will concentrate specifically on monitoring and evaluating the SETAs. This implies that it will become an expert body with high- level monitoring and evaluation skills.”

Budget and Funding NSA receives a budget allocation from the DHET through voted funds and in the main, these funds are for administration activities such as: Personnel expenses for Secretariat staff Administration and logistics (e.g. printing, travelling, venues, subsistence) The NSA Secretariat directorate is housed within the Skills Development branch Other NSA activities such as the skills conference, provincial consultations are funded from the NSF allocation NSA constituency capacity building programme are managed and funded from NSF

Item Description/Activity Budget Estimates Item Description/Activity R’000,000 2009/10 2010/11 2011/12 2012/13 2013/14 2014/15 Compensation of Employees R2 244 180 R2 490 000 R2 473 800 R2 627 510 R2 765 000 R2 890 232 2. Goods and Service R1 241 820 R2 688 000 R1 359 000 R1 594 000 R1 772 000 R1 853 000 Machinery and Equipment 4. Expenditure -Allocation from NSF for Priorities of the NSA - R2 922 000.00 R19 435 000.00 R7 406 627.64

Thank You