1. Portfolio Committee: 13 April 2011
NATIONAL SKILLS FUND
Portfolio Committee:
13 April 2011
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2. CONTENTS INTRODUCTION LEGAL MANDATE OF THE NSF
NSF STATUS IN RELATION TO THE DHET
NSF MTEF STRATEGIC OBJECTIVES (Per DHET Strat)
OPERATIONAL PLAN (Per DHET Strat Plan)
CONTINUING INTERVENTION FOR SKILLS & EMPLOYMENT
NSF CHIEF DIRECTORATE ORGANOGRAM
NSF FINANCIAL BUDGET ESTIMATES
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3. INTRODUCTION
NSF established in 1998, through the Skills Development Act, 1998
Took over from the Training of Unemployed Persons (TUP Fund) operations in 1999
Received first Levy in 2000
Mandates derived from NSDS III (2011–2016)
Fund is just over a decade in existence.
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4. LEGAL MANDATE OF THE NSF
Skills Development Act, 1998, as amended, outlines the key obligations pertaining to the NSF, being:
Use of the money in the fund:
To fund projects identified in the NSDS as National Priorities,
To fund such other projects related to the achievement of the purpose of the Act as the DG determines and
The administration of the fund within the prescribed limit, as regulated from time to time.
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5. Control and Administration of the NSF:
The Director General: DHET, is the accounting authority of the NSF and must:
control the fund
Keep proper records of the Fund (Financial, asset & liabilities thereof)
Prepare Annual Financial Statements.
Other legal obligations:
NSF to be managed in accordance with the PFMA
The NSA required to advise the Minister on the strategic funding framework and criteria for the allocation of NSF funds.
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6. NSF STATUS IN RELATION TO THE DHET
True to DHET objectives of achieving an integrated post school system, NSF is seen as a catalytic fund in the skills development arena.
The NSF is a Chief Directorate within the Skills Development Branch of DHET and not a separate entity.
DHET has had meetings with NT and AG to look at compliance requirements to give effect to the objective treatment of NSF within the DHET.
Further meetings, through the CFO’s office are planned with NT.
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7. MTEF STRATEGIC OBJECTIVES
To provide funds for identified priorities that advances the Human Resource Development Strategy (HRDS)
To provide funds for priorities identified by the Minister after consultation with the National Skills Authority (NSA) that support the NSA in its advisory work, and building the capacity of the social partners (constituencies) to strengthen their role in and delivery of the National Skills Development Strategy
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8. To provide funds for the operations of the NSF
To provide funds to support projects identified as national priorities in the context of the National Skills Development Strategy (NSDS) and support the strategic objectives of government
To provide funds to support other projects that are pertinent to the achievement of the purposes of the Skills Development Act, as determined by the Director-General
To provide funds for the operations of the NSF
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9. OPERATIONAL PLAN
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11. 2/24/2019

12. Critical to achieving its objectives, the NSF has built a wide range of partnerships with Gvt Dpts, FETC, Private providers, etc. To this end, the NSF has had the following engagements:
Dept: Rural Development [335 full bursaries at R15m]
Artisan Development Technical Task Team [Committed to fund upon completion of details being worked out]
Dept: Public Entities [Additional training spaces for Artisan training in SOE’s: we are negotiating targets]
Dept: DPW [R200m partnering on EPWP–40000 Learners]
FETC (DHET) [Expansion, including Skills Development programmes]
DBE: [Currently, full bursaries for 1200 teachers at R38m]
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13. CONTINUING INTERVENTION FOR SKILLS & EMPLOYMENT
At the beginning of the year, the Minister made the following commitments, which are in full swing at this stage:
Make available R150m to NSFAS to fund full cost of study in critical skills and for rural students in all institutions of Higher learning in the country,
To cover 820 1st year enrolments
Over 335 financially deserving rural students
300 Students with disabilities
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14. Further R100m allocated to a contracted agency, Career Wise,, to fund, through bursaries, full cost of study of first year and continuing students in critical skills required by the country for economic growth and innovation.
Further R94m allocated to the National Research Foundation to fund students in Post Graduate, Masters’, Doctoral and high level research Programmes.
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15. The NSF has further committed R200m to the EPWP, under DPW targeted at training 40,000 beneficiaries
For prior training, meaning training unskilled labour for later participation in specific EPWP project in the areas concerned.
Onsite training – focusing on “on the job training”
Training for exits – at completion of projects (artisan trades, full ABET)
80% of training being contracted by DPW is through FETC’s (23 at the present moment).
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16. Currently the NSF is supporting 268 community-based organizations by training 1,935 learners in various skills that include organization management and technical skills.
A total of six service providers have been contracted to implement the skills development projects in the Eastern Cape, KwaZulu-Natal and Mpumalanga provinces at a total budget of R10m.
Mainly with Rural Focus.
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17. The NSF facilitated the provision of skills development support to 367 community based co-operatives. It had 29 active Memoranda of Agreement with service providers across all provinces. This runs up to 30 June 2011.
The National skills Fund (NSF), under the Industry Support Programme (per NSDS II, now IPAP in terms of NSDS III) supports the DTI by providing training incentives to newly established businesses and expansion of existing businesses in two ways:
Workplace Skills Development Support Programme (WSDSP)
The Monyetla for the Business Processing Outsourcing and Off-shoring (BPO&O) sector [3400 beneficiaries]
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18. NSF Organogram The NSF currently has a staff complement of 38
Approved and funded posts within the directorate amount to 48.
The Skills branch, within which the NSF falls, is currently undergoing a process of organisational redesign, along side the rest of DHET. This will affect the NSF and its organisational outlook.
Provincial monitoring and presence is being worked in collaboration with the rest of the Department.
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19. Yearly utilisation forecast
NATIONAL SKILLS FUND
PROJECTION OF INCOME AND EXPENDITURE FOR THE PERIOD OF THE NSDS III
1.1  ANNUAL INCOME AND EXPENDITURE OVER THE PERIOD OF THE NSDS III
Audited
Estimates
Forecasts
2009/10
2010/11
2011/12
2012/13
2013/14
2014/15
2015/16
TOTAL
R'000
INCOME
1,990,592
2,064,531
2,209,048
2,363,682
2,529,139
2,706,179
2,895,612
12,703,659
EXPENDITURE
871,067
3,018,207
SURPLUS / DEFICIT
1,119,525
-953,676 -
1.1.1  NSF: EXPENDITURE BREAKDOWN
%age
allocation
SARS Collection costs
10%
220,905
236,368
252,914
270,618
289,561
1,270,366
NSF Admin
HRDSA 5%
110,452
118,184
126,457
135,309
144,781
635,183
Ministerial (NSA) 8%
176,724
189,095
202,331
216,494
231,649
1,016,293
NSDS (IPAP/NGP/Rural Dlpt)
47%
708,003
1,038,253
1,110,930
1,188,695
1,271,904
1,360,937
5,970,720 DG
Skills Infrastructure (Plus Maintenance)
NET AVAILABLE
100%
1.2 TOTAL UNCOMMITTED RESERVES CARRIED FORWARD
3,178,063
RESERVES UTILISATION
Yearly utilisation forecast
20%
30%
NSF Admin & IT Systems (once-off)
317,806
31,781
63,561
95,342 Ok
NSF Monitoring & Evaluation systems
Infrustructure seed funding
635,613
127,123
190,684
Skills planning institutional machanism (seed funding)
158,903
15,890
47,671
( ? )
Balance to Project Funding
55%
1,747,935
174,793
349,587
524,380
953,419
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20. NSF FINANCIAL POSITION:
2010/11 AFS and AG audit process to take place.
From the 2011/12 financial year going forward, the NSF expects to commit its annual income to skills projects targeting various government strategies as outlined in the operational plans.
The reserves from previous years are planned to be utilised in boasting the Monitoring and Evaluation Capacity of the Skills Delivery machinery, kick start infrastructure spending (i.e., SOE capacity expansion, skills centres, FETC’s, etc), Catalising on skills development projects in partnership with other skills providers.
DHET finalising funding framework in this regard.
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21. THANK YOU
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