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NATIONAL SKILLS FUND

NATIONAL SKILLS FUND. Portfolio Committee: 13 April 2011. 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

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NATIONAL SKILLS FUND

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  1. NATIONAL SKILLS FUND Portfolio Committee: 13 April 2011

  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

  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.

  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.

  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.

  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.

  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

  8. 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

  9. OPERATIONAL PLAN

  10. 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]

  11. 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

  12. 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.

  13. 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).

  14. 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.

  15. 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]

  16. 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.

  17. 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.

  18. THANK YOU

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