NATIONAL SKILLS FUND. PORTFOLIO COMMITTEE BRIEFING ON THE 2010/11 ANNUAL REPORT 02 NOVEMBER 2011. CONTENTS:. Background information on Annual Report Performance on predetermined objectives Auditor-General Report Financial Statements 2010-11 NSF Funding framework.
NATIONAL SKILLS FUND
PORTFOLIO COMMITTEE BRIEFING
2010/11 ANNUAL REPORT
02 NOVEMBER 2011
Key Strategic Objectives and Achievements (Annual Report: Page 281 – 285)
2.1.1 To support the development of priority skills through a bursary programme.
220.127.116.11 Performance Indicator:
Undergraduate bursaries awarded benefiting 2,800 people (Critical Skills Support).
A total of 6,979 undergraduate bursaries were awarded for the period to support studies in critical skills. These were facilitated, primarily through NSFAS and Career Wise (total
5,857) and the rest through partnerships with Provincial Governments.
Reason for variance:
Additional resources were provided due to increased demand for bursaries in the skills areas
supported by the programme.
18.104.22.168 Performance Indicator:
Post graduate bursaries awarded benefiting 1,200 people (Critical Skills
A total of 856 post graduate bursaries have been awarded through a
partnership with the National Research Foundation.
Reason for variance:
The programme was scaled down with support focused mostly to
continuing Masters and Doctoral fellows to the exclusion of Honours.
This programme is being reviewed in line with NSDSIII, the Minister
Delivery Agreement and the call by the PC for dedicated support to post
2.1.2 To support Strategic Projects targeting skills for macro-economic policy initiatives of SA.
22.214.171.124: Performance Indicator: Scarce Skills Learning programmes (learnerships,
internships) benefiting 4,000 people.
Performance results:4,399 people benefited from learnerships and internships
from projects implemented through provincial governments.
Reason for variance:Target met.
126.96.36.199: Performance Indicator: Strategic Projects programme benefiting 8,000 people.
Performance results:A total of 3699 people benefitted from other programmes
(mostly skills programmes).
Reason for variance:The slow take off of projects in the third round of Strategic
Projects contributed to the low achievement. These projects will only commence
implementation in 2011-12.
188.8.131.52: Performance Indicator: Scarce Skills Artisan programme benefiting 4,000
Performance results:5,152 people were indentured on various apprenticeships during this
reporting period through our partnerships with SETAs and provincial governments.
Reason for variance:Target met.
184.108.40.206: Performance Indicator: Other workplace learning programmes (WSSP,
BPO&O, etc) benefitting 4,000 people.
Performance results:Projects supporting DTI incentives and Training Layoff Scheme
In total 5687 workers benefited.
BPO&O training grants: Expenditure R13,6 & total new learners benefiting - 3511.
Workplace Skills Dev Support Programmes training grants: New learners trained – 756;
Claims paid – R 3,3 mil; 10 - SME enterprises benefitted
Monyetla BPO&O Work Readiness Programme: 900 learners (Call centre agents)
completed their training and assessed as fully competent. 696 has been employed (77%)
A further 2148 learners still in training. The project come to completion on 31 July
Training Layoff Scheme: A total of 520 worker benefitted from skills interventions.
Reason for variance:Target met
2.1.3 For NSDS III, for each new strategic priority develop draft disbursement
criteria and procedures.
Performance results:Following the official launch of the NSDS draft criteria were developed to
support NSDS III.
2.1.4 Recommend criteria and disbursement procedures to the National Skills
Performance results:Three drafts of the NSF Strategic Framework and Criteria for the allocation
of funds were presented to the NSA. In reporting period this has not been finalised , however
approved by Minister on 04 August 2011.
2.1.5 Finalise criteria and disbursement procedures by end March 2011.
Performance results:Delivery delayed due to late launch of the NSDS III.
2.1.6 Implement NSDS III priorities from 2011 - 2014.
Performance results:NSDS III priorities have been included in the DHET Strategic Plan
(incorporating the NSF work-plan).
2.1.7 Monitor and evaluate impact of disbursement made.
Performance results:Both the M&E and Impact strategy have not been developed .
The NSF continued monitoring disbursements made through ongoing site visit to all projects.
Reason for variance – Items 1.3 to 1.7: Partially achieved.
2.2To provide funds to support other projects that are pertinent to the achievement of the goals of the Skills Development Act, as determined by the DG of DHET.
2.2.1 To provide training opportunities benefitting 108,460 people in the informal economy including cooperatives, social development projects and SMMEs.
Some of the projects are still active and it is envisaged that the target of 400 will be
achieved during the remaining period in 2011.
Reason for variance: Target not met due to difficulties experience as a result of complex transition processes.
2.2.2 To provide capacity building grants for the FET system to improve skills development provision at a cost of R1.25 billion.
Performance results:The delay in the launch of the NSDS III has necessitated postponement of
this activity as these FETs were intended to facilitate skills development initiatives of the NSF.
2.2.3 To provide grants for the training of youth on life skills through the FET system to benefit 500,000 youths.
Performance results: postponed due to the delay in launching NSDS III.
2.2.4 To strengthen NSDS provision through annual skills planning grants & NSA advocacy support grants.
Performance results: Assist NSA constituency members with NSDS advocacy work.
Actual total constituency members that have benefitted– 2682. Some of the projects have not yet
once completed the target of 3000 will be achieved.
2.2.5 Implement strategic projects as per criteria and disbursement procedures.
Performance results: Provide funding for COSE project - An amount of R102,000 was approved
to appoint consultants to research the concept. This project could not take off due to changes in
the conceptual framework of the NSDS III.
Provide funding for Career Information Hotline - A total budget of R99.4m has been approved for
the Career Advisory Services implemented in partnership with SAQA.
2.3 To steer the development of internal and external structures and systems that effectively enable the achievement of the abovementioned two goals (strategic objectives).
The development of the financial system for the NSF has been put on hold
pending the finalisation of the organisational structure of the DHET (and
specifically the Branch Skills).
2.4 Manage the strategic planning, administration, financial management, performance management, organizational knowledge, reporting, human resources, archiving, procurement and NSF-IT system/s services effectively and efficiently.
Performance results:These were managed in collaboration with DHET Finance.
The NSF received an unqualified audit opinion
Key matters raised by the Auditor-General:
Emphasis of Matters – not affecting audit opinion
Evaluation and adjudication criteria applied not the same as those indicated in the original request for proposal documentation: R46.991 million
Secondment of official from Metropolitan Life: R743 905
Restatement of corresponding figures
NSF listing as public entity
Material under spending of the budget
Reported indicators not consistent with planned strategic
Planned and reported indicators not in all respects well defined
Planned and reported targets not always measurable
Information deficient in respect of validity, accuracy and
Addressing the areas related to Predetermined Objectives
The management of financial activities and the implementation of a separate financial management system to address the requirements of accrual accounting