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

2. 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

3. 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 as amended
The Presidential Proclamation No. 44 of 2009, Government Gazette Number and subsequent proclamations (No. 48 of 2009, Government Gazette No of July 2009 and No. 531 of 2009, Government Gazette Number of 4 September 2009) assigned the SDA to the Minister for Higher Education and Training
The third term of the NSA Board commenced on May 2009 and expired on 30 June 2014

4. 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

5. 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

6. 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
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)

7. 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

8. 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

9. 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

10. 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

11. Committee Structure of the NSA

12. 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.)

13. 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

14. 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.”

15. 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

16. 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 R R R R R R
2. Goods and
Service R R R R R R
Machinery and
Equipment
4. Expenditure -Allocation from NSF for Priorities of the NSA - R R R

17. Thank You