. "If the project is terminated for whatever reason, any undisbursed funds advanced by the National Skills Fund (NSF), for the project, including funds not utilised in accordance with agreed terms, should immediately be refunded to the NSF including interest accrued." a) The Bank balance of the National Skills Fund account reduced from R7 666 840 to R2 497 935 during the year ending 31 Mach 2010. However, no projects were running during the year. b) Part of the movement is operational expenditure amounting to R3 594 549 which should have been paid out of the operational account managed by the Department of Public Service and Administration (DPSA), but was paid using the funds owed to NSF. The Board of PSETA authorised these transactions. c) A current loan receivable was created in the financial records of PSETA for this reduction in the NSF account which is due from the DPSA. This receivable does not justify the payment made out of NSF account. The DPSA indicated that they would only refund a portion of the expenditure incurred by the PSETA from the NSF funds. The recoverability of the balance at year end could therefore not be confirmed with DPSA. d) PSETA received funding from NSF to be used only for the specific government project which was skills transfer, however the project was finished in 2006 and the excess funds were not transferred back to the National Skills Fund. e) The payable has been disclosed as current liability for more than 12 months and has not yet been refunded. f) The NSF payable balance of R7 802 525 could not be confirmed by the National Skills Fund. g) The funds available at year end in the NSF bank account at PSETA amounted to R2 497 935. h) The balance of the liability forms part of the DPSA debtor as stated above.