1. (a) The amount of R400 million was reported as accumulated revenue generated over a period of five (5) financial years (i.e. from 2019/20 to date). The amount generated is from services rendered (course fees collected) without taking into account the operating expenses and salaries paid throughout the period.
(b) The Training Trading Account currently holds reserves to the amount of R128 million after accounting for salaries and operating expenses over the period. The NSG has, over the years, written letters to the National Treasury to retain surpluses in accordance with the provisions of Treasury Regulation 19.7.1.
The approved reserves are earmarked for identified multi-year projects which will improve the operations of the NSG, while others were used to cover budget cuts from the National Treasury.
2. The NSG is developing a new funding model. Engagements were held with the National Treasury on the future re-positioning of the NSG and funding pressures. The funding model is being developed in the context of the future re-positioning process, which will be submitted to Cabinet in this calendar year for consideration.
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