. There is a serious misalignment between national implementation of the NSF with the provincial skills forum and as a result millions of rands meant to address the challenge of skills development in provinces were being returned to the NSF. . The head office of the department was being renovated to accommodate staff members from the Department of Labour dealing with skills development. . The department has not yet succeeded to appoint a new Chief Executive Officer for the NSF and the agreement with the provincial skills forum has not yet been concluded due to the recent split of the department. . There is a serious challenge of capacity to deliver within the NSF and the entire system of the NSF would require an urgent review to address the challenge of under-spending.