2. Background The National Skills Fund (NSF) was established in terms of section 27 of the Skills Development Act of 1998 specifically to; fund identified projects in the National Skills Development Strategy (NSDS) as national priorities, fund projects related to the achievement of the purpose of the Act as the Director-General determines and to administer the fund within the prescribed limit as regulated from time to time. The NSF is funded primarily from 20% of levies collected from eligible employers in terms of the Skills Development Levies Act. This funding is used primarily to fund projects, pay the South African Revue Service (SARS) for the costs of collecting levies from employers and to pay for the administration cost of NSF. The Director-General of the Department of Higher Education and Training is the accounting Authority of the NSF and is mandated to control the Fund, keep proper records of the Fund and prepare its annual financial statements.