3.5.4 The Committee was further informed that the Minister of Higher Education and Training, together with the Minister of Public Service and Administration, had established an Inter-Ministerial Task Team to develop a viable funding model for PSETA, consisting of representatives from DHET, DPSA and National Treasury. The budget allocation of PSETA for 2011/12 was R21 million. PSETA is currently awaiting the finalisation of the funding model which will impact on the implementation of their strategic plan. The funding model proposes that government departments utilise the 1% of training budget by allocating 30% of 1% to SETAs (10% of 30% for operations, 20% for discretionary grants). A cabinet memo in this regard was expected to be finalised by end of July 2012.