Continuing Education and Training Act, 2006 (Act No. 16 of 2006)

Notices

National Norms and Standards for Funding Community Education and Training College

Funding Norms and Standards

Part N : Other Funding Streams
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The following sections must be read in conjunction with section 24 of the CET Act.

 

College Reserves and Investments

 

58.The CET colleges may retain surpluses generated from other sources of funding other than State funds, for use by the college. However, colleges must report to the Department on the retainment and utilisation of such surpluses.

 

National Skills Fund

 

59.The CET colleges must liaise with the National Skills Fund (NSF) to familiarize themselves with funding and grants made available for programmes offered by colleges.

 

Sector Education and Training Authorities

 

60. SETAs provide access to funding for skills programmes through grants or programmes offered in order to respond to the country's skills development needs. Colleges must engage SETA plans regarding training programmes with funding earmarked for CET colleges.

 

Loans and overdrafts

 

61. Section 24 (2) of the Act prohibits a public college from raising money by means of a loan or overdraft without the approval of the Minister. The colleges must submit such requests for consideration by the Minister for approval. The approval will be based on the conditions approved by the Minister. The conditions must clearly state how the default on the repayment of the loans and/or overdraft by the college will be dealt with.

 

Private and donor funding

 

62. This stream would include, amongst other things, development funding from local and international donor agencies, and income derived from the sale of goods

 

Fee-for-service income

 

63.This stream of funding is income derived by the CET college from training services offered on a market basis to private and public clients.

 

64. Colleges need to ensure that fee-for-service prices are not cross-subsidised by public funds intended for State funded programmes. In other words, fee-for-service prices should reflect the true cost of offering the service and /or programmes.

 

65. Fee-for-service training must not be offered at a price that is lower than the cost of an equivalent State funded programme.