The new Grant Regulations
How will it impact on the
FP&M Sector?

Introduction
• Grant Regulations regarding monies received by a SETA and related matters
– published in Government Notice No. 35940,
3 December 2012

General problem statement
• General sentiment that SETAs are not assisting in addressing skills shortages / gaps
• Poor research and monitoring of impact
• Poor detailed planning
• The structure of education & training lacks the workplace component
• No commitment to reach higher levels (L4)
Especially to prepare for Trade Tests

General problem statement
• Many scarce skills involve high level qualifications (many years to complete)
– SETAs promoted short courses
• Current grant disbursement is disproportionate (private providers)
• There’s absence of effective monitoring
& evaluation
– Absence of impact valuation
• Lack of clarity of intention

Lack of clarity of intention
• Lack of intention & clarity in strategy
– Allocations not aligned to SSP priorities
• SETA policies & procedures have little relevance to achieving planned impact
• Training programmes do not make clear what is intended & whether the intention has been achieved

Purpose of the new regulations
• To allow the SETAs to set clear objectives but avoid specific numerical targets
• To improve the focus, management and effectiveness of SETA grant spending
– By developing policies & procedures
• For allocation
• Monitoring
• Reporting

Intent of the New Regulations
• Regulate admin fund
• Provide for SETAs to contribute to QCTO
• Discourage accumulation of surpluses
• Improve quality and quantity of labour market information
• Promote NQF registered and quality assured
PIVOTAL programmes
• Create framework for expanded use of public education and training providers.

Significant Changes: Skills
Development Levy Distribution

Skills Development Levy
Distribution
• Distribution of levy income
60
50
40
30
20
10
0
2 2
18 18
10 10
0 0,5
50
20 20
49,5
Before 1 April
2013
With effect from
1 April 2013

Significant Changes: Mandatory
Grants

The intention of Mandatory Grants is to incentivize employers to:
• to plan & implement training for their employees
• to create training and work experience opportunities for the unemployed people

Significant Changes
• Mandatory Grant Applications
– Year 14 (2013/14) – submission due by 30 June
2013
– Year 15 (2014/15) onwards – submission due by
30 April
– Better alignment with skills development and financial year
– Enhanced SETA planning cycle
• SSP Annual Update
• Earlier Discretionary Funding Windows

Significant Changes
• Mandatory Grants (continued)
– Increased monitoring of WSP implementation against Board criteria
• Criteria for approval
• Evidence requirements
• Quality & accuracy standards for WSPs & ATRs
– Evidence of consultation and sign-off by labour representative (unless explanation is provided)

Significant Changes: Discretionary
Grants

The intention of Discretionary
Grants is to implement the
Sector Skills Plan

Discretionary Grants: Key themes
• A well researched set of scarce and critical skills
• The recognition that current provision has limited practical and workplace learning component
• Need to focus on occupational qualifications at all levels

Significant Changes
• Discretionary Grant Applications
– Discretionary grant categories not specified
– Alignment with SSP implementation
– Funding of PIVOTAL Programmes - 80% of discretionary funding
• Address Scarce and Critical skills in the sector
• Current programmes will qualify e.g. learnerships, bursaries, work experience, internships, apprenticeships, credit bearing skills programmes
– Qualifying criteria – PIVOTAL plan and report to be completed with WSP/ATR.

Significant Changes
• Public Education and Training Institutions
– Emphasis in NSDS III on use of public institutions for delivery of scarce and critical skills.
– Industry currently almost exclusively use private providers.
– Public providers do not meet the needs of industry.
– Need to restore the balance - how do we do this ?
• Public/Private/SETA partnerships
• Discretionary funding allocation
– Public Institutions more cost effective
& sustainable

Significant Changes
• Assisting Small Enterprises
– Support to small enterprises require more emphasis
– Simplified mandatory and discretionary grant application processes
– Simplified format for reporting on PIVOTAL training
– Enhanced processing of grant payments due to small enterprises
– Projects designed to address skills needs of small enterprises.

Grant Regulation Guidelines
• DHET issued guidelines for implementation
– Left room for SETAs to be creative
“Each sector has different dynamics and contextual conditions. It would not be helpful for the Department to state how SETAs should allocate resources to achieve the implementation of sector specific plans set out in SSPs.
However, what this means is that the SETAs themselves need to put time and effort into the development of policies that are carefully aligned to the objectives set out in their SSP.”

Conclusion
• FP&M SETA see the glass as
OVERFLOWING!
• More discretionary funding
– Address sector skills priorities
– Renewed focus on meaningful training and education
– Increased monitoring of training implementation
– Redesigned SETA processes due to timeframes
• Will require support of all stakeholders to make full use of mandatory and discretionary grant application opportunities.

Thank You