FUNDING POLICY FOR INVESTORS IN PEOPLE IN
THE BANKING SECTOR
In recognition of the importance of IIP and its incorporation as a core area of the
BANKSETA, the sector IIP initiative will be supported via two discrete mechanisms.
Each of these mechanisms is designed to create benefit for the sector, or for significant
segments within the sector.
i. Support Mechanism #1: BANKSETA Internal Resourcing
The first support mechanism for the initiative will be via the BANKSETA’s IIP
function, funded from the administrative budget.
This budget will be applied to operating costs for the BANKSETA infrastructure,
and will be budgeted in accord with the standard business planning and
budgeting cycle in place in the SETA.
This budget will cover BANKSETA salaries and administrative expenses, IIP
marketing, sector consultation, strategy and policy development, sector
community of practice development, and IIP monitoring and control, as well as
any other items that may be deemed necessary by the SETA from time to time.
This budget is approved by the council on an annual basis and resides under the
administrative control of the IIP Manager, subject to normal BANKSETA financial
management and control procedures.
ii. Support Mechanism #2: Discretionary Grant Funded Projects
The second mechanism for supporting the initiative will be via projects that
deliver sector benefits directly.
Such projects will be funded from discretionary funds, administered directly by
the BANKSETA Council.
Certain principles will apply to the use of discretionary funds:
1. Principle 1: Discretion
The BANKSETA council is not obliged to make funds available for such
projects, and funding requests will be considered in the light of the other
strategic objectives of the BANKSETA.
2. Principle 2: Commitment
BANKSETA will only make funds and and/or benefits available to
organisations in the presence of clear evidence of commitment to the
achievement of the standard at an executive level.
3. Principle 3: Equitability
The BANKSETA will at all times implement measures to ensure that funds
and/or benefits are allocated equitably to participating organisations.
Equitability will be determined on the basis of size and levy contributions, as
well as on the basis of relative need.
4. Principle 4: Accountability
The BANKSETA will establish mechanisms to ensure that funds that may be
made
available
to
participating
organisations
will
be
administered
accountably, thereby ensuring that the BANKSETA entirely fulfils its fiduciary
duties in respect of public funds.
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5. Principle 5: Results
The BANKSETA will require organisations to produce tangible results for the
support financial and otherwise that is afforded participating organisations.
These results will be evaluated according to the achievement of milestones
leading up to accreditation, the achievement of accreditation itself, and the
subsequent maintenance of IIP accreditation.
6. Principle 6: Strategic alignment
The BANKSETA will require project funding that is not applied directly to an
individual site, but seeks to provide broader benefit to the sector, to
demonstrate alignment with the IIP strategy for the sector.
As the IIP strategy is the framework defining the sector’s overall direction with
respect to IIP, it is against the strategy that the value of proposed projects will
be judged and funding authorised.
If funding is to be approved fro a project, it will be required to demonstrably
and concretely support the achievement of the BANKSETA’s IIP strategic
goals as set out in the strategy.
iii. Categories of Sector Projects:
Two distinct categories of possible sector projects exist:
1. Category 1: Projects initiated under the auspices of
BANKSETA:
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Such projects are approved by the council on the basis of business cases
made by the IIP Manager. All funding of the initiative to date of this document
has been made in terms of this category.
The following may be funded by such project funds:
Item
BANKSETA subsidises
Conditions
and
constraints
New sites
o Fees for the training of
IIP facilitators
o The fees for
o A Memorandum of
Agreement must
entered into between
preparation for
the intending site and
formative assessment
BANKSETA regarding
o The fees for formative
disbursement of funds
assessment
and the associated
obligations. This MoA
signed by duly
authorised executive
for intending investor.
o Progress reports to be
submitted as
stipulated.
Support
o IIP advisory services
for sites
o Organisation
o Dependent upon the
availability of funding
development services
authorised by SETA
required for the
Council from time to
achievement of IIP
time.
accreditation
o Practitioner
development
o The BANKSETA will
determine the amounts
for distribution and the
mechanisms for
IIP Strategy: July 2003
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apportioning the
amounts available to
participating
organisations.
o Memorandum of
Agreement to be
entered into with
BANKSETA, regarding
disbursement of funds
and the associated
obligations, signed by
duly authorised
executive for intending
investor.
o Service level
agreements with
suppliers of services to
be entered into.
o Progress reports to be
submitted as
stipulated.
The IIP manager will from time to time submit motivations for funding to the
council, in accord with assessed needs and opportunities. Typically these
recommendations will be endorsed by the subcommittee.
2. Projects initiated by third parties: These projects may be
initiated by parties other than the Council or the IIP manager.
Their defining characteristic is their focus on providing
benefits directly related to IIP to the sector, without
necessarily being managed under BANKSETA auspices.
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It is the policy of BANKSETA to reserve the right to exercise oversight over
projects of this nature, initiated by third parties, in order to ensure that the
projects deliver benefits that are aligned with the overall initiative, and that
duplication does not take place.
2 Implementation of this policy
The implementation of this policy is the responsibility of the IIP Manager.
It will be implemented in accord with the BANKSETA’s approach to quality
management.
3 Modification to this policy
This policy will be adopted by the BANKSETA Council.
Modifications to the policy may only be made subject to the endorsement of the
BANKSETA IIP Subcommittee, and any amendments to the policy must be
formally recommended to the Council for approval.
4 Disputes
The BANKSETA Council will remain the arbiter in respect of any disputes that
may arise in relation to this policy.
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