1
Discretionary Grants
in the
Wholesale and Retail Sector
2005-2006
Guidelines and Criteria
• What funds will be made available from W&RSETA this year?
• Who will the funds be available to and for what purposes?
• Who may apply, when and how?
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CONTENTS
1. Introduction (Pg. 3)
2. How the levy-grant system works (Pg. 3)
3. Prerequisites to qualify for a Discretionary Grant (Pg. 4)
4. General conditions in applying for a Discretionary Grant (Pg. 5)
5. Discretionary Grant Funding Criteria of the W&RSETA 2005-2006
(Pg. 5)
6. Scarce Skills list in the wholesale and retail sector (Pg. 6)
7. What types of Discretionary Grants (Funding Windows) are
available? (Pg. 7-8)
8. The Procedure to be followed in the Award, Disbursement and
Monitoring of Grants (Pg. 9)
9. GLOSSARY (Pg. 10-12)
10. How to Apply (Pg. 13)
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1. Introduction:
1.1
What is a Discretionary Grant?
A Discretionary Grant is a grant that is made available for initiatives that take
forward the goals of the Sector Skills Plan (SSP), objectives of the NSDS II and
the interventions as laid down in the Grant Regulations. There is a limited amount
of funding for Discretionary Grants and W&RSETA therefore:


1.2.
invites applications for these grants from all registered organizations.
evaluates the applications received and approves as many as the SETA has
resources to fund.
monitors and evaluates the implementation of the grants.
Who may apply for Discretionary Grants?
The regulations allow for the following categories of organizations to apply for
Discretionary Grants:


an employer within the jurisdiction of W&RSETA, including an employer who is
not required to pay skills development levy in terms of the Skills Development
Levies Act; and
other associations or organizations that meet the criteria for the payment of such
grant” (Regulations No 27801 18 July 2005) including NGO’s, CBO’s,
Accredited Training Providers, any other organizations.
2.
How the levy-grant system works
2.1
Where do the funds come from?
The 1% of payroll calculated as the Skills Development Levy monies, are paid
monthly by registered employers to the Receiver of Revenue (SARS).
2.2.
What is the fund spent on?
The funds collected in this way are in turn paid over to the Department of Labour,
who disburses them for use in the following ways:




20% for the National Skills Authority – to be used for identified national Skills
Fund projects.
10% for the SETA – to be used for operational expenses of running the SETA.
50% for the SETA – to be paid to employers as Mandatory levy-grants, where
Workplace Skills Plans and/or Annual Training Reports have been submitted on
time and in the approved SETA formats.
20% for the SETA – to be used for Discretionary Grants for projects aligned to
the National Skills Development Strategy 2005 to 2010.
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The objective of this document is to outline the W&RSETA’s Discretionary
Criteria for the financial year 2005-2006. In addition this document provides
applicants with the available grant details, deadlines dates, claim procedures,
formats and application form required to be considered for the available Funding
Windows and W&RSETA Projects.





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The Discretionary Grant to be paid by the SETA in terms of sub regulation (3)
Grant Regulations must be funded from the Discretionary Fund whose sources
are:
20% of total levies paid by employer
Surplus Administration funds
Unclaimed mandatory grants
Interest and penalties received
Interest earned on investment
Any other funds received by the SETA
If the employer does not claim a mandatory grant within the time periods
specified in sub regulation (2), the SETA must transfer the employer’s unclaimed
grant funds to the Discretionary Grant fund as per Grant Regulations.
The financial year of the W&RSETA will cover the period 1 April 2005 to
28 February 2006.
3. Prerequisites to qualify for a Discretionary Grant:
Sub-paragraph 2 Page 16 of the Grant Regulations indicates-Prior to disbursing
any grants to an employer, the employer who is liable to pay SDL needs to be:





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The company must be registered with SARS and be up to date with their levy
payments (if applicable i.e. For levy paying companies).
The company must have submitted a Workplace Skills Plan (WSP) by
30 September 2005. If the WSP was submitted, the company will be paid their
grant in quarterly tranches.
If the WSP has not been submitted, or was submitted late, the company is not
entitled to claim the mandatory grant this year. The funds that would have been
available will instead be allocated to the Discretionary Grant funds.
For the period 2005-2006, a member company shall be entitled to 50% of their
contributions back, within the W&RSETA's payment cycle, upon acceptance by
W&RSETA of the companies Workplace Skills Plan.
The member is then be expected to submit a WSP for the period 2006-2007
timeously, but will only receive the Mandatory Grant for that period, if the
Annual Training Report (ATR) for the periods is submitted and accepted by the
W&RSETA.
Meets all Criteria as laid down by W&RSETA.
Availability of funding.
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4. General conditions in applying for a Discretionary Grant:

The disbursement of funds supporting any activity linked to one of the four
funding windows, may only commence once the W&RSETA has given written
confirmation of commitment to fund the grant project.
 The W&RSETA will enter into contractual agreements with stakeholder
companies in respect of approved Discretionary Grant Applications.
 The W&RSETA may withhold grants or recover any grants paid to an applicant if
it is found that the grants allocated are not being used for the purpose for which
the grant was intended.
 The W&RSETA reserves the right to terminate any such contract or funding
should the obligations or disbursement requirements not be met in line with the
contractual agreements.
 The Employer must show that it has taken active steps towards meeting the
Equity Targets when a applying for Discretionary Grant.
 The due date for Discretionary is 28 February 2006 and no late applications will
be considered.
 Monitoring, verification and audit visits will be conducted by the W&RSETA
timeously to approved applications.
 Any application that falls outside of the Discretionary Grant funding criteria will
be referred to the W&RSETA Board for approval. Funding for these applications
may be sought from the National Skills Fund (NSF) and is subjected to the criteria
determined by the National Skills Authority (NSA).
 The W&RSETA may consider applications from non-levy paying stakeholders
(NGO’s, CBOs, training Providers, other organizations etc) subject to the
submission of the application form for Discretionary Grant and a detailed Project
proposal for the consideration of the W&RSETA.
 Discretionary Grant applications must be submitted at the times and according to
criteria set out on grant disbursement schedules prepared and distributed by
W&RSETA.
5. DISCRETIONARY GRANT FUNDING CRITERIA OF THE
W&RSETA-2005-2006
The W&RSETA has set aside R97.5 M for the funding of Discretionary Grants
for the financial year 2005-2006 and therefore invites applications from all
registered organizations (levy paying and non levy paying).
Employers, consultants, institutions and providers may claim Discretionary Grant
determined by W&RSETAs for:

Adult Basic Education and Training – W&RSETA Target is 2000
Learners;
 Employment Grant – W&RSETA Target is 4500 learners;
 Employment Sector Skills Priority Learning Progammes
–
W&RSETA Target is 2000 learners;
 Scarce Skills – W&RSETA Target is 3000 learners.
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6. Scarce Skills list in the Wholesale and Retail sector:
Definition of Scarce Skills
Occupations in which there is a scarcity of qualified and experienced people – current or
an anticipated – identified in respect of:
 Geographical location (Relative)
 Equity (Relative)
 A new or emerging occupation for which there are no programmes /
qualifications (as yet) (Absolute)
 Firms, sectors and/or country experiencing economic blockage (can’t grow) /
lower productivity growth (Absolute)
 Replacement demand and supply indicators (Absolute &/or Relative)
Addressing the Scarce Skills in the wholesale and retail sector is vital as stipulated in the
NSDS II. The W&RSETA has identified the following tentative Scarce Skills in the
sector. Interventions in the Discretionary Grant applications should be directed at
addressing Scarce Skills.
Scarce Skills
1. Store Managers
2. Supply Chain Managers
3. Retail Information
Technology Experts
4. Retail Technical Skills
5. Finance
Breakdown of Scarce Skills
Management
 Store Management
 Financial Management
 Marketing Management
Supply Chain Management
 Buying
 Warehouse Management
 Logistics
 Inventory
Retail IT
 Management
 Project Management
 Business Analyst
 Programming
 E-Business
Technical Skills
 Butchery/Blockman
 Bakery/Confectioner
 Window Dresser
 Store Designer
 Graphic Designers
Finance
 Accounting
 Internal Audit
 Credit
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7. What Types of Discretionary Grants (Funding Windows) are
available in 2005-2006?
7.1 Adult Basic Education and Training – W&RSETA Target is 2000 Learners
The W&RSETA will consider a Discretionary Grant to young learners (35 and
younger) who have achieved an ABET Level 1 to 4 qualification to the maximum
amount of R 2000.00 per learner (Inclusive of VAT).
Criteria
How does the organization access this Grant?

Organizations are to submit number of learners in the following categories that
have achieved ABET Level 1 to 4 qualification within 2005-2006 Financial Year
to the W&RSETA along with:
 Number of black workers, Number of female workers, Number of people
with disabilities;
 Certified copy of statement of results from an accredited training provider
for the above qualification;
 Certified copy of ID Document;
 Certified copy Umalusi ABET Level 1 – 4 Certificate.
7.2 Employment Grant – W&RSETA Target is 4500 learners
The W&RSETA will consider incentivising W&R registered employers who offer a
fixed term contract of employment to W&RSETA learners for a minimum of 12
months. The target for this window is 4500 unemployed learners that have
completed Learnerships with the W&RSETA. Such Partnerhip/Collaboration will
comprise of the W&RSETA contributing a salary for a period of 6 months to the
value of R1500.00 per learner per month (Inclusive of all costs), the organization
committing to contribute at least the same salary for the next six months.
Criteria
How does the organization access this Grant?
 Submit an official letter of employment signed by both parties (Original);
 Certified copy of learner‘s ID and W&RSETA Qualification Certificate issued to
the learner.
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7.3 Grant for Sector Skills Priority Learning Programmes – W&RSETA Target is
2000 learners
Companies that have trained employees on the following learning interventions
may apply for a discretionary grant of R1500.00 per learner.
Aids Training
Primary Health Care
Life Skills Training
Basic Computer Literacy
Customer Service
Entrepreneurship Training
Management Development
Training Committee Development
Criteria
How does the organization access this Grant?
Submit the Implementation Report accompanied by: 


Signed attendance register by learners;
Date of attendance;
Certified copy of the Certificate of Attendance.
7.4 Scarce Skills Grant - W&RSETA Target is 3000 learners
The W&RSETA will consider the disbursement of R1500.00 (Inclusive of VAT) per
learner per training intervention on programmes that have addressed Scarce Skills
within the Sector Skills Priorities.
Criteria
How does the organization access this Grant?
Submit the Implementation Report accompanied by: 


Signed attendance register by learners;
Date of attendance;
Certified copy of the Certificate of Attendance.
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8. The Procedure to be followed in the Award, Disbursement and
Monitoring of Grants
START
PROJECT CLOSE
OUT
1
Call for proposals with
funding Guidelines &
Application form
11
Disburse 3rd and final
tranche
If applicable
2
Proposals received and
registered
10
Visit project, if needed, and
produce monitoring report
3
Proposals scored using
priority funding criteria
4
Assessment &
Recommendations submitted to
DGSC for review and
ratification
Is Proposal
acceptable?
5
Send acceptance
letter and contract
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Disburse 2nd tranche
If applicable
5
Send rejection
letter
6
Disburse 1st
tranche
8
Progress and
Compliance Report
7
Visit project, if needed, and produce
monitoring report
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9. GLOSSARY
W&RSETA
NSDS II
Scarce Skill
Critical Skill
Employer
Funding Priorities
Learnership
Lead Employer
Learning Programme
Level of programmes
Wholesale and Retail Sector Education and Training Authority
National Skills Development Strategy valid from 1 April 2005 to
31 March 2010. May be requested from the W&RSETA
Occupations in which there is a scarcity of qualified and
experienced people – current or an anticipated – identified in
respect of:
 Geographical location (Relative)
 Equity (Relative)
 A new or emerging occupation for which
there are no programmes / qualifications (as
yet) (Absolute)
 Firms, sectors and/or country experiencing
economic blockage (can’t grow) / lower
productivity growth (Absolute)
 Replacement demand and supply indicators
(Absolute &/or Relative)
In keeping with international trends is reserved for internal skills
gaps:
 Key or generic skills / critical cross-field
outcomes such as problem solving, learning
to learn), language and literacy skill,
mathematical skill, ICT skill)
 Technical (top-up) skill linked to
occupational classification system.
 Firms or sectors experiencing productivity,
service delivery, quality (wastage) problems
linked / related to skills deficits.
‘Employer’ as defined in the Fourth Schedule to the Income Tax
Act
The Discretionary Grant funding policy that gives priority to
specific criteria, e.g. critical skills.
A learning qualification that combines a practical work-based
component and a theory or classroom-based component. A
Learnership has to be result in a registered NQF qualification.
(It is important to note that the W&RSETA supports Discretionary
Grant Applications for Learnerships registered by other SETAs)
An employer who, in terms of Regulation 3(4) of the Learnership
Regulations, 2002 is identified in a Learnership Agreement as a
lead employer who undertakes to ensure compliance with the
employer’s duties in terms of the agreement
A set of learning activities intended to provide a learner with
particular knowledge and skills
Level of education and training programmes on the NQF
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Mandatory Grant
NQF
QMS
SAQA
SSP
SD Regulations
Sector Skills Priorities
SETA
Grants paid out in terms of Regulation 6(1) (a) and (b) of the
Skills Development Levies Act No 9 of 1999. In order to access
these funds the organisation must complete an annual Workplace
Skills Programme (WSP) and Annual Training Report (ATR)
National Qualification s Framework
The Quality Management System as defined by the W&RSETA
Education and Training Quality Assurance (ETQA) Division
The South African Qualifications Authority established in terms of
the South African Qualifications Authority Act, No. 58 of 1995
Sector Skills Plan. May be downloaded from the W&RSETA
Website: www.wrseta.org.za
Skills Development Grant Regulations No 27801of July 2005.
May be requested from the W&RSETA
Sector skills needs that have been identified as priority areas for
funding in the sector. The sector skills priorities are what the
Discretionary Grant allocations are intended to fund. See also
“Scarce Skill” and “Critical Skill”
Sector Education and Training Authority
Skills Programme
Occupationally based training programmes that are credit bearing
delivered by accredited education and training providers. On
successful completion learners could receive credits towards a
qualification registered on the NQF
Skills Development Project
Any skills development project in line with the W&RSETA
criteria
Unemployed
An individual who has no employment and has not entered into a
contract of employment. This includes individuals who have been
retrenched
Any medical that substantially limits an individual’s ability to
perform his or her functions in their chosen field of employment
and their medical conditions should not be restricted to, or
complete or recurring physical, mental and social well being
which limits a persons prospects of entry into or advancement in
employment
Disability
Equity Targets
Equity targets as laid down by DoL as per NSDS II, namely 85 %
of the beneficiaries of training to be undertaken are black, 54 %
are women and 4 % are people with disabilities
ABET
Adult Basic Education and Training
SARS
South African Revenue Services
DoL
Department of Labour
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MoU
Memorandum of Understanding
SLA
Service Level Agreement
SDL
Skills Development Levy
NSA
National Skills Authority
NSF
National Skills Fund
ESDAs
Employment Skills Development Agency
ESDLEs
Employment and Skills Development Lead Employers Agencies
FET
Further Education Training
HET
Higher Education Training
BBBEE
Broad Based Black Economic Empowerment
SME
Small Micro Enterprises
SMME
Small Medium Micro Enterprises
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10. How to apply:
1. The Application form for Discretionary Grant is available on the W&RSETA’s:
website- www.wrseta.org.za or could be collected at the Head Office-Physical
address.
W&RSETA House
224 Witch-Hazel Street
Highveld Techno Park
Centurion
Telephone Number: (012) 676 9000
or at the Regional Offices:
Kwa-Zulu Natal
Western Cape
Ground Floor
Smart Xchange Building
Corner, Commercial and Walnut Roads
5 Walnut Road
Durban
4001
Tel: 031 333 8800
Fax: 031 333 8815
Ground Floor
Old Warehouse Building
Black River Park
Fir Road
Observatory
Tel: 021 442 6700
Fax: 021 442 6777
2. All Discretionary Grant funding applications must conform to the Guidelines and
Criteria as laid down by the W&RSETA. The Guidelines and Criteria on the
Discretionary Grant could be downloaded from the website of the W&RSETA or
collected at the above physical addresses.
3. The W&RSETA will evaluate the applications received against the stipulated
Guidelines and Criteria.
4. Monitoring and evaluation will be conducted at the discretion of the W&RSETA
in the implementation of the Discretionary Grants.
5. The W&RSETA reserves the right to authenticate and monitor the information
supplied on its discretion.
6. It is important to note that the Discretionary Grants are limited to a Financial
Budget allocated for the specific window as well as a target set for a specific
number of people to be reached during this financial year.
Example: Employment Grant will only be considered for 4500 learners
CLOSING DATE: 28 February 2006
For more information please contact Tinyiko Manyike or Menanteau Silvis (Skills
Development Division) on:
Telephone Number: 012 676 9000
Fax Number: 012 665 2559