The new Grant Regulations

1
The new Grant Regulations

• How will it impact on the FPM Sector?

2
Introduction

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

3
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

4
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)
• Theres absence of effective monitoring
  evaluation
• Absence of impact valuation
• Lack of clarity of intention

5
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

6
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

7
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.

8
Significant Changes Skills Development Levy
Distribution
9
Skills Development Levy Distribution

• Distribution of levy income

10
Significant Changes Mandatory Grants
11
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

12
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

13
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)

14
Significant Changes Discretionary Grants
15
The intention of Discretionary Grants is to
implement the Sector Skills Plan
16
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

17
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.

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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

19
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.

20
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.

21
Conclusion

• FPM 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.

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Thank You