2. PRESENTATION TO CHIETA JOINT CHAMBER INDUCTION
SETA Grant Regulations Presented by: Mr Farhad Motala CHIETA Chief Financial Officer

3. OUTLINE OF PRESENTATION
Old Grant Regulations applicable prior to 31 March 2013
New Grant Regulations applicable from 1 April 2013
Comparison of funds available – Old and New Regulations
PIVOTAL and NON PIVOTAL Programs
Imperatives for CHIETA and Stakeholders

4. Grant regulations applicable to periods prior 31 March 2013
Old grant regulations defined areas of Discretionary Grant (DG) allocations
DG / Projects aligned to funding areas outlined in regulations
Distribution of Grants:
- 50% of employer contribution: Mandatory Grant
- 20% of employer contribution: Discretionary Grant
- 10% of employer contribution: SETA Administration
- 18% of employer contribution: National Skills Fund
- 2% of employer contribution: SARS Collection fee

5. Grant regulations applicable to periods prior 31 March 2013
Maximum of 10% of project costs per project could be utilised for project administration
SETA may allocate and fund DG in the following areas:
Research in accordance with SSP
Development of guidelines and training of SDF’s
Training provider / qualifying employer - ABET
Learners - scarce and critical skill identified by a SETA
Employers who provide work experience opportunities
Training / Mentoring learners – New Venture Creation
Institution of Sectoral Excellence (ISOE)

6. Grant regulations applicable to periods prior 31 March 2013
Institution responsible for Implementation of the National Qualification Framework (NQF)
SETA constituency capacity building initiatives and promotion of skills development in sector
Lead employer in learnerships
Agency or ESDA
Employers for learnerships registered in different SETA
Stakeholders in respect of sector skills priorities

7. New Grant Regulations applicable from 1 April 2013

8. Limitation of Administration Costs
SETA may not use more than 10.5% of levies paid by an employer
0.5% of total levy paid by employer must be transferred to QCTO for QA functions

9. SETA Finances Management
Unclaimed Mandatory Grants and interest must be transferred by 15 August of each year
80% of all Discretionary funds – PIVOTAL Programs
APP must set out how funds will be spent and impact
End of each financial year – At least 95% of discretionary funds must be spent or committed contractually
Max of 5% uncommitted funds may be carried over
Surplus must be paid over to NSF by 1 October each year

10. Allocation of MG and DG by SETA
Mandatory Grant = 20% of total levies paid by employer
With effect from 1 April 2014 – Submission by 30 April each year
MG must be paid at least quarterly
Sign-off by trade union or explanation provided
80% of DG – PIVOTAL programs
20% - NON PIVOTAL to develop sector based on priorities outlined in the SSP
To obtain DG for PIVOTAL program – “legal person” must submit PIVOTAL training plan and report
SMME (less than 50 employees – not required to submit above)

11. Comparison of projected funding available for 2016-2017 based on – Old and New Grant Regulations
FINANCIAL RESERVE
Old Grant Regulations
New Grant Regulations
Mandatory Grant Fund
R 315,106,312 – 50%
R 126,042,525 – 20%
Discretionary Grant Fund
R 311,955,249 – 49.5%
Administration Fund
0.5% Payable to QCTO
R 63,021,262 – 10%
R 2,594, %
TOTAL
R 504,170,100

12. PIVOTAL and NON PIVOTAL Expenditure
Total expenditure of R344 million in DG and projects for was split as follows:
PIVOTAL Programs – R 307 million
NON PIVOTAL Programs – R 37 million

13. PIVOTAL PROGAMS Lecturer / Trainer Development - FET
Lecturer Development - HET
Bursaries – Undergraduate (only identified fields of study)
Bursaries – Postgraduate (only identified fields of study)
Internships (Practical Training - P1 and P2) (only identified fields of study)
Work placement - Graduate Development Programme – HET (only identified fields of study)
NCV Engineering Internships – FET (Workplace experience for NCV & N4-N6 engineering Learners)
Revised BBBEE & Transformation Support Programmes (only identified programmes)

14. PIVOTAL PROGAMS
Strategic Infrastructure Projects (SIPs) (only identified learning programmes)
Beneficiation Strategic Projects (only identified beneficiation value chains)
Energy Programmes and Projects (only identified learning programmes)
Public Private Sector Support Projects (only identified learning programmes)
Public FET College Support Project (industry to specify in free text column)
Public HET Support Project (industry to specify in free text column)

15. PIVOTAL PROGAMS Artisan learnerships (trade list)
Non artisan learnerships (only registered CHIETA learnerships)
Skills programme implementation (only identified learning programmes)
Bridging Programmes (Second Chance Learners) – FLC, Maths & Science)
Foundational Programmes (HET Preparatory Programmes Access, Chemical Industry disciplines) – indicate field of study
National Senior Certificate for Adults ( NASCA)
Foundational Learning Competence (FLC)
Recognition of Prior Learning (RPL) only section 28 candidates

16. NON PIVOTAL PROGAMS
Small and Micro Enterprises Development ( Incubator, New Venture Creation)
Rural Development Programme
Career Guidance & Establishing credible Partnerships
Institute of Sectoral Excellence (ISOE)
Youth Development Programmes
Maths and Science ( Grade )
Trade Union Capacity Building Programme
ABET for 18.1 learners
Cooperatives, Community Based Organisations, Non-Profit Organisations

17. IMPERATIVES FOR STAKEHOLDERS AND CHIETA
Participation in Discretionary Grant process – proposals
Obtain clear / detailed understanding of concepts and funding available for PIVOTAL / NON PIVOTAL programs and ensure skills development and training proposals are aligned to above programs
DG Reserve and funds available now > 2.5 X value of years prior to 2013
Reduction of Mandatory Grant by 30% must be supplemented by Applications for PIVOTAL programs in DG
CHIETA and stakeholders must assess contribution to DG reserve and ensure proposals are aligned

18. THANK YOU