FP&M SETA : Mandatory Grant Presentation

Mandatory Grants

Mandatory Grants

SETA Grant Regulations These are all good intentions especially when taking into consideration that SETAs in the past have been severely criticized for accumulating discretionary fund surpluses intended to support skills development initiatives. The new deadlines for the transfer of unclaimed mandatory grant funding to the discretionary fund as well as the requirement for SETAs to spend or commit 95% of all discretionary funding within a financial year, will force SETAs to develop more effective and efficient grant disbursement processes. The SETA funding contribution of 0,5% of skills development income to the work of the QCTO should enable the organisation to function effectively at a sectoral and national level. The immense scope of development work to be conducted by the QCTO in partnership with SETAs and industry stakeholders in order to provide occupationally-directed programmes across all sectors and disciplines over the next few years must not be underestimated given that the entire education and training quality assurance architecture has changed since the establishment of the QCTO in March 2010. It is envisaged that this restructuring would involve the complete re-registration of all occupationally directed programmes on the new integrated NQF that makes provision for the development and registration of QCTO qualifications. The critical need to develop these programmes is also reflected through the weight that the Minister apportioned to the allocation of funding for PIVOTAL (professional, vocational, technical and academic) learning programmes that result in qualifications or part qualifications. The regulations make explicit provision for 80% of the Discretionary Grant budget to be committed to PIVOTAL programmes. In so doing, the Minister has entrenched that this funding is committed to credit bearing NQF-aligned programmes that speak to the upksilling of the workforce from a human capital development perspective. The emphasis on sector skills planning and labour market research is not a new concept. However, industry stakeholders have in the past been reluctant to share more than the absolute minimum information through WSP/ATRs in fear that they will loose their “competitive” edge. In recent years, however, it has become clear that industries and sub-sectors will continue to struggle in the global market if issues of commonality such as industrial strategies to address scarce and critical skills gaps, are tackled in isolation. In order for industry stakeholders to benefit from the new regulations it is critical that industries develop industrial strategies aligned to key action programmes with a view to developing customized sector skills development plans that would address the future skills demand needs of industrial sectors

SETA Grant Regulations Distribution of skills development levy income

SETA Grant Regulations The intention of Mandatory Grants is to incentivize employers to: plan & implement training for their employees create training and work experience opportunities for unemployed people Mandatory Grant Applications – Submission due by 30 April 2017 Better alignment with skills development and financial year Enhanced SETA planning cycle SSP Annual Update Earlier Discretionary Funding Windows 30 June is more than 3 months into the training year which commence annually on 1 April. As a result, the planning sequence and the training sequence are not aligned which makes it difficult for firms to effectively report on training conducted during the training year. From 2014/15 (and onwards) WSPs and ATRs must be submitted annually by 30 April. This will make it far easier for firms to implement their workplace skills plans in line with the training year and the end of the financial year. This will also ensure that the disbursement of discretionary grants features much earlier in the calendar as opposed to the current practice of opening discretionary grant funding windows towards the end of the year thus impacting negatively on the release of discretionary grants to the industry and the registration of learners at academic institutions. It will also enhance the planning and research processes of the SETA as the SETA will be able to identify new skills development trends, scarce and critical skills needs and the extent of participation in the skills development drive much earlier in the year.

SETA Grant Regulations Mandatory Grants 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) The regulations also call for SETA Boards to approve the criteria for mandatory grants and to set quality standards for the approval of WSPs / ATRs. SETAs will be required to monitor WSP implementation to ensure that mandatory grant funding received was used to fund education and training programmes and to ensure that firms approach the implementation of their WSPs with more care and conviction. Although the signing-off of the WSP/ATR by representatives of the Skills Development Committee (including employer and labour representatives) is not a new requirement in the FP&M sector, the new regulations now explicitly calls for evidence of consultation with the recognized trade unions and sign-off by the labour representative appointed by the union “unless an explanation is provided”. The definitions for “evidence of consultation” as well as for an “acceptable explanation” will be clarified by the SETA Board and will form part of the criteria for mandatory grants.

SETA Grant Regulations 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 The new Grant Regulations makes provision for skills development support to small enterprises, although one would like to see more emphasis in the regulations on SME development. SETAs are instructed to provide simplified mandatory grant applications for small enterprises. Small enterprises will not be required to submit PIVOTAL plans and reports but “will be asked to provide information on participation in PIVOTAL programmes and the impact of these programmes” through a suitable template designed by the SETA for the provision of information by small enterprises. In the Grant Regulations Guidelines, the Department of Higher Education and Training (DHET) is calling on SETAs to ensure that their discretionary funding strategy “support small enterprises of different types” and SETAs will have to provide evidence that their discretionary projects aimed at SMEs or cooperative development are supported by small enterprises and are achieving impact.   The grant regulations must be more explicit with regard to entrepreneurship and rural development and we are of the view that it is in the area of SME development that these skills needs could be addressed. It will also be important for SETAs to address the payment process of both mandatory and discretionary grants to ensure that small enterprises are not disadvantaged by - SETAs must show commitment to small enterprises by paying what is owed to them on time.

Workplace Skills Planning

Workplace Skills Planning The construction of a WSP plays a major role in a number of vital areas - Management and employees enter into discussions regarding skills planning in the workplace. Skills available and skills gaps are identified and discussed in a positive way. Management has a platform to share the company’s goals with employees, who in turn gain better understanding and more commitment to the process of achieving them. Companies begin to uncover talents and skills they did not know they had available.

Workplace Skills Planning Steps to follow when compiling your WSP/ATR: Form a Skills Development Committee (SDC) Nominate an internal or external Skills Development Facilitator (SDF) Identify long-term goals for an organisation Focus on key skills needs (critical and scarce skills) Determine current employee skills and/or competencies by conducting a skills audit Conduct a training needs analysis Develop the WSP Report on training conducted during the previous year (annual training report) The final content of the WSP should be the result of meaningful interaction between employers and employees, using current structures, SDCs or union/management structures to obtain input.

Workplace Skills Planning Step 1: Form a Skills Development Committee (SDC) Membership Stakeholders (management, employees, union representatives) Where there is a trade union presence, nominated representatives should serve on the SDC. Where there is no representative trade union, employees should nominate representatives Members should represent different functional areas and occupational categories Equity (gender, race, disability) should be considered Responsibilities The SDC must meet regularly and must record the minutes of the meetings as proof of consultation The SDC must collectively deliver and contribute to the WSP and ATR Appointment of a SDF; and Complete and sign-off the WSP and ATR (where applicable)

Workplace Skills Planning Step 2: Nominate an internal or external Skills Development Facilitator (SDF) All employers must appoint an SDF to comply with the provisions of the Skills Development Act. The appointment of the SDF is key to claiming of relevant grants and ensuring the implementation of the WSP during the training year. The SDF’s role includes - Assisting the employer to develop a WSP; Submitting the WSP to the SETA; Advising the employer on implementation of the WSP; Assisting the employer to draft the ATR in line with the approved WSP and grant funding regulations; Advising the employer on quality assurance requirements as set by the SETA; and Liaising with the SETA on behalf of the company.

Workplace Skills Planning Step 2: Nominate an internal or external Skills Development Facilitator (SDF) Requirements for the appointment of the SDF An employer may choose to appoint either an internal SDF or make use of an external training and development consultant When appointing an SDF for the company, you are advised to undertake the following - There should be consultation with members of the SDC; and The SDF must attend all meetings of the SDC.  You are encouraged to send an SDF on a short course relating to skills development facilitation, if they do not have the requisite training in this area.

Workplace Skills Planning Step 3: Identify long-term goals for an organisation The business’ strategic priorities help to identify long-term skills development goals for the organisation. When planning your training you should include the vision, mission and values of the organisation as these assist with the formulation of your strategy (key objectives). Employees need to enable the organisation to achieve its objectives. The SDF must identify the learning/development interventions needed for staff to assist the organisation with achieving this aim. When detailing strategic business and/or skill priorities, make linkages to business and employment equity plans. Step 4: Focus on key skills needs (critical and scarce skills) The WSP should cover all planned skills development training, including learnerships. Identify key skills needs using the organisation’s business plan and the FP&M Sector Skills Plan. The SSP contains a list of scarce and critical skills per sub-sector.

Workplace Skills Planning Step 5: Determine current employee skills and/or competencies by conducting a skills audit It is necessary to determine the current employee skills and/or competencies profile by conducting a skills audit. The skills audit should reflect all the skills and competencies of the workforce, whether obtained through formal learning programme interventions (qualifications) or work experience / in-house training. Step 6: Conduct a training needs analysis The future skills profile can be developed by using a training needs analysis based on future business needs as well as the SETA Sector Skills Plan. Step 7: Develop the WSP Identify the gaps between current and required future skills profiles and identify skills development interventions to address these priorities. This should be reflected in the WSP.

Workplace Skills Planning The final content of the WSP should be the result of meaningful interaction between employers and employees, using current structures, SDCs or union/management structures to obtain input. Step 8: Report on training conducted during the previous year (annual training report - ATR) The ATR must reflect all training that was conducted during the previous year including External training Internal or in-house training Work integrated learning Adult Education and training The SDF must keep records of training conducted e.g. invoices from external providers, attendance registers for in-house training conducted, learner results etc. The SETA may select any organisation as part of an audit sample when conducting monitoring and evaluation visits.

Workplace Skills Planning The overall objective is - To create a workforce: empowered with the necessary skills, knowledge and recognized qualifications enabled to access decent employment qualified to contribute to the organisation’s productivity and competitiveness in the global market capable to adapt to changing technologies and labour market demands To address the needs of the unemployed increased participation of youth, women, disabled and other disadvantaged sections increased employability (in industry and self-employment) increased placement and work experience

Workplace Skills Planning Provide information to the FP&M SETA on: The geographic profile The demographic profile The current and predicted skills needs and gaps Current skills development practices Further interventions required Enable the SETA to Render support Enhance Sector Skills Planning & research initiatives.

Mandatory Grant Criteria A levy paying employer claiming a mandatory grant must meet the eligibility criteria for the payment of a mandatory grant An eligible employer - has registered for skills development levies; has paid the levies in the prescribed manner (minimum threshold R500k per annum); has submitted a WSP / PIVOTAL Plan and ATR/PIVOTAL Report within the prescribed timeframes (30 April) that contributes to the relevant SETA SSP has submitted an Annual Training Report and/or PIVOTAL Training Report, demonstrating some alignment to the previous year’s WSP and/or PIVOTAL Plan

Mandatory Grant Criteria has provided evidence that the WSP and ATR have been subjected to consultation with the recognised trade unions and/or employee forum (medium/large companies) eg. Labour sign-off, Committee Membership List, Minutes of Meeting or has submitted an explanation It is the responsibility of SDF (acting on behalf of the employer) to ensure that the correct levy number is quoted on applications

Mandatory Grant Application The mandatory grant application consist of the following important sections: Organisational information Banking details Employment summary and Provincial Breakdown Provides information on the current workforce (including learners) Workplace Skills Plan PIVOTAL plan Planned implementation of PIVOTAL learning programmes e.g. apprenticeships, learnerships, credit bearing skills programmes, work integrated learning, bursary programmes (post school / tertiary qualifications at TVETs/ HEIs) Non-PIVOTAL plan Planned implementation of other learning programmes e.g. non-credit bearing skills programmes, in-house training (health and safety, HIV/Aids awareness)

Mandatory Grant Application Annual Training Report PIVOTAL training report Actual implementation of PIVOTAL learning programmes e.g. apprenticeships, learnerships, credit bearing skills programmes, work integrated learning, bursary programmes (post school / tertiary qualifications at TVETs/ HEIs) Non-PIVOTAL training report Actual implementation of other learning programmes e.g. non-credit bearing skills programmes, in-house training (health and safety, HIV/Aids awareness) Adult Education and Training Plan Adult Education and Training Report Training Committee (list of members) – for medium and large firms only Sign-off (Authorisation page) Research Annexure

Mandatory Grant Application ATR and/or Pivotal Report must reflect all training conducted During April to March (of the previous financial year) Internally or Externally The WSP and/or Pivotal Plan must reflect all planned training Planned for April to March (of the current financial year) Important to remember No Pivotal Plan/Report – no discretionary grants for medium/large firms

Mandatory Grant Application The WSP/ATR must be duly authorised and signed-off by: The Internal Training Committee / Skills Development Committee including designated labour representative Firms employing 50 or more employees; or The Owner / Chief Executive and designated employee representative Firms employing less than 50 employees;

Mandatory Grant Application Deadline for submissions: on/or before 30 April : Applications to be submitted electronically via MIS Scanned authorisation page and scanned current proof of banking details to be upload to MIS Original proof of banking details will be required from first time applicants or if an applicant’s banking details have changed since the previous year’s submission. Assistance will be supplied to applicants unable to access the MIS on request Requests for extension: Anticipated delays – by 31 March subject to approval by Board

Pivotal Reporting

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