THE NEW FUNDING REGULATIONS Presentation to the AgriSETA Stake Holders March/ April 2013 Venue: Different Provinces Jerry Madiba: CEO AgriSETA

DEFINITIONS TO NOTE Page 3: Administration Cost include Consultancy fees and Institutional research and Sectoral research; Page 4: Institutional Research and Sectoral Research – means research commissioned by a SETA on any aspect of the administration or management of the SETA as well as research into Sector supply and demand; Page 4: Occupational part qualifications also include Skills Programmes; Page 5: Structured workplace learning also include appointing a Mentor in Land Reform; Page 5: Surplus-Any money not covered by a contract or contractual obligation.

Important Issues to Note Page 9: Mandatory Grant to be paid to Employers will reduce from 50%-20% from 01 April 2013; Page 8: 80% of Discretionary funds are to be allocated to PIVOTAL Programmes; Page 8: An approval may be sought from the Director General for use of Surplus within a scope of Skills Development Act. By 31 March 95% funds to be contracted and not more than 5% uncommitted; Page 11: Accounting Authority to annually approve a Discretionary Policy with guidelines issued by DHET; Page 11. Emphasis is put on PIVOTAL programmes by using Public Education and Training Institutions .

Important Issues to Note Page 12: 7.5% is a maximum administration allocation for discretionary funds as opposed to 10% previously; Page 12: While 80% Discretionary amount is to be allocated to PIVOTAL programmes, a maximum of 20% can be used to develop the sector within priorities of the SSP; Pages 6 &7: Administrations Cost goes from 10% to 10.5 but 0.5% is to be paid to the QCTO.

Important dates of the Regulation Page 14: 01 April 2013: Implementation of the Grant Regulation ; Page 9: 30 April annually from 2014: Mandatory applications closing date . Status- quo remains for 2013; Page 7: From 1 April 2013 and Annually: 0.5% of Administration fund to be transferred to the QCTO; Page 7 &10: 15 August Annually: SETAs to transfer unclaimed Mandatory Grants and interest earned to the Discretionary funds; Page 9: 01 October Annually to transfer remaining surplus of discretionary funds to the National Skills Fund (NSF).

KEY ASPECTS OF THE FUNDING REGULATIONS ITEM IMPLICATION Mandatory grants drop from 50% → 20% Discretionary increase from 20% → 49,5% Huge resistance from employers Reduction in submission of WSP/ATR ALL research funded from Admin Further pressure on limited admin budget Possible reduction in research budget 80% of discretionary to PIVOTAL Will not be able to address actual needs in sector especially rural structures Other development work neglected 95% of all funds CONTRACTED Pressure on employers and SETA

THANK YOU ANY QUESTIONS?