1. MANDATORY GRANT, PIVOTAL PLAN AND DISCRETIONARY GRANT 1 April 2016 – 31 March 2017

2. Programme Description Presenters Tea and Coffee on arrival
Registration
All participants
Welcome and Introduction
Client Relations Manager
Overview of Mandatory and Discretionary Grants
Sabelo Buthelezi
Snr Manager Programmes
Luzette Joseph
Snr Manager Administration
merSETA Tax Rebate App

3. SETA Funding Model 100% SDL TO SARS 20% National Skills Fund
10.5% Administration and QCTO
20% Non PIVOTAL
80% Skills Levy to merSETA
49.5% Discretionary Grants
80% PIVOTAL
20% Mandatory Grants

4. Discretionary Grant Distribution
of 49.5%
Pivotal Programmes (80%)
Minimum of the discretionary grant budget
70% of DG to be ring fenced for levy paying employers that have submitted Pivotal Plan through the Mandatory |Grant Window
DG Awards to commence from 1 September
20% of DG to be ring fenced for SME levy paying and merSETA non-levy paying companies
Window to open on the
1 February and close 31 May
DG Awards to commence on 1 September
10% of DG to be ring fenced for other legal entity or public providers
Non Pivotal Programmes
(20%) maximum of the discretionary grant budget
Window to open on the 1 February and Close 31 May

5. Criteria for Submissions
Companies who have a signed recognition agreement with Labour must ensure that the WSP, ATR, PIVOTAL Plan and Report is signed off by the respective Labour representative as a member of the Training Committee, on or before the deadline date.
Companies employing 50 or more employees who do not have a signed recognition agreement with Labour must ensure that the WSP, ATR, PIVOTAL plan and report is signed off by the respective employee representative as a member of the Training Committee, on or before the deadline date.
Employee and labour representatives must register on the Seta Management System (SMS).
Signed minutes of the Training Committee meetings, leading up to the submission must be uploaded in support of applications for Mandatory and Discretionary Grants.
The minutes must reflect that consultation on the training needs and report has occurred.
The above must occur on or by the deadline date of Saturday, 30 April 2016.

6. Reporting Period Annual Training Report (ATR) & PIVOTAL Report
1 January – 31 December 2015
Must reflect all training conducted for internal and external training
Workplace Skills Plan – WSP & PIVOTAL Plan
1 January – 31 December 2016

7. Purpose of Discretionary Grant Funding
Implement meaningful Skills Development programmes in the workplace
To address sectoral priorities as identified by merSETA Sector Skills Plan
Assist the merSETA to meet Annual Performance Plan targets
To address national priorities as per NSDS III
To assist unemployed people to gain access to Skills Development opportunities

8. Sources of Discretionary Grant Funding
SDL Contribution
20% of SDL Contributions to NSF
80% of Skills levies paid to SETA: (20% mandatory grants, 49.5% to Discretionary Grants, 10,5% SETA Administration incl QCTO contribution)
Surplus Funds
Are made up of surplus funding from unclaimed Mandatory Grants
Are made up of unused allocated Discretionary Grants funding from previous Financial Years
SETA Discretion
Funding used by SETA, at its DISCRETION as approved by Accounting Authority

9. PIVOTAL Plan (Discretionary Grant)
Large and Medium companies:
Must submit their mandatory grant application and complete the PIVOTAL plan.
Matriculants “Class of 2016”: - select the “Apprenticeships – “Class of 2016”
Small and other legal entities:- PIVOTAL and Non-PIVOTAL programmes:
Must submit during the discretionary grant funding window.
Large and Medium companies: - Non-PIVOTAL programmes
Must submit via the discretionary grant funding window opening on Monday, 1 February 2016 until Tuesday, 31 May 2016
Preference will be given to priority skills identified and where SIPs
coincide with these skills.

10. Discretionary Grant Process Flow
Electronic Application PIVOTAL & Non PIVOTAL
Verification on all merSETA criteria
Verification of workplace suitability not to change learning areas
Classification of category of company
Approval/Non Approval
Agreement
Agreement compiled and signed by both parties
Appeals within 14 days of receiving funding agreement
Implementation
Training to start within 60 working days after signing funding agreement
Submission of Learning programme registrations
Submission of progress reports
Disbursement of payments
Site Visits

11. Discretionary Grants Awarding Criteria
Submissions for large and medium companies occur during the mandatory grant application process.
Small merSETA levy paying companies who intending to apply for consideration for discretionary grants for the training of Matriculants “Class of 2016”, must apply via this window.
Legal entities are defined as:
Public and Private education and training institutions
An employer within the jurisdiction of the merSETA who is not required to pay Levies.
Community based organisations (CBO’s), Co-operatives and
Large and medium merSETA levy paying companies, who have not submitted PIVOTAL plans during the mandatory grant application, will not be considered for discretionary grants for PIVOTAL programmes.

12. Discretionary Grant Awarding Criteria (2)
Trade Unions in the merSETA Sector, for the benefit of educating and developing their members on Skills Development-related programmes which forms part of their duties as shop stewards and which is beneficial to the merSETA Sector.
The Regional office will carry out a verification process on Mandatory Grant applications where disputes have been lodged. Should the Mandatory Grant not be approved due to insufficient consultation with employee representatives the discretionary grant will not be approved.
Large and medium merSETA levy paying companies, who have not submitted PIVOTAL plans during the mandatory grant application, will not be considered for discretionary grants for PIVOTAL programmes.

13. Discretionary Grant Awarding Criteria (3)
Verification on workplace readiness will be carried out by the regional offices.
Preference will be given to the priority skills identified in the merSETA Annual Performance Plan and SSP.
All claims must be in respect of learners who are South African citizen and who are in possession of a valid South African Identity document.
All withdrawals will be investigated to determine reasons for the withdrawal and how it could affect future discretionary grant awards.

14. Discretionary Grant Awarding Criteria (4)
Further grant awards will depend on progression on delivery of previous grant awards, as follows:
DISCRETIONARY GRANT WINDOW
SATISFACTORY PROGRESSION
DG4
Closed out
DG5
All learning areas closed out except for:
Apprentices where 3rd tranche payments for progress has been paid out
NQF level 2 – 4 learnerships ending in a trade test where progress grants for level 3 learners have be paid
Year 14 and agreements for the “Class of 2013 Matriculants”
2nd tranche payment of all learning interventions have been paid
3rd tranche paid or in progress of being paid for apprenticeships and NQF Level 2 to 4
All other learning interventions are closed out.

15. Discretionary Grant Awarding Criteria (4)
DISCRETIONARY GRANT WINDOW
SATISFACTORY PROGRESSION
Year 15 and agreements for the “Class of 2014 Matriculates'”
Second tranche payment of all learning areas have been paid
All learning interventions to be closed out, except for learners on apprenticeships, NQF level 2 to 4, bursaries and internships
Year 16 and agreements for the “Class of 2015
Matriculates”
First and second tranche payments for all learning interventions have been paid.

16. Discretionary Grant Awards
The awarding of discretionary grants are at the sole discretion of the merSETA based on the approval of the Accounting Authority.
Award is given via a MoA to the stakeholder where the stakeholder takes full responsibility for the learner
Approved awards will be aligned to the 49,5% levies received by an organisation
Appeals regarding an award of a grant must be submitted in writing detailing the reasons for the appeal, within 14 days of receipt of the award.

17. Co Funding Partnerships
merSETA
Company

18. Discretionary Grant Employer Categories
CATEGORY
CRITERIA
COMMENT
Established Category
Top Training Clients
Category criteria -
Up to date with levy payments
Received Mandatory Grants payments for last three years (if applicable)
Have an average pass rate of 65% in implementation of learning programmes including apprenticeships according to the companies training track record
An active training committee must be in place if the employer has 50 or more employees and where there is a recognised trade union or unions, they must form part of the training committee.
Established companies get 1 x 49.5% levies contributed and a further 1,5 x 49.5% on condition that they match and contribute 1,5 x 49.5% of their fund towards the funding agreement.,

19. Discretionary Grant Employer Categories (2)
CATEGORY
CRITERIA
COMMENT
Developmental Category
Developmental Clients
The Developmental merSETA levy paying companies have a training record, however there are gaps where the employer needs to be developed in order to move to the Established Category.
An active training committee must be in place if the employer has 50 or more employees and where there is a recognised trade union or unions, they must form part of the training committee.
Development employers get 1 x 49.5% levies contributed and further 1 x 49.5% on condition that they match and contribute 1 x 49.5% of their fund towards the funding agreement.

20. Discretionary Grant Employer Categories (3)
CATEGORY
CRITERIA
COMMENT
New Business Category
The New Business Category companies are companies with limited exposure to skills development or have never worked with the merSETA before including non levy paying companies.
It is important to note that an active training committee must be in place if the employer has 50 or more employees and where there is a recognised trade union or unions, they must form part of the training committee.
10% of the total surplus budget available will be allocated to New Business employers.
Non levy paying companies in this category will be allocated a grant equivalent to 1 apprentice and further grant equivalent to 1 apprentice on condition that they match and contribute equally of their funds towards the funding agreement.

21. All documents must be uploaded on or before the deadline date
Documents Uploads
Motivation for deviation, if the company has deviated from the previously submitted WSP.
Signed minutes of the Training Committee meeting leading up to the submission indicating that consultation has occurred on the identified training needs and training completed.
Sign off page
All documents must be uploaded on or before the deadline date

22. Template Changes
To minimise the number of forms and to create a better flow of information, the following forms have been incorporated into the Skills Module which forms part of the application process:
PREVIOUSLY KNOWN AS
INCORPORATED INTO
Company Administrative Details
Forms part of the organisation information
Person Details
Forms part of the Org contacts

23. Confirmations OFO Code version 2015 Signed recognition agreement
Deviation from previous year’s WSP
Upload of documents
Training Committee minutes (where applicable)
Training Committee members
Submission of original banking details
Sign off of relevant parties

24. System Changes
SDF's are required to update and confirm the following information before the mandatory grant application can be activated:
Organisation Info
Organisation Contact information
SDF details
Training Committee details
Only once the above information has been updated and confirmed will the SDF be able to activate the mandatory grant application.

25. Summary on Sign Off
Recognition agreement between companies and labour/union
Labour representative on the Training Committee must sign off on or before the deadline date.
 No recognition agreement but employ 50 or more employees
An appointed employee representative on the Training Committee, sign off on or before the deadline date.
Where there is outstanding information i.t.o the application, the SDF will be prompted prior to sign off to correct the relevant information.
The sign off page must be printed, signed and uploaded against the document upload tab before electronic sign off occurs where all parties are not available to sign off, prior to submission.

26. Access Registration Process
To access the Registration Forms the following steps needs to be followed:
Step 1: Via the internet enter the following URL
Step 2: This link will take you to the merSETA SMS Logon page.
Follow the steps in the submission guide to start with the registration process. – available on the merSETA website (

27. Approval Process
The only outstanding information that will be followed up after submission is:
Banking details
Clarification of sign off
This information must be submitted by no later than 15 July and no appeals will be accepted as the unclaimed mandatory grant funds will be transferred to the discretionary grant funds.
The approval process must be concluded by no later than 31 July of each year.
Unclaimed mandatory grant funds must be transferred to discretionary grants by 15 August of each year.

28. MANDATORY/PIVOTAL APPLICATION WINDOW 1 February – 30 April 2016
DISCRETIONARY GRANT WINDOW
1 February 2016 – 31 May 2016
PIVOTAL PROGRAMMES
NON PIVOTAL PROGRAMMES
Large & medium sized companies = submit PIVOTAL plan during mandatory grant application
Class of 2016 Matriculants
Small and other legal entities = apply during discretionary grant window
Template changes
OFO Codes - Version 2015 throughout the application.
Large & medium sized companies = submit during discretionary grant window
Banking details changed = submit original banking details to merSETA office.
Upload = Signed minutes of Training Committee meeting
Upload = Deviation motivation + Signed minutes of Training Committee meeting + Sign off page
Recognition agreement = labour/union representative + SDF sign off
50 or more employees but no recognition agreement = employee representative + SDF sign off

29. Mobile Application Development
SARS Rebate
Mobile Application Development

30. SARS Rebate Learnership Allowance
Mobile Application Development

31. Introduction Annual allowance Completion allowance
The Learnership Allowance applies to employers who enter into a formal Learnership and Apprenticeship Agreement with a SETA.
Allowance may be deducted as a rebate in the determination of the employer’s taxable income.
This is an additional deduction to other Income Tax deductions allowable to employers.
Additional deduction consists of
Annual allowance
Completion allowance
NOTE :- Allowances can be back dated for a period of three years, so if you have not claimed over the last three years, you can still do so.

32. Amounts Claimable under Learnership Allowances
ANNUAL ALLOWANCE
For each full year of apprenticeship / learnership an amount of R30,000 may be claimed
For anything short of a full year, the pro-rated number of months may be claimed.
For a PWD, the amount is increased to R50,000
Claims are submitted annually with the company’s SARS returns

33. TOTAL OVER THREE YEAR PERIOD = R 330,000
Example
Example
A1 Manufacturing registers 3 apprentices of which 1 is disabled on 2 Jan 2014 and they are due to qualify in December What is the value of the Annual Allowance? Their financial year runs from Jan to Dec.
Answer :-
2014 Financial Year Rebate = 2 x R30,000 plus 1 x R50,000 = R110,000
2015 Financial Year Rebate = 2 x R30,000 plus 1 x R50,000 = R110,000
2016 Financial Year Rebate = 2 x R30,000 plus 1 x R50,000 = R110,000
TOTAL OVER THREE YEAR PERIOD = R 330,000

34. Amounts Claimable under Learnership Allowance (2)
COMPLETION ALLOWANCE
For each completed full year of apprenticeship / learnership an amount of R30,000 may be claimed, provided the learner is found competent.
For a disabled person, the amount is increased to R50,000
The completion grant may ONLY be claimed at completion of the programme with Seta evidence of competency attached
This allowance is claimable for the number of completed years, Eg if the apprentice has been registered for a period of 3 years, the value of the completion grant is 3 x R30,000 = R90,000

35. TOTAL COMPLETION ALLOWANCE = R330,000
Example (2)
Example
Lets assume all three learners from A1 Engineering pass their trade test between December 2016 and March What is the value of the Completion Allowance?
Answer
Learners = 2 x R30,000 x 3 (Years completed) = R180,000
PWD Learner = 1 x R50,000 x 3 (Years completed) = R150,000
TOTAL COMPLETION ALLOWANCE = R330,000

36. merSETA has Walked the Extra Mile to Make this Process Easier
merSETA has partnered with the Central University of Technology of the Free State to develop an Android Mobile Application which will also run in MS. Windows to do the calculations at the touch of a button.
This application will be released and made available in the next two weeks and will be free to download (link from the merSETA Website) to any company at no cost.
All attendees that have indicated their addresses on the attendance register will receive the link via .
Please use it and give us feedback on how we can improve.

37. Slide Menu About Rebates
When the user clicks on this tab, they will be able to briefly read what SARS rebates are about and how it works.
Annual rebate - when the user clicks on this tab, the user will be able to read more information about the annual allowance and how it is calculated.
Completion Rebate - when the user clicks on this tab, the user will be able to read more information about completion allowance and how it is calculated.
Website - when the user clicks on this tab they will be directed to the SARS website through the application where the user can then read more about SARS.
This menu is really for information purposes on any of the rebates etc.

38. Home Page
The user will have the opportunity to select the Annual or Completion option
As well as whether there are persons with disabilities
Duration: Linked to organisational financial year
Start date and end date
Number of learners

39. Allowance Type
When a user selects either annual allowance or completion allowance the application will do a background calculation, depending on the type of allowance that has been selected. After the user has selected a required option the user will advance to specifying the type of applicant(s).

40. Allowance Type
With this option, the user has the opportunity to specify whether the learners are disabled or not and if disabled, the user needs to indicate how many learners are disabled.
The application at this stage will automatically switch the allowance amount based on the option the user chooses.

41. COURSE DURATION
When the user clicks on the financial year button, the application stores the financial specifics – year and month. This enabled the application to keep track of when to apply the pro-rated calculations or annual allowance calculations.
The start month and end month buttons will determine the duration of the course
The user will then have the option to specifying the number of applicant(s) that are part of the program.

42. Done and Information Display
Once the user is satisfied with the information displayed, the user will click done and the information will display as follows which is saved within the application.

43. Circular Button
At this point, should the user want to do more calculations, with varying start dates during a specific time period / financial year – with learners having started at different times during the year.
The user can select the add button to add more calculations to the equation.

44. Second Rebate Message Screen
The application will provide another screen that will display as follows:

45. Viewing Saved Records
When the user wants to view saved calculations, the user will need to click on the option menu on the right corner of the screen and it will display as shown in the screenshot.

46. Database Records
When either one of the options menu items have been clicked the database records will display as shown in this screenshot.

47. merSETA Footprint merSETA has presence in the following cities:
Johannesburg
Witbank (Emalahleni)
Rosslyn
East London
Port Elizabeth
Cape Town
Durban
Bloemfontein
Kimberley

48. QUESTIONS