1. The New Discretionary Grant Model As contained in the Business Model approved by the Board on 27 March 2014

2. New Business Model – DG Funding The FP&M Board has approved a New Business Model as from 2014-2015 onwards: – The main objective: Increase Efficiencies Unblock bottlenecks – Decentralising Functions to Regional Offices Align FP&M SETA to disburse and commit funding in the current and prior Financial Years.

3. Approved Discretionary Grant (DG) Funding Disbursement Processes informed by PIVOTAL requirements OPEN 01 APRIL 2014 DISCRETIONARY GRANTS FUNDING WINDOW OPEN MID-MAY 2014 DISCRETIONARY GRANTS FUNDING CLOSE JUNE 2014 EVALUATION /VERIFICATION / BOARD APPROVAL AUGUST - MARCH IMPLEMENTATION JUNE / JULY CONTRACTING AND INITIAL EXECUTION END MARCH PUBLIC ADVERTISEMENT

4. Fixed funding window - with the call for applications administered as follows: – 01 April call for applications, – Second week - 16 May 2014 (six weeks)– Close – Two weeks – regional and national evaluation, – June 30 – CEO, Finance & Projects and Board approval, – July – March contracting and execution.

5. For the 2015/16 financial year - Bursaries / artisans to be advertised in August and September 2014, evaluated October, approvals and contracting in November and December pending matric results for contracting Maintain NSFAS partnership.

6. Focus on unsolicited projects responding to critical and scarce skills, innovation Allocate special project funding to non-levy paying institutions and colleges among others Set up incubation opportunities with large companies and co- operatives Allocate 10-15% DG budget towards strategic and innovation projects Open through out the year

7. Allows for proper planning Professional execution of projects, with reduced errors Process aligned to DHET reporting requirements Reduce inappropriate reporting and accounting challenges Speed and quality 7

8. Delivery and return on investment Rebuild trust amongst stakeholder on performance issues Eight months project implementation period Ninety five percent( 95%) projects commitment will be realised 8

9. Your time is much appreciated Thank you