Fibre Processing and Manufacturing SETA (FP&MSETA)
Transcript of Fibre Processing and Manufacturing SETA (FP&MSETA)
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Fibre Processing and Manufacturing SETA
(FP&MSETA)
UPDATE : Organogram and NewBusiness Model
SETA Update – New Organogram
• FP&M New Corporate Identity, reflecting the diversity of the FP&M SETA’s Stakeholders.
• New Organogram being implemented with expanded Executive Management as per the first row in the below table.
• Followed by the Management level per the second row in the below table.
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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 Financial Year.
Fibre Processing and Manufacturing SETA
(FP&MSETA)Discretionary Grants Projects Workshops
2014-2015 / 2015-2016
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• Approved Discretionary Grant (DG) Funding Disbursement Processes informed by PIVOTAL requirements for 2015-2016
OPEN 01 NOVEMBER 2014
DISCRETIONARY GRANTS FUNDING WINDOW OPEN
END APRIL 2015DISCRETIONARY
GRANTS FUNDING CLOSE
JUNE 2015EVALUATION
/VERIFICATION / BOARD APPROVAL
AUGUST - SEPTEMBER IMPLEMENTATION
JUNE / JULY 2015 CONTRACTING AND INITIAL EXECUTION
END OCTOBER 2014
PUBLIC ADVERTISEMENT
• Allows for proper planning• Professional execution of projects, with reduced
errors • Projects implementation within each respective
financial year• Process aligned to DHET reporting requirements• Reduce inappropriate reporting and accounting
challenges• Speed and quality 6
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Fibre Processing and Manufacturing SETA
(FP&MSETA)Discretionary Grants
Approvals / Non Approvals2014-2015
Selection Process (Non Approval)
• Online Pre-eliminations conducted (Regionally).• Non-Eligible Criteria:
– Invalid documentation (Tax clearance, etc).– Outside FP&M SETA Scope.– Incomplete / pending submissions.– Failure to meet deadline.– Over subscription– WSP and Pivotal Plan submitted and not approved or
not submitted – Projects applied for not linked to approved Pivotal
Plan
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Selection Process (Approval)
• Online Selection Conducted.• Eligibility Criteria:
– Fully completed.– Submitted timeously.– Within FP&M SETA Scope.– Fully compliant.
Approval Process• Regional Pre-evaluations conducted• Regional schedules consolidated – National schedule compiled.• Baseline allocation per learning intervention and category and to be
within the FP&M Available Budget.• Ensure fair distribution as per the Levy income per sub-sector. • Tabled at the Internal Grants Evaluations Committee.• Submissions taken to (Special) Finance and Projects Committee for
recommendations.• Recommendations taken to Board and Exco to make final decisions
regarding Approval/Non Approval.• Approved Applicants notified in writing of the outcome.• Fully signed MOA and Annexure/s and First Tranche to be submitted to
FP&M SETA by 25th September 2014.
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Grant Allocations Summary: Per Intervention
Intervention # Projects # Rec Lnr Recommended TotalAET 20 720 2,160,000.00 Apprenticeship 18.1 26 150 20,902,500.00 Apprenticeship 18.2 28 215 29,960,250.00 RPL 20 210 1,050,000.00 WIL 12months 13 122 3,660,000.00 WE-INT 48 268 4,020,000.00 WIL 6months 8 58 870,000.00 Skills Programme 18.2 5 400 2,880,000.00 Skills Programme 18.1 55 923 6,645,600.00 Learnership 18.1 54 688 13,760,000.00 Learnership 18.2 51 990 24,750,000.00 Bursaries 18.1 16 75 7,875,000.00 Bursaries 18.2 2 120 18,000,000.00 Tvet Support 8 265 6,454,000.00 Bursaries Post Graduate 3 6 600,000.00 SPJ-Disability 13 295 3,599,000.00 SPJ-SP 9 480 15,122,000.00 SPJ-RD 12 775 10,718,000.00
Totals 391 6760 173,026,350.00
Grant Allocations Summary: Per Sub - Sector
Sub Sector # Projects # Rec Lnr Recommended TotalClothing 68 1398 16,828,600.00 Footwear 23 260 5,452,700.00 Forestry 35 959 17,819,550.00 Furniture 28 600 11,210,000.00 General 15 445 32,357,500.00 General Goods 10 287 5,393,000.00 Leather 17 179 3,814,350.00 Printing & Packaging 11 121 1,751,700.00 Publishing 68 783 32,843,650.00 Print Media 19 231 5,954,000.00 Textile 22 471 19,468,550.00 Woods Product 56 751 14,595,600.00 Pulp and Paper 19 275 5,537,150.00
Totals 391 6760 173,026,350.00
Per Sub - Sector
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Formal DG Commitment• Purpose of the Formal DG Commitment:
• To formally commit – between the SETA and the Approved Applicant – No signing of the actual MOA
• Confirms Parties Agree on the content of the MOA and Annexure/s
• Summarizes the particulars pertaining to the contract: • Learning Interventions • Cost per intervention • Total Cost per all approved projects• Banking Details
MOA Key Areas• Purpose of Discretionary Grants:
– To implement projects which assist the SETA in meeting the following:
§ Sector Skills Plan.§ Strategic Plan.§ Annual Performance Plan.
• As agreed and signed between the Department of Higher Education and the SETA.
• Purpose of the MOA:• To record respective Terms and Conditions applicable to
both parties.
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MOA Key Areas (Cont)
• Grant Purpose: – To enable the Organisation to meet the financial cost of
implementing the project. • Copyright:
– Material developed / written using the grant is owned by the SETA.
• Confidentiality – Stipulates the information / documentation that may or
may not be divulged / shared by both parties outside the agreement.
MOA Key Areas (Cont)
• Representation & Warranties: – Both parties agree to having the authority necessary to
adhere to all conditions etc per the Agreement. • Agency & Representation:
– Written permission is required to use the SETA Logo. • Contract of Employment:
– No contract of employment is derived by signing of this Agreement.
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MOA Key Areas (Cont.)
• Obligations of Both Parties:– Indicates the duties both parties must adhere to as
agreed.• Reporting Obligations:
– The following reports need to be provided:• Narrative Report.• Financial Report.• Placement Report (Compulsory for Unemployed).
MOA Key Areas (Cont)
• Breach and Termination: – FP&M SETA holds the right to terminate the
Agreement should the Organisation fail to meet the obligations agreed to.
– Termination will automatically be effected per the stipulated end date within the Agreement.
• Arbitration of Disputes:– Parties to ensure amicable resolution of disputes
arising between them. – Aggrieved parties may appoint an Arbitrator
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MOA Key Areas (Cont)
• Sub-Contracting: – Letter stipulating the outsourcing agreement and a copy of
the agreement is required. – Sole responsibility remains with the Organisation.
• Claims against a 3rd Party:– FP&MSETA is granted the irrevocable cession right to any
claim against a third party in respect of the funding granted.
• Indemnity:– FP&MSETA is indemnified against any legal claims or cost
resulting as indicated in the MOA.
MOA Key Areas (Cont)
• General Terms: – No variation, suspension, amendments etc will be
entered unless done so in writing and agreed to and signed by both Parties.
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Annexure Key Areas • Purpose of the Annexure:
– To record project / intervention overview.– To record respective Terms and Conditions.– Manage Learner Registration Process– To record respective Terms and Conditions:
• Duration and Termination• Fees and Expenses• Failure to complete• Impact and Success indicators• Milestones / Deliverables• Payment Schedules
Annexure Key Areas • Types of Annexures:
• A : Adult Education and Training (AET)• B 1 : Bursary Under Graduate• B 2 : Bursary Post Graduate• C : Apprenticeships Section 13 Employed/Unemployed• D : Skills Programmes Employed / Unemployed• E 1 : Work Experience/Internship/Work Integrated Learning 6 Months• E 2 : Work Integrated Learning 12 Months• F : Apprenticeships RPL• G : Skills Programme RPL• H : Learnerships Employed / Unemployed• I : Special Projects
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Annexure Key Areas (Cont)
• Main Key Areas: • Duration and Termination• Fees and Expenses• Failure to complete• Impact and Success indicators• Milestones• Payment Schedules
• Special Projects Annexure:• Intervention related projects :
– Deliverables to be used as per the Fixed Window Annexures• Non Intervention related – customize to stakeholder needs
• NB: Formal DG Commitment (signed) and relevant Annexure/s (signed) need to be uploaded onto the system.
Tranche Splits Per Intervention
TRANCHE SPLIT % PER INTERVENTION
Intervention First Tranche % Second Tranche % Third Tranche % Fourth Tranche % Total %
AET 40% 40% 20% 0% 100%Apprenticeships 25% 25% 25% 25% 100%
Bursary 25% 25% 25% 25% 100%
Learnerships 40% 40% 20% 0% 100%Skills Programme 40% 40% 20% 0% 100%
Internship / Work Experience 40% 40% 20% 0% 100%
NB: 2nd Tranche for Learnerships is payable on achieving 80 credits
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MOA Signing Process• Approved applicants must retrieve partially pre-completed
templates (Formal DG Commitment/MOA/Annexures) print to complete and sign and upload on the online system.– All documentation to be completed online, downloaded and manually
completed will not be accepted; Stakeholders will be responsible to resubmit correctly.
• Regional Offices to print and sign and upload• To be completed by the 25th September 2014. (First Tranche
and supporting documentation / deliverables to be included)• One Formal DG Commitment and MoA per Company /
Provider with supporting Annexures.
Payments• 1st Tranche Claim:
– To be submitted with the Discretionary Grant Formal Commitment and relevant Annexures signed by the 25th September 2014.
– Payment can only be effected once agreements have been registered by the SETA and invoice with all supporting deliverables per the Annexure have been submitted to be completed by the 25th September 2014.
• Subsequent Claims: – Shall be effected once the Organisation has successfully met all the
deliverables as stipulated in the Annexures. – Please note: strict timelines indicated on the tranches must be adhered
too. – Above mentioned is in line with the FP&M SETA Business Model.
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Payments: Learner Agreements• Providers have been trained on the Provider Learner Management System
– Please contact Regional Office if not done
• Providers to ensure that Access Forms are completed and submitted for Login Credentials
• Note: Organizations to capture learners and to submit originals to Regional Offices for verification!
New Criteria & GuidelinesApprenticeships & Learnerships
&Tax Incentives2014-2015
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Apprenticeships• 2014 Minimum wage rates approved by the FP&M SETA Board listed
below: Printing & Packaging / Textiles
LearnershipsALLOWANCES:• An employer must pay a learner an allowance calculated in terms of this clause. • No learner may be paid less than the applicable allowance specified in • column 4 of Table A.• “wage” means the amount of money payable to an employee in respect of the hours of work an employee normally works,
excluding any overtime.
Exit level of learnership
Credits already earned by learner
Percentage of qualified wage to be paid as allowance
Minimum allowance per week
NQF 1 or 2 0 – 120 35% R253.73121 – 240 69% R507.43
NQF 3 0 – 120 17% R253.73121 – 240 40% R477.88241 – 360 53% R782.33
NQF 4 0 – 120 13% R253.73121 – 240 25% R506.49241 – 360 53% R782.33361 – 480 56% R1,141.75
NQF 5 to 8 0 - 120 8% R253.73121 – 240 18% R549.72240 – 360 27% R822.49361 – 480 38% R1,158.70481 – 600 49% R1,480.05
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Tax Incentives• SARS has made the following Amendments to Learnership Allowances:
– Allowances may be deducted from employers taxable income. – An incentive to train employees
• Regulated Environment• Encourage Skills development and job creation
• Learnership overview: – Agreements and contracts to be registered with FP&M SETA– Deductions consist of:
» Annual Allowance» Allowance on Completion
• Annual Allowance: – Registered agreement– Pro-rata reduction if less than 12 months– Deduction:
» Pro Rata R 30 000.00» Pro Rata R 50 000.00 - disability
Tax Incentives (Cont.)
• Completion Allowance: – Successful completion – Quantum different for 24 or more months.– Quantum increased for disabled learners
» Deduction : • R 30 000• R 50 000 - disability
• Requirements: – Registered agreement– Entered into during course of trade– Employer derived income as in section 1 of the Income Tax Act, 1962– Deductible in tax year of binding agreement.
• Deduction of Completion Allowance: – Per points 1-4 per the above mentioned requirements– Successful completion of Learnership– Deduction creates assessed loss for trade– Extensions may be allowed if not competent– Allowance claimable in tax year, written confirmation of successful completion received.
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Tax Incentives (Cont.)
• Enhanced Allowance – disabled Learners: – Increased for annual and completion allowance
• Prohibition of Allowance: – Allowance may not be claimed if:
» Previously Failed leadership with same education / training components• Termination of Agreement:
– Amendments have done away with the recoupment rule» Change of employment for better opportunities» Triggered a recoupment of allowance claimed
– Employer may deduct equal to pro-rata of annual allowance » Ensure employer is not burdened by actions taken or events beyond control.
– NB : Please refer to the SARS Website for further clarification or to the FP&M SETA website for the SARS Presentation and Case Study.
Contact Details
• Gauteng Region
• Regional Manager (Acting) : Linda Mngadi [email protected]
• Kwa-Zulu Natal Region• Regional Manager : Ms. Lungile Shabangu [email protected]
• Western Cape Region• Regional Manager : Ms. Leigh Hayes [email protected]
• Head Office• Project Executive : Mr. Kennedy Matodzi [email protected]
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Your time is much appreciated
Thank you