FP&M SETA Discretionary Grants Workshop

2020-2021

CONTENTS

• Section 1: FP&M SETA Business Model

• Section 2 : DG Purpose

• Section 3: Funding Window Specifications and Stakeholder

• Registration and DG Application

• Section 4: Funding Window Approval Process

• Section 5: Challenges

• Section 6: APP Targets 2020/2021

• Section 7: DG Interventions Costing

• Section 8: Tranche Split per Intervention

• Section 9: Contact Details

• Section 10: Questions and Answers

Section 1: FP&M SETA Business Model

• The FP&M Board approved a New Business Model as from 2014-2015 onwards: • The main objective:

• Increase Efficiencies • Unblock bottlenecks

• Decentralising Implementation Functions to Regional Offices.• Align FP&M SETA to disburse and commit funding in the current Financial

Year. • Professional execution of projects, with reduced errors • Efficient and quick turn around time for payment of grants• Reduce inappropriate reporting and accounting challenges• Regional support and assistance for all stakeholders

Section 2: DG Purpose

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

Section 3: Funding Window Specifications

• Discretionary Grant Funding window open annually, parallel to the WSP/ATR Mandatory Grant submission, from January to 30th April.

• Process aligned to DHET reporting requirements

• Projects implementation within each respective financial year

• No 20/21 funding awards will be implemented in the 21/22 financial year.

• Only registered entities, not individuals, may apply for Discretionary Grants, whether levy or non-levy paying.

How to register as a new Stakeholder in the system

Information that the Stakeholder will need to register on the system:-

• ID / alternative ID number

• Scanned appointment letter from the Organisation(s) to apply on behalf of company – not older than 3 months.

• Company SDL Number /N number can be requested from FPMSETA (Stakeholder will be required to link and search system using the SDL number)

Stakeholder Declaration Supporting Document

• Before you proceed, please ensure that you have a minimum of the following documents for upload purposes in electronic format on hand so as to be able to proceed with the application:

• Valid Tax Clearance Certificate/Tax Exemption document (compulsory)• CIPRO/Government Registration (compulsory)• BEE Certificate. Please note that the BEE status field is a compulsory field now.• Bargaining Council certificate/exemption letter (if applicable)• Proof of accreditation (compulsory for Apprenticeship/Learnership/Skills Programme)

ORLetter/agreement appointing external training provider and their proof of accreditation

• Occupation Health and Safety Certificate (If applicable)• If applying for a Special Project – Full project proposal and budget (compulsory)

• Only SUBMITTED applications will be processed.

• Qualifying Criteria:

• DG Verification : Compliance – Legal Documentation

• DG Evaluation : WSP/Scarce and Critical Skills/Priority Skills Alignment and alignment to NSDP.

• 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.

• Final Approval will be done by Board.

• If response to application is not received by end of September 2020, please consider your application unsuccessful.

Section 4: Funding Window Approval Process

Some of the following Challenges were encountered:

• Invalid documentation (Tax clearance, etc.)

• Outside FP&M SETA Scope

• Incomplete / pending submissions.

• Failure to meet deadline.

• Over subscription (Statistics provided)

• WSP and Pivotal Plan submitted and not approved

• Projects applied for not linked to approved Pivotal Plan

• Applications not addressing Scare and Critical Skills of the sector

• Request for changes to funding awarded that ends up affecting targets

• Unrealistic applications. i.e. Applying for 500 learners when our budget is for 600 learners

Section 5 : Challenges

Section 6 : APP Targets 2020/2021

Intervention Employment Status Target Numbers

Work Integrated Learning - TVET Unemployed 490

Work Integrated Learning - HET Unemployed 280

Work Experience/ Internships Unemployed 415

Skills Programmes Unemployed 1525

Learnerships Unemployed 2471

Adult Education and Training (AET) Unemployed 702

Learnerships Employed 950

Bursaries Employed 115

Skills Programmes Employed 1725

Apprenticeships Employed/Unemployed 375

Bursary Programme (First Time Entry Learners) Unemployed 140

Bursary Programme (Continuing Learners) Unemployed 300

RPL Programmes Employed/Unemployed 120

Entrepreneurship Interventions Employed/Unemployed 75

Business Coaching and Mentoring Porgrammes Employed/Unemployed 50

Rural Development Project 30

Section 7 :DG Interventions Costing

Employed 18.1 Unemployed 18.2

Apprenticeship 3 - 4 Years

R 55 000.00 per year

R165 000.00 for full grant

per Apprentice

R 55 000.00 per year

R165 000.00 for full grant

per Apprentice

Apprenticeship (RPL) 6 Months

Per Trade Test

R 5 000.00

Intervention DurationCost (VAT Zero Rated)

Learnership 12 Months R 20 000.00 R 26 200.00

DG Interventions Costing

Undergraduates Postgraduates

Skills Programme

Technical

Occupational - Unemployed 18.2

Occupational - Employed 18.1 (RPL)

R 7 200.00 (minimum 45 credits)

R 10 000.00 (minimum 45 credits)

R 5 000.00

Cost (VAT Zero Rated)

Bursaries 2 - 4 Years

3 - 9 Months

Intervention Duration

R 35 000.00 per year

for three years of study

capped at R 105 000.00

R 50 000.00 per year

for three years of study

capped at R 100 000.00

DG Interventions Costing

6 Months 12 Months

WIL - TVET WIL - HET

R 36 000.00

AET 12 Months per level R 3 500.00

2 - 4 YearsWork ExperieceR 18 000.00 R 36 000.00

Internships 6 - 12 Months

Learner Allowance - 6 months

Learner Allowance - 12 months

Maximum R 18 000.00

Learner Allowance

WIL 12 - 18 Months

R 54 000.00

Maximum R 36 000.00

Cost (VAT Zero Rated)Intervention Duration

Apprentice/Learner Wage

Minimum Stipend Requirement for:-

• Internship HET , Internship TVET, WIL TVET and WIL HET is R3,000 per month

Section 11: Tranche Splits per Intervention

Section 12: Contact Details

Joe RametsiProject Strategic Support011 403 1700joer@fpmseta.org.za

Johannesburg: William Malema011 403 1700WilliamM@fpmseta.org.za

Cape Town: Leigh Hayes021 462 0057LeighH@fpmseta.org.za

Durban: Lungile Dlamini031 702 4482LungileD@fpmseta.org.za

QUESTIONS??