Transcript The new Grant Regulations

The new Grant Regulations
How will it impact on the
FP&M Sector?
Introduction
• Grant Regulations regarding monies
received by a SETA and related matters
– published in Government Notice No. 35940,
3 December 2012
General problem statement
• General sentiment that SETAs are not
assisting in addressing skills shortages / gaps
• Poor research and monitoring of impact
• Poor detailed planning
• The structure of education & training lacks
the workplace component
• No commitment to reach higher levels (L4)
Especially to prepare for Trade Tests
General problem statement
• Many scarce skills involve high level
qualifications (many years to complete)
– SETAs promoted short courses
• Current grant disbursement is
disproportionate (private providers)
• There’s absence of effective monitoring
& evaluation
– Absence of impact valuation
• Lack of clarity of intention
Lack of clarity of intention
• Lack of intention & clarity in strategy
– Allocations not aligned to SSP priorities
• SETA policies & procedures have little
relevance to achieving planned impact
• Training programmes do not make clear
what is intended & whether the intention
has been achieved
Purpose of the new regulations
• To allow the SETAs to set clear objectives but
avoid specific numerical targets
• To improve the focus, management and
effectiveness of SETA grant spending
–By developing policies & procedures
• For allocation
• Monitoring
• Reporting
Intent of the New Regulations
•
•
•
•
Regulate admin fund
Provide for SETAs to contribute to QCTO
Discourage accumulation of surpluses
Improve quality and quantity of labour market
information
• Promote NQF registered and quality assured
PIVOTAL programmes
• Create framework for expanded use of public
education and training providers.
Significant Changes: Skills
Development Levy Distribution
Skills Development Levy
Distribution
• Distribution of levy income
60
50
49.5
50
40
30
20
18 18
20
With effect from
1 April 2013
10 10
10
2 2
0
20
Before 1 April
2013
0 0.5
Significant Changes: Mandatory
Grants
The intention of Mandatory Grants is
to incentivize employers to:
• to plan & implement training for their
employees
• to create training and work experience
opportunities for the unemployed people
Significant Changes
• Mandatory Grant Applications
– Year 14 (2013/14) – submission due by 30 June
2013
– Year 15 (2014/15) onwards – submission due by
30 April
– Better alignment with skills development and
financial year
– Enhanced SETA planning cycle
• SSP Annual Update
• Earlier Discretionary Funding Windows
Significant Changes
• Mandatory Grants (continued)
– Increased monitoring of WSP implementation
against Board criteria
• Criteria for approval
• Evidence requirements
• Quality & accuracy standards for WSPs & ATRs
– Evidence of consultation and sign-off by labour
representative (unless explanation is provided)
Significant Changes: Discretionary
Grants
The intention of Discretionary
Grants is to implement the
Sector Skills Plan
Discretionary Grants: Key themes
• A well researched set of scarce and
critical skills
• The recognition that current provision
has limited practical and workplace
learning component
• Need to focus on occupational
qualifications at all levels
Significant Changes
• Discretionary Grant Applications
– Discretionary grant categories not specified
– Alignment with SSP implementation
– Funding of PIVOTAL Programmes - 80% of
discretionary funding
• Address Scarce and Critical skills in the sector
• Current programmes will qualify e.g. learnerships,
bursaries, work experience, internships,
apprenticeships, credit bearing skills programmes
– Qualifying criteria – PIVOTAL plan and report to be
completed with WSP/ATR.
Significant Changes
• Public Education and Training Institutions
– Emphasis in NSDS III on use of public institutions for
delivery of scarce and critical skills.
– Industry currently almost exclusively use private
providers.
– Public providers do not meet the needs of industry.
– Need to restore the balance - how do we do this?
• Public/Private/SETA partnerships
• Discretionary funding allocation
– Public Institutions more cost effective
& sustainable
Significant Changes
• Assisting Small Enterprises
– Support to small enterprises require more emphasis
– Simplified mandatory and discretionary grant
application processes
– Simplified format for reporting on PIVOTAL training
– Enhanced processing of grant payments due to small
enterprises
– Projects designed to address skills needs of small
enterprises.
Grant Regulation Guidelines
• DHET issued guidelines for implementation
– Left room for SETAs to be creative
“Each sector has different dynamics and contextual
conditions. It would not be helpful for the Department to
state how SETAs should allocate resources to achieve the
implementation of sector specific plans set out in SSPs.
However, what this means is that the SETAs themselves
need to put time and effort into the development of
policies that are carefully aligned to the objectives set
out in their SSP.”
Conclusion
• FP&M SETA see the glass as
OVERFLOWING!
• More discretionary funding
– Address sector skills priorities
– Renewed focus on meaningful training and education
– Increased monitoring of training implementation
– Redesigned SETA processes due to timeframes
• Will require support of all stakeholders to make full
use of mandatory and discretionary grant application
opportunities.
Thank You