FP&M SETA Discretionary Grants Workshop

2019-2020

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: Statistical Overview of 2018/19 Applications

• Section 6: Challenges

• Section 7: APP Targets 2019/2020

• Section 8: Scarce and Critical Skills

• Section 9: DG Interventions Costing

• Section 10: Apprentice/Learner Wage Rates

• Section 11: Tranche Split per Intervention

• Section 12: Contact Details

• Section 13: 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.• Proposed outsourcing of the approval of applications function to an independent

firm.

• 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 16th January to 30th April.

• Process aligned to DHET reporting requirements

• Projects implementation within each respective financial year

• No 19/20 funding awards will be implemented in the 20/21 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) – 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)

How to register as a new Stakeholder in the system

Stakeholder Registration

Capture your personal details on the Click on the ‘Save and Proceed’

“Applicant Details” page button to continue to the next step

Link to Organisation

• Click the magnifying glass to search for Organisation SDL

• Click on browse to upload authorization letter and, once it uploads and turns green, click save

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 (if applicable)• 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)

Accessing DG Application

• Once logged in the Stakeholder Dashboard will open.

• Click on Organisation, insert the SDL or N number and click the SEARCH button.

• The Organisation will be listed below, click on the company to highlight and then click on the magnifying glass under the ACTION column.

Accessing DG Application

• Update and confirm Organisation Details before creating the DG Application

• Click the edit button to update organisation details

• Check organisation Legal Status/Type

Creating forms on DG Application

• Click on DG Application

• Select 2019/2020 financial year

• Select your relevant DG type and Intervention and click CREATE

Pivotal/Non Pivotal

Opening DG forms

Stakeholder Declaration

Grant Type Details

Submitting Application

• Each DG Application intervention MUST be submitted separately!

• Only SUBMITTED applications will be processed.• Qualifying Criteria: • DG Verification : Compliance – Legal Documentation• DG Evaluation : WSP/Scarce and Critical Skills/Priority Skills Alignment• Regional recommendations from consolidated online application schedule -

Final schedule concluded.• 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. • Decision taken by Board regarding Approval/Non Approval.• Approved and Unsuccessful Applicants notified in writing of the outcome.

Section 4: Funding Window Approval Process

Section 5: Statistical Overview of 2018/19 Applications

Pivotal

Section 5: Statistical Overview of 2018/19 Applications

Non Pivotal

Section 5: Statistical Overview of 2018/19 Applications

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 6 : Challenges

Section 7: APP Targets 2019/2012

APP Targets 2019/2020

APP Targets 2019/2020

APP Targets 2019/2020

Section 8: Scarce & Critical Skills

• Skills gaps within FP&M organisations

• Deficiencies of specific knowledge, experience or competencies

• Influence level of effectiveness

• Hinder business growth

The Scarce and Critical Skills List :

• Address skills development imperatives

• Ensure alignment to the Human Resource Development Strategy

• Inform SETA funding and training facilitation according to industry needs

• Addressed through interventions and short courses

• Strategic management, leadership skills, industrial relations, financial management, train-the-trainer, supervisory development etc.

Scarce & Critical Skills

Scarce & Critical Skills

Scarce & Critical Skills

• The list is available from the FP&M SETA website: www.fpmseta.org.za

•NB: Scarce and Critical Skills take priority over all other intervention applications.

Section 9 :DG Interventions Costing

DG Interventions Costing

DG Interventions Costing

Section 10: Apprentice/Learner Wage

• Printing, Packaging and Textile Sector Specific Wage Rates as of 2019/2020:

Minimum Wage Scales for Apprentices Printing & Packaging

2018 Weekly 2019 5.0% Increase Daily Weekly Monthly

PHASE 1 & 2: R 1,261.23 R 63.06 R 264.86 R 1,324.29 R 5,734.18

PHASE 3: R 1,406.93 R 70.35 R 295.46 R 1,477.28 R 6,396.61

PHASE 4: R 1,930.55 R 96.53 R 405.42 R 2,027.08 R 8,777.25

Minimum Wage Scales for Apprentices Textile Sector

2018 Hourly Rate 2019 8.0% Increase Hourly 2019 Daily Weekly Monthly

First Year R 30.24 R 2.42 R 32.66 R 293.93 R 1,469.66 R 6,368.54

Second Year R 33.24 R 2.66 R 35.90 R 323.09 R 1,615.46 R 7,000.34

Third Year R 39.66 R 3.17 R 42.83 R 385.50 R 1,927.48 R 8,352.40

Apprentice/Learner Wage

• Learnership Wage Rates for 2016/2017

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

Amery Brightmore Project Co-ordinator011 403 1700AmeryB@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??