DISCRETIONARY GRANT GUIDELINES

March 2013

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INTRODUCTION

Government notice R990 (Gazette notice 35940, dated 3 December 2012) repeals all prior SETA Grant regulations and sets out the regulations regarding monies received from a SETA and related matters.

The intent behind regulation 35940 is to:

  • Regulate the proportion of funds available for skills development that is spent on administration costs
  • Make provision for SETAs to contribute to the cost of the work of the Quality Council for Trades and Occupations (QCTO)
  • Discourage the accumulation of surpluses and carry-over of unspent funds at the end of each financial year.
  • Improve the quantity and quality of labour market information received by SETAs through Workplace skills plans, annual training reports and PIVOTAL training reports, which provide a reflection of skills needs and inform planning
  • Promote PIVOTAL programs, which are NQF-registered and quality assured, towards addressing priority scarce and critical skills needs in the sector, as identified through Sector skills plans and research.
  • Create a framework within which expanded use is made of public education and training providers for the provision of skills development programmes.

Taking into account the impact of the Grant Regulation, the following revisions have been made to the INSETA 2013-2014 budget:

  • The discretionary project expenditure increases from 20% to 49.5% effective 01/04/2013.
  • The Regulation further stipulates that at least 80% of Discretionary funding has to be allocated to PIVOTAL programmes in support of scarce and critical skills as identified in the sector skills plan (SSP).

“PIVOTAL”:

According to regulations, “PIVOTAL” is an acronym which means professional, vocational, technical and academic learning programmes that result in qualifications or part qualifications on the NQF as contemplated in regulation 3(6) and (7) as read with regulation 6(11) to (15) (taken from Government Gazette No. 35940).

PURPOSE

The purpose of these guidelines is to support the disbursement of Discretionary Grants for funding of PIVOTAL programmes and projects in line with the INSETA Discretionary Grant policy. The scarce and critical skills supported under these guidelines are as identified in the INSETA Sector Skills Plan (SSP), the Strategic plan, Annual Performance Plan, National Skills Development Strategy (NSDS)Transformational and Developmental Imperatives, and other relevant regulations that may guide INSETA projects and programmes.

The purpose of the guideline is further to act in a manner that is transparent and fair and achieves value for money. It sets out what INSETA is trying to achieve and to measure the extent to which it has succeeded.

DEPARTMENT OF HIGHER EDUCATION (DHET) NEGOTIATED TARGETS

INSETA has negotiated numeric targets with the Department of Higher Education and Training. These targets are linked to the Minister of Higher Education and Training’s targets as agreed with the President. The table below outlines the targets agreed with the Department of Higher Education and Training.

PIVOTAL Programme:
80% of discretionary funds are allocated to PIVOTAL programmes / Minister’s Target:
Indicates the targets for the next financial year across all SETAs / INSETA’s target:
As negotiated with the DHET and based on achievements to date and affordability / Comments
Where targets are low relative to minister’s targets
Learnerships (unemployed)
“goals 2 and 4” / 18000 / 2000 / The increase in discretionary grant funding warranted higher targets and the past demand has always exceeded funding availability. Increased funding makes this possible.
Learnerships (employed)
“goal 3” / 18000 / 1000 / This is an improvement on our original target and is based on our affordability
Bursaries (unemployed)
“goal 2” / 7000 / 250 / Typically we fund high value qualifications with high cost, e.g. the Actuarial Science program. Given the scarcity of qualified Black actuaries, the investment in this program is high relative to the beneficiary numbers.
Bursaries (employed)
“goal 3 and 4” / 1500 / 1500 / INSETA aims to assist employees in the sector acquire qualifications through making bursaries available.
Skills Programmes (unemployed)
“goal 2” / 80000 / 1000 / Insurance is specialised and skills programs have traditionally not appealed to unemployed learners that have not had exposure into the sector . Hence, this is a conservative target but will be reviewed once we have experience in this space with unemployed learners
Skills Programmes (employed)
“goal 2 and 3” / 80000 / 4000 / This is consistent with the current demands of the industry
Internships (unemployed)
“goal 2” / 6000 / 1850 / This is consistent with the current demands of the industry
FET Graduate workplace placement
“goal 2” / 22279 / 250 / INSETA has no history of FET graduate placements and this is a pilot project in an untested area.

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SCARCE AND CRITICAL SKILL PRIORITIES

The tables below set out the scarce and critical skill priorities for the 2013/14 Financial Year and the extent to which they are either PIVOTAL or strategic in nature.

Scarce and critical skills / Targeted beneficiary group / Type of PIVOTAL programme / Mechanism / Comments
Scarce and critical skills PIVOTAL programmes (80% allocation)
Management and leadership / Employed / Professional
occupational / Bursaries / Middle, senior management and executive levels
Claims assessing / Unemployed and employed / Occupational and academic / Bursaries, Skills programs / Includes loss adjusting
Underwriting / Employed / Occupational / Bursaries, skills programmes / Qualification is awaiting registration with QCTO
Actuaries / Employed and unemployed / Academic and professional / Bursaries / Funding for under-graduate and post-graduate learning
Business and systems analysis and development / Unemployed / Academic and occupational / Internships, bursaries / Includes programming, IT architecture, and other related programmes
Advice and Sales / Employed / Occupational, professional and academic / Skills programmes and bursaries / This includes occupations of financial advisors, broker and intermediary development, sales consultants and related occupations. Interventions will include FAIS RE and compliance related development
Other (including but not limited to Training Outside Public Practice (TOPP), compliance officers, accountants) / Employed
Unemployed / Professional, Occupational, Academic / Bursaries,
Internships / NSFAS
Scarce and critical skills / Targeted beneficiary group / Type of PIVOTAL programme / Mechanism / Comments
Catalytic interventions (20% allocation)
Customised management and leadership intervention / Employed / Occupational
Professional / Strategic Intervention / Middle, senior management and executive levels. This intervention will also satisfy the requirements for PIVOTAL programmes
Trustee development programme / Employed / Professional / Strategic Intervention / Includes risk surveyors, (ESG, Treasury Regulation 28, compliance and risk)
SMME Learnerships / Unemployed / Occupational / Learnerships / Targets placement with SMMEs only. Run successfully during 2012 financial year
Broker and Intermediary Development / Employed / Occupational / Skills Programmes and strategic interventions / The strategic intervention is supported by ASISA SAIA, FIA and BBF.
Burial Societies / Employed / Occupational / Skills Programmes and Strategic Intervention / Office Bearer Development and Consumer Education
Research / - / - / Strategic Intervention / This initiative will identity the type and quantity of skills required that support the professional designations of the various work disciplines
FET Graduate Placement / Unemployed / Occupational / Internship strategic intervention / This work integrated learning (WIL) initiative is a pilot and the lessons from the pilot will inform future roll outs. Currently has the support of the BBF.
Skills Programmes / Unemployed / Occupational / Skill programmes / Structured INSETA programmes, including work readiness

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GENERAL CRITERIA FOR ACCESSING DISCRETIONARY GRANTS

In order to access discretionary grants the programme applied for must promote the key Developmental and Transformation Imperatives of the NSDS. In line with regulations and NSDS III transformational imperatives the following evaluation criteria will apply to all applications:

  • Equity profile: the beneficiaries eligible for funding will be 85% Black, 54% Women and 4% people with disabilities
  • Class: consideration will be given to youth from poor and marginalised communities
  • Geography: INSETA will encourage national recruitment, including recruitment from rural areas HIV/AIDS: all learning programmes funded by INSETA must include a component of HIV/AIDS education, not necessarily credit-bearing

Mechanisms of delivery

  • Learnerships, Internships and Skills Programmes are mechanisms for delivery of scarce and critical skills and will incorporate work integrated learning (WIL)
  • Bursaries will also be a mechanism used to support the professionalization of the sector through funding of employed people and unemployed youth studying towards full qualifications deemed scarce or critical.

Learnerships

Learnerships will be used primarily to address the scarce and critical skills in the Insurance and related services sector.

Learnerships Grant Allocation

On an annual basis, INSETA will publish, and review, the values set aside for scarce and critical skills through Learnerships. Learnerships beneficiaries are both employed and unemployed learners. In 2013/14 F unds will be apportioned as follows:

  • A Learnerships funding window will be opened to support 1600 unemployed learners
  • An SMME Learnerships project will be initiated to place 400 learners with SMME companies.
  • A Learnerships funding window will be opened to support 1000 employed people.

Funding window cycles

  • Learnerships Funding Window applications will open annually from June – July to ensure that Learnerships can run during a calendar year from January to December.
  • All applications will only be considered within funding window time-frames to be prescribed by INSETA.
  • Funding windows will be announced through the INSETA website and via the INSETA call-centre

Learner stipend allocations

  • Unemployed learners on a Learnership will be allocated R 2000 per month
  • Unemployed learners with disabilities will be allocated R3000 per month
  • All learners on a Learnership, irrespective of disabilities and employment status, will be allocated R15000 towards tuition
  • Employed learners qualify for tuition assistance only.

Payment tranches

For levy-paying large employers, payment for Learnerships will be made in 2 tranches of 80% on commencement of programme and 20% on completion, subject to submission of required Learnership documentation

Eligibility for funding of Learnerships

Employers

  • INSETA will support levy-paying and non levy-paying employers operating in the Insurance sector and its related sub-sectors.
  • Employers must have a proven track record in hosting learners successfully
  • Employers found to be non-compliant in past implementation of learning programmes will not be considered for funding unless evidence of remediation to the satisfaction of INSETA can be produced
  • Training providers contracted must be accredited and comply with the quality assurance requirements of the relevant quality assurance body

Learners

  • The scope of unemployed learners is restricted to youth between the ages of 18-35 years as one of the Transformational and Developmental Imperatives
  • Employed learners are not confined to any age group but must be employed within the Insurance sector and its related sub-sectors
  • Unemployed learners must be South African citizens
  • No learner will be the beneficiary of funding while receiving INSETA funding for any other programme
  • Any learner applying for funding for 2 programmes in succession will be considered at the discretion of INSETA
  • Learners that previously exited an INSETA-funded programme prior to completion will not be considered unless special representation has been made by the employer. Approvals are at the discretion of INSETA

Implementation of Learnerships

  • Learnership agreements must be finalised and signed prior to commencement of the Learnership
  • All Learnerships must commence within the first quarter of the calendar year (last quarter of INSETA financial year)
  • Replacement of Learners is permitted provided this is done within four weeks of commencement of a Learnership
  • The Learnership must have an exit strategy

Internships/Work-integrated learning

An Internship is a programme for graduates who require work experience in order to gain professional qualification or unemployed graduates who require work experience to become more marketable. In addition placements need to be in areas deemed scarce and/or critical.

Internships Grant allocation

In the 2013/14 Financial Year, funds will be set aside for Internships for entrants into the Insurance and related services sector and will be apportioned as follows:

  • 850 unemployed learners who have achieved a qualification through a Learnership and require additional work experience.
  • 250 unemployed learners who have achieved a qualification through an FET institution
  • 1000 unemployed learners who have achieved a degree through an HET institution

Funding window cycles

  • Internships Funding Window applications will open annually from June – July to ensure that Internships can run during a calendar year from January to December.
  • All applications will only be considered within funding window time-frames to be prescribed by INSETA.
  • Funding windows will be announced through the INSETA website and via the INSETA call-centre

Learner stipend allocation

  • Stipends for learners that have matric and a Learnerships qualification or for FET graduates requiring work experience to qualify, the grant allocation will be R3500 per month
  • Learners with degrees and 3-year National diplomas will be allocated R4000 per month

Payment tranches

  • For levy-paying and non levy paying companies, payment for internships and work integrated learning will be made in 2 tranches of 70% on commencement of programme, and30% on completion, subject to submission of required internship documents
  • Companies will be required to show a track record of hosting learners successfully andstipend payments will be paid subject to a formal service-level agreement

Eligibility for funding of Internships

Employers

  • INSETA will support levy-paying and non levy-paying employers operating in the Insurance sector and its related sub-sectors
  • Employers must have submitted the WSP/ATR and PIVOTAL reports
  • Employers must have a proven track record in hosting learners successfully
  • Employers infrastructure must support the hosting of learners
  • Employers found to be non-compliant in past implementation of learning programmes will not be considered for funding unless evidence of remediation to the satisfaction of INSETA can be produced

Learners

  • The scope of learners is restricted to youth between the ages of 18-35 years as one of the Transformational and Developmental Imperatives
  • Learners must be South African citizens
  • No learner will be the beneficiary of funding while receiving funding for any other programme in the same financial year
  • Learners that previously exited an INSETA-funded programme prior to completion will not be considered unless special representation has been made by the employer. Approvals are at the discretion of INSETA

Implementation of Internships

  • Internshipcontracts must be finalised and signed prior to commencement of the Internship
  • All Internships must commence within the first quarter of the calendar year (last quarter of INSETA financial year)
  • Replacement of Learners is permitted provided this is done within four weeks of commencement of Internship The Internship must have an exit strategy

bursaries

INSETAwill support the development of scarce and critical skills through Bursaries to employed and unemployed learners with a view to:

  • Addressing the scarce and critical skills as identified in these guidelines
  • Promoting the Developmental and Transformational Imperatives of NSDS III
  • Creating a pool of youth graduates to view Insurance as a career of choice
  • Increasing the professionalism of the sector

Bursaries Grant allocation

On an annual basis INSETA will publish, and review, the funds set asidefor funding programmesaddressing scarce and critical skills through Bursaries. Bursary beneficiaries are both employed and unemployed learners. In 2013/14 funds will be apportioned as follows:

1000 bursaries will be allocated to fund employed people and 250 to fund unemployed youth.

Funding window cycles

  • Bursary funding window applications will open annually from June – July for implementation from January to December.
  • All applications will only be considered within funding window time-frames to be prescribed by INSETA.
  • Funding windows will be announced through the INSETA website and via the INSETA call-centre

Eligibility for allocation of Bursaries

Employers

  • INSETA will support levy-paying and non levy-paying employers operating in the Insurance sector and its related sub-sectors
  • Employers must have submitted the WSP/ATR and PIVOTAL reports
  • Employers found to be non-compliant in past implementation of learning programmes will not be considered for funding unless evidence of remediation to the satisfaction of INSETA can be produced

Learners

  • Unemployed learners will be funded for INSETA-specific structured programmes that address scarce and critical full qualifications
  • The scope of unemployed learners is restricted to youth between the ages of 18-35 years as one of the Transformational and Developmental Imperatives
  • Unemployed learners must be South African citizens
  • No learner will be the beneficiary of funding while receiving INSETA funding for any other programme
  • Learners that previously exited an INSETA-funded programme prior to completion will not be considered unless special representation has been made by the employer. Approvals are at the discretion of INSETA

Providers

  • Bursary funding will be considered for programmes that are delivered via HET institutions and Public FET institutions in alignment with the SETA grant regulations

Implementation of programmes funded through Bursaries

  • Bursary agreements must be finalised and signed prior to commencement of the programme. All Bursary-funded programmes must commence within the first quarter of the calendar year (last quarter of INSETA financial year)
  • No replacement of Learners is permitted
  • INSETA may fund bursary programmes directly through agreements with public FET and HET institutions

Skills Programmes

Skills Programmes to be covered by Discretionary GrantFunding will be those that address the scarce and critical skills needs as identified in the these guidelines, that align with INSETA strategic goals and other sector needs that may be deemed essential through other relevant forms of research.

In addition, INSETA will fund Skills Programmes for bridging learning from school or FET programmes to the workplace.

Grant allocation

On an annual basis INSETA will publish, and review, funds set aside for Skills Programmes for both unemployed learners and employed people in the Insurance and related services sector. The In 2013/14 funds will be apportioned as follows: