Document Ref No: / POL-PMO-001
Document Title: / Discretionary Grant policy
Version No: / Version3.0
Date: / December 2012
Author: / Senior Manager: Skills Implementation and Monitoring

DISCRETIONARY GRANTS POLICY

Version Control and Change History

Version / Date / Amendment
Version 2.0 / 26/02/2013 / Revised funding model
Version 3.0

CONTENTS

1.Introduction And Background

2.Policy Statement

3.Purpose...... 4

4. Definitions, Acronyms And Terminology

5.Scope

6.Regulatory Framework

7.Principles

8.Roles And Responsibilities

8.1Chief Executive Officer:…………………………………………………………………………………….

8.2Senior Manager: Skills Implementation And Monitoring………………………………………….…...

8.3Head Of Department: Project Management Office………………………………………………….....

8.4Head Of Department: Learning Programmes…………………………………………………………….

8.5 Head Of Department:Etqa…………………………………………………………………………………...6

9.Policy Provisions...... .

10.Discretionary Grant Funding Framework

11.Discretionary Grant Delivery Models

12.Sasseta Discretionary Grants Project Types………………………………………….………………………...

13Discretionary Grants Criteria

14.Payment Of Grants

15.Limitations

16.Policy Implementation, Monitoring And Evaluation

17.Approval...... 13

1.INTRODUCTION AND BACKGROUND

The review of this policy is informed by the promulgation of the Sector Education and Training Authorities Grant Regulations No 35940 of 3 December 2012. It is also aimed at improving management of discretionary grants within SASSETA and in turn delivers on outcomes as set out in the Sector Skills Plans and National Skills Development Strategy III.

2.POLICY STATEMENT

The management of Discretionary Grants is core to delivery of skills development learning programmes in SASSETA. The grants are a vehicle for SASSETA in achieving its mandate as set out in the Skills Development Act (as amended) and Skills Development Levies Act. The policy seeks, in line with the regulatory framework, to:

  • Determine the allocation of Discretionary grants within SASSETA that includes PIVOTAL programmes
  • Enhance collaboration and cooperation between the SETA and the public education and training institutions
  • Regulate the amount of funds for administration in skills development .
  • provide for the SETAs contribution towards the work of the Quality Council for Trade and Occupations (QCTO)
  • Effective use of public funds and reduce under-spending
  • Promote NQF registered and quality assured PIVOTAL programmes that seek to address scarce and critical skills
  • Create framework for improved used of public education and training providers for skills development
  1. PURPOSE

The purpose of this policy is to regulate the management of grants in SASSETA and to ensure effective delivery of skills development learning programmes. It is designed to ensure that SASSETA uses all monies received in terms of the Skills Development Levies Act to implement Sector Skills Plan and Annual Performance Plans through the distribution of discretionary grants. In addition, the policy is set to buttress the discretionary guidelines and ensure that guidelines and the project management framework are effective measures that enhance the achievement of the NSDSIII goals and produce desired outcomes – skilled workforce, achievement of transformational imperatives, contribute to pool of skills in the safety and security and ultimately economic growth.

4.DEFINITIONS, ACRONYMS AND TERMINOLOGY

Term / Description
DG / Discretionary Grants
DGC / Discretionary Grants Committee
DGEC / Discretionary Grants Evaluation Committee
Learnerships / A learning programme contemplated in chapter 4 of the Skills Development Act.
NQF / National Qualifications Framework
PIVOTAL / Professional, Vocational, Technical and Academic Learning Programmes
QCTO / Quality Council for Trade and Occupations
SDA / Skills Development Act
Skills Programmes / A learning programme as defined in section 20 of the Skills Development Act.
SLA / Skills Development Levies Act

5.SCOPE

The scope of this policy is to provide Discretionary Grant funding at the sole discretion of SASSETA to facilitate skills development within the safety and security sector.

6. REGULATORY FRAMEWORK

Source / Requirement
Skills Development Act 97 of 1998 / To provide an institutional framework to devise and implement
national, sector and workplace strategies to develop and
improve the skills of the South African workforce
SETA Grant Regulation 35940 / Improved discretionary grant management with the SETA
Skill Development
Levies Act 9 of 1999 / Provides the SETA’s funding framework for SETAs learning
programmes
Sectoral Determination
Act no 5 Learnerships / Governs the employment of learner workers; which includes all
learnership agreements and skills development programmes
Basic Conditions of
Employment Act 77 of
1997 / Set the guidelines for the basic work conditions
National Qualification
Framework Act 37 of
2008 / Sets the guidelines for qualification development and implementation.
Labour Relations Act 66
of 1995 / This is the applicable legislation governing the relationsbetween employers and employees.

7.PRINCIPLES

  • Fairness
  • Openness
  • Access
  • Transparency
  • Equity

8. ROLES AND RESPONSIBILITIES

8.1Chief Executive Officer:

The CEO shall ensure that the policy is implemented and there is compliance.

8.2Senior Manager: Skills Implementation and Monitoring

The policy shall be developed and championed by the Senior Manager: Skills Implementation and Monitoring. In addition, the Senior Manager shall ensure that is alignment of the policy to the regulatory framework and the policy guides the implementation of discretionary grants in SASSETA.

8.3Head of Department: Project Management Office

The Head of Department: Project Management Office shall be responsible for the management of projects under the discretionary grants and ensure that funds are allocated as required in terms of the regulations. The HOD shall also be responsible for monthly reporting on the projects and producing expenditure trends for the duration of each project.

8.4Head of Department: Learning Programmes

The Head of Department: Learning Programmes shall be responsible for ensuring compliance with the policy in learning programmes and that discretionary grants are allocated appropriately, in particular ensure prioritization of PIVOTAL programmes. The HoD will ensure, partnership with HOD: PMO ensure effective monitoring, evaluation and reporting on learning programmes.

8.5Head of Department ETQA

The Head of Department: ETQA shall be responsible for ensuring that the SASSETA makes the required contribution towards the work of the QCTO as stated in the regulations. The HOD ETQA shall lead the engagements with public education and training institutions. Ensure accreditation of programmes by these institutions.

9.POLICY PROVISIONS

9.1Allocation of Discretionary grants

9.2. Discretionary Grant funding shall be granted to employers, providers, Non-Governmental

Organisations (NGOs), Community-Based Organisation (CBOs), Co-operatives, Trade Unions,

to deliver on the goals of the NSDSIII and SSP outcomes.

9.2.1A discretionary grant shall be made available to applicants at the discretion of SASSETA for PIVOTAL programmes addressing scarce and critical skills.

9.2.2Discretionary grants shall be made available to those who qualify in terms of the Work Skills Plan, National Skills Development Strategy III, Sector Skills Plan, and SASSETA’s Strategic Plan and Annual Performance Plan targets

9.2.3Providers employing less than 50 employees will not be required to complete the prescribed PIVOTAL training plan and report but will be required to provide additional information on a template to be developed by SASSETA.

10.Discretionary Grant funding framework

10.1. 80% of the discretionary grants shall be allocated towards the achievement of PIVOTAL programmes

10.2. 20% will be allocated to funding to other programmes aimed at developing the sector in line with priorities set out in the Sector Skills Plans

10.3. Only 7.5% of the DG shall be used for administrative purposes

10.4. 0.5% of the employer levy shall be paid for QCTO quality assurance functions

10.5 The funds allocated must be spent within 12 months of the Financial Year

The funds for PIVOTAL grants will be allocated as follows:

Type of pivotal programme / Amount per learner per annum
Further Education and Training Certificates(FETC) and NQF Level 1-5)
NQF 2 / R 12000 per learner & R 2000 once off employer grant for private employers only
NQF 3 / R15000 PER LEARNER & R 2000 once off employer grant for private employers only
NQF 4 / R 16000& R 2000 once off employer grant for private employers only
NQF 5 / R20000& R 2000 once off employer grant for private employers only
Higher Education and Training (HET) NQF Level 6-8
NQF 6 / R 22000 & R 2000 once off employer grant for private employers only
NQF 7 / R25000& R 2000 once off employer grant for private employers only
Learner Allowance(Per Annum)
R18 000
Skills Programmes (SP)
Between R 4000 – R10000 per leaner
Artisans
R25000 training provider grant
R18000 learner allowance
Work Experience Grants and Internship for Graduates
Without Qualifications / R3000
Diplomas / R3500
Degrees / R4000
Bursaries
Depending on the current costs with relevant institution up to R50 000 per learner
NGO/CBO/Cooperatives support
Retain the current funding
ABET
R5000 per learner
RPL Projects
SAQA and DHET are still busy with guidelines for these types of projects. / In the meantime SASSETA’s approach is as follows:
  1. Funds RPL at 40% of the total training provider costs, per NQF level or alternatively
  2. At the SASSETA discretion taking into account the technical nature of the qualification together with the level of the qualification .

11.Discretionary Grant delivery models

11.1Advertising projects – this model will be used when SASSETA funds a complete learning programme. The following process shall apply

11.1.1All applications for grants shall follow the established procedure.

11.1.2Applications shall be submitted to SASSETA as per advert

11.1.3 All applications shall be tabled before the Discretionary Grants Evaluation Committee (DGEC), including the flagship reports

11.1.4 The DGEC shall recommend to the DCG and the DGC shall, having considered the DGEC recommendations for grant approval

11.1.5.The approval shall be ratified by the Board

11.1.6.At the time of applying for the Discretionary Grant, the accreditation status of the training provider should be valid for at least over 18 months for the period or the period for which the programme the application is to be delivered or whichever is greater

11.1.7.Workplaces will be assessed for capacity and readiness to implement learning programs, inclusive of provision for practical training of learners.

11.1.8.Approval for special project will be by the accounting authority as per approved delegations and once approved special projects shall be advertised. Unsolicited proposals shall not be allowed

11.1.9.SASSETA shall advertise or invite providers once projects have been approved Applications shall submit all the required documentation with the applications as per SASSETA requirements. Incomplete applications shall be rejected.

11.1.10.SASSETA shall enter into contracts with each recipient of a Discretionary Grant specifying the exact roles and responsibilities of each party. Should a provider be found to be in breach and a new provider must be appointed, normal the DG processes shall be applicable

11.1.11In entering contracts, a contract shall be entered with SASSETA the employer and the

provider shall be party to the process of signing.

11.1.12.The SASSETA will develop standard operating procedures, in terms of which projects will be implemented and these will be communicated with appointed employers and training providers.

11.1.13.No project shall start prior to the approval of the project plan, signing the contractand submission of learner application forms.

11.2Delivery of PIVOTAL programmes through public education and training institutions

11.2.1In delivering PIVOTAL programs with public Universities and FETs SASSETA shall enter into partnerships with education and training institutions and sign a memorandum of agreement.

11.2.3There will be no advertisements instead there will direct engagements.

11.2.4The formal agreements shall be approved by the CEO after which a Memorandum of Agreement will then be signed.

11.2.5Once an agreement has been entered into and/or identification of projects with FETs and Universities the normal DGC process shall apply.

11.2.6These partnerships could also cover the accreditation of the public Universities and FETs for qualifications falling with SASSETA’s primary scope and also forming partnerships for research and development.

11.3.SASSETA’s partial contribution to any of the POVITAL programmes at the instance of the employer.

11.3.1SASSSETA shall contribute a certain amount of the PIVOTAL grant where an employer initiates a programme and requires support.

11.3.2The employer submits a proposal directly to the Senior Manager: Skills Implementation and Monitoring who will then take it through the normal DGC process.

11.4.Support for NGOs, CBOs, SMMEs, Trade Unions and Cooperatives

11.4.1SASSETA shall advertise for this category from the 20% of the Discretionary Grants.

11.4.2The funding shall be limited to training of employee, volunteers and community leaders.

11.4.3Funding shall be provided once within the Financial Year per entity.

11.5.HIV training and support

11.5.1Funding shall be provided to employers within the SASSETA scope to train their employees on HIV issues.

11.5.2Funding shall be only once within a Financial Year per employer.

12.SASSETADiscretionary Grants project types

In terms of this policy a project is a planned set of interrelated tasks to be executed over a fixed period and within certain cost and other limitations. In SASSETA the length of a project shall be 12 months of a given financial year. The costs of the project are as determined in terms of this policy and shall not be above what is prescribed. Extension of projects outside the fixed period shall only be approved by the Executive Authority and must be in line with the DG funding in terms of regulation 35940.

Learning programmes such as technical and academic ones that run over 12 months shall be given the required duration that will be fixed. Bursaries and artisanship, in particular shall run until a full qualification is allowed. These will be set out in the Bursary and Programmes policies.

In SASSETA projects are organized as follows:

  • In-house’ projects – The Project Management Office is dedicated to carry out the projects on behalf of SASSETA organization
  • Tender for bidding – SASSETA invites organizations interested in delivering PIVOTAL programmes. Organizations are required to prepare proposal and submit as per SASSETA model. The successful bidders sign contracts and become contractors.
  • Consortia - parts of a project can be tendered for by more than one organisation. This is the case in large projects where one organisation may not be able to carry out the project due to capacity issues and involves large amounts such as the Gauteng Department of Education Patrollers project that involves 1000 learners.

13. Discretionary Grants criteria

13.1. Grants shall be granted to

13.1.1.South African organisations that are registered and accredited with relevant institutions for provision of programmes aligned to SASSETA mandate

13.1.2A legal person who submits a workplace training plan and report for PIVOTAL grants. Should an entity want to benefit from SASSETA Discretionary Grants then they must submit a workplace training plan, even if exempt in terms of the Funding Regulations. The template is attached to the regulations.

13.1.3.Providers who are not blacklisted

13.1.4 Commits to absorbing at least 30% of the unemployed learners who completed programmes

13.1.5A Discretionary Grant is made available to stakeholders of the Safety and Security Sector for initiatives that advance PIVOTAL programmes and the goals and objectives of the Sector Skills Plan (SSP), objectives of the NSDS III and Annual Performance targets.

13.1.6.The employer must be up to date with levy contributions unless exempt from paying levies, in which case proof of exemption must be submitted.

13.1.7.In the case of learnerships, the application for the grant must address both the business need and scarce and critical skills within the SASSETA industry.

13.1.8.The SASSETA reserves the right to allocate grants proportionately in line with the capacity of the organisation to ensure a fair and equitable distribution of grants

13.1.9.Evidence of pursuing the transformation imperatives that include meeting the targets as set out in the NSDSIII:

  • 84% black
  • 54% women
  • 4% people with disabilities
  • Programmes that incorporate training on management of HIV

13.1.10. This criteria shall apply upon approval of this policy by the Accounting Authority.

14.Payment of grants

12.1.Grants shall be paid to a legal person including:

12.1.1A public education and training institution

12.1.2 An employer or provider with the SETA jurisdiction, including an employer or provider not paying levies in terms of the act

12.1.3 Any other legal person and employer as contemplated by relevant legislation within the skills development environment

15.Limitations

This limitation is application to the change of project scope and extension of projects beyond that specified by this policy in line with the regulations

In the change of scope and request for extensions, an initial evaluation will be made to examine the need for the change control, how it could be achieved and what the consequences would be. Specific attention will be paid to the cost implications, identifying where work will be required and what its impact will be in terms of cost, risk and time scale. The following criteria will apply in making a decision to approve or not approve a change control.

15.1 the negative impact should not be more than 20% of the agreed scope and objectives of the project;

15.2.Is the change unavoidable;

15.3Will the change save money or time;

15.4Can any further delay be tolerated;

15.5Does it create a new risk to the project;

15.6Will it require addition funding;

15.7Purposeful intentions to expand the size of the contract

15.8What other interventions are necessary to prevent the change (like cutting losses and closing the project)

16.POLICY IMPLEMENTATION, MONITORING AND EVALUATION

16.1The policy is applicable with effect from the date approved by the Board and shall be in force until reviewed by the same authority.

16.2The policy shall be reviewed onan annual basis or when there is a policy change in government, promulgation of new regulations or as may be determined by the accounting authority.

16.3The policy shall be implemented byall stakeholders who are beneficiaries of the Discretionary Grants

16.4SASSETA staff shall ensure that the policy is effectively communicated via roadshows, publication in the website

16.5The policy will be monitored on a monthly basis to ensure compliance. The SASSETA monitors will incorporate a checklist for themonitoring of the policy.

16.6In evaluating the policy, SASSETA shall use the indicators in the Annual Performance as a measure to check whether the policy is assisting in achievement of results.

Performance indicator / Data source(s) / Comments
Number of projects compliant to the DG policy / Contracts
Number of PIVOTAL programmes entered vs other skills programmes / QMR
Reduced number of change requests / Change requests approved/declined
Reduced number of deviations / Approved deviations
Number of projects that complete on time versus the total number of projects started (expressed as percentage) / Project milestones
Reconciliation between Project Expenditure and Finance / Commitment schedule and monthly reports
Number of projects that complete on time as per project plan / Contracts and project plan

17.APPROVAL