Discretionary Grants Application And Criteria

Discretionary Grants Guidelines and Criteria 17 October 2011

DISCRETIONARY GRANTS GUIDELINES AND CRITERIA 2011 - 2012

Effective date: 17 October 2011 Date of Last Review: 20 February 2010 Date of Next Review: 20 February 2012 Discretionary Grants Guidelines and Criteria 17 October 2011

Document Reference

Document Ref No: SPRGL003

Document Title: Discretionary Grant Guidelines & Criteria Version No: V0.4 Date: October 2011 Author: ACTING SENIOR MANAGER: SI & M

Document Approval

Name Signature Date

Compiled by: Acting Senior Manager: SI & M

Recommended Chief Executive Officer by:

Approved by: Board/EXCO

Table of Contents

Discretionary Grants Guidelines...... 5 1 Introduction...... 5 2 Purpose...... 5 3 What is a Discretionary Grant?...... 5 4 Who may apply for Discretionary Grants?...... 5 5 How to Apply...... 5 6 When to Apply?...... 5 7 Scarce & Critical Skills within SASSETA...... 5 8 Discretionary Grant Funding Criteria...... 5 9 Funding Windows (SEE Annexure B)...... 5 10 Special Projects...... 5 11 Standard Operating Procedures...... 5 12 DG Process Flow...... 5 13 Monitoring and Reporting...... 5

Definition of Acronyms

SDLA Skills Development Levies Act

SDA Skills Development Act

SETA Sector Education & Training Authority

NSF National Skills Fund

SARS South African Revenue Services

HRDS Human Resources Development Strategy

JIPSA Joint Initiative on Priority Skills Acquisition

ASGISA Accelerated and Shared Growth Initiative for SA

NSDS National Skills Development Strategy

SSP Sector Skills plan

SASSETA Safety & Security Sector Education and Training Authority

SMME Small Medium and Micro Enterprise

SLA Service Level Agreement

DOL Department of Labour

ETQA Education and Training Quality Assurance

DG Discretionary Grants

NSDS National Skills Development Strategy

SAQA South African Qualification Authority

NQF National Qualification Authority

ESDA Employment and Skills Development Agency

ISOE Institute of Sectoral and Occupational Excellence

NGO Non Governmental Organisation

CBO Community Based Organisation

NLPE Non Levy-Paying Enterprises

DISCRETIONARY GRANTS GUIDELINES

1 INTRODUCTION

The objectives of the Skills Development Act Number 97 of 1998, as amended are generally aimed at up skilling the previously disadvantaged and thereby create opportunities for South Africa to compete on a global basis with other countries in the world.

The SETAs were specifically established to implement the provisions of both the Skills Development Act No 97 of 1998 as well as the Skills Development Levies Act Number 9 of 1999. The breakdown in terms of the levies collected by SARS is as follows:  20% is allocated to the NSF.  10% is allocated to SETAs for administrative purposes.  50% is allocated for mandatory grants.  20% is allocated for discretionary grants.

2 PURPOSE

The purpose of Discretionary Grants is to encourage employers and stakeholders to contribute towards the achievement of the objectives of the Human Resources Development Strategy (HRDS), the National Skills Development Strategy (NSDS), Scarce and Critical Skills, ASGISA, JIPSA and the SASSETA Sector Skills Plan (SSP). Discretionary Grants are available to applicants who in the opinion and approval of SASSETA engage in skills development practices that will lead to the achievement of these objectives and targets. For information regarding all sources of the Discretionary Funds refer to the Discretionary Grants Policy of SASSETA.

Due to the limited funding, SASSETA has carefully developed these guidelines to provide wide information regarding the management of the disbursement of these funds. The criteria are fairly elaborated and seek to clarify qualifying applicants of all the necessary requirements before approval or commencement of the projects. Take note of the nature of the grant cycles and further be informed that no retrospective funding will be considered.

In terms of SASSETAs Discretionary Grant allocation policy, Chambers are allocated funds according to the need of the SASSETA to meet the transformation and development imperatives as well as the goals of the National Skills Development Strategy (NSDS).

SASSETA will always be guided by the Service Level Agreement, Scarce & Critical Skills, National Skills Development Strategy and the Sector Skills Plan in the allocation of these funds. The SETA would reserve 10% of the total budget of the discretionary grant, for monitoring and evaluation

3 WHAT IS A DISCRETIONARY GRANT?

In terms of the Skills Development Regulation published under GN R713 in GG 27801 of 18 July 2005, as amended, a Discretionary Grant is a grant paid to applicants at the discretion of SASSETA, for Skills Development Projects, linked to scarce and critical skills, in the Safety and Security Sector. Availability of projects and grants is subject to board discretion and may be reduced, withdrawn or cancelled, upon informing the industry of SASSETAs intention to do so.

4 WHO MAY APPLY FOR DISCRETIONARY GRANTS?

A Discretionary Grant may be paid to the following applicants:

 Employers within the jurisdiction of SASSETA who are up-to-date with the levy payments - including those exempted in terms of the SDLA - . . Discretionary grants are available to employers, training providers and workers and the unemployed `

 Accredited Education and Training Providers and emerging training providers within the SASSETA sector.

 Associations or organizations that meet the criteria for the payment of such a grant.

 An employer, if the employer has submitted an application for a discretionary grant in the form determined by the SETA for inter alia, but not limited to the following nationals skills priority areas: 1. Adult Basic Education and Training.

2. HIV/AIDS awareness training.

3. Learnership involving 18.2 and 18.1

4. Achieving equity targets, including special programmes aimed at people with disabilities.

 A lead employer contemplated in Regulation 3 (4) of the learnership regulations 2001, if the lead employer has submitted an application for a discretionary grant to fund its administration costs, in the form determined by SASSETA.

 If the employer has submitted an application for a discretionary grant in the form determined by the SETA for learning programmes registered in terms of regulation 2 of the learnership regulations 2001 by other SETA.

5 HOW TO APPLY

Applicants should submit their Discretionary Grant application/s using the prescribed SASSETA Discretionary Grant Application Form.

These forms are available on SASETA’s website once Requests for Proposals are called for.

6 WHEN TO APPLY?

Applications for Discretionary Grants must be made and approved by SASSETA before any training or other activity related to the skills development project applied for can commence. The Discretionary Grant applications must be submitted to SASSETA office by the date specified in the Request for Proposals. Furthermore it is required that DG applications be submitted not later than 3 months after end of the financial year in respect of which the application is made.

7 SCARCE & CRITICAL SKILLS WITHIN SASSETA

Scares Skills refers to those occupations in which there is a scarcity of qualified and experienced people, currently or anticipated in the future, either (a) because such skilled people are not available or (b) they are available but do not meet employment criteria.

Critical Skills on the other hand, in keeping with international trends refer to specific key or generic and “top up“skills within an occupation. In the SA context there are two groups namely (generic skills, including (SAQA-NQF terminology) critical cross-field outcomes. This would include cognitive skills (problem solving, learning to learn) language and literacy skills, ICT skills and working in teams. In the second instance (b) particular occupationally specific “top-up” skills required for performance within that occupation to fill skills gap that might have arise as a result of changing technology or new forms of work organization.

8 DISCRETIONARY GRANT FUNDING CRITERIA

 A Discretionary Grant is made available to stakeholders of the Safety and Security Sector for initiatives that advance the goals and objectives of the Sector Skills Plan (SSP), objectives of the NSDS III and interventions as laid down in SDA Grant Regulations.

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

 Application proposals should be submitted according to the format and guidelines provided by SASSETA

 It is important that the proposal reflects a clear plan of how the project will be implemented.

 Application forms must be complete and all attachments must be appended as required.

 The employer agrees to a workplace vetting process by SASSETA.

In the case of learning programmes, the SASSETA reserves the right to conduct a verification exercise to determine that all requirements are in place to deliver these programmes (equipment, subject matter experts, training provider accreditation, etc), before progressing the application to the Discretionary Grant Evaluation Committee.

 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. Service Providers must include endorsement letters from participating employers for workplace learning.

 Employers shall sign a service level agreement with the provider approved by SASSETA

 The employer shall obtain from each learner a written commitment to complete the learning program failing which the learner may be held responsible for the cost per learner incurred by the SETA.

 The employer shall submit a written undertaking to employ 50% of all 18.2 learners that completes a SETA funded learning programme.

 The employer shall ensure that an accredited provider is contracted to deliver the training and: . is accredited by the relevant SETA, Umaluzi or CHE to deliver the applicable qualification . is to be registered with the department of Higher Education and Training and / or Umalusi should the provider be contracted to deliver a full qualification or a Learnership. . provides detailed analysis of the cost per learner

 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

Kindly note that the NSDS beneficiary targets apply:

. 84% black . 54% women . 4% people with disabilities

Each project shall meet at least ONE of the targets referred to above.

Where discretionary grant funding is allocated, the procurement shall be conducted according to the PFMA and Treasury Regulations specifically as contemplated in Section 16A Supply Chain Management (SCM).

Evaluation of Proposals The SASSETA Discretionary Grants Evaluation Committee (DGEC) shall ensure that a valid, fair and transparent process is developed, established and implemented to evaluate the applications against the criteria. The DGEC shall make a recommendation to the Discretionary Grants Committee, who will approve / decline the application(s) against the criteria and within the approved budget.

Applications will be evaluated on the basis of:

. Compliance with the NSDS 111 key developmental and transformative imperatives . Meeting the NSDS 111 goals, . Alignment with SASSETA’s Sector Skills Plan (SSP) . Soundness of the proposed intervention including the capacity of the provider to deliver, . Full outline explaining the reasonable cost per learner . Full compliance with the Discretionary Grant Guidelines as well as with each of the pre-determined criteria, and . Current Discretionary Grant Projects at SASSETA as well as other SETA’s and/or clients . Prior Discretionary Grant allocations at SASSETA as well as other SETA’s and/or clients . Prior Discretionary Grant implementation history at SASSETA as well as other SETA’s and/or clients .

9 FUNDING WINDOWS (SEE ANNEXURE B)

The funding windows can be referred to under Annexure B.

10 SPECIAL PROJECTS

Over and above the projects as indicated above SASSETA will receive and evaluate special projects that relate to critical skills from the applicants falling within the SASSETA scope of coverage. Such project would be funded from the 10% portion of the discretionary grants that would have been approved by the Board at the beginning of the financial year.

11 STANDARD OPERATING PROCEDURES

STAGE MILESTONE DURATION DATES UNIT/DEPT 1. Budget for 2010-11 financial year finalised 7 days Finance 2. Draft Guidelines for 11-12 developed & 6 days SI & M reviewed for approval 3. Chambers: Identify projects; Finalise 2 days SD/SI & M projects; Scarce & Critical Skills; NSDS alignment 4. Boards/EXCO approves budgets, DG 1 day CEO Guidelines & Criteria 5. SETA issues requests for Expression of 31 days Projects/Supply Interest (EOI) Chain/Marketing 6. DG applications received, registered in the 7 days PMO EPM System 7. DGEC evaluates and recommends to the 20 days SI & M DGC/EXCO 8. DGC/EXCO approves applications. 2 days CEO 9. If application is rejected, send letter of 5 days PMO rejection 10. Appeals Board in case of appeals by 9 days Appeal Board applicants 11. If approved; sent letters of approval to 10 days PMO applicants 12. Contract Signing 10 days PMO 13. Approved project loaded on the EPM 10 days PMO 14. Submission of Project Plans and learner 10 Days PMO/Learnerships/ registration forms. Skills Admin 15. Disburse 1st payment Per contract Learnerships/PMO/ Skills Admin

STAGE MILESTONE DURATION DATES UNIT/DEPT 16. Visit the project and complete a monitoring quarterly Project report (involve project champion managers/ETQA/P MO 17. Disburse payments as per the contract and Per Project receive regular reports. milestones Managers/PMO/SD /ETQA/ 18. Project Closure Per contract Steering Committee 19.

12 DG PROCESS FLOW

PROJECTPROJECT CLOSECLOSE 15. Project closure START OUTOUT 15. Project closure START report EvaluationEvaluation ofof thethe report ProjectProject

14. Disburse payment as14. per Disburse the contract payment and Budget Approval is as receiveper the contractregular and Budget Approval is 8. Establish an Appeals receive regular done at Board Level 8. EstablishBoard an Appeals Training reports and done at Board Level Board Trainingstatistics reports and statistics

7.7. IFIF NO:NO: SendSend motivatedmotivated rejectionrejection letterletter (Applicants(Applicants 13. Monitoring the life havehave aa rightright toto appealappeal 13. Monitoring the life 2. Board/EXCO approves Cycle of the Project 2. Board/EXCO approves Cycle(involve of theProject Project annually reviewed DG (involve Project Policy,annually Guidelines reviewed & DGCriteria Champion Learning Policy, Guidelines & Criteria Programmes,Champion Learning ETQA Programmes, ETQA

IsIs thethe applicationapplication approved?approved? 12. Approved projects 3. Chambers 12.uploaded Approved on EPMprojects 3. Chambers uploaded on EPM Identify projects Identify projects

Finalise projects Finalise projects

Scarce and critical skills Scarce and critical skills 11. Performance-based Contract 11. Performance-basedsigning Contract NSDS alignment signing NSDS alignment Submission of Project Plan and SubmissionNSD111 compliant of Project Learner Plan and NSD111Information compliant Learner Information 4. SETA issues Requests 6a6a EXCOEXCO considersconsiders 4. SETAfor Proposals issues Requests (RfPs) DGC’sDGC’s for Proposals (RfPs) recommendationsrecommendations

10. Project Scoping and Project 10. DefinitionProject Scoping Workshops and Project DefinitionWorkplace Workshops Vetting Page 11 Workplace Vetting Discretionary Grants Guidelines and Criteria 17 October 2011

6.6. DGCDGC considersconsiders DEGC’sDEGC’s recommendations:recommendations: 5. DGC evaluates and 9. IF YES: Letters of 5. DGC evaluates and approvesapproves // declinesdeclines recommends award9. IFsent YES: to Lettersapplicants of recommends award sent to applicants

13 MONITORING AND REPORTING

SASSETA has its standard project management methodology which will be utilized to ensure proper monitoring and reporting on progress for all the projects that have been approved.

Monthly reports would be expected from all the projects without exception. Care will be taken also to ensure that proper Project Closure reports are developed for all finished projects. It should also be noted that regular site visits will be conducted by the SETA employees to verify some of the information that would have been submitted by the different project managers.

Guidelines: Applying for DG funding

. The project should be linked to SASSETA’s SSP, NSDS111 key developmental and transformative imperatives and goals as well as your organisation company’s / organisation’s WSP

. Ensure that you are familiar with the NSDS111 document of the Department of Higher Education

Completing the DG Application

. Complete the prescribed DG application form available on the website

. Each application should respond to the advertisement.

. Ensure that each relevant field in the application is completed

. Each application should include a current, valid original tax clearance.

. Provide the accreditation (and / or programme approval) details of the provider

to be contracted to deliver the learning programme.

. Provide details of the Learning programme to be delivered; e.g. Title of the

learning programme, SAQA US ID; NQF level; Credits.

. Provide details of the provider’s capacity to deliver: Project team, registered

assessors and moderators, facilitators, current commitments to projects etc.

. Complete the cost per learner template

. Each Employer application to be signed off by the employer and a

labour representative – meaning that it should go through the WSP process at

. Incomplete and non-compliant applications would be disqualified

In respect of SASSETA Employers (which are also accredited training providers) preference would be given to providers:

. Which firstly had not previously been awarded a SASSETA Discretionary Grant training project?

. Whose companies owned by:

- Youth,

- Women and

- People with Disabilities

. Which are located in and/ or focus on rural areas.

. Which focuses on training or providing workplace experience to:

- Youth (under 35 years of age)

- Women

- People with disabilities

In respect of accredited Training Providers offering to partner with SASSETA Employers (which are not providers) preference would be given to:

. Which subscribe to the BBBEE (Verifiable evidence shall be submitted)

. Which had not previously been awarded a SASSETA Discretionary Grant training project?

. Whose companies owned by:

- Youth, - Women and - People with Disabilities

ANNEXURE A

FUNDING WINDOWS

SCARCE AND TYPE OF LEARNERSHIP/SKILLS PROGRAM AMOUNT OF GRANT PER LEARNER PA CRITICAL SKILLS Scarce and Critical General Education and Training (GET) Skills programmes The achievement of a GETC qualification allows employees access to 18.1: R5000 per learner per level Learnerships programmes within the SASSETA environment. SASSETA issue grants towards the ABET level until graduating towards GETC.

Further Education and Training Certificates(FETC) and NQF Level 1-5) SASSETA shall issue grants towards the funding of the implementation of learnerships that integrate institutional training by accredited providers and Tuition Fees workplace training. This should be occupationally based programmes that NQF 3 = R8 000.00 pa lead to a qualification on the NQF. NQF 4 = R10 000.00 pa NQF 5-7 = R12 000.00 pa Learner Allowance NQF 1=R1000-00 pm NQF 2=R1100-00 pm NQF 3 = R1 350.00 pm NQF 4 = R1 800.00 pm NQF 5 = R2300.00 pm Employer grant R2000-00 plpa, excluding government Departments

Effective date: 01 APRIL 2010 Date of Last Review: 20 February 2009 Date of Next Review: 26 March 2011 Discretionary Grants Guidelines and Criteria 17 October 2011

SCARCE AND TYPE OF LEARNERSHIP/SKILLS PROGRAM AMOUNT OF GRANT PER LEARNER PA CRITICAL SKILLS Higher Education and Training (HET) NQF Level 6-8 SASSETA will provide grants towards the implementation of registered learnerships, which combine training by Accredited providers with Tuition Fees workplace training. The intervention must lead towards a registered NQF 6-8=Tuition =R18000-00 Max qualification on the NQF. Learner allowance Please note that preference will be given to the applications that address NQF 6=R2800-00 pm the scarce and critical skills within the SASSETA sector. NQF 7=R3300-00 pm NQF 8=R3800-00 pm Employer Grants R2000-00 plpa, excluding government departments Skills Programmes (SP) SASSETA shall fund the implementation of specific skills programmes within its environment or sector. The amounts to be determined by the number skills programmes in a given qualifications, e.g. GSO NQF 3 has 3 skills programmes. The full learnership tuition is R8000-00 plpa, divide by 3 = R2666-67 Learners’ allowances are as per the NQF levels above. RPL GSO Skills Programme = R4 500-00 Apprenticeships SASSETA will support programmes towards apprenticeships training within the following sub-sectors: 18.1: Tuition: R18000-00 pl  South African Police Services (SAPS) 18.2: Tuition: R18000-00 pl  Correctional Services  Defence 18.2: Learner allowance: R1200-00 plpm NB: Employer Grant for people with disabilities will be

SCARCE AND TYPE OF LEARNERSHIP/SKILLS PROGRAM AMOUNT OF GRANT PER LEARNER PA CRITICAL SKILLS

R5 000-00 per learner New Venture Skills Programme Creation At least 773 young people trained and mentored for sustainable new ventures. At least 70% of the new ventures are in operation 12 months To be determined prorate with the full qualification.. after completion of the programme. 18.2:Learner allowance: R1 800-00 pm (NQF4) Learnership At least 773 young people trained and mentored for sustainable new ventures. 18:2: Tuition: R10 000-00 plpa (NQF 4) Learner Allowance: R1800-00plpm (NQF 4)

Mentoring of new ventures

At least 70% of the new ventures are in operation 12 months after R10 000-00 per established venture completion of the programme. The duration of the mentoring programme to be up to 6 months. Work Experience Grants for Graduates Employment Creation Grants shall be paid to companies that provide opportunities for graduates to gain work experience for fields that are relevant to SASSETA environment 18.2 R3 500-00 plpm NB: 70% placement rate would be highly appreciated

FETC/HET Experiential Learning (Internships)

SASSETA will provide funding to companies that provide experiential training for learners who require to complete their HET/FET qualifications in R3 500-00 plpm the fields of study that are related to scarce and critical skills within the sector

SCARCE AND TYPE OF LEARNERSHIP/SKILLS PROGRAM AMOUNT OF GRANT PER LEARNER PA CRITICAL SKILLS

Bursaries Grants for bursaries will be disbursed for students who want to pursue 18.1 and 18.2 : R30 000-00 Maximum. qualifications that are relevant to the SECTOR but also address the scarce It covers Tuition, books and accommodation, and critical skills. and meals may be considered Support for Small NGO/CBO/NLPE support Providers and SASSETA will make provision for the disbursement of grants to providers Employers that provide training to the NGOs, CBO and NLPE and ensure that the R20 000 per organization. learners gain employment at the end of the programmes

SMME support Grants will be made available for the support towards small companies R10 000-00 minimum per institution which within the SASSETA environment might escalate depending on the specific project