Summary of proposed changes to SETA Grant legislation and related issues 10

THE SECTOR EDUCATION AND TRAINING AUTHORITIES (SETAs) GRANT

REGULATIONS REGARDING MONIES RECEIVED BY A SETA AND RELATED

MATTERS 12th January 2012

Summary by Des Squire (Managing Member) AMSI and ASSOCIATES cc

SETA may use a maximum of 10.5% of levies received for administrative purposes but may also use any contributions received over and above the 10.5% from public service employers for administrative costs.

The minister may also permit use of other amounts as deemed necessary to enable a SETA to function.

From October 2012 all SETAS must transfer 0,5% of all levies received to the QCTO for quality assurance functions

With effect of March 31st all surplus funds for the financial year must be transferred to Pivotal Grants within 10 working days of the 31st August

With effect of the 31st march all surplus funds from previous financial years must be transferred within 10 working days to Pivotal Grants

National Treasury may permit usage for other reasons as deemed fit

SETAS must pay mandatory grants to any employer who employs more than 50 employees and who has submitted a WSP and ATR

Mandatory grants will be 40% of total levies paid as per the relevant sections of the SDLA. This grant is to be paid monthly

All unclaimed mandatory grants will be transferred to pivotal grants

A SETA must allocate a pivotal grant to an employer for a learning programme at a level determined by the Director General through a general circular to all SETAs to fund learners on pivotal programmes inclusive of funding of University of Technology students and FET College graduates subject to verification by the SETA to a maximum of 10% of total levies paid by the employer

In addition a SETA may allocate additional pivotal grant funds to an employer for pivotal programmes, should the employer have spent more than 3 % of their payroll on training as reported in the pivotal training report and verified by the SETA

A SETA may determine and allocate a discretionary grant in support of the National Skills Development Strategy, the National Skills Accord and other relevant national priorities detailed in the strategic plan of the SETA as approved by the Minister

A SETA may only commit, beyond each financial year, discretionary funds for learners in pivotal programmes

A discretionary grant may be paid in terms of sub regulation (1) to an employer within the jurisdiction of a SETA, including an employer who is not required to pay a skills development levy in terms of the Skills Development Levies Act

Mandatory grant and Pivotal Grant recovery by employers

An employer seeking recovery of a grant against the levy payment must meet the eligibility criteria for grant recovery as prescribed

A SETA must not pay a mandatory grant and pivotal grant to an employer who is liable to pay the skills development levy in terms of section 3 (1) of the Skills Development Levies Act, unless the employer

(a) Has registered with the Commissioner in terms of section 3 (1) of the Skills Development Levies Act

(b) Has paid the levies directly to the Commissioner in the manner and within the period determined in section 6 of the Skills Development Levies Act;

(c) Is up to date with the levy payments to the Commissioner at the time of approval and in respect of the period for which an application is made;

(d) Has submitted a Workplace Skills Plan and pivotal training report that contributes to the relevant SETA sector skills plan as contemplated in section 10 (I) of the Act within the time frames prescribed in regulation 5 (2) of these Regulations

(e) With effect from 15 April 2012, has submitted and implemented its workplace skills plan for the previous financial year to the extent that it satisfies the criteria for implementation that must be established and approved by the SETA Accounting Authority based on guidelines provided by DHET

(f) Has WSP, PTR and ATR approved by relevant organised labour structures

The Sector Education and Training Authorities (SET As) Grant Regulations regarding monies received by a SETA and related matters, published in Government Notice No. R713 in Government Gazette No. 27807 of 18 July 2005, as amended by Government Notice No. R88 and published in Government Gazette No. 29584 of 2 February 2007 are hereby repealed.