fasset 2013 strategy implementation

Fasset May 2013

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21 May 2013

Fasset Update May 2013

Agenda

Item Time

Registration and Breakfast Buffet 08h00

Strategy and Approach of Seta for 2013 08h30

Tea Break 10h00

Grant Application Forms 10h20

Closure 12h00

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Section 1

Overview of major strategic

changes and allocation of funding

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Fasset May 2013

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National Direction

• Budget Vote Speech by the Minister of Higher Education and Training,

Blade Nzimande, MP, to the National Assembly, Cape Town – 8 May 2013

• A million young people leave school every year, and should be absorbed into

post-school education, or the workforce, if they are not to be unemployed

• 3.5 million between the ages of 15 and 24 in the 1st quarter 2013, were not

absorbed into employment, education or training (the same for many adults)

• Youth must be given post-school education and training opportunities that will

improve their employability

• White Paper on Post-School Education and Training – to be ready in the next few

months

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FET Colleges

• Expand and improve quality of FET Colleges (to be renamed Technical and

Vocational Education and Training (TVET) colleges)

• In 2012, enrolments was exceeded by 54% (target = 550 000, actual 657 690)

• In 2012 NSFAS financial assistance was granted to 187 497 (target = 180 826)

• In 2013 R17.4 billion allocated to FET College enrolments, including investment

in FET College infrastructure

• Expansion of enrolments (R2 billion), building institutional capacity (R365.5

million), and upgrading of equipment (R192 million). Building 12 new campuses

to commence in 2013, allowing intake of additional 28 000 learners in 2014

• DHET appointed 48 CA’s as CFO’s at FET Colleges as well as 20 HR Specialists

to set up HR systems, procedures and policies (with SAICA’s assistance)

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Adult Basic Education and Training

• Census 2011 indicates that there are 18 million adult learners that the education

system should address

• Public Adult Learning Centres reach only 300 000 learners

• The Further Education and Training Colleges Amendment Act, No. 1 of 2013

provides for the creation of a new institutional type, to be known as Community

Education and Training (CET) Colleges

• The present Public Adult Learning Centres will be absorbed into the CET

Colleges, additional facilities and staff will be provided and the offerings will be

extended to provide vocational or community-oriented programmes

• During the course of this financial year, the DHET will identify selected centres to

pilot the first Community Colleges in 2015

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Universities

• 12% growth in university enrolments from 837 779 in 2009 to 938 200 in 2011.

• Aim to increase total enrolments to 1.62 million by 2030 as envisaged in NDP

• Postgraduates increased at a higher rate than the overall graduation rate

• Research Masters graduates increased by 26% and Doctoral graduates

increased by 15% from 1 373 in 2009 to 1 576 in 2011. Still insufficient

• Establishment of two new universities in Mpumalanga and Northern Cape

• R2.1 billion has been earmarked over next three years, to open doors in 2014

• A new university (of health and allied sciences, including veterinarian science

and dentistry) is to incorporate Medunsa campus

• In the next few weeks Minister to publish intention to establish this new university

and invite public comments

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Universities Continued

• Central Application Clearing House (CACH) mechanism created as first phase

towards Central Application System (CAS)

• Working Group on fee-free university education have generated report and

recommendations. Minister preparing submission to Cabinet to implement the

ANC Manguang Conference resolution to phase in fee-free education

• Report from the Ministerial Committee on Review of Funding of Universities to be

published soon - proposes revised funding framework before financial year-end

• R575 million allocated to all universities for teaching development grants to

improve graduate outputs

• R205 million for foundation programmes to improve success of educationally

disadvantaged students

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• Programmes to be initiated to support academic and professional development of

lecturers in universities

• R177 million for research development allocated to all 23 universities to develop

the research capabilities of university staff (Masters and Doctorate degrees)

• Teacher education for all education sub-sectors, including pre-schooling,

schooling and post-schooling to be developed. 6 000 new teacher graduates in

2008 increased to 10 361 in 2011. 14 000 new teacher graduates expected by

2015 via increased number of teacher campuses

• Infrastructure grants to universities extended, increasing the R3.8 billion to R6

billion over the period 2012/13 to 2014/15

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• Draft Policy on Student Housing in Public Universities has been developed to

enable proper living and learning environment for students across the sector

• For the period 2012/13 to 2014/15 R1.652 billion allocated for universities to build

and refurbish student residences, 86% of this funding allocated to historically

disadvantaged institutions and campuses. This is insufficient and more funding to

be sought from PIC and DBSA

• Advisory Panel on African languages expected to submit report on strengthening

the study of African languages and developing them as languages of scholarship

in line with Constitution, that their status be elevated and their use promoted

• To address corruption and maladministration some universities have been put

under Administration

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National Student Financial Aid Scheme

• The Department’s allocation to NSFAS for 2013/14 = R5.769 billion

• R3.693 billion for loans and bursaries to universities

• R1.988 billion for bursaries for Further Education and Training (FET) Colleges

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Linking education and the labour market

• Workplace training more effective if on-the-job training is combined with

theoretical study

• Practical experience during training (or in some cases immediately afterwards)

increases a student’s chances of finding employment

• DHET has established a Unit on ‘Work Integrated Learning Partnerships and

Innovation’ to promote and institutionalize work integrated learning

• Government departments and agencies at national, provincial and local levels

are increasing their intake of young people for apprenticeships, learnerships and

internships

• Private sector has great potential to step up training opportunities. Some firms

already doing excellent work in this regard

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Linking education and the labour market Continued

• 2013 is The Year of the Artisan

• SETA Grant Regulations came into operation on 1 April 2013 and require Setas

to target funding towards structured workplace learning and experience,

promoting partnerships between education and training institutions and

employers

• NSF’s R7 billion historic reserves earmarked for specific skills development

projects of national priority. Most of the expenditure has been for improving

infrastructure and programmes for expanding capacity and improving quality in

the production of skills in engineering, medical and veterinary sciences,

renewable energy, various trades and rural development

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Role of Setas

• To identify and address skills needs in their sector

• Compile and implement Sector Skills Plan

• SDL grant claim process (Mandatory Grant)

• Establish and promote learnerships

• Facilitate discretionary grants and Seta programmes

• Quality assure education and training in their sector

• Accredit training providers (quality checks, monitoring and moderations)

• Education and Training Quality Assurance

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Seta Funding Regulations

Overview of major changes

• Mandatory Grants (previously 50% of SDL) is now 20%

• 80% of the Discretionary Grants funding will be allocated to PIVOTAL

programmes

• PIVOTAL is defined as professional, vocational, technical and academic learning

programmes that result in qualifications or part-qualifications on the National

Qualifications Framework

• WSP submission will be due on 30 April (and not 30 June as with current) as

from 2014

• There is a new ‘minimum requirements’ Mandatory Grant form

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Fasset’s Strategy 2013 / 2014

Fasset is focusing on new relationships in order to extend the skills

development reach in implementing a career pipeline approach

• Further Education Training (FET) Colleges

• Universities

• Addressing skills need in the public sector

• Provincial footprint, focus on rural areas

A PIVOTAL Grant will be introduced for all population groups, however the

transformation agenda will continue to be pursued through specific

interventions such as the 19.5% portion of the Pivotal Grant, Bridging

Programmes, LCG etc.

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Allocation of Funding

Item Amount

Mandatory Grants (50% for 2 months and 20% for 10 months) 81,877,041

Pivotal Grant (29.5% + 20%) 50,000,000 + 26,300,000

Learnership Cash Grant (LCG) 5,500,000

NSFAS Repayment Grant 5,353,000

Assessor and Moderator Grant 300,000

Lifelong Learning (LL) interventions 18,000,000

Bridging Programmes for Access to Higher Education 3,700,000

Academic Programmes that Lead to Academic/Professional

Body Qualifications and Designations 46,830,116

Bridging Programmes for Access to Employment 42,000,000

FET Funding Window 15,000,000

Stakeholder Engagement Strategy 2,747,000

Career guidance and provincial strategy 1,558,000

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Section 2

Levies, Grants and Fasset-funded

Interventions

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Flow of Funds – Private Sector – 2013/2014

SDL

Paid

to

SA

RS

100%

National Skills Fund 20%

Seta 80%

10% Seta Admin 0.5% QCTO

20% Mandatory Grant

49.5% Pivotal Grant

Unclaimed monies

Lifelong Learning

AMG

LCG

NSFAS

Bridging Projects

FET

Other …

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Flow of Funds – Public Sector – 2013/2014

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0%

50% current staff (no bursary claim)

20% to fund unemployed

30% to Setas

PSETA 15%

Fasset Seta 85%

10% Seta Admin

90% Pivotal Grant

Unclaimed SDL

NSFAS

AMG

Lifelong Learning

Bridging Projects

Other …

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Grants Overview 2013/2014

The following grants will be offered this year:

• Mandatory Grant

• Pivotal Grant

• Learnership Cash Grant

• National Student Financial Aid Scheme Grant

• Assessor and Moderator Grant

The following grants have been eliminated this year:

• Strategic Cash Grant

• SMME Grant

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Lifelong Learning 2013 / 2014

Month Topics Target Occupations

Mar 2013 Budget & Tax Update 2013 Legislative (All)

Apr 2013 Change Management HR (SDFs, HR Professionals)

May 2013 Fasset Strategy 2013 HR (SDFs, HR Professionals)

How to Manage your Business Leadership and Management (Middle & Senior Managers)

Jun 2013 Culture and Diversity in the Workplace Leadership and Management (Junior and Middle Managers)

Jul 2013 Project Management Leadership and Management (Junior and Middle Managers)

Aug 2013 Managing Teams Leadership and Management (Middle and Senior Managers)

Sep 2013 Compliance with Changes in Legislation

relevant to the Finance Sector Legislative (All)

Oct 2013 Mentoring and Coaching HR (SDFs, HR Professionals)

Nov 2013 Conflict Management Leadership and Management (Middle and Senior Managers)

Feb 2014 Survive and Thrive in an Office

Environment Leadership and Management (Junior and Middle Managers)

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Lifelong Learning Continued

• Calendar is subject to change

• Where Fasset-registered organisations can offer a venue and catering for 50 or

more delegates – a specific event may be offered

• Skills Development Facilitator (SDF) to distribute invitations in the organisation

• Attendees must be working for Fasset-registered firms or be invited by Fasset

• All Non-Levy Paying firms must ensure they renew their Fasset registration

annually

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Innovations in Accreditation

Whole firm accreditation

• To accredit non-credit bearing training

• Firms that offer training that they would like recognised and accredited

• Non-credit bearing training i.e. no assessment

• Functions as Approved Provider accreditation i.e. not linked to unit standards

Internships

• Internships that fall into the graduate work-based category

• Companies apply for programme and site accreditation

• May then apply for Fasset grants

• Claim points of BEE scorecard

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Bridging Programme:

Access into Higher Education

The funding window opens doors for learners to enter higher education

• Black African and all disabled learners

• Learners lacking requisite entry requirements into a sector-specific higher

education qualification

• Incorrect subject choices or followed an unrelated discipline

• 2nd chance learners

• Complete programmes and meet entry requirements which allow them to enter

sector-relevant higher education qualifications, for progression in the sector

• Tuition fees, examination support courses and soft skills interventions

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Bridging Programme:

Academic / Professional Body Qualifications

The funding window opens doors for learners to enter higher education

• Public providers and professional bodies to assist learners to obtain formal

qualifications

• Learners will be placed in learnerships, internships or full-time employment

• Number of learners with scarce skills qualifications will increase

• Employers will have access to increased numbers of employable learners

• Broader economy will benefit with learners who have a cross-cutting skill that is

needed to grow the whole economy

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Bridging Programme:

Access into Employment

Designed to assist unemployed learners (NQF levels 6 – 8) and bridge the

gap between theoretical learning and workplace experience

• Accounting and non-accounting graduates

• Unemployed, part of NEET (Not in Employment Education and Training) learner

population, ministerial imperative

• Will undergo work readiness programmes e.g. bridging technical, assertiveness,

it, English language, attitude

• Available for employment on learnerships, internships or full-time employment

• Employers will have access to increased numbers of employable learners

• Broader economy will benefit with learners who have a cross-cutting skill that is

needed to grow the whole economy

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Upcoming Research

To assist the Board and sector in aligning training to strategic objectives

• 2012/13 (Year 13) Grant Analysis Report

• Sector Skills Plan Update for the period commencing 1 April 2014

• Annual Benchmarking of Training in the Sector

• Learnership Readiness Pack

• Internship Readiness Pack

• Lifelong Learning Learnership Programme (LLLP) Employer Support Guide

• Tracer Study on Development Projects (Academic)

• Database Update (Employers)

• Database Update (Learners)

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FET Funding Window

To develop FET colleges, which is also a national and ministerial imperative

• Capacitating FET colleges with funding set aside

• Improvement of relevant courses offered by FET colleges

• Development of lecturers so as to ensure a quality supply of FET learners

• Partnership agreements to be put in place with Waterberg and Sekhukhune FET

colleges in Limpopo as part of a broader joint Seta initiative to establish a

regional presence in rural areas and townships through FET colleges

• Fasset will support the co-ordinated Seta collaborative effort to establish a

regional presence in rural areas and townships through public FET colleges

• Appointment of a Fasset Provincial Liaison / Brand Ambassador

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Stakeholder Engagement

Engaging with Fasset stakeholders by informing and educating through

regular, effective communication, meeting the following strategic

imperatives:

• The promotion of critical and scarce skills areas within our sector

• Promotion of skills development within sector through targeted marketing

• Promoting skills, access to jobs, sustainable livelihoods via development projects

• Developing a culture of high-quality, lifelong learning and fostering skills

development for high-quality jobs

• Focus on the critical SMME component, specifically levy-exempt employers

• Fostering skills development in the formal economy for productivity and

employment growth

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Career Guidance and Provincial Strategy

Fasset has an intensive National Career Guidance campaign

• In line with DHET’s National Career Guidance initiatives

• Setas have a role to play in drawing the youth into the mainstream economy

• Targeting learners from Grade 9 level onwards, awareness on careers in finance

• Extend and deepen Fasset’s footprint and reach in rural and impoverished areas

− Fasset Brand Ambassadors

− Print and online advertising

− Exhibitions

− Print and digital motivational career guidance material

− Social media

− Partnerships

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Section 3

Fasset Grants 2013/2014

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Mandatory Grant 2013 / 2014

Training plan for the upcoming year and training report for the previous year

• 20% of the SDL, paid quarterly

• 2 forms: <50 Employees and >50 Employees (MS Excel format)

• All training, including short courses, PIVOTAL programmes to be specified

• No discretionary criteria e.g. any population group, gender etc... applies

• Cost of training not linked to payout amount

• Training committee recommended for employers employing 50 or more

• Due 30 June 2013 – hand deliveries accepted up to COB on Friday 28 June

• Deadline will move to 30 April from 2014

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Mandatory Grant 2013 / 2014 – 50+ employees

• Personal Development Planning required

• A2 – requires per person reporting (extract from payroll systems)

• Requiring planning for unemployed people and people to be recruited

• MS Excel format to be completed and emailed to the Seta

• Fasset to upload the grant application forms for 2013

• From 2014, employers may be required to upload

• Authorisation to be developed, for signing, as document may be very long to print

• Numerous lookup tables included to assist with coding data

• All training, including short courses, PIVOTAL programmes to be specified

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Mandatory Grant 2013 / 2014 – fewer than 50 employees

• Can submit online, system recently developed for 50- firms

• After online capturing send signed document, and authorisation page to Fasset

• In future, online submission may be a requirement

• Link on Fasset website for SDFs to logon

• Manual available to assist with online capturing

• Section on impact included in the form

• Additional form included on Pivotal Programmes planned

• Shorter version of form published, as per the regulations

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Pivotal Grant (PG) 2013 / 2014

• Previously called the Strategic Cash Grant

• Now 49.5% of the SDL

• Pivotal Programmes are defined as: Qualifications (degrees, diplomas),

learnerships, internships – to be NQF-registered

• A maximum of 29.5% can be claimed for pivotal programmes implemented with

White, Indian and Coloured learners, and non-South Africans

• Any unutilised portion of the 29.5% and an additional 20% may be claimed for

African Black learners and learners with a disability

• Those commencing, undergoing, or completing a pivotal programme in 2013

• Both registered and completed learnerships and internships

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Pivotal Grant (PG) 2013 / 2014 Continued

• Completed qualifications only

• Accredited and quality-assured training providers, not short courses

• All skills, not only scarce skills

• Not gender or population group-specific

• For employed and unemployed people

• Linked to Learning Programmes Matrix (which is still used in B-BBEE)

• Tariffs are applicable

• Can be paid quarterly if submissions come in earlier

• Grant applications will be queried, does not operate on first-come, first-served

• Due 15 February 2014 – hand deliveries accepted up to COB on Friday 14

February 2014

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Learnership Cash Grant (LCG) 2013 / 2014

Entry Grant : On registration of Black African learners on learnerships

Exit Grant: On completion of Black African learners on learnerships

Length of

Learnership Entry Tariff Exit Tariff

12 month R 5,000 R 5,000

24 month R 7,000 R 13,000

36 month R 20,000 R 20,000

• SDL payers and non-levy payers

• Fasset or other Seta learnership

• 20 grants (any combination of entry and exit)

• Black African learners & learners with disability

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• Higher amount for learners with a disability

• Employers with staff complement under 150

• Grant applications will not be queried, operates on first-come, first-served

• Due 15 February 2014 – hand deliveries accepted up to COB Friday 14 February

2014


Learnership Tax Deductions

Learnership Tax Allowance

• Section 12H

Duration Allowance Allowance (With Disability)

Months Commence Completion Commence Completion

12 (1yr) R 30,000 R 30,000 R 50,000 R 50,000

24 (2yr) R 30,000 R 30,000 R 50,000 R 50,000

36 (3yr) R 30,000 R 30,000 R 50,000 R 50,000

R 90,000 R 90,000 R 150,000 R 150,000

R 180,000 R 300,000

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NSFAS Loan Repayment Grant (NLRG)

Ensuring retention of learners on learnerships

• 3 year learnership attracts R 60,000 grant towards NSFAS account

• Transformation in the sector: Black African learners and people with disabilities

• Learners currently commencing, undergoing, or completing a learnership in the

2013 calendar year with a Fasset employer

• Employed learner or an employer representative may apply

• Black African learners will be relieved of the NSFAS financial burden

• Salary threshold applies



February 2014

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NSFAS Grant Amounts

Length Tariff Amount

12 (1 year) On registration R 5,000

In month 12 of the learnership R 25,000


In month 6 of the 24-month learnership R 15,000






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• May be applied for in tranches


Assessor and Moderator Grant (AMG) 2013 / 2014

To ensure the supply of assessors of academic and workplace training

• Reimbursement of the cost of training

• Maximum of R 4,500

• Assessor/moderator to be registered with Fasset in 2013

• Training can take place before 2013



February 2014

2014/2015

• May shift to funding training in respect of Pivotal Programmes only

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Section 4

Issues for 2014/2015

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Return on Investment – R20,000, 10 staff

Description Amount

Mandatory Grant (SDL = R20,000) R 4,000

Pivotal Grant (maximum 49.5%) R 5,900

Development Project Beneficiaries (2) R 120,000

Learnership Cash Grant – 1 entry, 1 exit R 40,000

NSFAS Grant – 2 learners R 65,000

Lifelong Learning – 5 events, 3 per event R 37,500

Tax Deduction – 4 learners R 240,000 * 30% = R 80,000

Assessor and Moderator Grant – 1 learner R 4,500

Total R 356,900

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Issues for 2013/2014

• Mandatory Grant due on 30 April 2014 but reporting period ends on 31 March.

− Consider change to reporting period to 1 January 2014 to 31 March 2013

• Relevance of tariffs

− Learnerships tariffs to be reviewed, questionnaire to be developed

− Internship tariffs to be reviewed, questionnaire to be made available shortly

− Sector to participate in research, otherwise tariffs will not change

• Pivotal Grant

− Difficulty in obtaining transcripts from universities by 15 February

• OFO Codes

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Tools and Resources

• Fasset website: www.fasset.org.za

• On the website you can gain access to the following:

− Download all the application forms you are required to complete for the grants

− Latest Fasset information

− List of all the relevant Fasset contacts

− List of Fasset learnerships

− Apply for Mandatory Grant online

− Lifelong Learning calendar

• Fasset call centre 086 101 0001

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Thank You

For more information

please contact the

Fasset Call Centre

on 086 101 0001

or visit www.fasset.org.za


http://www.fasset.org.za/

fasset 2013 strategy implementation

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