Mandatory and-discretionary-grant-presentation-3

Manufacturing, Engineering and
Related Services SETA
MANDATORY & DISCRETIONARY GRANT ROAD SHOW
LUZETTE JOSEPH – SENIOR MANAGER: ADMINISTRATION
SABELO BUTHELEZI – SENIOR MANAGER: PROGRAMME
IMPLEMENTATION
SHERYL PRETORIUS – SENIOR MANAGER: CLIENT SERVICES

LEADERS IN CLOSING THE SKILLS GAP

EMPLOYER
DEPARTMENT OF HIGHER
EDUCATION AND TRAINING
SARS
SETA’S
DISCRETIONARY GRANTS AND UNCLAIMED GRANTS 49.5%
MANDATORY: WSP & ATR: 20%
10.5%
18%
1% of total payroll
100%
80%National Skills Fund
Administration
Maximum of 0.5%
to QCTO
80% of the
discretionary will be
allocated to pivotal
programmes
Maximum of
20% of the
discretionary
will be
allocated to
non pivotal
programmes
Other Legal Entities
2%

ACCESS REGISTRATION PROCESS
• Access the SMS system via the merSETA website (www.merseta.org.za). or directly
using the following URL -
http://196.4.89.14/cdas/MERSETA.asp
• All signatories must register on-line for access.
• Follow the steps in the submission guide to start with the registration process. –
available on the merSETA website – www.merseta.org.za

MANDATORY/PIVOTAL APPLICATION
WINDOW
1 February – 30 April 2017
DISCRETIONARY GRANT WINDOW
1 February– 30 April 2017
PIVOTAL
PROGRAMMES
NON PIVOTAL
PROGRAMMES
Large & medium sized companies = submit
PIVOTAL plan during mandatory grant
application
Class of 2017 Matriculants
Small and other legal entities = apply during
discretionary grant window
Class of 2017 Matriculants
OFO Codes - Version 2015 throughout the
application.
Large & medium sized
companies = submit during
discretionary grant window
Banking details changed = submit original
banking details to merSETA office.
Upload = Signed
minutes of Training
Committee
meeting
FUNDING WINDOW REQUIREMENTS

WINDOW
Upload = Deviation motivation + Signed
minutes of Training Committee meeting + sign-
off page + Non NQF aligned training
motivation
Recognition agreement = labour/union SDF + SDF
sign-off
Recognition agreement = labour/union SDF +
SDF sign-off
50 or more employees but
no recognition agreement =
employee SDF + SDF sign-off
50 or more employees but no recognition
agreement = employee SDF + SDF sign-off

WINDOW
SDF will be prompted prior to sign-off where
outstanding information is required.
Upload sign-off page of all signatories where
parties are not available to sign-off
electronically.

Annual Training Report (ATR) & PIVOTAL Report
– 1 January – 31 December 2016; and
Workplace Skills Plan – WSP & PIVOTAL Plan
– 1 January – 31 December 2017
REPORTING PERIOD

STAKEHOLDER FEEDBACK & IMPROVEMENTS
STAKEHOLDER
CHALLENGE/SUGGESTIONS
CAUSES SOLUTIONS/IMPROVEME
NT
After pressing enter on the
Training with Other Seta's
form, it would not save the
info or go to the next page
The system has a timeout
function which will not
allow changes after a
certain amount of non
activity.
Log out and log back in.
Blank screen once logged in Compatibility view settings
have not been activated.
Internet setting
document available on
merSETA website.
Request for duplicate
information already
supplied
Request for information in
two areas to ensure
validating the information
captured e.g. Recognition
agreement
All duplication has been
eliminated and
streamlined.

STAKEHOLDER
FEEDBACK
CHALLENGE SOLUTIONS/IMPROVEMENT
No space for
Labour/employee SDF
information
merSETA would request
clarification of sign off on
manual submissions
where the information
was not included.
Provision has been made for
the Labour/employee SDF to
input their details. This will
eliminate query for
clarification.
The document uploads
were failing.
Either the incorrect
format was used or the
file exceeded 5Mb.
Split a large file and upload
separately.
Only use pdf, word, jpg, tiff or
png formats.

STAKEHOLDER FEEDBACK CHALLENGE SOLUTIONS/IMPROVEMENT
When an SDF was working
on the weekends,
especially near submission
due date, the system
would throw them out.
Many companies wait
until the deadline before
they start the submission
process which results in
higher bandwidth usage.
merSETA monitors the
bandwidth usage and
instructs the provider to
increase the capacity.
Start the process early to
avoid the rush.
Excel upload facility
required.
The current SMS system
does not have the
capacity to deal with this.
Previous experiences of
implementing the excel
upload was unsuccessful.
merSETA will explore the
possibility to build it into the
new system.

Data exported from the
previous year came
through scrambled.
Due to different versions
of OFO codes being used,
the system would
scramble the information
when importing it to OFO
version 2015
The OFO code version did
not change from the
previous submission.
The save button on the
skills requirement page
was greyed out and clients
struggled to complete the
section.
The SDF is required to
capture both the previous
and current year information
whether vacancies existed or
are expected.

Post pressing signoff by the
SDF or Employee Rep they
could not return to that
page to print it out for
uploading or scanning to
H/O.
The functionality exists on
the mandatory grant screen
and the SDF is required to
click on print and paste the
information into a word
document for further usage.
On the organisation info
page the Municipality tab
was greyed out.
Although it seems greyed
out, the SDF is required to
make use of the search
functionality and select the
municipality

SYSTEM CHANGES/ADDITIONS
FORM CHANGE/ADDITIONS
Workplace Skills Plan
(WSP)
Confirmation whether training is in line with the
organisation’s employment Equity plan is required.
Confirmation of willingness to enter into a co-funding
partnership.
Non NQF aligned training Where training is not NQF aligned, the organisation is
required to upload a motivation capturing the reasons
therefore.
Document Upload tab The current financial year must be selected to ensure
that the uploaded documents are relevant to the
current year.

REASONS FOR NON APPROVALS &
CORRECTIVE MEASURES
REASON FOR NON APPROVAL
OR QUERY
CORRECTIVE MEASURES
No employee SDF
(representative) sign-off
Companies employing 50 or more staff who do not
have a signed recognition agreement with labour,
must ensure that an employee SDF (representative)
who is a member of the training committee signs off.
This can be done electronically or manually where the
sign-off page is printed, signed and uploaded. Please
ensure that the person’s name, surname and who
they represent is written on the manual sign-off page.
The person’s details must also appear on the training
committee tab.

REASON FOR NON
APPROVAL OR QUERY
CORRECTIVE MEASURES
Clarification of sign-off Ensure that when the employee or labour SDF signs
off, that the name, surname appears. Clearly state
whether the person is an employee or labour SDF.
Ensure that the person’s details appear on the
Training Committee tab
Deviation – less than 40%
from previous WSP
Where the company has specified that they will train
100 employees in the WSP and when the ATR is
submitted, they have only trained 39 employees, it
clearly means that they have deviated more than 40%.
A motivation with details explaining why the full WSP
was not implemented is stated. All training must be
reported on.

OR QUERY
CORRECTIVE MEASURES
No labour SDF
(representative) sign-off
Companies who have a signed recognition agreement
with labour must ensure that a labour SDF
(representative) who is a member of the training
committee signs off. This can be done electronically
or manually where the sign-off page is printed, signed
and uploaded. Please ensure that the person’s name,
surname and who they represent is written on the
manual sign-off page. The person’s details must also
appear on the training committee tab.

OR QUERY
CORRECTIVE MEASURES
No training completed Where no training has been implemented, the grant
will not be approved, irrespective whether reasons
are supplied.
Banking details The SDF must confirm whether the banking details
are correct and only if changed since the last
submission is the SDF required to submit the original
banking details as per the requirements to the
merSETA regional office.
***Once received, merSETA will request an e-mail
confirmation from the authorised person within the
company as an additional risk eliminator.

REASON FOR NON APPROVAL OR QUERY CORRECTIVE MEASURES
Disputes Where a dispute arises the SDF must
upload the details of the dispute against
the sign-off page on the document upload
page and must ensure that he/she submits
the grant application electronically.
TIPS TO AVOID DISPUTES:
•Involve the labour representatives from the commencement of the skills needs analysis
and ensure that labour representatives form part of the training committee.
•Separate training related issues from bargaining issues,
•Training Committee members must have a clear understanding of their existing policies
relating to training and employment equity.
•When you notice that there is a possibility of a dispute, involve the merSETA Client
Liaison Office in an attempt to resolve the matter amongst the training committee
members.

APPROVAL PROCESS
• The only outstanding information that will be followed up after submission is:
– Banking details
– Clarification of sign-off
– Outstanding labour or employee SDF signatories (whichever is applicable)
– Proof of inter-Seta transfer approval prior to mandatory grant submission
deadline.
– Submissions of deviation.
This information must be submitted by no later than 15 July and no appeals will
be accepted as the unclaimed mandatory grant funds will be transferred to the
discretionary grant funds.
• The approval process must be concluded by no later than 31 July of each year.
• Unclaimed mandatory grant funds must be transferred to discretionary grants by 15
August of each year.

PIVOTAL PLAN (Discretionary grant)
• Large and Medium companies:
• Must submit their mandatory grant application and complete the PIVOTAL
plan.
• Small and other legal entities operating in our sector:- PIVOTAL and Non-PIVOTAL
programmes:
• Must submit during the discretionary grant funding window.
• Large and Medium companies: - Non-PIVOTAL programmes
• Must submit via the discretionary grant funding window opening on
Wednesday, 1 February 2017 until Sunday, 30 April 2017
Preference will be given to priority skills identified and where SIPs
coincide with these skills.

DISCRETIONARY GRANT DISTRIBUTION OF 49,5%

DISCRETIONARY GRANTS – AWARDING CRITERIA
1. Submissions for large and medium companies occur during the mandatory
grant application process.
2. Small merSETA levy paying companies who intending to apply for
consideration for discretionary grants for the training of Matriculants “Class of
2017”, must apply via this window.
3. Legal entities are defined as:
• Public and Private education and training institutions
• An employer within the jurisdiction of the merSETA who is not required to
pay Levies.
• Community based organisations (CBO’s), Co-operatives .

• Trade Unions in the merSETA Sector, for the benefit of educating and
developing their members on Skills Development-related programmes
which forms part of their duties as shop stewards and which is
beneficial to the merSETA Sector.
4. Disputes - The Regional office will carry out a verification process on
Mandatory Grant applications and where insufficient consultation with
labour/employee representatives has occurred, the mandatory and
discretionary grant will not be approved.

5. Verification on workplace readiness will be carried out by the regional
offices.
6. Preference will be given to the priority skills identified in the merSETA
Annual Performance Plan and SSP.
7. All claims must be in respect of learners who are South African citizen
and who are in possession of a valid South African Identity document.
8. All withdrawals will be investigated to determine reasons for the
withdrawal and how it could affect future discretionary grant awards.

Further grant awards will depend on progression on delivery of previous grant awards,
as follows:
DISCRETIONARY
GRANT WINDOW
SATISFACTORY PROGRESSION
DG5 Closed out with exception of approved extensions where
apprentices await trade testing.
Year 14 and
agreements for
the “Class of 2013
Matriculants”
3rd tranche payments of all learning interventions has been paid.
All short learning interventions has closed out.

DISCRETIONARY
GRANT WINDOW
SATISFACTORY PROGRESSION
Year 15 and
agreements for
the “Class of
2014
Matriculants”
2nd
tranche payment of all learning interventions has been paid
All learning interventions to be closed out, except for learners on
apprenticeships and NQF Level 2 to 4, bursaries and internships
Year 16 and
agreements for
the “Class of
2015
Matriculants”
First and second tranche payments for all learning interventions
has been paid.

DISCRETIONARY GRANTS AWARDS
• Awarding of discretionary grants is at the sole discretion of the merSETA based on
the approval of the Accounting Authority;
• Award is given via an MoA to the stakeholder where the stakeholder takes full
responsibility for the learner;
• Approved awards will be aligned to the 49,5% levies received by an organisation;
• Appeals regarding an award of a grant must be submitted in writing detailing the
reasons for the appeal, within 14 days of receipt of the award.

DISCRETIONARY GRANTS AND BBBEE
Spend on Skills Development has been increased from 3% to 6% of the payroll

EMPLOYER CATEGORIES
CATEGORY CRITERIA COMMENT
PLATINUM
Top Training
Clients
Must be merSETA levy-paying companies and
up-to -date with levies;
Have received Mandatory Grants payments for
last three years;
Have an average pass rate of 80% in
implementation of learning programmes
including apprenticeships according to the
companies training track record;
An active training committee must be in place if
the employer has 50 or more employees and
where there is a recognised trade union or
unions, they must form part of the training
committee;
Have a progress or placement average of 70%;
Placements will be measured for a three-year
period.
Platinum companies get 1 x 49.5% levies
contributed and a further 2 x 49.5% on
condition that they match and contribute 2
x 49.5% of their fund towards the funding
agreement.,
Companies must be encouraged that 2% of
learners applied for and enrolled are
persons with disability for primary or non-
primary focused learning.
Employers awarded 10 or more awards will
be encouraged to participate in merSETA’s
initiative to develop lecturers, within Public
TVET Colleges, by indicating the availability
of such workplaces to train such lecturers.

GOLD The Gold merSETA levy-paying companies have a training
record,. However there are gaps where the employer needs
to be developed in order to move to the Platinum Category;
Must be merSETA levy-paying companies and up-to -date
with levies;
An active training committee must be in place if the
employer has 50 or more employees and where there is a
recognised trade union or unions, they must form part of the
training committee;
Has participated in the submissions of mandatory grants and
these grants have been approved for payment;
Have an average pass rate of 60% of learning programmes
implemented;
Have a sound track record of training over a minimum period
of two years;
Have a progress or placement average of 60%. Placements
will be measured for a three-year period.
Gold companies get 1 x 49.5% levies
contributed and a further allocation
to a maximum of 0.5 x 49.5% on
condition that they match and
contribute 0.5 x 49.5% of their fund
towards the funding agreement.
These employers to indicate that
work -integrated learning or
workplace learning for persons with
disability can take place for primary
or non-primary focused learning.

SILVER The Silver Category companies are companies
with limited exposure to skills development or
have never worked with the merSETA before
including non -levy paying companies.
It is important to note that an active training
committee must be in place if the employer has
50 or more employees and where there is a
recognised trade union or unions, they must
form part of the training committee.
10% of the total surplus budget
available will be allocated to New
Business employers.
Non levy paying companies and
levy paying companies where
49.5% is below R150 000.00 in
this category will get an allocated
grant equivalent to one
apprentice and a further grant
equivalent to 1 apprentice on
condition that they contribute
equal grant.

CO-FUNDING EXAMPLE WITHOUT CO-
FUNDING
WITH CO-FUNDING
Category
Company
levies
Contributed
20% to
NSF
80% to
merSETA
Levies
available for
Grant
purposes
after 10.5%
Admin and
QCTO
Allocated
DG
Distribution
49.50%
merSETA
Funding
without Co-
funding
Maximum
MerSETA
Portion on
Co-funding
(2
x 49.50%)
Company
portion on
Co-funding
(2 x
49.50%)
20% of
Mandatory
Grant
Payment
Maximum Total
MerSETA DG
Funding
Total of
Grants
Received
%
Platinum 1 000 000 200 000 800 000 716 000 396 000 396 000 792 000 792 000 160 000 1 188 000 1 348 007 188%
Category
Company
levies
Contributed
20% to
NSF
80% to
merSETA
Levies
available for
Grant
purposes
after 10.5%
Admin and
QCTO
Allocated
DG
Distribution
49.50%
MerSETA
Funding
without Co-
funding
Maximum
MerSETA
Portion on
Co-funding
(0.5 x 49.50%)
Company
portion on
Co-funding
(0.5 x
49.50%)
20% of
Mandatory
Grant
Payment
Maximum Total
MerSETA DG
Funding
Total of
Grants
Received
%
Gold 1 000 000 200 000 800 000 716 000 396 000 396 000 198 000 198 000 160 000 594 000 754 000 105%
Category
Company
levies
Contributed
20% to
NSF
80% to
merSETA
Levies
available for
Grant
purposes
after 10.5%
Admin and
QCTO
Allocated
DG
Distribution
49.50%
MerSETA
Funding
without Co-
funding
Maximum
MerSETA
Portion on
Co-funding
Company
portion on
Co-funding
20% of
Mandatory
Grant
Payment
Maximum Total
MerSETA DG
Funding
Total of
Grants
Received
%
Silver 150 000 30 000 120 000 107 400 53 163 150 000 150 000 150 000 24 000 300 000 324 000 270%

SUMMARY
• The SMS system will open on 1 February 2017
• merSETA regional offices and call centre is
available for assistance, upon request
• Register your labour and employee SDF’s on the
SETA Management System (SMS)
Now – Don’t wait!!!

THANK YOU
Luzette JosephLuzette Joseph
Sabelo ButheleziSabelo Buthelezi
merSETAmerSETA

Mandatory and-discretionary-grant-presentation-3

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