086 101 0001

GETTING STARTEDwith Fasset

Contents

What is Fasset? 1

Where does Fasset get its income from? 2

How do I find out if I am registered for the SDL? 2

What process do I follow if I am exempt from paying the SDL? 2

To which Seta is my SDL going? 2

What do I do if I am registered with the incorrect Seta? 3

What is the process for obtaining a refund on the SDL? 4

What is a Learnership? 7

How do I register a Learnership Agreement with Fasset? 7

Which grants does Fasset offer? 7

What is a Skills Development Facilitator? 9

What happens with unclaimed levies? 9

More about Fasset’s Development Projects... 9

How do I attend Fasset’s free training events? 10

What are Scarce and Critical Skills? 11

Current Scarce Skills 12

Addressing Scarce Skills with Learnerships 13

What learnerships does Fasset offer? 13

How do I monitor the grant payments I receive? 14

What benefits can I receive from Fasset? 15

I need help to get started 15

Acronyms 16

1

What is Fasset?

Fasset is the Sector Education and Training Authority (Seta) for the Finance, Accounting, Management Consulting and Other Financial Services sector.

It is one of the Setas established in April 2000 in terms of the Skills Development Act (SDA) of 1998. This Act provides, inter alia, the institutional framework to devise and implement sector strategies to improve the skills of the workforce in order to:

n influence the effective operation of the labour market, through effective skills development, so as to ensure the appropriate supply of competent labour necessary to compete in the global economy,

n improve the competence of employees and potential employees, thereby enhancing productivity in the sector,

n increase the level of investment in education and training in this sector and to optimise the return on this investment,

n encourage employers and employees to adopt a culture of lifelong learning, n ensure the quality of training and education in the sector and to support the

development of standards in line with the National Qualifications Framework (NQF) and to actively promote these standards,

n expand the provision of education and training in the sector through sound partnerships with public and private providers of education and training,

n enhance co-operation between the public and private sectors, n support the objectives of the Employment Equity Act (EEA) of 1998, n enhance access to learning opportunities in the sector, and n position the sector as the ‘sector of career choice’ for prospective learners and

new entrants into the labour market.

Setas drive, encourage and support skills development through:

n a system of levies and grants, n addressing skills shortages and needs within the sector, n the funding of specific strategic sector initiatives, e.g. development projects and

free workshops,n the provision of cash grants to employers in support of the implementation of skills

development initiatives which support sector-specific strategic needs, such as the demographic transformation of the sector through learnerships,

n registration of learners, n registration of learnerships, and n quality assurance of training providers and assessors of training.

2

Where does Fasset get its income from?

Fasset operates through a levy-grant system, as determined by the Skills Development Levies Act (SDLA) of 1999. According to this Act, every employer in South Africa who is registered with the South African Revenue Service (SARS) for Pay-As-You-Earn (PAYE) is liable to register for the compulsory Skills Development Levy (SDL). The contribution is 1% of total payroll (as calculated for PAYE), including staff who fall below the PAYE threshold, but excluding learners on registered learnership agreements, provided the employer’s total annual payroll amount exceeds R500,000. How do I find out if I am registered for the SDL?

Employers can check whether they are registered for the SDL by contacting their local SARS branch and providing their PAYE number. Employers not yet registered for the SDL must submit a completed SDL 201 form (available from SARS) and start remitting monthly levies to SARS. What process do I follow if I am exempt from paying the SDL?

Employers who are exempt from paying the SDL and who fall within the Fasset sector can register with Fasset as a non-levy paying member in order to qualify to participate in specific Fasset benefits. Exempt employers do not qualify for grants linked to the reimbursement of SDL (i.e. the Mandatory Grant and the Strategic Cash Grant (SCG)) but do qualify to participate in other Seta benefits such as the Learnership Cash Grant (LCG) and the Lifelong Learning programme.

Non-levy payers can register with Fasset using the non-levy paying employer registration application, which is available on the Fasset website. This registration is annual.

Different Setas will have differing approaches with regard to the provision of benefits to employers who are exempt from paying SDL. The Fasset Board decides, on an annual basis, the benefits that will be made available to non-levy paying employers. To which Seta is my SDL going?

When completing the SDL 201 form, first time registrants for the SDL are required to stipulate the Seta they wish to belong to. The law stipulates that employers must register with the Seta whose scope includes the main business activity of the

registrant. The scope of each Seta includes a specific set of Standard Industrial Classification (SIC) codes, which describe specific business activities.

The list of Setas and their designated SIC codes can be viewed on the Fasset website.

The SIC codes that fall within the scope of Fasset are: 83110 Administration of Financial Markets83120 Security Dealing Activities83121 Stock Broking Activities83180 Development Corporations and Organisations83190 Activities Auxiliary to Financial Intermediation88101 Tax Services88102 Asset Portfolio Management88103 Company Secretary Services88120 Accounting, Bookkeeping and Auditing Activities88121 Activities of Accountants and Auditors Registered in terms of the Public Accountants and Auditors Act88122 Activities of Cost and Management Accountants88123 Bookkeeping Activities, including Relevant Data Processing and Tabulating Activities88140 Business and Management Consultancy Activities88142 Project Financial Management91108 South African Revenue Service (SARS)9110E National and Provincial Treasuries

What do I do if I am registered with the incorrect Seta?

If you are registered with Fasset and wish to change Setas, Fasset can facilitate this process. Should your organisation not be registered with Fasset, but you wish to move to Fasset, you must contact the Seta you are currently registered with to obtain their permission for the move.

You will need to complete an Inter-Seta Transfer Form (IST01), which must be signed by a permanent, senior staff member (e.g. CEO, CFO) of your organisation and which must contain a description of your organisation’s main business activity. This document is available on the Fasset website.

Once the Seta receives this form, permission must be requested from the Seta that you are registered with. The IST01, along with the permission obtained, is then sent to the Department of Higher Education and Training (DHET) who then request this change from SARS. SARS, in turn, changes the Seta to which your SDL is being paid. Once the new Seta receives your funds, you will then be registered with that Seta. You can then start applying for and receiving grant payments from the new Seta.

3

Although the Seta facilitates this process, the Seta cannot be held responsible for changes not being made timeously. It is ultimately the responsibility of the employer to ensure they are registered with the correct Seta and to monitor the process and ensure the transfer is complete.

What is the process for obtaining a refund on the SDL?

Of the SDL paid over to SARS, 20% of the amount is transferred by the DHET to the National Skills Fund (NSF). This funding is used to fund large-scale development projects that will address national skills needs such as training those who are unemployed, the youth, people living in rural communities and people with disabilities. Fasset is not guaranteed funding via the NSF, but does endeavour to, and has successfully received funding in the past to train learners who are ultimately intended to enter the Fasset sector. Therefore, although employers are not able to claim back 20% of this levy amount, they should ultimately see the benefit of the 20% in the increased supply of skilled labour into the Fasset sector.

4

20%NSF

100% SDL

80%Fasset

10%Seta Administration

Expenses

70%Grants

20%Strategic Cash Grant (criteria decided

annually by Fasset Board)

40%Mandatory

Grant

*10%PivotalGrant

Unclaimed Grants/Discretionary Grant (items decided annually by Fasset Board) e.g.n Lifelong Learning Programmen Development Projectsn Learnership Cash Grant

*This grant is still to be gazetted in skills development funding regulations

*This grant is still to be gazetted in skills development funding

The Seta receives the remaining 80% of the levy paid over by the employer. 10% of this levy may be retained by the Seta to fund its administration expenses, and the employer may claim back up to 70% of the remaining funding via a Mandatory, Pivotal* and Discretionary Grant scheme.

Funding regulations to the SDA indicate that an organisation may claim back a Mandatory Grant of 40% of the SDL by submitting a Mandatory Grant (combined Workplace Skills Plan [WSP] and Annual Training Report [ATR] application) to the Seta. The WSP portion of the Mandatory Grant contains the training plan of the firm for the current financial year. The ATR portion of the application reports on training for the preceding financial year. The purpose of the Mandatory Grant application is to ensure that firms are implementing training, i.e. planning their training for the year ahead and reporting on the training that was conducted in the previous period. The Seta financial year extends from 1 April to 31 March.

Actual training costs are not reimbursed via this grant; rather 40% of the SDL is refunded. This grant application is due at the Seta by 30 June of every financial year, and the Seta may not issue an extension for the late submission of this grant. The only instances where the Seta may consider grant extensions are in cases of lateness due to force majeur (acts of god) and/or where the firm is a new entity in terms of registration for the SDL, and has submitted the grant application within six months of registering as a levy-paying entity.

The Pivotal Grant* is a special skills initiative grant enabling employers to claim back a maximum of 10% of their SDL if they undertook education and training interventions in certain strategic skills priority areas for the calendar year. This grant may only be claimed for pivotal programmes undertaken in the firm i.e. professional, vocational, technical and academic programmes. Courses such as degrees, diplomas, learnerships, apprenticeships and internships are acceptable. No short courses are allowed. The grant is likely to be payable to employers participating in one or more of the following activities:

n specific learners who have registered on or completed learnerships,n academic and professional study to specific employed and unemployed learners

who have successfully completed a course of study at recognised institutions or professional bodies in scarce skills areas of study, and

n quality-assured and structured workplace experience where specific learners enter or complete full-time, on-the-job training (non-learnership).

5

In terms of the SDA, the Seta may pay out at least 20% of the SDL received, to strategic interventions. This 20% is added to any unclaimed levies held by the Seta.

Fasset offers employers a SCG of a maximum of 20% of the SDL where the employer has undertaken training in strategic scarce skills areas and can describe the expenses incurred in the period 1 January to 31 December. This grant is due on 1 March of the following year. The areas against which the employer have claimed in the past are:

n specific learners who have registered on, or completed learnerships,n academic and professional study to specific employed and unemployed learners

who have successfully completed a course of study at recognised institutions or professional bodies in scarce skills areas of study, and

n quality-assured and structured workplace experience where specific learners enter or complete full-time, on-the-job training (non-learnership).

Full details regarding the SCG criteria and the application form are available on the Fasset website (www.fasset.org.za).

6

What is a Learnership?

A learnership is a work-based education and training programme geared towards a qualification, and is key to the success of the NSA’s skills development strategy. Based on the history of education and training in the sector, when established, Fasset, together with the professional bodies, converted many available training programmes and qualifications into learnerships. The current list of registered learnerships and the registration process can be found on the Fasset website.

How do I register a Learnership Agreement with Fasset?

1. Apply for accreditation as a provider with a professional body/Fasset 2. Register the learner with a professional body and/or training provider 3. Sign an employment contract with the learner 4. Sign a learnership agreement with the learner 5. Submit the original learnership agreement, initialed by all parties, and signed

to Fasset together with the following: n Proof of learner registration with a professional body (student number) n Employer accreditation status with a professional body (copy of letter/

certificate) n Copy of employment letter/letter of appointment n Proof of Mandatory Grant submission n Copy of learner’s identity document

Full details on the learnership registration process are available on the Fasset website.

Which grants does Fasset offer?

Learnership grants are available to levy-paying and non-levy paying employers who meet specific Seta criteria. Current criteria and an application form can be obtained from the Fasset website.

These cash grants may be claimed by the employer from Fasset, and are subject to change from year to year. Employers will be rewarded according to schedule of tariffs when the learner commences, and when the learner completes the learnership.The grant is due by 1 March.

In addition to the LCG, a tax deduction can be claimed from SARS. The tax deduction (to be claimed from SARS as per section 12H of the Income Tax Act 2009) is as follows:

7

Type of Learner Commencement Allowance

Completion Allowance

Basic R 30,000 per annum R 30,000 x number of completed 12 month periods

Learner with Disability

R 50,000 per annum R 50,000 per annum x number of completed 12 month periods

The employer may claim a commencement allowance for each year of the learner-ship, however the completion allowance may only be claimed by the employer with whom the learner completed their learnership contract. The commencement allowance must be pro-rated if the learnership is in existence for less than 12 months (and across employers, should the employee transfer from one employer to another) however the completion allowance may not be pro-rated. It must be claimed in full by the employer where the learner completes the learnership. For each 12-month period of the entire programme completed, an allowance of R 30,000 may be claimed. For example, if a learnership was two and a half years in duration, a deduction of R 75,000 would be allowable in terms of the commencement allowance (i.e. 2.5* R 30,000) whereas only two years would be allowable in terms of the completion allowance i.e. R 60,000.

Small Medium and Micro Enterprises (SMME) Grant The SMME grant is based on the need to support Small Medium and Micro Enterprises (SMMEs) who do not traditionally participate in learnerships, which tend to be relevant to finance and accounting skills.

The grant for the period 1 January to 31 December opens on 1 April and Fasset employers must apply through a grant application form which is available in the downloads section of the Fasset website.

The grant is due on 1 March; however applications may come in throughout the year and will be processed and paid on a first-come, first-served basis.

Please consult the Fasset website for the grant criteria and application form.

8

Assessor and Moderator Grant Fasset will reimburse the cost of training, provided the assessor/moderator registers for a Fasset qualification. For most qualifications, the assessor requires approval from the relevant professional body. Only once the individual is registered as an assessor for the qualification, will Fasset reimburse training expenses.

What is a Skills Development Facilitator?

The first step to participation with the Seta is the registration of a Skills Development Facilitator (SDF). The SDF is an employee, or consultant to the employer, who performs a liaison and information-sharing role with the Seta. The SDF is required to keep up-to-date with changes within the skills development arena and Seta developments, and to communicate these back to the employer and the employees within the organisation.

Participating employers who may have changed their SDF should submit a Change of SDF Application Form, which is available on the Fasset website.

Non-levy payers are also required to register an SDF with Fasset. Further information on SDFs and their role can be found on the Fasset website.

What happens with unclaimed levies? Not all Fasset levy-payers claim their SDL back through a Mandatory Grant and unclaimed levies are used by Fasset to support strategic interventions (in terms of funding regulations to the SDA). The Fasset Board decides on these strategic interventions annually. On approval of the strategic direction for the upcoming financial year, Fasset’s management team is able to plan the implementation of interventions designed to improve the scarce skills situation in the sector.

More about Fasset’s Development Projects...

As part of the Board’s strategic direction, Fasset commissions Development Projects that meet the needs of the sector as defined in the Sector Skills Plan (SSP) (available on the Fasset website). Fasset’s Development Projects aim to increase the supply of skilled labour in the Fasset sector and to alleviate the scarce skills situation reported by the sector. Fasset commissions these Development Projects via a tender process which is advertised in the Government Gazette and on the Fasset website annually.

9

How do I attend Fasset’s free training events?

Fasset offers free training to members (both levy-paying and non-levy paying) who are up-to-date with their registration with Fasset. This programme supports the training needs of mainly small business, and the topics provided aim to assist them in training existing staff, especially learners who have been recruited on Fasset learnership programmes. The topics include content which members can apply to their own businesses and when advising their clients. The training can be counted towards the Continuous Professional Education requirements of most professional bodies and Fasset has, therefore, termed this programme the Lifelong Learning programme.

There are three content areas covered by the Lifelong Learning programme:

1. Soft skills These aim to improve the non-technical skills of learners such as communication,

management and leadership. Most Fasset learnerships address technical skills but learners also need to possess certain cross-functional skills.

2. Legislative updates These aim to ensure that changes to the legislation and regulatory framework

are understood in the Fasset sector. This includes an annual Budget and Tax Update.

3. Skills Development Facilitators (SDF) SDFs are crucial in ensuring that the skills revolution occurs in South Africa

(starting within the workplace), and that scarce skills are addressed in South Africa. Training for these advocates of skills development is therefore supported by Fasset.

Upcoming Lifelong Learning topics and dates are advertised on the Fasset website and via other communiqués. Members are encouraged to check that their contact details are up-to-date on the Fasset database to ensure that they receive Fasset com-munication media such as e-mails and faxes.

10

What are Scarce and Critical Skills?

The term ‘scarce skill’ refers to those occupations that are characterised by a scarcity of qualified and experienced people (current and anticipated). In other words, occupations in which numerical imbalances exist in employment because of a difference between the demand for and the supply of skills.

The term ‘critical skill’ refers to particular elements of an occupation, or the qualitative deficiencies that may exist or develop in the skills apparatus of the existing workforce.

A company may experience a shortage of Chartered Accountants (CAs) in their local economy. For example, due to the migration of students to Cape Town from rural areas in the Northern Cape, there may be difficulties in recruiting and retaining CA staff. This shortage is a scarce skill.

The existing accountants in these rural areas could have a knowledge gap in the area of, for example, Generally Accepted Accounting Practice (GAAP), as a result of GAAP trainers not providing training in rural areas. Such a skill is important to the functioning of an accountant and is therefore referred to as a critical skills gap.

A skills need may arise from the business environment and the labour market situation. The skills needs of the sector can be seen in terms of the need for new workers, the development of skills in critical skills areas, and the rectifying and prevention of the formation of skills gaps.

In addressing the skills needs of the sector, provision should also be made for opportunities for career advancement, transforming the population group profile of the sector, increasing the absorption of unemployed youth, increasing the employment of people with disabilities and addressing institutional constraints that may hamper skills development.

11

Current Scarce Skills

Research shows that scarce skills already exist in the sector, mainly in the professional occupations.

The lack of qualified black people is experienced as a serious problem, especially in the higher-level occupations and professional designations. Many employers (especially large employers) find it difficult to meet their employment equity targets because of the unavailability of suitably qualified black staff.

Listing scarce skills is challenging for organisations in the Fasset Seta, which comprises mainly small professional organisations. In these organisations, skills shortages are seldom reflected in formal vacancies. The organisations tend to grow by taking in more partners or directors or by taking in more learners on professional learnerships. A small organisation with growth potential may continue to search for new talent, but it will not necessarily create posts or have vacancies. However, vacancies provide some indication of scarce skills.

Occupations in the table below, have been listed as scarce.

RankingOccupation Code

OccupationNeed for

2012/13

1 221101 Accountant (General) 1 705

2 599501 Customs Officer 300

3 221103 Taxation Accountant 194

4 222301 Financial Investment Advisor 172

5 639301 Telemarketer 128

6 532101 Data Entry Operator 124

7 551101 Accounts Clerk 114

8 221203 External Auditor 92

9 221204 Internal Auditor 89

10 552201 Credit or Loans Officer 83

12

Addressing scarce skills with Learnerships

The implementation of learnerships will assist in addressing the existence of scarce skills. A list of Fasset learnerships is provided alongside and full details regarding each specific learnership are available on the Fasset website.

What Learnerships does Fasset offer?

Learnerships NLRD NO

NQF LEVEL

Professional Body

1. Professional Qualification: Chartered Certified Accountant

20399 7 Association of Chartered Certified Accountants (ACCA) – 011 459 19002. Certificate: Certified Accounting

Technician20397 5

3. Professional Qualification: Chartered Management Accountant

20400 7 Chartered Institute of Management Accountants (CIMA) – 011 788 87234. National Diploma: Management

Accounting24406 6

5. National Certificate: Business Accounting 24418 56. Post Graduate Professional Qualification:

Professional Accountant in Business20392 7 South African Institute of

Professional Accountants (SAIPA) – 011 207 78407. Post Graduate Diploma: Professional

Accountant in Practice20391 7

8. Diploma: Accounting Technician 20402 5 Association of Accounting Technicians AAT(SA) – 011 621 6888

9. Certificate: Local Government Accounting

59751 3

10. National Certificate: Bookkeeping 58375 3 Institute of Certified Bookkeepers (ICB) – 021 685 2746

11. National Diploma: Technical Financial Accountant

36213 5

12. National Certificate Small Business Financial Management

48736 4

13. Certificate: Office Administration 23618 514. Further Education and Training

Certificate: Bookkeeping48376 4

15. Chartered Accountant : Auditing 48913 7 South African Institute of Chartered Accountants (SAICA) – 011 621 6600

16. Chartered Accountant : Financial Management

48912 7

17. FET Certificate: Debt Recovery 49021 4 Fasset – 011 476 857018. Certificate: General Internal Auditing 20359 7 Institute of Internal Auditors

(IIA) – 011 450 104019. Diploma: Financial Accounting (IAC

Accounting Officer)35957 6 Institute of Administration

and Commerce (IAC) – 021 761 6211

13

20. Certificate: General Internal Auditing – The purpose of the GIA qualification is to provide a second step in the career path of an internal auditor building on the foundation of awareness established in the first level qualification (IAT). The GIA will enable the learner to perform the functions and move into the refinement of soft skills and management responsibilities associated with the discipline.

20359 7 Institute of Internal Auditors (IIA) – 011 450 1040

21. Advanced Certificate: Forensic Practitioner

67269 6 Association of Certified Fraud Examiners – SA Chapter – 082 927 2246

22. Diploma: Financial Accounting (IAC Accounting Officer)

35957 6 The Institute of Administration and Commerce (IAC) – 021 761 6211

23. CIS Professional Qualification: Governance and Administration

60651/LP60154

5 Chartered Secretaries of Southern Africa (CSSA) – 031 708 397124. CIS Professional Advanced

Qualification: Governance and Administration

60655/LP60151

6

25. CIS Professional Qualification: Management and Administration

60653/LP60149

5

26. CIS Professional Post–Graduate Qualification – Company Secretarial and Governance Practice

60654 7

27. CIS Professional Post – Graduate Qualification: Company Secretarial and Governance

60654 7

How do I monitor the grant payments I receive? Fasset schedules regular grant payment dates and endeavours to make grant payments according to this schedule. There will, however, be instances where this is not possible. If Fasset has not received levies from SARS, or specific ad hoc grants have to be paid, grant payments will not be made according to the schedule. Planned payment dates are provided on the Fasset website. Payments are made electronically through an electronic funds transfer and your bank statement will show your SDL number as a reference.

All registered SDFs have direct access to on-line account details. This access can be obtained on the stakeholder log-on section of the Fasset website using the user name and password issued by the Fasset Call Centre. Once logged on to the system, you

14

simply need to select the ‘Grants & Levies’ tab, followed by the year you wish to view. If the levies Fasset has received from SARS do not match actual payments made, please contact your local SARS branch. They will require copies of your SDL 201 remittance advice and proof of payment. Please remember that Fasset receives (and therefore only records) levies approximately two months in arrears.

What benefits can I receive from Fasset?

Fasset offers a number of benefits to both levy-paying firms and non-levy paying firms who have registered with Fasset. The table alongside summarises these grants and benefits.

Benefit Levy Paying Non-levy Paying

Mandatory Grant (40% of levy paid) 3 *

Strategic Cash Grant (up to 20% of levy paid) 3 *

Learnership Cash Grant 3 3

Lifelong Learning 3 3

Development Project Beneficiaries 3 3

Small, Medium and Micro Enterprises Grant 3 3

Assessor and Moderator Grant 3 3

Pivotal Grant (10% of levy paid)° 3 **No SDL paid, therefore no grant to claim back

° Grant is still to be gazetted in skills development funding regulations

I need help to get started!

The Fasset Call Centre is fully equipped to handle any enquiry and we urge all stakeholders who are starting out with Fasset to contact them directly for information.

The Call Centre operates during working hours and can be reached via e-mail to fassetcallcentre@fasset.org.za or on 086 101 0001. The Fasset website www.fasset.org.za is a source of application forms, news updates and general information.

15

Acronyms

AAT Association of Accounting TechniciansACCA Association of Chartered Certified AccountantsAMG Assessor and Moderator GrantATR Annual Training ReportCA Chartered AccountantCIMA Chartered Institute of Management AccountantsCSSA Chartered Secretaries (Southern Africa)DHET Department of Higher Education and TrainingEEA Employment Equity ActETQA Education and Training Quality AuthorityFasset The Sector Education and Training Authority for Finance, Accounting, Manage-

ment Consulting and other Financial ServicesFET Further Education and TrainingGAAP Generally Accepted Accounting PrinciplesIAC Institute of Administration and CommerceICB Institute for Certified BookkeepersIIA Institute of Internal AuditorsIPFA Institute for Public Finance and AuditingLCG Learnership Cash GrantNQF National Qualifications FrameworkNSA National Skills AuthorityNSF National Skills FundOFO Organising Framework for OccupationsPAYE Pay-As-You-EarnSAICA South African Institute of Chartered AccountantsSAIPA South African Institute of Professional AccountantsSARS South African Revenue ServiceSCG Strategic Cash GrantSDA Skills Development ActSDF Skills Development FacilitatorSDL Skills Development LevySeta Sector Education and Training AuthoritySIC Standard Industrial ClassificationSMME Small, Medium and Micro EnterprisesSSP Sector Skills PlanWSP Workplace Skills Plan

PO Box 6801, Cresta, 2118Building 3, Ground Floor, 299 Pendoring Road, Blackheath

Call Centre: 086 101 0001, E-mail: fassetcallcentre@fasset.org.za

Web: www.fasset.org.za