Skills Development Facilitator

Guidelines

2015

2

Contents Page

List of Acronyms and Glossary page 3

1. Background 8

2. Legislation 9

Legislation and Structures 9

The Skills Development Act 9

Objectives of the Skills Development Act 10

The Employment Equity Act 10

Who must Comply with the EEA 10

What is Compliance in terms of EEA 11

The Skills Development Levies Act 12

The Labour Relations Act – Sectoral Determination 5 13

Higher Education and Training Act 14

3. NSDS III 15

National Skills Development Strategy III 20110-2016 15

NSDS III Goals 17

Conclusion 18

4. The BANKSETA 19

BANKSETA Mission Statement and objectives 19

5. Grants 21

The SETA grant regulations 21

How to Structure the Grants application 23

PIVOTAL Grants 24

6. Role of the Skills Development Facilitator 25

The role of the Skills Development Facilitator 25

The purpose of appointing a Skills Development Facilitator 25

Appointment of a Skills Development Facilitator 25

Functions of a Skills Development Facilitator 26

Link between the WSP and SSP 27

Annual Guidelines and templates 27

3

List of Acronyms and Brief Explanations

Acronym Full Description Explanation

ATR Annual Training Reports

The ATR is report where an organisation would report to their Sector Education and Training Authority (SETA) on the training they have implemented for the previous reporting year. It states which employees (according to their demographics) have been trained in which critical skills priority areas and what was the organisations’ monetary spend in training those employees. The ATR provides the Skills Development Facilitator (SDF) with a way to track whether they have achieved their objectives outlined in the Workplace Skills Plan (WSP). It also provides them with a means to report back to the organisation as the SDF on the achievements around skills development for the year. There may be many reasons as to why their report has deviated from the WSP, and the ATR gives them the opportunity to reflect and report on the reasons for variances.

DHET Department of Higher Education and Training

DHET was formed when the then National Department of Education was split into two: Department of Basic Education (DBE) and the DHET. DHET is tasked with the responsibility for the coordination of the education and training sub-systems of post-school education, including universities, Further Education and Training Colleges (FETs), SETAs, and Adult Basic Education (ABE). All SETAs now report to the DHET.

EEA Employment Equity Act

The purpose of the Act is to achieve equity in the workplace, by:

promoting equal opportunity and fair treatment in employment through the elimination of unfair discrimination; and

implementing affirmative action measures to redress the disadvantages in employment experienced by designated groups, to ensure their equitable representation in all occupational categories and levels in the workforce

FET Further Education and Training

The FET sector with its 50 colleges and 263 campuses nationally is the primary site for skills development training. The FET college system carries about 220 000 students in the public colleges and less than 100 000 in private colleges. Through the FET system the government aims to reach its aim to increase the ratio of young people that are in education, employment or training by 2014/15.

4

Acronym Full Description Explanation

MFI Microfinance Institution

Microfinance is the provision of financial services to low-income clients or solidarity lending groups including consumers and the self-employed, who traditionally lack access to banking and related services. Institutions who offer credit to this group are known as Microfinance Institution.

NSDS National Skills Development Strategy III

The NSDS III encourages the linking of Skills Development to career paths, career development and promoting sustainable employment and in work progression with emphasis placed on training to enable trainees to enter the formal workforce or create livelihoods for themselves. The Strategy seeks to establish and promote closer links between employers and training institutions and the SETAs.

NSF National Skills Fund The National Skills Fund is a national resource which will be used to both initiate as well as to respond to national skills priorities. It will be used to target gaps and complement resource shortages for national priorities

OFO Organized Framework of Occupations

The OFO provides an integrated framework for storing, organising and reporting occupation-related information not only for statistical but also for client-oriented applications, such as identifying and listing scarce and critical skills, matching job seekers to job vacancies, providing career information and registering Learnerships.

PAYE Pay As You Earn

Employees’ Tax refers to the tax required to be deducted or withheld by an employer from remuneration paid or payable to an employee. The amounts so deducted or withheld must be paid by the employer to SARS on a monthly basis. The process of the employer deducting tax from remuneration as it is earned by an employee is referred to as Pay-As-You-Earn (PAYE).

PIVOTAL Professional, Vocational, Technical and Academic Learning Programmes

Pivotal programmes are professional, vocational, technical and academic learning programmes, which meet critical needs for economic growth and social development. These programmes generally combine course work at universities, universities of technology or colleges with structured learning at work – through, among other things, professional placements, work-integrated learning, apprenticeships, Learnerships and internships

SARS South African Revenue Services

SARS collects the skills development levies from those companies that are obligated to pay the levy and transfers this money to their relevant SETA.

5

Acronym Full Description Explanation

SDF Skills Development Facilitator

This is a person elected/contracted by the organisation to act as a liaison between the organisation and the SETA the organisation is registered with. Furthermore the SDF is responsible for identifying the skills gap with the assistance of management, submitting Skills Development reports and apply for mandatory and discretionary grants on behalf of the organisation.

SDL Skills Development Levy

All organisations with a payroll of more than R500k per annum are required to pay a Skills Development Levy of 1% of that payroll to SARS as part of their monthly payments and this money is further transferred to the SETA that they are registered with.

SETA Sector Education and Training Authority

Sector Education and Training Authorities whose primary objective is to collect skills levies from employers within each sector, in terms of the Skills Development Levies Act and make grants available to qualifying employers for skills development in the sector. Each SETA has its own clearly defined sector and sub-sectors that it serves. Each of the sectors is made up of a variety of economic activities that are related and closely linked. So, one SETA would deal, for example, with banking (BANKSETA), while another would deal with health and welfare (Health and Welfare SETA). All the SETAs are responsible for both the private and public sectors within their own sector as a whole. The members and stakeholders of a SETA include employers, learners, providers, trade unions, government departments and bargaining councils from each economic sector.

SIC Standard Industrial Classification

SIC stands for Standard Industrial Classification code. In simpler terms, SIC is a code that reflects the main business activity or your organisation:

81110 Monetary Intermediation

81121 Discount Houses and Commercial and Other Banking

81122 Building Society Activities

81900 Other Financial Intermediation (Not elsewhere captured)

81910 Lease Financing

83101 Securities Dealing

83102 Activities Ancillary to Financial Mediation

90002 Microfinance

6

Acronym Full Description Explanation

SME Small and Micro Enterprise

BANKSETA defines SMEs as organisations that operate within the Banking and micro finance sector and have between 1 and 49 employees on their payroll.

WSP Workplace Skills Plan

The WSP provides the basis for identifying and planning for skills development initiatives which are pertinent not only to the national need but most importantly relevant to your organisations strategy and to individual development needs. It also provides the basis against which you can report progress towards skills development needs, and to target all skills development interventions to address specific organisational and strategic needs. The WSP template will be provided by the SETA an organisation is registered with.

7

1. Executive Summary

The BANKSETA endeavors to capacitate the Skills Development Facilitators (SDFs) operating within

its ambit so as to improve the quality and standard of skills planning and of WSPs submitted. This

guide aims to assist the SDF in the execution of their duties and covers the following:

Applicable legislation

The National Skills Development Strategy

BANKSETA and its strategic focus

Grants

The role of the SDF

2. Legislation

2.1 Legislation and Structures:

The BANKSETA in their endeavor to encourage organisations to use the skills planning process

to add value to the business, have initiated the SDF Guidelines. These guidelines are targeted at

SDFs in various organisations in the banking and microfinance sector, to capacitate them on the

skills planning process, completing of WSPs and applying for grants.

The South African skills development landscape changed dramatically since 1994 and there are a

few acts that apply:

2.2 The Skills Development Act:

The broad purposes of the Skills Development Act, No 97 of 1998, as amended are to:

Develop the skills of the South African workforce;

Increase the levels of investment in education and training by both employers and

employees;

Improve employment prospects of persons previously disadvantaged;

Ensure the quality of education and training in and for the workplace; and

Assist work seekers to find work and provide and regulate employment services.

It is made clear that all provisions of the Act must be interpreted to give effect to its purposes.

The Skills Development Act embodies a strategic, planned approach to link education and training

to the changing needs of the economy. The Act creates a number of new bodies to regulate and

administer structured education and training within the workplace. The Skills Development Act

8

attempts to create a policy and strategy for the benefit of workers, employers, self-employed

people, public, private education and training providers.

2.2.1 Objectives of the Skills Development Act

The objectives of the Skills Development Act are to:

Strategically stimulate investment in education and training in and for the workplace;

Increase the supply of skills and knowledge needed by the labour market;

Link learning to the demands of the world of work;

Develop the skills and knowledge of existing workers and enable employers to

become more productive and competitive;

Increase the levels of investment in education and training in the labour market;

Provide opportunities for new entrants to the labour market to gain work experience;

Improve the employment prospects of persons previously disadvantaged to redress

those disadvantages through training and education; and

Provide and regulate employment services.

2.3 The Employment Equity Act:

The purpose of the Act is to achieve equity in the workplace, by:

Promoting equal opportunity and fair treatment in employment through the elimination of

unfair discrimination; and

Implementing affirmative action measures to redress the disadvantages in employment

experienced by designated groups, to ensure their equitable representation in all

occupational categories and levels in the workforce.

2.3.1 Who Must Comply with the Employment Equity Act?

All employers must comply with Chapter 2 the Employment Equity Act 55 of 1998 (EEA)

which deals with the prohibition of unfair discrimination. Furthermore, the Employment

Equity Act stipulates that all ‘designated employers’ must comply with Chapter 3 dealing

with affirmative action. ‘Designated Employers’ are defined as:

A person who employs more than 50 employees;

A person who employs fewer than 50 employees but has an annual turnover which is

equal of above the applicable annual turnover of a small business in terms of

Schedule 4 of the EEA;

A municipality;

An organ of state; or

An employer bound by a collective agreement which appoints it as a designated

employer.

9

Every employer with more than 50 employees has to comply with the EEA. Also, even if

the employer employs less than 50 employees but its annual turnover is equal or above

the established thresholds for their specific sector, that employer has to comply.

Compliance in terms of the EEA requires companies to comply with the following:

To consult with employees as per section 16: Designated employers are required to

consult with a representative trade union or alternatively with employees and/or their

representatives. The mere election of a committee will therefore not suffice and proof of

consultation with employees or their representatives will have to be presented to prove

compliance with this section.

To conduct an analysis as required by section 19: The purpose of an analysis is to

identify possible barriers in the workplace, policies or procedures which adversely affect

people from designated groups. A company may for example identify that certain people

do not have access to the internet and that more advertising needs to take place in

previously disadvantaged areas such as townships in order to achieve Employment

Equity targets and goals. The analysis should also include a profile of the designated

employer’s workforce in each occupational level to determine the degree of under

representation of people from designated groups in that specific level.

To compile an Employment Equity plan as required by section 20: A designated

employer must prepare and implement a plan to achieve employment equity, which

must:

o have objectives for each year of the plan;

o include affirmative action measures;

o have numerical goals for achieving equitable representation;

o have a timetable for each year;

o have internal monitoring and evaluation procedures, including internal dispute

resolution mechanisms; and

o identify persons, including senior managers, to monitor and implement the plan.

Submit an annual report as required by section 21: Employers with more than 150

employees must submit a report to the Department of Labour on an annual basis on the

first working day of October. Employers with less than 150 employees must submit a

report once every two years, also on the first working day of October. The report must

include a report on income differentials in terms of Section 27.

10

STEP 1 Employer

submit levy payments to

SARS

STEP 2 SARS transfers

levy to DHET

STEP 3 20% allocated

to National

Skills Fund

STEP 4 80% levy

transferred to

the BANKSETA

STEP 5 20% Mandatory Grant

10% SETA Administration 0.5% to QCTO

49.5% Discretionary Grant

Assign responsibility to one or more senior managers as per section 24: Authority and

means to perform all EE functions should formally be assigned in writing to the senior

manager responsible for employment equity. The amendments to the EEA furthermore

requires the senior manager appointed in terms of section 24 to have key employment

equity outcomes incorporated into his/her performance contracts.

Inform employees as required by section 25: A copy of the EE plan should be made

available to all employees and the relevant Employment equity legislation should be

displayed in the workplace.

2.4 The Skills Development Levies Act:

All organisations with a payroll of more than R500k per annum are required to pay a Skills

Development Levy of 1% of that payroll to SARS as part of their monthly payments and this

money is further transferred to the SETA that they are registered with. This levy is payable by

employers in respective sectors of the economy in order to fund education and training for

socially and economically marginalized groups in South Africa. Payment towards the levy

grant scheme is legislated in terms of the Skills Development Levies Act, 1999, as amended.

Under this Act every employer in South Africa who:

Is registered with SARS (South African Revenue Services) for PAYE and

Has an annual payroll in excess of R500,000;

Must register with SARS to pay the Skills Development Levy.

The following diagram explains the skills development levy process and what the levy is ultimately

used for by the NSF and the BANKSETA.

11

Please note that with the publication of the SETA Grant Regulations of 2012, the 50% grant

paid to companies has decreased to 20%.

2.5 The Labour Relations Act – Sectoral Determination 5 (for Learnerships):

This sectoral determination was developed by the then Minister of Labor Mr. Mdlandlana to

establish the condition of employment and rates of allowances for learners in South Africa.

This determination applies to the every employer who employs a learner who has completed a

learnership but was not employed by the employer who hosted the learnership. This

determination states that an employer who employs such a learner:

Must pay the learner an allowance in South African rands daily, weekly or monthly either

in cash, cheque or directly into the learners’ bank account.

Is excepted to give the learner at least four consecutive months of maternity leave,

however the learner is not entitled to receive her allowance during this period.

Must provide the learner with family responsibility leave for those learners who worked for

more than four months and work for at least four days in a week.

Must provide the learner with a written contract entered into between the employer and

learner.

Must only terminate employment upon termination of the contract, if the learner has

completed his/her learnership or if the learner is fairly dismissed.

Upon termination of service, the learner is entitled to a certificate of service stating the

learner’s commencement and completion date of employment as well the training

received and responsibilities during the employment period.

2.6 The Higher Education and Training Act:

The main aim of this Act is to regulate higher education in South Africa and:

To provide for the establishment, composition and functions of a Council on Higher

Education;

To provide for the establishment, governance and funding of public higher education

institutions;

To provide for the appointment and functions of an independent assessor;

To provide for the registration of private higher education institutions;

12

To provide for quality assurance and quality promotion in higher education; to provide for

transitional arrangements and the repeal of certain laws; ‘and to provide for matters

connected therewith.

This act applies to all Higher Education institutions in South Africa.

3. The National Skills Development Strategy (NSDS) III – 2011 - 2016

The NSDS III is South Africa’s overarching strategic instrument for Skills Development whose vision is

to see a skilled and capable workforce in South Africa that shares in, and contributes to the benefits

and opportunities of economic expansion and an inclusive growth plan.

Its mission is to increase access to high quality and relevant education and training and skills

development opportunities, including workplace learning and experience, to enable effective

participation in the economy and society by all South Africans and reduce inequalities.

The NSDS III encourages linking of skills development to career paths, career development and

promoting sustainable employment and in work progression with an emphasis placed on training to

enable trainees to enter the formal workforce or create livelihoods for themselves. The strategy seeks

to establish and promote closer links between employers and training institutions and the SETAs.

The NSDS III is designed in response to challenges impacting on the ability of the South African

economy to expand and provide increased employment opportunities. For example, inadequate skills

levels and poor work readiness of many young people leaving formal education, continuing skills

shortages in the artisan, technical and professional fields that are fundamental to the development and

growth of the economy, an over-emphasis on NQF level 1-3 learnerships, with insufficient progression

towards more appropriate (intermediate and higher) skills required for growth sectors in a knowledge

economy and an urban bias of economic development among others. Seven key developmental and

transformational imperatives will guide the measurement of the NSDS III.

These include:

1. Racial inequalities,

2. Class in relation to unequal access to skills,

3. Gender dimensions to accessing skills,

4. Provision of skills for rural development,

5. Promoting youth training for employment,

6. Increasing access to skills for people with disability and

7. Incorporating HIV/AIDS in the skills development initiatives.

13

SETA progress in skills development will be measured by the extent to which they make significant

progress in dealing with the seven imperatives.

The purpose of NSDS III is to guide the preparation of Sector Skills Plans by SETAs as well as direct

skills levy resource utilization by SETAs & the National Skills Fund. NSDS III provides a framework for

alignment of work done by the SETAs and NSF and drives the workplace to complement the work of

public Higher Education and Training institutions and research orientated universities.

The NSDS III rests on seven key pillars as illustrated below:

NATIONAL SKILLS DEVELOPMENT

STRATEGY III

Se

cto

r &

Go

vern

me

nt

Str

ate

gie

s a

lig

nm

en

t

Secto

r b

ased

pro

gra

mm

es t

arg

ete

d a

t u

nem

plo

yed

an

d f

irs

t ti

me e

ntr

an

ts

PIV

OT

AL

pro

gra

mm

es

re

su

ltin

g in

oc

cu

pa

tio

na

l

dir

ecte

d q

ua

lifi

cati

on

s

Incre

as

ed

fo

cu

s o

n s

kills

fo

r ru

ral

dev

elo

pm

en

t

Tra

inin

g i

nce

nti

ves

fo

r C

o-O

ps,

NG

O,

Tra

de

Un

ion

s a

nd

DB

O w

ork

ers

Pro

gra

mm

es t

o r

evit

alis

e V

oca

tio

nal e

du

ca

tio

n

an

d t

rain

ing

in

clu

din

g c

ap

ac

ity b

uild

ing

fo

r

lectu

rer

an

d t

rain

ers

as w

ell a

s t

he p

rom

oti

on

of

OD

re

se

arc

h a

nd

in

no

va

tio

n

Pu

bli

c p

riv

ate

tra

inin

g p

rovid

er

part

ners

hip

s

ad

dre

ss

ing

cro

ss a

nd

in

ter-

secto

ral

nee

ds

14

3.1 NSDS III Goals

NSDS III has eight strategic goals and it emphasizes relevance, quality and sustainability of skills

training programs. Each of the goals is briefly introduced below:

3.1.1 Goal 1: Establishing a credible institutional mechanism for skills planning will

ensure that the national need in relation to skills development is researched,

documented and communicated to enable effective planning across all economic

sectors: To give greater effect to such programs and ensure greater employer

participation, a PIVOTAL grant has been incorporated into NSDS III. The intention is

that 10% of the mandatory grant will be dedicated to this initiative.

3.1.2 Goal 2: Increasing access to occupationally-direct programmes, both

intermediate level as well as higher level professional qualifications speaks to the

PIVOTAL initiative.

3.1.3 Goal 3: Promoting the growth of a public FET college system that is responsive

to sector, local, regional and national skills needs and priorities: Central to

government’s programs of skilling and reskilling the youth and adults of South

Africa is the public Further Education and Training (FET) college system. The

transformation of the FET college system will ensure integration of education

and training and responding to the skills needs in the country. In order to

increase the capacity to meet industry and the country’s developmental needs,

partnerships between DHET, SETAs, employers, private providers and public

FET colleges are being promoted.

3.1.4 Goal 4: Addressing the low level of youth and adult language and numeracy skills

to enable additional training: Language, literacy and numeracy skills are fundamental

to improved economic and social participation, productivity and social inclusion. This

goal seeks to develop a national strategy aimed at providing all young people leaving

‘This strategy represents an explicit commitment to encouraging the linking of skills development to career paths, career development and promoting sustainable

employment and in work progression.’ Higher Education and Training Minister Blade Nzimande

15

school1 with an opportunity to engage in training or work experience, and improve their

employability.

3.1.5 Goal 5: Encouraging better use of workplace-based skills development: This goal

seeks to address the training of employed workers in order to improve

productivity and the overall growth and development of our economy.

3.1.6 Goal 6: Encouraging and supporting cooperatives, small enterprises, worker-

initiated, NOG and community training initiatives: Skills development is not just

about training people for employment; it must also empower people to create

opportunities to make a living for themselves. NSDS III will support cooperative, NGO,

small enterprise, community and worker-initiated skills development and training

programs. Similarly, the NSF will support credible and quality worker skills

development, education and training programs.

3.1.7 Goal 7: Increasing public sector capacity for improved service delivery and

supporting the building of a developmental state: The goal seeks to address the

challenge of public sector capacity. The overarching objective being to strengthen the

country’s public institutions enabling them to intervene in the economy to build an

inclusive growth path.

3.1.8 Goal 8: Building career and vocational guidance: Deals with lack of guidance to

direct young people in particular to programs for which they have an aptitude and which

will provide training in areas needed in the economy

Conclusion

The National Skills Development Strategy charts the ways in which South African can build its skills to

enable it to compete more successfully in the global economy, attract investment, enable individuals and

communities to grow to eradicate poverty, and to build a more inclusive and equal society.

4. The BANKSETA

1 “In South Africa, there are approximately 3 million youths between the ages of 18 and 24 years who are not in employment, education or training, have a

poor educational foundation and are poorly prepared to undertake further learning” - Higher Education and Training Minister Blade Nzimande. Jan 2011 launching NSDS III

Implementing the NSDS III is a collective responsibility of all stakeholders and partners in skills development

16

4.1 The BANKSETA Mission Statement and Objectives

The BANKSETA’s mission is to support transformation and people development and, through

partnerships, to enable stakeholders to advance the national and global position of the broader

banking and microfinance industry.

The BANKSETA’s activities are guided by two major objectives, which are to:

1. Implement the National Skills Development Strategy in the broader banking and microfinance

sector; and

2. Successful implementation of the Sector Skills Plan (SSP) 2011-2016.

Supportive of and consistent with government policy on halving poverty by 2015 and creation

decent work, the BANKSETA is guided by the following principles:

Accelerate social transformation through skills development: 85% of beneficiaries will be

black, 54% women and 4% disabled.

Leverage the skills levy funds for the strategic benefit of the sector and the National Skills

Development Strategy.

Be cost-effective, placing value on the swift delivery of services at the lowest cost and co-

source non-core delivery mechanisms.

Employ leading edge technology and best business practices.

Conduct research and benchmarking in order to improve the sector’s competitiveness through

skills development.

Be a hub for sector collaboration.

The following have been identified as strategic areas of focus by the BANKSETA:

1. Research

2. Skills Development for the Employed

3. Unemployed Youth Development

4. SME Support

5. Capacity building of Public Training Institutions

6. Transformation and Rural skills Development underpins all the above.

Primarily, the BANKSETA plays an ‘enabling’ role facilitating and encouraging skills development

in the banking and microfinance sector. In close consultation with key stakeholders the

BANKSETA aims to create an environment within which it can develop a culture of high quality

lifelong learning and foster skills development in the formal economy for productivity and

employment growth.

17

5. GRANTS

5.1 The SETA Grant Regulations regarding monies received by a SETA

The regulations make provision for the allocation of three types of grants to employers:

20% Mandatory Grants - In order to qualify for a mandatory grant the employer must be up to

date with levy payments and submit a Workplace Skills Plan (WSP) and an Annual Training

Report (ATR) by 30 April of each year. On approval of the WSP and ATR the mandatory grant is

paid to the employer on a quarterly basis.

49.5% Discretionary Grants - Discretionary grants are allocated at the discretion of the SETA

and dependant on available funds. The types of discretionary projects differ from year to year

and from SETA to SETA and is dictated by the National Skills Development Strategy (NSDS) and

Sector Skills Plan (SSP) and the scarce and critical skills indicated by the SSP. Examples of

discretionary projects implemented by BANKSETA are learnership funding windows, HIV/Aids

funding windows, SME vouchers, Funding of Masters and Executive courses, Bursaries for

unemployed youth through partnerships with selected universities etc. For each project the

application criteria, amount and process will be published as it becomes available. Only

employers who submitted their WSPs and ATR by the due date have access to discretionary

grants.

The approval of discretionary grants will always be subject to the availability of funds.

The BANKSETA adheres to the following principles when approving discretionary grants which

must:

Benefit the broader banking and microfinance sector.

Address one or more identified skills development priority.

Support the objectives of the National Skills Development Strategy.

Support transformation.

Conform to BANKSETA governance criteria and the requirements of the PFMA.

Conform to the requirements of the BANKSETA Supply Chain Management process.

Funding does not include set up costs including capitalization of projects.

18

5.2 Criteria for Funding Applications

The criteria for funding applications and Project Terms of Reference are published on the

BANKSETA Website.

Invitations to apply will be published on the BANKSETA website and where applicable in the

Government Tender Bulletin and the press.

The following basic requirements will apply in order for applicants to qualify for discretionary

funding:

In the case of employers applicants must be BANKSETA stakeholders.

All employers must be up to date with skills levy payments as required by the Skills

Development Levies Act and related regulations.

All employers must have submitted the latest required Workplace Skills Plan by the due date.

Funded projects must align with the BANKSETA Sector Skills Plan, the National Skills

Development Strategy and related national imperatives.

BANKSETA has the discretion to add other requirements specific to the funded project and/or

sector and national objectives.

5.3 Exclusions:

Grants will not be made for the following:

Capital expenditure;

Set up costs for operational units;

Provision of working capital;

Salaries; and

Projects that will not add value to the Banking Sector.

19

Things to remember with discretionary grant applications

Governance

The applicant must provide the BANKSETA with the necessary assurance that the appropriate internal controls and

governance structures are in place to prevent any unauthorized, irregular and/or fruitless and wasteful expenditure as

contemplated by the Public Finance Management Act, occurring.

Agreements

The BANKSETA will enter into a Memorandum of Agreement with applicants in respect of their specific project proposal. A

detailed project schedule will be required as an addendum to the Memorandum of Agreement. Individual meetings will be held

with applicants, after an approval "in principle" has been given, to discuss the detail of the proposal and the project plan.

VAT All Sector Grants paid will be inclusive of VAT. Any VAT liability will remain with the applicant.

Payments

Payments will only be made on the basis of the completion of defined events within the project or the completed project. These

requirements will be incorporated into the Memorandum of Agreement. Single upfront payments will not be made. The

BANKSETA will endeavor to pay claims in respect of the project or part thereof within 30 days of receipt provided that the

applicant has met all contractual obligations and reporting requirements. BANKSETA may at its sole discretion request an

independent audit of the project. The cost of the audit is to be borne by the applicant.

Non-

performance

In the event of non-performance in terms of the project proposal all further progress payments will be withheld. Should no

further performance be carried out by the project applicant the BANKSETA will require the return of monies in advance.

Reporting

Applicants will be required to report project progress on a quarterly basis or sooner if the project is of a less than three month

duration. Reports will be of a sufficiently detailed nature as to allow the BANKSETA to determine the effectiveness of the

implementation of the project and the value delivered. The details of the reporting will be agreed at the time of entering into the

contract but will include inter alias reports on progress towards defined milestones, key deliverables and costs. Within 30 days

of the completion of the project, the applicant will submit a complete report, including a financial report, on the project. Final

payments to the applicant will only be made provided that the BANKSETA is satisfied with the report, that the project has been

completed to the BANKSETA's satisfaction and in accordance with the project schedule.

5.4 PIVOTAL Grants :

PIVOTAL programmes are professional, vocational, technical and academic learning

programmes, which meet critical needs for economic growth and social development.

These programmes generally combine course work at universities, universities of

technology or colleges with structured learning at work – through, among other things,

professional placements, work-integrated learning, apprenticeships, Learnerships and

internships.

Many of the professional areas of study combine course work at universities, universities of

technology and FET institutions with structured learning at work. This is achieved by means

of professional placements, work-integrated learning, apprenticeships, Learnerships,

internships, skills programmes and work experience placements. To address the critical

needs for the economic growth and social development, there must be improved access to,

and success at post-school learning sites alongside structured bridges to the world of work

and quality in the world of work.

To give greater effect to these programmes and ensure greater employer participation,

PIVOTAL grants has also been incorporated into NSDS III. 80% of all discretionary funds

must be ring-fenced for PIVOTAL programmes.

6. The Skills Development Facilitator

6.1 The role of the Skills Development Facilitator:

The Skills Development Facilitator is critical to organisations to achieve an increase in the

effectiveness of the Skills Development strategy. The Skills Development Facilitator takes

responsibility for ensuring that the organisational skills strategy, the workplace skills plan

and the skills implementation is linked to the requirements of the organisation, to the

individual and to the SETA.

6.1 The purpose of appointing the Skills Development Facilitator is:

To encourage each employer to identify a person who will be responsible for the

development and planning of the company’s skills development strategy.

To enable the SETA to maintain a register of contacts with whom it can liaise.

To provide a mechanism through which grant allocations can be released from SETA’s

to individual organisations.

6.2 Appointment of the Skills Development Facilitator:

The Organisation will use its own discretion in choosing a Skills Development Facilitator

to represent them.

Careful consideration needs to go into this decision as this person will represent the

organisation in almost all of the aspects of skills development and training.

This person needs to know the organisation and its strategy well to be able to assist the

organisation to make skills development decisions that will help to achieve the strategy.

6.3 Functions to be performed by the Skills Development Facilitator:

The facilitator requires a close understanding of the legislation, regulations and their

implications for the workplace.

Diagram 5

6.4 Functions of a Skills Development Facilitator:

Source: The Skills Framework

The functions of a skills development facilitator are to:

Interrogate the strategy of the organisation.

Engage with employees and management to determine what skills are required to

assist the organisation with achieving its strategy.

SK

ILL

S D

EV

EL

OP

ME

NT

FA

CIL

ITA

TO

R

FU

NC

TIO

NS

Organisational Skills Needs Analysis

Development of Workplace Skills Plans

Submit Workplace skills Plan

Implement the Skills Plan

Draft Progress Report against Skills Plan

Develop Quality Assurance Systems

Liaise with the SETA

Develop a workplace skills plan which complies with the requirements of the templates

provided by the BANKSETA indicating what skills development activities will take place

and for who.

Submit the workplace skills plan to the relevant SETA.

Advise the organisation on the implementation of the workplace skills plan.

Draft an annual training report on the implementation of the workplace skills plan which

complies with the requirements of the templates provided by the BANKSETA.

Advise the employer on the quality assurance requirements set by the SETA.

Act as a contact person between the employer and the sector SETA.

Serve as a resource with regard to all aspects of skills development.

Represent the organisation during the site visit by the SETA when doing a skills audit.

Advise the employer of any funding opportunities available through BANKSETA grants

and assist the employer to apply.

6.5 Link between the WSP and the SSP:

Quality information is important as all information is collated into a skills plan for the sector.

It is this Sector Skills Plan that informs the BANKSETA Strategy and business plan and that

guides where funding should be channeled and what skills are needed in the sector.

The employer must provide the skills development facilitator with the resources, facilities

and training necessary to perform the functions set out above.

6.6 Annual guidelines and templates:

Workplace skills plan and implementation report guidelines are reviewed and published on

an annual basis to assist Skills Development Facilitators and other users in the banking

sector to:

a) Generate the Workplace Skills Plan.

b) Understand the requirements for skills development planning.

c) Encourage consultation within the employer organisations on skills development

systems.

The document follows the structure, flow and order of the Workplace Skills Plan, and the

guidelines should be read in conjunction with the Workplace Skills Plan Document.

7. Conclusion

The BANKSETA considers the SDF an important partner to enable skills development in the

sector. It is our hope that these guidelines and the workshops and information sessions offered

to SDFs from time to time will assist them in fulfilling their strategic role.