fibre processing and manufacturing seta (fp&mseta)

10/2/2014

1

Fibre Processing and Manufacturing SETA

(FP&MSETA)

UPDATE : Organogram and NewBusiness Model

SETA Update – New Organogram

• FP&M New Corporate Identity, reflecting the diversity of the FP&M SETA’s Stakeholders.

• New Organogram being implemented with expanded Executive Management as per the first row in the below table.

• Followed by the Management level per the second row in the below table.

10/2/2014

2

New Business Model – DG Funding• The FP&M Board has approved a New Business Model as from

2014-2015 onwards: – The main objective:

• Increase Efficiencies • Unblock bottlenecks

– Decentralising Functions to Regional Offices • Align FP&M SETA to disburse and commit funding in the

current Financial Year.


(FP&MSETA)Discretionary Grants Projects Workshops

2014-2015 / 2015-2016

10/2/2014

3

• Approved Discretionary Grant (DG) Funding Disbursement Processes informed by PIVOTAL requirements for 2015-2016

OPEN 01 NOVEMBER 2014

DISCRETIONARY GRANTS FUNDING WINDOW OPEN

END APRIL 2015DISCRETIONARY

GRANTS FUNDING CLOSE

JUNE 2015EVALUATION

/VERIFICATION / BOARD APPROVAL

AUGUST - SEPTEMBER IMPLEMENTATION

JUNE / JULY 2015 CONTRACTING AND INITIAL EXECUTION

END OCTOBER 2014

PUBLIC ADVERTISEMENT

• Allows for proper planning• Professional execution of projects, with reduced

errors • Projects implementation within each respective

financial year• Process aligned to DHET reporting requirements• Reduce inappropriate reporting and accounting

challenges• Speed and quality 6

10/2/2014

4


(FP&MSETA)Discretionary Grants

Approvals / Non Approvals2014-2015

Selection Process (Non Approval)

• Online Pre-eliminations conducted (Regionally).• Non-Eligible Criteria:

– Invalid documentation (Tax clearance, etc).– Outside FP&M SETA Scope.– Incomplete / pending submissions.– Failure to meet deadline.– Over subscription– WSP and Pivotal Plan submitted and not approved or

not submitted – Projects applied for not linked to approved Pivotal

Plan

10/2/2014

5

Selection Process (Approval)

• Online Selection Conducted.• Eligibility Criteria:

– Fully completed.– Submitted timeously.– Within FP&M SETA Scope.– Fully compliant.

Approval Process• Regional Pre-evaluations conducted• Regional schedules consolidated – National schedule compiled.• Baseline allocation per learning intervention and category and to be

within the FP&M Available Budget.• Ensure fair distribution as per the Levy income per sub-sector. • Tabled at the Internal Grants Evaluations Committee.• Submissions taken to (Special) Finance and Projects Committee for

recommendations.• Recommendations taken to Board and Exco to make final decisions

regarding Approval/Non Approval.• Approved Applicants notified in writing of the outcome.• Fully signed MOA and Annexure/s and First Tranche to be submitted to

FP&M SETA by 25th September 2014.

10/2/2014

6

Grant Allocations Summary: Per Intervention

Intervention # Projects # Rec Lnr Recommended TotalAET 20 720 2,160,000.00 Apprenticeship 18.1 26 150 20,902,500.00 Apprenticeship 18.2 28 215 29,960,250.00 RPL 20 210 1,050,000.00 WIL 12months 13 122 3,660,000.00 WE-INT 48 268 4,020,000.00 WIL 6months 8 58 870,000.00 Skills Programme 18.2 5 400 2,880,000.00 Skills Programme 18.1 55 923 6,645,600.00 Learnership 18.1 54 688 13,760,000.00 Learnership 18.2 51 990 24,750,000.00 Bursaries 18.1 16 75 7,875,000.00 Bursaries 18.2 2 120 18,000,000.00 Tvet Support 8 265 6,454,000.00 Bursaries Post Graduate 3 6 600,000.00 SPJ-Disability 13 295 3,599,000.00 SPJ-SP 9 480 15,122,000.00 SPJ-RD 12 775 10,718,000.00

Totals 391 6760 173,026,350.00

Grant Allocations Summary: Per Sub - Sector

Sub Sector # Projects # Rec Lnr Recommended TotalClothing 68 1398 16,828,600.00 Footwear 23 260 5,452,700.00 Forestry 35 959 17,819,550.00 Furniture 28 600 11,210,000.00 General 15 445 32,357,500.00 General Goods 10 287 5,393,000.00 Leather 17 179 3,814,350.00 Printing & Packaging 11 121 1,751,700.00 Publishing 68 783 32,843,650.00 Print Media 19 231 5,954,000.00 Textile 22 471 19,468,550.00 Woods Product 56 751 14,595,600.00 Pulp and Paper 19 275 5,537,150.00

Totals 391 6760 173,026,350.00

Per Sub - Sector

10/2/2014

7

Formal DG Commitment• Purpose of the Formal DG Commitment:

• To formally commit – between the SETA and the Approved Applicant – No signing of the actual MOA

• Confirms Parties Agree on the content of the MOA and Annexure/s

• Summarizes the particulars pertaining to the contract: • Learning Interventions • Cost per intervention • Total Cost per all approved projects• Banking Details

MOA Key Areas• Purpose of Discretionary Grants:

– To implement projects which assist the SETA in meeting the following:

§ Sector Skills Plan.§ Strategic Plan.§ Annual Performance Plan.

• As agreed and signed between the Department of Higher Education and the SETA.

• Purpose of the MOA:• To record respective Terms and Conditions applicable to

both parties.

10/2/2014

8

MOA Key Areas (Cont)

• Grant Purpose: – To enable the Organisation to meet the financial cost of

implementing the project. • Copyright:

– Material developed / written using the grant is owned by the SETA.

• Confidentiality – Stipulates the information / documentation that may or

may not be divulged / shared by both parties outside the agreement.


• Representation & Warranties: – Both parties agree to having the authority necessary to

adhere to all conditions etc per the Agreement. • Agency & Representation:

– Written permission is required to use the SETA Logo. • Contract of Employment:

– No contract of employment is derived by signing of this Agreement.

10/2/2014

9

MOA Key Areas (Cont.)

• Obligations of Both Parties:– Indicates the duties both parties must adhere to as

agreed.• Reporting Obligations:

– The following reports need to be provided:• Narrative Report.• Financial Report.• Placement Report (Compulsory for Unemployed).


• Breach and Termination: – FP&M SETA holds the right to terminate the

Agreement should the Organisation fail to meet the obligations agreed to.

– Termination will automatically be effected per the stipulated end date within the Agreement.

• Arbitration of Disputes:– Parties to ensure amicable resolution of disputes

arising between them. – Aggrieved parties may appoint an Arbitrator

10/2/2014

10


• Sub-Contracting: – Letter stipulating the outsourcing agreement and a copy of

the agreement is required. – Sole responsibility remains with the Organisation.

• Claims against a 3rd Party:– FP&MSETA is granted the irrevocable cession right to any

claim against a third party in respect of the funding granted.

• Indemnity:– FP&MSETA is indemnified against any legal claims or cost

resulting as indicated in the MOA.


• General Terms: – No variation, suspension, amendments etc will be

entered unless done so in writing and agreed to and signed by both Parties.

10/2/2014

11

Annexure Key Areas • Purpose of the Annexure:

– To record project / intervention overview.– To record respective Terms and Conditions.– Manage Learner Registration Process– To record respective Terms and Conditions:

• Duration and Termination• Fees and Expenses• Failure to complete• Impact and Success indicators• Milestones / Deliverables• Payment Schedules

Annexure Key Areas • Types of Annexures:

• A : Adult Education and Training (AET)• B 1 : Bursary Under Graduate• B 2 : Bursary Post Graduate• C : Apprenticeships Section 13 Employed/Unemployed• D : Skills Programmes Employed / Unemployed• E 1 : Work Experience/Internship/Work Integrated Learning 6 Months• E 2 : Work Integrated Learning 12 Months• F : Apprenticeships RPL• G : Skills Programme RPL• H : Learnerships Employed / Unemployed• I : Special Projects

10/2/2014

12

Annexure Key Areas (Cont)

• Main Key Areas: • Duration and Termination• Fees and Expenses• Failure to complete• Impact and Success indicators• Milestones• Payment Schedules

• Special Projects Annexure:• Intervention related projects :

– Deliverables to be used as per the Fixed Window Annexures• Non Intervention related – customize to stakeholder needs

• NB: Formal DG Commitment (signed) and relevant Annexure/s (signed) need to be uploaded onto the system.

Tranche Splits Per Intervention

TRANCHE SPLIT % PER INTERVENTION

Intervention First Tranche % Second Tranche % Third Tranche % Fourth Tranche % Total %

AET 40% 40% 20% 0% 100%Apprenticeships 25% 25% 25% 25% 100%

Bursary 25% 25% 25% 25% 100%

Learnerships 40% 40% 20% 0% 100%Skills Programme 40% 40% 20% 0% 100%

Internship / Work Experience 40% 40% 20% 0% 100%

NB: 2nd Tranche for Learnerships is payable on achieving 80 credits

10/2/2014

13

MOA Signing Process• Approved applicants must retrieve partially pre-completed

templates (Formal DG Commitment/MOA/Annexures) print to complete and sign and upload on the online system.– All documentation to be completed online, downloaded and manually

completed will not be accepted; Stakeholders will be responsible to resubmit correctly.

• Regional Offices to print and sign and upload• To be completed by the 25th September 2014. (First Tranche

and supporting documentation / deliverables to be included)• One Formal DG Commitment and MoA per Company /

Provider with supporting Annexures.

Payments• 1st Tranche Claim:

– To be submitted with the Discretionary Grant Formal Commitment and relevant Annexures signed by the 25th September 2014.

– Payment can only be effected once agreements have been registered by the SETA and invoice with all supporting deliverables per the Annexure have been submitted to be completed by the 25th September 2014.

• Subsequent Claims: – Shall be effected once the Organisation has successfully met all the

deliverables as stipulated in the Annexures. – Please note: strict timelines indicated on the tranches must be adhered

too. – Above mentioned is in line with the FP&M SETA Business Model.

10/2/2014

14

Payments: Learner Agreements• Providers have been trained on the Provider Learner Management System

– Please contact Regional Office if not done

• Providers to ensure that Access Forms are completed and submitted for Login Credentials

• Note: Organizations to capture learners and to submit originals to Regional Offices for verification!

New Criteria & GuidelinesApprenticeships & Learnerships

&Tax Incentives2014-2015

10/2/2014

15

Apprenticeships• 2014 Minimum wage rates approved by the FP&M SETA Board listed

below: Printing & Packaging / Textiles

LearnershipsALLOWANCES:• An employer must pay a learner an allowance calculated in terms of this clause. • No learner may be paid less than the applicable allowance specified in • column 4 of Table A.• “wage” means the amount of money payable to an employee in respect of the hours of work an employee normally works,

excluding any overtime.

Exit level of learnership

Credits already earned by learner

Percentage of qualified wage to be paid as allowance

Minimum allowance per week

NQF 1 or 2 0 – 120 35% R253.73121 – 240 69% R507.43

NQF 3 0 – 120 17% R253.73121 – 240 40% R477.88241 – 360 53% R782.33

NQF 4 0 – 120 13% R253.73121 – 240 25% R506.49241 – 360 53% R782.33361 – 480 56% R1,141.75

NQF 5 to 8 0 - 120 8% R253.73121 – 240 18% R549.72240 – 360 27% R822.49361 – 480 38% R1,158.70481 – 600 49% R1,480.05

10/2/2014

16

Tax Incentives• SARS has made the following Amendments to Learnership Allowances:

– Allowances may be deducted from employers taxable income. – An incentive to train employees

• Regulated Environment• Encourage Skills development and job creation

• Learnership overview: – Agreements and contracts to be registered with FP&M SETA– Deductions consist of:

» Annual Allowance» Allowance on Completion

• Annual Allowance: – Registered agreement– Pro-rata reduction if less than 12 months– Deduction:

» Pro Rata R 30 000.00» Pro Rata R 50 000.00 - disability

Tax Incentives (Cont.)

• Completion Allowance: – Successful completion – Quantum different for 24 or more months.– Quantum increased for disabled learners

» Deduction : • R 30 000• R 50 000 - disability

• Requirements: – Registered agreement– Entered into during course of trade– Employer derived income as in section 1 of the Income Tax Act, 1962– Deductible in tax year of binding agreement.

• Deduction of Completion Allowance: – Per points 1-4 per the above mentioned requirements– Successful completion of Learnership– Deduction creates assessed loss for trade– Extensions may be allowed if not competent– Allowance claimable in tax year, written confirmation of successful completion received.

10/2/2014

17

Tax Incentives (Cont.)

• Enhanced Allowance – disabled Learners: – Increased for annual and completion allowance

• Prohibition of Allowance: – Allowance may not be claimed if:

» Previously Failed leadership with same education / training components• Termination of Agreement:

– Amendments have done away with the recoupment rule» Change of employment for better opportunities» Triggered a recoupment of allowance claimed

– Employer may deduct equal to pro-rata of annual allowance » Ensure employer is not burdened by actions taken or events beyond control.

– NB : Please refer to the SARS Website for further clarification or to the FP&M SETA website for the SARS Presentation and Case Study.

Contact Details

• Gauteng Region

• Regional Manager (Acting) : Linda Mngadi [email protected]

• Kwa-Zulu Natal Region• Regional Manager : Ms. Lungile Shabangu [email protected]

• Western Cape Region• Regional Manager : Ms. Leigh Hayes [email protected]

• Head Office• Project Executive : Mr. Kennedy Matodzi [email protected]

10/2/2014

18

Your time is much appreciated

Thank you

fibre processing and manufacturing seta (fp&mseta)

Documents