Fibre Processing and Manufacturing (FP&M SETA)

1. Fibre Processing and Manufacturing (FP&M SETA) GRANT REGULATIONS

2. Limitation on Administration Costs of a SETA • SETAs may not use more than 10.5% of levies paid for administration costs • Administration costs are outlined by section 14 (3B) • From 1 October 2012 transfer a maximum of 0.5% of total levies received by the SETA to the QCTO

3. SETA Finances • Seta to establish banking accounts • All monies to be used by SETA to – • Administer the activities of the SETA • Implement annual strategic plan • Investment policy to be approved Accounting Authority (Board) • From 31 March 2013 all surplus funds to be transferred to pivotal grant (funding) • Seta to request Director-General for approval to utilize surplus funds in other ways

4. Allocation of Mandatory Grants • Mandatory Grants to be allocated to: • An employer employing 50 or more employees • An employer who has registered for the first time • Who has submitted a WSP within 6 mnths of Reg. • Applications must be submitted before 30 June • Mandatory Grant to be paid must be • Equivalent to 40% of total levies paid by employer • Be paid to the employer monthly • Unpaid mandatory grants funds to be transferred to the pivotal grant fund

5. Allocation of Pivotal Grants • A SETA must allocate a maximum of 10% of total levies for Pivotal grants to be paid to employers who qualify. • A SETA may allocate additional pivotal grant funds to an employer for Pivotal Programmes • Should the employer spend more than 3% of their payroll on training • Submitted a Pivotal training report • Report verified by SETA

6. Allocation of Discretionary Grants • Allocate discretionary grant in support of: • The National Skills Development Strategy • The National Skills Accord • Other relevant national priorities detailed in the SSP of the SETA (as approved by the Minister) • Only commit discretionary funds beyond each financial year for pivotal programmes only

7. Allocation of Discretionary Grants • Distribute forms for applications: • Discretionary Grants to be funded from • 20% of total levies • Surplus administration funds • Interest and penalties • Interest earned on investment • Surplus contributions received from public service employers • Any other money received by the SETA

8. Allocation of Discretionary Grants • Discretionary grant may be paid in terms of: • An employer within the jurisdiction (including an employer who is not required to pay SDL • Associations or organizations meeting criteria • An employer (contemplated in section 30 and 30 (A) of the Act) who has submitted a WSP and ATR as a minimum in contained format • Discretionary grants to fund all project costs inclusive of project administration costs • As per Sub Regulation 6 (1)

9. Approval of Grants • SETA criteria for grants must be approved by the SETA accounting Authority before funds are allocated • Grant Disbursement Schedule • SETAs must prepare and distribute a schedule setting out the criteria and dates by which applications for grants must be submitted. • Sub regulation 7

10. MG and PG Recovery by employers • SETA not to pay MG and PG to an employer who is liable to pay the skills development levy (section 3 (1) of SDL Act), unless: • Has registered with the Commissioner • Has paid the levies directly to the Commissioner in the manner and within the period determined (Section 6) • Is up to date with levy payments to the Commissioner at the time of approval

11. MG and PG Recovery by employers • SETA not to pay MG and PG to an employer who is liable to pay the skills development levy (section 3 (1) of SDL Act), unless: • Has submitted a WSP and PTR that contributes to the SETA sector skills Plan • As of 1 April 2012, has submitted and implemented its WSP for previous financial year (satisfying agreed criteria) • WSP/PTR/ATR is approved by relevant organised labour structures