New mandatory grant payments system

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In a communication to all their SDFs this week, the Services Seta passed on a directive they had received from the Department of Labour. The idea was to explain the new procedures for claiming mandatory grants from Setas. (Some other Setas say they have not received this communication and won't be adopting this policy!)

"In-terms of the new Skills Funding regulations published by the Department of Labour, the following will apply for all Seta's :

a. For the period 2005-2006, a member company shall be entitled to 50% of their contributions back, within the Seta's payment cycle, upon acceptance by the Seta of that companies Workplace Skills Plan.

b. The member shall then be expected to submit a WSP for the period 2006-2007 timeously, but shall only be entitled to the Mandatory Grant for that period, on the timeous, sucessful submission of the Annual Training Report (ATR) for the PERIODS 2005-2006 and 2006-2007 covering the two WSP's submitted.

c. When quality controlling the review of that ATR, if the WSP for 2005-2006 has not been successfully achieved, irrespective of successes achieved during 2006-2007, no Mandatory Payments shall be made at the end of the 2006-2007 period."

In an attempt to explain things more simply the Services Seta's Levies and Grants Manager, Isobel Byleveldt, had this to add.



"The way I interpret is that we can pay all WSPs submitted 50% for 2005/06.
The company then does not need to submit a ATR before 30 June 2006 but need to submit the WSP for 2006/07 before June 2006.

The company then need to submit the ATR for 2005/06 and 2006/07 before June 2007 to entile them for the 50% payment for the 2006/07 year on condition that I accept the ATR for 2005/06. If I do not accept it the amount paid now for the WSP will then be off setted against the payment for 2006/07.

I believe this will not change anything on the SME Training report disbursements."

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