THE NEW FUNDING REGULATIONS

Presentation at the Annual RoadshowMarch/April 2013

Johann Engelbrecht

KEY ASPECTS OF THE FUNDING REGULATIONSITEM IMPLICATION

Mandatory grants drop from 50% → 20% •Discretionary increase from 20% → 49,5%•Possible reduction in submission of WSP/ATR

ALL research funded from Admin •Further pressure on limited admin budget•Possible reduction in research budget

80% of discretionary to PIVOTAL •May not be able to address actual needs in sector especially rural structures•Other development work neglected

95% of all funds CONTRACTED •Pressure on employers and SETA in making sure to allocate funds and employers train in the allocated time

Focus exclusively on Public Providers •May have impact on reaching rural areas•Loose flexibility of private providers

WSP/ATR submission date end April annually

•None

Very complex WSP/ATR format •May contribute to reduction in submission

DISCRETIONARY FUND CALCULATIONITEM BEFORE NEW

FUNDING REGSAFTER NEW FUNDING

REGSGross est. levy income R265 000 000 R265 000 000Discretionary R114 120 000 R151 485 000• Statutory (20%/49,5%) R53 000 000 R131 175 000

• Mandatory transfer (27%x40%/27%x20%)xR265m R28 620 000 R14 310 000

PIVOTAL (10% of levy/included above) R26 500 000 (included above)

Interest/penalties R6 000 000 R6 000 000

Project funding R29 000 000 R31 000 000DRDLR (Coops/NARYSEC) R8 000 000 R10 000 000

NSF (Land reform) R21 000 000 R21 000 000

TOT. DISCR/PR FUNDS R143 120 000 R182 485 000

DHET EXPECTATIONS / AgriSETA APP

ITEM

Learnerships Empl

Learnerships Unempl

Skills Prg Empl

Skills Prg Unempl

Bursaries Empl

Bursaries Unempl

Internships

Artisans

Graduate Placement

TOTAL

AgriSETA# VALUE1 000 R17,838m

1 125 R34, 115m

1 000 R4,281m

5 780 R27,559m

75 R2,676m

185 R6,600m

400 R14,270m

208 R9,265m

485 R17,303m

10 258 R133,303m

THANK YOU