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Skills Development Act, 1998 (Act No. 97 of 1998)


Sector Education and Training Authorities (SETAs) Grant Regulations

3. SETA finances and financial management


(1) Each SETA must, in compliance with the Public Finance Management Act, establish banking accounts.


(2) A SETA must use all monies received in terms of the Skills Development Levies Act to—
(a) administer the activities of the SETA;
(b) pay employers their mandatory grants; and
(c) implement its SSP and APP as contemplated in the Treasury Regulations issued in terms of the Public Finance Management Act, through the allocation of the discretionary grants.


(3) A SETA must transfer any unclaimed mandatory funds and any interest earned thereon by 15 August of each financial year into the discretionary fund.


(4) Any unspent administrative funds and any interest earned on funds must on 31 March of each financial year be placed in the discretionary fund.


(5) The amount in the discretionary fund on 1 April each year, together with the discretionary allocation from levy income received each month, must be spent or committed in the ensuing twelve months.


(6) A SETA is required to allocate 80% of its available discretionary grants within a financial year to PIVOTAL programmes that address scarce and critical skills in its sectors.


(7) A SETA must set out in its APP a reasonable estimate of discretionary grants that will be available in the sector for training of scarce and critical skills through PIVOTAL programmes, that will receive grant allocations for training of learning and skills programmes identified as priorities set out in the SSP.


(8) The APP contemplated in sub-regulation (2)(c) must specifically set out how—
(a) the discretionary funds will be allocated to achieve SSP outputs and outcomes; and
(b) the National Skills Development Strategy (NSDS) outputs and outcomes will be achieved in the sector.


(9) A SETA must state how the allocation of funds in the manner presented in the APP will achieve impact in the sector, and how this will be measured.


(10) Notwithstanding sub-regulations (3) to (8), a SETA may for compelling reasons and circumstances, request the Director-General to approve the utilisation of the surplus in other ways, within the scope of the Skills Development Act and the National Skills Development Strategy.


(11) At the end of each financial year it is expected that a SETA must have spent or committed (through actual contractual obligations) at least 95% of discretionary funds available to it by the 31 March of each year and a maximum of 5% of uncommitted funds may be carried over to the next financial year.


(12) The remaining surplus of discretionary funds must be paid by the SETA by 1 October of each year into the National Skills Fund (NSF).


(13) Where exceptional circumstances have led to projected under-spending of discretionary funds a SETA will be able to submit a business case to the Minister to request approval to carry over the surplus.