To facilitate implementation of NSDS 2, there are two types of grants that an employer might claim. These include:

• Mandatory grant (MD)
• Discretionary grant (DG).

1. Mandatory Grants

The first grant referred to by the Regulations as mandatory grant; a mandatory grant as set out in the Sector Education and Training Authorities (SETA) Grant Regulations Regarding Monies Received by a SETA and Related Matters (Regulation 27240 of 1 February 2005) must be paid to an employer on condition that the qualifying criteria as set out in this policy are met.  Sub-regulations 6 have specific reference to this policy.

2. Discretionary Grants

The second grant, referred to by the Regulations as discretionary grant; a discretionary grant as set out in the Sector Education and Training Authorities (SETA) Grant Regulations Regarding Monies Received by a SETA and Related Matters (Regulation 27240 of 1 February 2005) must be paid to an employer on condition that the qualifying criteria as set out in this policy are met. Sub-regulations 7 have specific reference to Discretionary Grants.

The purpose of Discretionary Grants is to encourage employers and stakeholders to contribute towards the achievement of the objectives of the Human Resources Development Strategy (HRDS), the National Skills Development Strategy (NSDS) and the CHIETA’s Sector Skills Plan (SSP). Discretionary grants are available to applicants who engage in skills development practices that will lead to the achievement of these objectives and targets.

In addition to the 20% of the Levy contributions that are allocated to the Discretionary Grant, any unclaimed or surplus funds remaining after mandatory grants have been disbursed for the applicable year and any monies earned by a SETA as interest, are transferred to the Discretionary Grant Fund. The amount available for Discretionary Grants varies from year to year and is determined at the beginning of each Discretionary Grant cycle.Given the nature of grant cycles, the Discretionary Grant will only apply for the forthcoming year’s activities. No retrospective funding will be considered.

Applicants are to submit their Discretionary Grant application on the prescribed CHIETA Discretionary Grant application form. One application form is to be submitted per organisation. However where more than one DG category is being applied for, separate project plans should be prepared to motivate for funds to implement different projects, e.g. if applying to implement the Chemical Operations NQF L2 Learnership, and ABET, two applications are needed.

Applications will be evaluated on the basis of:

• Soundness of the proposed intervention,
  
• Compliance with the Discretionary Grant Guidelines, and
  
• Prior Discretionary Grant implementation history.
  
• Relevance to scarce and critical skills