cbe delegation

For a better built environment1

PRESENTATION TO THE PORTFOLIO COMMITTEE ON

PUBLIC WORKS

CBE’S ANNUAL REPORT 2011/12

16 October 2012


CBE Delegation

Mr. Lucky Molobela – CBE Council Member (Standing in for Ms Portia Tau-Sekati – CBE Chairperson)

Ms Gugu Mazibuko – Chief Executive Officer

Ms. Maphefo Sedite – Chief Financial Officer

Mr. Lucas Zepe – Acting Chief Operations Officer

Ms Nana Mhlongo – Acting Manager in the CEO Office


Purpose of the Presentation

To provide an account of the CBE Performance during the 2011/12 financial year as per the commitments made in the CBE 2011 CBE Strategic Plan and Business Plan


Presentation Structure

Contextual Overview

Background and Policy Context

Strategic Goals of the CBE

Description of Programmes

Performance Review/Report

Governance Review

Financial and Audit report

Report on Activities of Professional Councils

Current interventions on transformation and new high impact areas

Chairperson’s concluding remarks


Contextual Overview


Background and Policy ContextThe CBE 2014 Strategic Plan is a product of the Strategic Planning Session held by the new CBE Council on the 11-12 February 2011.

The CBE Strategic Plan was informed by the following key policy documents:

Updated Government’s medium term strategic framework document

2011 State of the Nation Address

Outline of the Minister’s key priorities

The 2011 National Budget including estimates of national expenditure

The 2011 Strategic Plan and 2011/12 Business Plan considered and integrated key national and sectoral policy priorities including inputs from key stakeholders such as Professional Councils

This resulted in realignment of CBE work in an effort to make the organisation and the Built Environment (BE) industry more responsive to important developmental priorities such as job creation and skills development.

The review of the mandate of the CBE was also a key input towards the strategic and business plan for the next MTEF period

The 2011/12 CBE Business Plan was tabled to the Minister of Public Works for consideration and approval.


Strategic goals of the CBEThe strategic planning and realignment processes mentioned in the previous slides resulted in formulation of 8 key strategic goals for the CBE which will guide and inform the work of the CBE over the next MTEF period.

The following are the 8 key strategic goals adopted by the council:

Drive, support and advise on transformation within the Built Environment.

Facilitate integrated development. Perform a leading role in building stakeholder relations. Develop CBE into a thought leader in the BE. Reposition the CBE in the market. Strengthen and maintain an effective and efficient public protection

regime. Inform and influence government infrastructure spend and professional

practice so that they are responsive to national priorities Strengthen the administration function of the CBE

To realise these important goals the organisation has arranged its work into four key programmes which represent a consolidation of key strategic priorities for the organisation going forward.


Description of programmesProgramme Programme objectives

1. Administration To improve the image and profile of the CBE. Establish an efficient, effective and compliant CBE organisation.

To ensure there is a functional human capital aligned to the Programmes of the CBE

To create an output oriented organisation.

To increase financial viability and ensure sustainability of the CBE.

2. Built Environment Academy Provision of funding support to deserving students to study BE qualifications at tertiary institutions.

To promote and facilitate of skills development within the BE. To promote the transformation agenda within the built

environment. Establish a Built Environment Academy

3. Centre for innovation and integrated planning

To improve cooperative relationships with sector partners locally and internationally.

To provide data and information for strategic analysis and decision support capabilities.

To provide sustained research and capacity for policy making

4. Public Interest Ensure effective and efficient tribunals and appeals processes Develop and implement an effective public protection regime


Performance Report


CBE Performance Overview

The CBE is on its 3rd Council term since establishment in 2002.

The year under review has seen the organisation comply with Occupational Health and Safety requirements, with no injury, loss of life in terms of its staff and facilities.

The year under review had a particular focus to initiating a process of aligning CBE’s and that of Built Environment professions to Government’s policy priorities, with the aim of ensuring tangible/auditable contribution to the developmental agenda.


CBE Performance Highlights

Corporate Governance framework developed and being implemented.

Risk Management strategy and plan developed and being implemented.

Good progress was made in improving our relations with other African Countries – MOAs in the process of being concluded.

CBE achieved an unqualified audit opinion in the year under review.

Good progress was made on the Identification of Work – 5 Policies for 5 Councils have since been completed and submissions made to the Competition Commission.


PROGRAMME 1 - AdministrationPurpose: To provide strategic management and administrative support to the CBE

Targets achieved:

Appointment of Risk Champions and implementation of Risk Management Plans

Corporate Governance Framework developed and approved

New PMDS developed and implemented

Reduction on matters of emphasis

Report produced on organisational efficiency

Targets not achieved:

Implementation of the organisational dashboard – Dashboard developed in the last Quarter and to be implemented in the new financial year.


PROGRAMME 2 – Skills AcademyPurpose: To drive and facilitate skills and human resource development in the BE with the ultimate goal of transforming the BE

Targets Achieved:

4 Regulations (Appeals, CPD, Registrations, Identification of Work) completed and submitted to DPW for consideration.

Continue to provide funding to students from the previously disadvantaged backgrounds through the CBE Bursary Scheme.

Accreditation of built environment academic programmes progressing well – as at the end of the financial year, 9 still to be accredited.


Implementation of CPD regulations – Draft regulations submitted to DPW for promulgation.

Development of SGB Policy framework – Project has been rolled over to the new financial year.


PROGRAMME 3- Centre for Innovation and Integrated Planning

Purpose: To work together with member professions to orientate their expertise to the most immediate challenges of the BE and the developmental state

Targets Achieved:

Five research databases in place – to augment CBE research outputs and to provide information for decision-making to the industry.

Stakeholder management strategy and Communication Protocol developed and approved by Council.

Three stakeholder workshops for policy position papers – Recognition of new Professions, Continuous Professional Development and Standard Generation Bodies.

Targets not Achieved:

Advisory reports not completed – 2 Draft reports being reviewed by Panel of Experts and will be finalised in the new financial year

BE Indaba could not be held – CBE requested that the BE Indaba be a bi-annual event.


PROGRAMME 4 – Public InterestPurpose: To promote and protect the interests of the public in the built environment

Targets Achieved:

4 Identification of Work regulations finalised and submitted to Competition Commission (The implication of regulating Identification of Work is that built environment professionals will only be allowed to practice in areas which they have been trained to practice and are competent to practice in. The Identification of Work will effectively mean that no person will be allowed to practice without registration).

Draft Appeals Regulation finalised and submitted to DPW


6 Appeal cases pending and have exceeded prescribed period – Business case being finalised to address bottlenecks around the appeals process


Governance Review


Governance Review

The CBE Council is the Accounting Authority as per section 49 of the PFMA.

The CBE Council reports to the Minister of Public Works (who is the Executive Authority).

The CBE complies with all relevant legislation .

The Accounting Authority assumes responsibilities as mandated by the CBE Act.

The Accounting Authority also discharges this responsibility in line with provisions of section 51 of the Public Finance Management Act, (Act No. 1 of 1999).

In line with good governance (as per the then King II report) and in ensuring the Accounting Authority fulfils its roles as mandated, the following statutory and governance committees were established:


Governance Review cont....Executive Committee

The committee tasked with the approval and monitoring of internal policies and procedures. Also known as the Councils Working Committee, it is responsible for providing strategic guidance on overall management of the organisation.

Human Resource Committee

Responsible for providing oversight and strategic advice on human resource matters

Audit Committee

The audit committee was constituted in line with the PFMA and Treasury Regulations. Its key responsibility is to ensure a sound internal control environment and Risk Management.


Governance Review cont....

Finance Committee

Ensures sound financial management and provides budgetary oversight

Appeals committee

The Committee is mandated to manage the Appeals processes. This is in line with the mandate given to the CBE to act as an Appeals body within the built environment.


Governance Review cont....The following functional committees were also established:

Identification of Work (IDOW)

Identification of Work Committee was established to manage and advice on the Identification of Work process within the built environment.

The ad hoc Committee on Professional Fees

This is an ad hoc Committee established to review and provide guidance on the efficacy of the professional fees.

The Transformation Committee

This is a committee established by Council to provide strategic advice on issues of transformation within the built environment.

Education and Research(EduRes)

Committee was tasked with overseeing and providing strategic advice on research and education related projects.


Governance Review cont....

Member Council Meetings attended

Other committee meetings attended

Claim for attendance

S&T Total claims

P Tau – Sekati (Chairperson 6 21 105 000 19 000 123 000T Majozi (Deputy Chairperson) 4 11 30 000 - 30 000

C Campbell 2 4 17 000 3 000 20 000GT Chaane 4 6 18 000 4 000 22 000C Israelite 4 5 - - -F Johnson 5 4 3 000 2 000 5 000M Klapwijk 3 5 16 000 - 16 000M Kubuzie 3 - 5 000 - 5 000EX Kula Ameyaw 5 19 58 000 8 000 66 000P Mashabane 4 3 15 000 6 000 21 000VV Mdwara 3 8 - - -LW Molobela 1 6 16 000 30 000 46 000 Z Mvusi 1 2 10 000 - 10 000S Ngxongo 5 14 30 000 3 000 33 000DR Nkwashu 2 6 23 000 - 23 000 EI Pieterse 4 4 - - -C Ruiters 1 1 - - -PE Scott 3 7 25 000 7 000 32 000HJ Van der Hoven 5 5 20 000 8 000 28 000 D Coovadia (Audit Committee) - 8 91 000 6 000 97 000T Sihlaba (Audit Committee) - 6 56 000 2 000 58 000F Gastin (Audit Committee) - 5 36 000 1 000 37 000TOTAL - - 574 000 99 000 672 000


Financial and Audit Report


Audit Report Outcomes for the financial year ending 31 March as performed by the Auditor General of South Africa

Obtained an unqualified report once again, with an emphasis of matter as outlined below:

Restatement of corresponding figures

As disclosed in note 27 to the financial statements, the corresponding figures for 31 March 2011 have been restated as a result of an error.


Audit Report Outcomes contNon compliance Detail finding Status to date

Strategic planning and performance management

The accounting authority did not submit the proposed strategic plan to the executive authority for approval at least six months.

Strategic plan submitted timeously in the current year

Annual financial statements, performance and annual reports.

The financial statements submitted for auditing were not prepared in accordance with the prescribed financial reporting framework as required by section 55(1) (b) of the Public Finance Management Act.

Adjustments duly made with controls implemented to avoid repeat finding

Procurement Contracts were awarded to bidders who did not submit a declaration on whether they are employed by the state or connected to any person employed by the state.

Contracts were awarded to bidders who did not submit a declaration of past supply chain practices such as fraud, abuse of Supply Chain Management system.

National treasury notified on both findings in October 2011, controls implemented

Expenditure management

Accounting authority did not take steps to prevent irregular expenditure and fruitless and wasteful expenditure

Matter still under investigation


Analysis of Financial StatementsFinancial Category

2012R’000

2011R’000

% change

Analysis of movement from prior year

Non Current Assets 1 571 1 398 12%

Change in accounting policy resulting in extended useful life. Limited capital commitments have been made in year under review.

Current Assets 6 607 5 035 31%

Due increase in cash and cash equivalent of 37%

Current Liabilities 4 922 2 578 91%Due to increase in trade payables

Accumulated Surplus 3 256 3 855 -16%

Due to maximum utilisation of allocated funds

Total Revenue 29 468 27 237 8.19% Net increase in revenue, including grant allocation

Total Expenditure

(30 067)

(31 365) -4.14%

Mainly due to decrease in other operating expenses of (33%) as well as depreciation

Net Surplus/(Deficit) for the year

(599.0)

(4 128.0) -85.49%

Due to maximum utilisation of allocated funds


Human Resource Report


Human Resource

Total approved staff composition 32 of which only 27 is funded.

55%: 45% operations vs admin staff

Senior Management consists of the following gender split:

1 Female

2 Male

Middle Management consists of the following gender split:

3 Female

3 Male


CBE equity statistics by population groups and sex, March 2012.

Populationgroup

Male Female Total

Number % of malepopulation

Number % of femalepopulation

Number % of totalpopulation

African 8 80 11 73 19 76

Coloured 1 10 1 7 2 8

Indian/ Asian

0 0 1 7 1 4

White 1 10 2 13 3 12

Total 10 100 15 100 25 100


Report on Activities of Professional Councils


Regulatory mandate of CBE

The CBE locates itself within the Developmental State paradigm and seeks to ensure that BEPs through Professional Councils support the growth and development objectives of Government as captured in its various planning documents, e.g. MTSF and NGP.

The regulatory approach of the CBE is to steer and guide the activities and performance of the Professional Councils to ensure that they contribute meaningfully to government’s policy priorities such as job creation, economic growth, skills development and reduction in green house gas emissions.

The Conduct of the PCs and BEPs should therefore be ultimately assessed against whether or not they contribute in meeting these policy priorities.

In addition Built Environment Professional Councils must be assessed on their ability to effectively discharge the mandate that has been delegated to them by the State through the Acts of Parliament.


1. Governance of Professional Councils

Recognition of Voluntary Associations (VA’s): In the year under review no new Vas were recognised but recognition of one VA was withdrawn by SACQSP. VA’s are important knowledge and skills custodians and their growth should be nurtured through formal recognition.

Code of Conduct: A Code of Conduct policy framework was developed by the CBE in 2009 and has been operational since then. All BE Councils have developed Codes of Conduct which govern ethical conduct within the Professions. Failure to adhere to ethical codes of conduct results in disciplinary action.

Disciplinary Cases: Our statistics show a decreasing trend in the number of disciplinary cases from 257 in 2008 to 172 in 2012 – a 33% decrease. CBE however remains concerned, because firstly the numbers are still high, secondly a significant number of cases relate to professional incompetence.


1. Governance of Professional Councils, cont…

Number and trend of disciplinary cases per Council

2008/09 2009/10 2010/11 2011/12

SACPVP 23 14 19 14

SACQSP 19 11 19 19

ECSA 79 13 57 51

SACAP 136 120 62 86

SACPCMP 0 0 10 2

SACLAP 0 0 4 0

TOTAL 257 158 171 172

% change 0% -39% -33% -33%


2. Public ProtectionAppeal body and procedures: The CBE is an Appeals Body within the industry as per section 4(m) of the CBE Act. As reported earlier there are challenges within this function both at CBE level and at Professional Councils level. CBE is developing a best practice model for Appeals, Panel of Chairpersons is being finalised and draft Appeals regulations are being refined following consultations with HPCSA.

IDoW: As at the end of March 2011, CBE had completed 5 of the 6 Identification of Work policies for Councils. ECSA’s IDoW is planned for completion by end of the 2012/13 financial year. Applications for exemption from the Competition Act have also been made. We are awaiting response from the Commission.

The implication of regulating Identification of Work is that built environment professionals will only be allowed to practice in areas which they have been trained to practice and are competent to practice in. The Identification of Work will effectively mean that no person will be allowed to practice without registration.


3. Sustainable and Integrated Development

Guideline on Professional Fees: CBE has developed a policy framework as a guideline for professional fees. As per their Acts Professional Councils continue to publish annual guideline professional fees. Competition Commission has raised concerns about the possible uncompetitive nature of professional fees. CBE is engaging with the Competition Commission to address the matter.

Recognition of new Professions: CBE completed a policy position paper that was approved by Council and submitted to Minister of Public Works for consideration. The CBE is currently developing a policy framework that will guide the recognition and incorporation of built environment professions that fall outside the ambit of the CBE Act (such as Town Planners and Land Surveyors because they operate within the built environment)


4. Human Resource Development

The CBE is given a mandate to promote ongoing human resource development within the built environment (with a specific focus on issues of skills development and education related matters). To this end various policy interventions were made in the year under review.

Key policy developments during the 2011/12 financial year include:

Development of draft registration regulations to regulate the registration function.

A policy position paper on continuous professional development and how this function could be used as a lever for the industry to contribute to development objectives of the state such as skills development.

Accreditation: There were 23 unaccredited programmes in 2009, 10 in 2009 with 9 remaining unaccredited in 2011.

The CBE developed an accreditation time-table which is used as a basis for monitoring accreditation of programmes within the built environment.


Percentage of professionals that comply with CPD requirements

COUNCIL 2008 2009 2010 2011

ECSA 70% 70% 70% 70%

SACQSP 2,2% 95% 97% 97%

SACPVP 33% 5% 60% 60%

SACAP 57% 76% 60% 95%

SACLAP Policy reviewed Policy reviewed 95% 95%

SACPCMPPolicy under development

Policy under development

Policy gazetted for comment to be

implemented in the 2011/12 financial

year

Policy gazetted for comment by 01st

April 2012


UNACCREDITED PROGRAMMES IN 2010

ECSA SACQSP SACPCMP SACLAP

UNISA BTech and ND (Engineering) -Chemical-Civil-Electrical-Industrial-Mechanical

N/A N/A ND in Landscape Technology

Cape Peninsula University of Technology

Bachelor of Technology in Quantity Surveying

BTech in Construction ManagementMTech in Construction Management

N/A

Central University of Technology

BTech in Quantity Surveying

N/A N/A

Durban University of Technology

N/A N/A ND in Landscape Technology

Tshwane University of Technology

N/A ND in Landscape TechnologyBTech in Landscape Technology


Human Resource Dev Cont – Registrations


4. Human Resource Development - RegistrationsRegistration: 10218 (22%) growth in new registrations between 2008 and 2011.

Registration: Candidate registration grew by 16% between 2009 and 2011.

Registration: Racial composition of candidates is encouraging. Statistics show that 62% of registered candidates are black and only 38% are white – challenge is slow progress to convert to registered professionals

However: these statistics hide a concerning picture in professions such as Architecture, Landscape Architecture and Property Valuers which still fall below 50% mark in black candidates.

Picture of Registered Professionals : improvement minimal - 64% White, 24% African; 7% Indian/Asian; 3% Coloured & 2% Other.

Previous Year – Registered Professionals - 66% White, 20 % African; 7 % Indian/Asian; 3 % Coloured & 4% Other.

Improvement is noted between the two years – but progress is still too slow.


Percentage breakdown of candidates per profession


Racial breakdown of the candidates per profession


Registrations Continued – Racial Profile of the professions


Human Resource Dev Continued


Remaining areas of concern

Transformation of the built environment professions

Poor throughput rates (school level, tertiary level and candidature level)

Compliance legislative time frames for Appeals

Completion of Identification of Work


Current interventions on

transformation and new high impact areas


Current interventions on transformation and new high impact areas

Transformation

Development of a transformation framework and Action Plan by the CBE Council.

Implementation of the CBE Skills Pipeline proposal – focusing on quality assured Structured Candidacy Programme for the built environment.

Research on incorporation of labour based techniques and health and safety into the built environment academic curricula.

Career exhibitions targeting rural and township schools – Schools Programmes working with DPW and VAs.

Learner support programmes for Maths & Science targeting Grade 11 and 12 learners.

Partnerships to encourage young female learners to pursue careers in built environment – Girl Engineering Events.

Public sector technical/built environment skills initiatives including Public Sector Engineers Forum, partnership with MISA (Municipal Infrastructure Support Agency) on technical skills development initiatives for municipalities; especially engineers.


Current interventions cont..Appeals

Appointment of the Panel of Chairpersons for Appeal Cases

Best practice model for holding appeals within the six BE Professions

Identification of Work

Fast-tracking the current engagement process with ECSA

Engagements with the Competition Commission


Thank you

cbe delegation

Documents