Presentation to Portfolio Committee: CBE Strategic Plan, Annual Performance Plan and Budget for 2017/18 financial year Ms Priscilla Mdlalose 02 May 2017

CBE Delegation Ms Priscilla Mdlalose (Acting CEO) Mr Clifton Changfoot (CFO)

Content 1. Strategic Plan 1. 1 Vision, Mission and Values 1.2 Mandate 1.3 Legislative Mandate 1.4 Alignment with NDP, Government and Minister’s Priorities 1.5 Strategic Goals 2. Annual Performance Plan 2.1 Updated Situational Analysis 2.2 Description of the strategic planning process 2.3 Programme Outputs 2.4 MTEF financial resources for the CBE and Human Resource

Strategic Plan

CBE Vision and Mission Vision: An environment built to meet people’s needs and aspirations. Mission: Implementing projects and programmes that address built environment issues and add value to the built environment professions, government and the general public.

Mandate: Council for the Built Environment Act (no. 43 of 2000) Promote and protect the interest of the public in the built environment; Promote and maintain a sustainable built environment and natural environment; Promote ongoing human resources development in the built environment; Facilitate participation by the built environment professions in integrated development in the context of national goals; Promote appropriate standards of health, safety and environmental protection within the built environment; Promote sound governance of the built environment professions;

Mandate: Council for the Built Environment Act (no. 43 of 2000) 7. Promote liaison in the field of training in the Republic and elsewhere and to promote the standards of such training in the Republic; 8. Serve as a forum where the built environment professions can discuss relevant issues; and 9. Ensure uniform application of norms and guidelines set by the Professional Councils throughout the built environment.

Legislative Mandate Republic of South Africa Constitution of 1996 Council for the Built Environment Act, 2000; Architectural Profession Act, 2000; Landscape Architectural Professional Act, 2000; Engineering Profession Act of South Africa, 2000; Project and Construction Management Profession Act, 2000; Quantity Surveying Profession Act, 2000; and Property Valuers Profession Act, 2000 Public Finance Management Act, 1999 Skills Development Act 97, 1998 Employment Equity Act, 1998 Consumer Protection Act, 2011 Construction Industry Development Board Act, 2000

Legislative Mandate Promotion of Access to Information Act, 2000 Minimum Information Security Standards, 1996 Occupational Health and Safety Act, 1993 National Treasury Regulations National Archives of South Africa Act, 1996

Alignment with National Development Plan National Development Plan (NDP) CBE alignment to NDP  Chapter 3: Decent employment through inclusive economic growth Facilitate participation by the built environment professions in integrated development in the context of national goals Chapter 9 Improving education, training and innovation. A transformed Built Environment(BE) with appropriate, adequate skills and competencies, responsive to the country’s infrastructure delivery, operation and maintenance needs

Alignment with Minister’s Priorities Government outcomes Strategic goals  Outcome 5 in the NDP: skilled and capable workforce to support an inclusive growth path A transformed Built Environment (BE) with appropriate, adequate skills and competencies, responsive to the country’s infrastructure delivery, operation and maintenance needs. Transformation in the construction sector Build state capacity in the Built Environment Professionals To provide informed and researched advice to Government and the public on BE priority matters identified in the Medium Term Strategic Framework (MTSF).

Strategic Goals  Goal 1 - Provide support to CBE, thus contributing directly and indirectly to the delivery of all strategic outcome oriented goals of the CBE. Goal 2 - A transformed Built Environment (BE) with appropriate, adequate skills and competencies, responsive to the country’s infrastructure delivery operation and maintenance needs.   Goal 3 - An optimally functioning BE, with a responsive and relevant policy and legislative framework, based on informed and researched positions. Goal 4 - Built Environment Professions that operate within a regulated policy and legislative framework. Goal 5 - A BE that is responsive to the developmental and economic priorities of Government.

Annual Performance Plan

Updated Situational Analysis The Finance Minister, Pravin Gordhan in his 2016 budget speech allocated R879 billion to be invested in public infrastructure. Energy was allocated R70 billion on 2016 and R180 billion over the next three years (2017-2019). An amount of R292 billion was allocated for transport and logistics infrastructure over the next three years. Housing subsidy programmes were allocated R62 billion. R28 billion was allocated for improving health facilities and R54 billion was allocated for education infrastructure.

Updated Situational Analysis – cont’d The Presidential Infrastructure Coordinating Commission (PICC) coordinates the planning and implementation of Strategic Infrastructure Projects (SIPs) with the purpose of unlocking economic opportunities in all nine provinces. This kind of budget for infrastructure projects demands competent built environment professionals to drive this massive development. The CBE facilitates participation of the registered professionals in these programmes by engaging the six BEPCs to introduce these programmes to institutions of higher learning and through their voluntary associations.

Updated Situational Analysis – cont’d Poor economic growth has a negative impact on the growth in the construction industry – these were impacted by labour action in 2015. Placement of interns and up skilling of graduates depend on the functioning economy. The CBE is establishing key partnerships to support placement of interns and work place training. Collaboration with government departments to fast track the registration of candidates by introducing CBE Structured Workplace Training Framework- this initiative supports the capacitation of the State which is one of the priorities of the government.

Updated Situational Analysis – cont’d BE practitioners need to be equipped with relevant skills such as labour intensive techniques to facilitate the implementation of public employment programmes such as Expanded Public Works Programme (EPWP). Quality of Maths and Science in basic education – CBE collaborates with initiatives to support learners to improve their Maths and Science results and to encourage them to register for built environment courses. Initiative to attract BE practitioners towards registration and to sustain their registration by engaging Competition Commission on the issue of identification of work. Recruitment of the CEO.

Description of the Strategic Planning Process The CBE took cognisance of the SONA 2016 priorities, which are to resolve energy challenges, grow the ocean economy, and provide water, sanitation and transport infrastructure. This requires skilled human capital which is accountable to government’s priorities. CBE, through working and supporting the BEPCs, works to ensure that there is a skilled and competent workforce within the built environment to support Public Works to deliver on its infrastructural delivery mandate. The APP considered the Minister’s updated policy statement issued in June 2016, thus the CBE’s focus will be to strengthen collaborations with Government departments and its entities tasked with delivering infrastructure, as well as with industry.

Description of the Strategic Planning Process CBE Council had their Strategic Planning session in May 2016, and the first draft of the APP was developed by Management and Staff in July 2016. First, second and final drafts were presented to Council and submitted to DPW in as per agreed timelines. The CBE contributes to Outcomes 4, 5, 6 and 12. BEPs as important contributors to the development priorities of the State, contribute to 14 Outcomes of Government.

Programmes and Outputs Programme 1: Administration Programme 2: Skills for Infrastructure Delivery Programme 3: Built Environment Research, Information and Advisory Programme 4: Regulation and Oversight of six BEPCs Programme 5: Government Policies and Priorities

Programme 1: 2017/2018 Outputs The administrative function provides support to the entire CBE, thus contributing directly and indirectly to the delivery of all strategic outcome oriented goals. The focus areas are the ICT and financial support services. The CBE is planning for an unqualified opinion, with no findings (clean audit). Programme 1 targets: IT Governance Framework, in line with DPSA’s Corporate Governance of ICT Policy Framework, implemented by 31 March 2018. ICT Plan implemented by 31 March 2018. An unqualified audit report, with no material financial findings, for 31 March 2018.

Programme 2: 2017/2018 Outputs The strategic objective of Programme 2 is to drive and facilitate skills development and transformation in the BE. Additionally, this Programme will aim to translate the knowledge generated from its pilot projects into frameworks/action plans for large scale cooperative implementation or facilitation and assistance of such. The initiatives of this Programme are: Two categories of high demand professions’ implementation plans developed in support of Landscape Architect and Property Valuer professionals for SIPs by 31 March 2018. 150 Grade 12 learners enrolled in a Maths and Science support programme by 31 March 2018. This and increasing awareness at school level of built environment professions as a viable career choices.

Programme 2: 2017/2018 Outputs cont’d 50 New intake of Candidates/BE graduates in workplace training by 31 March 2018. 100 Interns placed for work integrated learning by 31 March 2018. One oversight report on the Accredited Academic Programmes by the BEPCs by 31 March 2018. Nine Provincial Public Works Departments engaged on the implementation of the CBE Structured Candidacy Framework by 31 March 2018.

Programme 3: 2017/2018 Outputs The strategic objective of Programme 3 is for CBE to provide informed and researched advice to Government and the public on BE priority matters identified in the MTSF. To achieve the above, the programme focus areas will be: One report on initiatives to support infrastructure skills within Government by 31 March 2018. One research report on the state of readiness of municipalities to implement the Standards for Infrastructure Procurement and Delivery Management (SIPDM) by 31 March 2018. Research reports on analysis of the impact of built environment skills development initiatives by 31 March 2018.

Programme 4: 2017/2018 Outputs Programme 4 focuses on ensuring that Built Environment Professions (BEPs) operate within a regulated policy and legislative framework. To achieve the above, the focus areas of programme 4 will be: Process and decide on received appeals within the prescribed period of 60 days from lodgement . Develop an Identification of Work Action Plan approved by Council by 31 March 2018. Review and align the CBE Corporate Governance Framework with the King IV principles of Corporate Governance, by 31 March 2018.

Programme 4: 2017/2018 Outputs cont’d Assessment report on the six BEPCs Policies alignment with the seven (ministerial approved) Policy Frameworks, 31 March 2018. 50 Percent of the PFMA workshop outcomes implemented by 31 March 2018. The six BEPCs Strategic Plans, APPs and Annual Reports are submitted to DPW by 31 March 2018.

Programme 5: 2017/2018 Outputs The goal of programme 5 is a BE that is responsive to the developmental and economic priorities of Government (transformation being on the key priorities of the Minister). The objective is to ensure that BE academic curricula and CPD programmes embody health and safety in construction; environmental sustainability; job creation through labour intensive construction and the IDMS. To achieve the above, the focus areas of programme 5 will be: Implementation plan to incorporate health and safety, sustainability, labour intensive construction and the IDMS into BE academic curricula by 31 March 2018. A bench marking study on Transformation by 31 March 2018.

Budget Per Programme Expenditure Per Programme Audited Outcome Current Year Medium-Term Estimate R in Thousands 2011/12 2012/13 2013/14 2014/15 2015/16 2016/17 2017/18 2018/19 2019/20 Programme 1 15 278 15 539 16 747 30 081 24 803 38 068 40 286 42 517 45 062 Programme 2 4 139 3 492 4 917 7 293 11 873 5 853 7 306 7 737 9 389 Programme 3 7 913 6 548 8 875 2 217 4 736 2 335 2 480 2 626 2 773 Programme 4 2 737 2 600 3 259 1 630 2 535 860 913 967 1 021 Programme 5 - 444 470 497 Total Expenditure 30 067 28 179 33 798 41 221 43 947 47 116 51 429 54 317 58 742

Sources of Income and Disbursement Estimate Per Standard Items Audited Outcome Current Year Medium-Term Estimate R in Thousands 2011/12 2012/13 2013/14 2014/15 2015/16 2016/17 2017/18 2018/19 2019/20 Revenue Grant allocation 27 433 28 146 38 159 41 572 41 994 43 413 48 568 51 385 54 262 Interest 378 322 18 150 1 703 851 902 953 Levies 1 657 1 784 1 840 2 173 1 803 2 000 2010 2 030 2 144 Total Revenue 29 468 30 252 40 017 43 745 43 947 47 116 51 429 54 317 57 359

Sources of Income and Disbursement Estimate Per Standard Items Audited Outcome Current Year Medium-Term Estimate R in Thousands 2011/12 2012/13 2013/14 2014/15 2015/16 2016/17 2017/18 2018/19 2019/20 Economic classification Current payments 30 067 28 179 33 798 41 221 43 947 47 116 51 429 54 317 58 742 Compensation of employees 14 140 13 707 16 228 16 600 19 330 25 026 26 878 28 867 31 003 Salaries and wages Social contributions -  - Goods and services 15 927 14 472 17 570 24 621 24 617 22 090 24 551 25 450 27 739

Sources of Income and Disbursement Estimate Per Standard Items Audited Outcome Current Year Medium-Term Estimate R in Thousands 2011/12 2012/13 2013/14 2014/15 2015/16 2016/17 2017/18 2018/19 2019/20 Agency and support / outsourced services 15 643 14 141 6 280 5 979 9 618 - 1 090 1 154 Communication 424 1 024 542 416 442 468 494 Computer services 1 026 1 774 1 010 245 813 861 909 Consultants 4 116 10 058 6 178 7 020 6 903 7 310 7 720 Lease payments 3 718 4 526 4 658 4 713 5 005 5 300 5 353 Repairs & Maintenance 19 20 21 22

Sources of Income and Disbursement Estimate Per Standard Items Audited Outcome Current Year Medium-Term Estimate R in Thousands 2011/12 2012/13 2013/14 2014/15 2015/16 2016/17 2017/18 2018/19 2019/20 Training and staff development 135 144 153 162 Travel and subsistence - 1 506 1260 1580 1 999 2 123 2 248 2 374 Depreciation 284 331 500   Other 7 543 8 011 7 935 10 705 Total Expenditure 30 067 28 179 33 798 41 221 43 947 47 116 51 429 54 317 58 742 Surplus/(deficit) for the year -599 2 073 6 219 2 524 (1 383)

Staff Establishment Salary Level Filled posts Vacant posts Total establishment Current Vacancy rate 01 1 0.00 02 - 03 04 05 1.00 06 2 07 3 0.33 08 09 4 0.25 10 6 7 0.14 11 0.67 12 5 13 8 9 0.11 14 15 16 Grand Total 32 39 0.18

Strategic Challenges in the Planning Environment Some risks, prevalent in the delivery environment, that could affect CBE’s delivery include: Funding constraints experienced by BEPCs; Poor coordination of various institutions and departments in the sector that could impact delivery against Government’s outcomes; and Ineffectiveness in driving the Transformation Agenda, while growing knowledge economy.

CBE’s response to the Challenges in the Planning Environment CBE will collaborate and enter into inter-sectoral and inter-governmental partnerships, and develop Memoranda of Understanding (MoUs) with other Government departments, municipalities, and the private sector. In addition, CBE will continue to support the BEPCs to ensure that their Strategic Plans and APPs align with the strategic outcomes of Government.

Conclusion CBE is playing a key role in promoting government development priorities through its engagements with role-players in the built environment sector – this places more demand for the visibility of the CBE in all nine provinces. The strategic move for the CBE is to work through DPW Regional and Provincial offices on some of its initiatives. Metros are targeted as strategic partners as well. Capacitation of the built environment industry is key to the CBE. Creating awareness in schools will be strengthen to influence learners to prefer built environment careers at an early age.

Thank You