PRESENTATION TO THE PORTFOLIO COMMITTEE ON PUBLIC WORKS Annual Report 2007 PRESENTATION TO THE PORTFOLIO COMMITTEE ON PUBLIC WORKS

OVERVIEW Introduction Background Highlights Achievements Challenges Annual Financial Statements Response to the Auditor General’s Report Corporate Governance Annual Financial Statements for BE councils Future Plans Conclusion

Background Started operations in 2001 Somewhat slow development in the first four years Inauguration of the new Council in August 2006 Appointment of Acting CEO in September 2006 Preparation of annual report Development of the business plan and budget – submitted to Executive Authority Dec. 2006 Development of policies (first lot approved by Council in December 2006) Staffing of the organisation (especially programmes unit) Implementation of the business plan Development of organisational systems (budgeting, operational and reporting)

INTRODUCTION The CBE Mandate Acting as advisor to the Minister on policy and regulations affecting the built environment Coordinating application of mandated policy and maintenance of standards role for the six professional councils to ensure consistent Conduit for communication between the Ministry of Public Works and the professional Councils Adjudicating on appeals from professional council members and members of the public on issues related to these professions Ensure good governance in provision of professional services and protect the public in South Africa against unsafe practices by the built environment professionals Promote liaison in the field of training in the built environment in SA and elsewhere Promote and protect the interest of the public in the built environment

Institutional Development and Governance Council and Council Committees Development of systems (ToRs, Delegations) Attendance Organisational Structuring Implementation of new structure Unemployed graduates (CBE and PCs) Policies and Procedures Developed policies Developed planning, operational and reporting systems

CHALLENGES Transformation of the built environment sector Legislative Governance Structures Demographic profiles of registered persons Legislative Councils CBE Integrative issues BE Professional Councils Inadequate funding Poor achievements of set mandates Inadequate protection of the public

CORPORATE GOVERNANCE The Council Sub-Committees of the Council Terms of Reference for Committees Corporate governance workshop – Internal Auditors PFMA and Treasury regulation – Auditor General Strategic planning and budgeting process Risk management plan

Professional Development Pipeline SCHOOL TERTIARY CANDIDACY CPD Degree Professional registration University entrance

ACHIEVEMENTS Putting in place systems to comply with the Public Finance Management Act and general governance Planning and budgeting Reporting (Reporting framework from DPW) Appointment of CFO Setting up delegations of authority system

ACHIEVEMENTS Creating public awareness of CBE’s role and responsibilities Visits to provinces (DPW and other infrastructure departments) Targeted engagements with stakeholders Presentations at conferences

ACHIEVEMENTS Institutional development within the CBE Staffing Policies and procedures Better management of service providers

ACHIEVEMENTS Improved coordination with the Professional Councils Registrars forum Quarterly reporting to DPW Participation of Councils in CBE processes

ACHIEVEMENTS Improved public protection Setting up of the Appeals committee Development of the appeals process (regulation, procedures) Dealing with backlog of appeals

ACHIEVEMENTS Participation in DPW initiatives Cuban Professionals DRC commissions National youth service Now part of the HoDs Forum and MINMEC

ACHIEVEMENTS Partnerships MoUs Working closely with the JIPSA task team Interaction with voluntary associations Created relations with universities (Research and library resources) MoUs CETA CHE WIH

ACHIEVEMENTS Programmes National Skills Audit Continuous Professional Development Career Awareness Skills delivery Pipeline Transformation of the professions

ACHIEVEMENTS Outreach Unemployed graduates project

ANNUAL FINANCIAL STATEMENTS BALANCE SHEET Analysis Increase in non current assets relate to improved office infrastructure Decrease in Current Assets due to write off of fruitless expenditure incurred in previous year Decrease in non-current and current liabilities due to improved policies and procedures INCOME AND EXPENDITURE Successful implementation of CBE institutional development resulting in increase in employee cost Growth of the CBE, and write off of fruitless expenditure led to increase in both other operating expenses and administration expenses Other operating expenses relate mainly to expenditure on projects Deficit as a result of general increase in total expenses and write off of fruitless expenditure (an area to be watched through expenditure control)

RESPONSE TO ISSUES RAISED BY THE AUDITOR GENERAL’S REPORT Non compliance Policies and Procedures Performance Information Debtors Management Policies not approved Fraud Prevention Plan HR Plan Inventory and Asset Management Late submission of strategic plan and budget Registration of professional councils with national treasury Performance information Performance Compact with Executive Authority Reporting Framework developed with DPW

SACAP HR Profile (improvements) Increased registrations Two accreditation visits CPD Policy Education Fund Grants (16 students) Governance Financials 160% Increase in fees income due to increase in registration (Notice no.127/2006) Corresponding increase in operating cost Non current asset increase due to increase in investment Increase in current assets due to increase in debtors and cash flow Current liabilities increase due to accounts payable and fees received in advance increment

ECSA HR Profile Governance Accreditation of programmes (5 universities) Registrations ( Race and Gender profile) Tribunals (112 complaints) Financials 17% Increase in fees income due to increase in registration Corresponding increase in operating cost Non current asset decrease due to decrease in investment Increase in current assets due to increase in debtors and cash flow Current liabilities increase due to accounts payable and fees received in advance increments

SACPCMP HR Profile Accreditation (2008) Registrations (Race and Gender Profile) Governance (Profile) Tribunals (23 appeals re registration) Financials Increase in income due to 32 % increase registration as well as 100% increase in government grant Minor increase in operating cost Non current asset increase due to investment in furniture Increase in current assets due to increase in debtors and cash flow Current liabilities increase due to accounts payable

SACLAP HR Profile (No Staff) Governance Accreditation of programmes (no visits) Registrations ( Race and Gender profile, decrease) Tribunals (no tribunals) Financials Minor increases in income due to a transfer from CBE Decrease in operating cost (Council non functional) Minor increases in non current asset Increase in current assets due to increase in cash flow Minor increases current liabilities

SACPVP HR Profile (small compliment 4) Governance Accreditation of programmes (no accreditations) Registrations ( Race and Gender profile) Tribunals (5 disciplinary hearings) Financials Increases in income due to increase in registration as well as examinations Increase in operating cost due to increase in council and sub-committee meetings Non current asset increase due to investment in furniture Increase in current assets due to increase in cash flow Minor decreases in the current liabilities

SACQSP HR Profile Governance Accreditation of programmes (six universities and two UoTs) Registrations ( Race and Gender profile) Tribunals (nil) Financials 45% increases in income due to increase in registration Increase in operating cost due to increase in accreditation as well as bad debts Increase in current assets due to increase in cash flow and increase in loans to associations. Increases in the current liabilities due to increase in payables

FUTURE PLANS Establishment of forums for ongoing engagement with DPW and other Ministries which engage in the built environment Engage process of preparation for legislative review Investigate appropriate institutional arrangements Obtain more funds to ensure improvements in public protection Improve governance, more especially within the BE professions Intensify policy development

Inaugural Speech -12 August 2006 CONCLUSION Improvements from the previous period Better functioning between CBE and the PCs Still a number of improvement areas Current institutional arrangements not optimum Legislative review necessary Concerted effort needed to transform the professions Confidence in the future prospects of CBE Continued support from the Portfolio Committee, Ministry and Dept “In order for ASGISA to attain its goals and effectively carry out it’s responsibility within the Built Environment, we have to concentrate on scarce skills that will inhibit the attainment of goals set out by ASGISA.” Sipho Madonsela Inaugural Speech -12 August 2006

Q & A Thank you