1. PRESENTATION TO THE PORTFOLIO COMMITTEE ON PUBLIC WORKS CBE ANNUAL REPORT 2014/ March By Priscilla Mdlalose (Ms)

2. CBE Delegation Mr. Isaac Nkosi – CBE Chairperson
Ms Priscilla Mdlalose– Acting Chief Executive Officer
Mr. Clifton Changfoot – Chief Financial Officer

3. Purpose of the Presentation
To provide an account of the CBE Performance during the 2014/15 financial year as per the commitments made in the CBE Strategic Plan and 2014/15 Annual Performance Plan

4. 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

5. Contextual Overview

6. Background and Policy Context
The CBE Strategic Plan is a product of the Strategic Review Session held by the CBE Council in October 2014.
The CBE Strategic Plan was informed by the following key policy documents:
CBE’s mandate derived from the CBE Act of 2000, key national and sectoral priorities including inputs from key stakeholders such as Professional Councils,
Updated Government’s medium term strategic framework document,
2014 State of the Nation Address,
Outline of the Dept of Public Works Minister’s key priorities, and
The 2014 National Budget and appropriation for 2014/15.
This review resulted in realignment of CBE activities to make the organisation and the built environment (BE) industry more responsive to developmental priorities such as transformation and skills development.

7. Strategic Goals of the CBE
The following are the 10 key strategic goals adopted by the Council:
Ensuring that Built Environment (BE) academic programmes curricula address issues of Labour Intensive Construction, implementation of the Infrastructure Delivery Management System (IDMS), Sustainable Development and Health and Safety;
Promotion of high demand skills for Strategic Infrastructure Projects (SIPs);
Stepping up mechanisms, programmes, projects and interventions to drive transformation and ensuring adequate representation of women and black people within the BE through the CBE Transformation Model;
Scaling up the Maths and Science support programme to reach learners in grade 1 to 12 in 2018;
Establishing a Structured Candidacy Programme for candidates and interns to address bottlenecks in the skills pipeline;

8. Strategic Goals of the CBE Cont.
Supporting workplace training of BE graduates/candidates and interns to deepen competencies and to promote professional registration;
Strengthening the technical capacity of local, provincial and national government;
Aligning the policy planning and reporting processes of Built Environment Professional Councils (BEPCs) to the government’s planning cycles and the government’s priorities;
Strengthening monitoring and regulatory work on delegated public functions of the BEPCs; and
Enhancing internal systems, controls and capabilities to allow the organisation to deliver on its mandate and strategic goals.
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.

9. Description of programmes
Programme objectives
1. Government Policies and Priorities
To ensure that the CBE has necessary capacity and capability to support government’s development priorities within the built environment, including infrastructure delivery programme, health and safety in construction, environmental sustainability and job creation.
2. Skills Development in the Built Environment
Drive and facilitate skills development and transformation within the built environment.
3.Research and Information in the Built Environment
To provide research, knowledge and information on BE issues pertinent to BE professionals, DPW, and BE issues impacting on service delivery and the economy.
4. Public Interest
To act as an appeals body on matters of law referred to CBE in terms of legislation regulating the BE professions, and to promote and ensure high standards of professional ethics and conduct within the built environment.

10. Performance Report

11. CBE Performance Highlights
Achievement of 96% of the total APP deliverables in 2014/15 compared to 86% achievement in 2013/14 and 71% in 2012/13.
Achievement of an unqualified audit opinion for 2014/15.
Corporate Governance Framework and Risk Management strategy and plan, developed and implemented.
Inaugural Maths & Science intervention that supported learners in four provinces.
The CBE Workplace Training Programme is an ongoing CBE intervention in which 53 candidates and 101 interns are placed with host workplace training employers.

12. CBE Performance Highlights
CBE participated in 13 Accreditation visits out of the scheduled 21 visits, together with four professional councils
A report titled: A benchmark analysis of alternative approaches to attract, develop and retain BE professions in three government spheres was finalised.
Adoption of a reviewed Appeals Policy by Council, introducing a simplified procedure aimed at cost and time saving.
Completion of all appeal cases, within the legislated 60 day period
The introduction of a best practice model on appeals and disciplinary investigations to all six BEPCs.

13. PROGRAMME 1 – Government Policies and Priorities
Purpose: To ensure a capacitated and capable CBE that is responsive to government’s development priorities in the built environment.
All six annual targets of the programme were achieved
One report on skills needs relating to built environment graduates and professionals required to support government’s infrastructure delivery programme
One project to support health and safety in construction initiatives implemented
One research project on environmental sustainability within the built environment implemented by One project on supporting government’s job creation priorities implemented
One report on implementation of transformation programmes and targets by six BEPCs Statutory compliance: Unqualified Audit report

14. PROGRAMME 2 – Skills Development in the Built Environment
Purpose: To drive and facilitate skills and human resource development in the BE in line with the CBE mandate and in support of national goals and priorities, as well as transformation
All of the six annual targets of the programme were achieved
150 students reached through the roll out Mathematics and Science
Report on the adoption of a structured candidacy framework that incorporates quality assurance guidelines by the six BEPCs
One report on the workplace training project for 50 candidates
One report on 100 interns placed in workplace training
. One oversight report on the accreditation of academic programmes and academic institutions by the BEPCs by
One report on the implementation of the registration function (including RPL) by the SACPCMP

15. PROGRAMME 3 - Research and Information in the Built Environment
Purpose: To provide research, knowledge and information on the built environment to enable the CBE to advise government on matters falling within the scope of the built environment.
Four out of five annual targets were achieved
Targets Achieved:
Two research reports on BE issues pertinent to the BEPCs
Two research reports on BE issues that are of priority to DPW
One research report on BE issues impacting on service delivery
One research report on BE issues impacting on the economy

16. PROGRAMME 3 - Research and Information in the Built Environment
Target not achieved:
One pilot project on the Research and Information hub for the BE issues by 31 March was not achieved.
The aim was to develop a central Information and Knowledge repository portal for the BE on
an Information Communications Technology platform.
Reason for non-achievement: Lack of human capacity.
Remedial measures: The CBE has revised the job description of this position, and it will be incorporated in the overall responsibilities of the Knowledge and Information function.

17. PROGRAMME 4 – Public Interest
Purpose: To fulfill the statutory mandate of the CBE to act as an appeals body on matters referred to it in terms of the law regulating the BEPs and the implementation of IDoW as per the CBE Act 43 of 2000.
All four of the annual targets were achieved
An annual report on 100% finalisation of appeals within statutory 60 days
One implementation report on the Best Practice Model for appeals and disciplinary proceedings within the built environment by the six BEPCs
Report on the implementation of the decision of the Competition Commission’s (CC’s) on five BEPCs
Report on the investigations and consultation by the CC on ECSA’s IDoW exemption application
Report on the consultation and adoption of the Corporate Governance framework by all six BEPCs

18. Governance Review

19. 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 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, (no. 1 0f 1999)
In line with good governance (as per the King III Report) and in ensuring the Accounting Authority fulfills its roles as mandated, the following statutory and governance committees were established

20. Governance Overview Cont.
The third term CBE Council’s term of office ended on 02 June 2014, and the following are the committees they served in:
Executive Committee (EXCO)
A Council working Committee constituted in terms of section 12 of the CBE Act
with a responsibility of ensuring that all Council resolutions are carried out.
Human Resources Committee
Responsible for the human resources issues and accordingly plays the role of
Human Resource Committee.
Audit and Risk Committee
The audit Committee was constituted in line with requirements of the PFMA and
Treasury Regulations, with 2 of the 4 members being external members. The key
focus areas of the Committee were internal control and Risk Management.

21. Governance Overview Cont.
Finance Committee
Ensures that adequate financial management processes and procedures are appropriate and upheld accordingly.
Identification of Work Committee (IDoW)
Committee is tasked with concluding the Identification of Work for all the six professions and overseeing its implementation.
Education and Research Committee (EduRes)
Committee is responsible for overseeing education and research matters relating to built environment.
Transformation Committee
Committee was established to provide strategic advice on transformation.
Ad Hoc Professional Fees Committee
The committee is mandated by the Council to investigate guideline professional fees.

22. Governance Review - 3rd Term Council Meeting Attendance

23. Governance Overview
The fourth term Council, which was inaugurated in September 2014, discharged their duties through the following committees:
Executive Committee (EXCO)
A Council working Committee constituted in terms of section 12 of the CBE Act with
a responsibility of ensuring that all Council resolutions are carried out.
Audit and Risk Committee (ARC)
The ARC comprises 5 members, the majority of whom are independent non-
executive members. The main objective of the committee is to assist Council is
discharging its duties relating to the safeguarding of assets, adequate operation of
systems, control procedures and the preparation of accurate financial reports and
statements of compliance with all legal requirements and accounting standards.

24. Governance Overview Cont.
Finance, Human resource and Legal Committee (FHLC)
The FHLC is a newly constituted committee incorporating the previously
freestanding committees of finance, human resources and legal from the third
term Council.
Built Environment Matters Committee (BEMC)
The mandate of BEMC is as follows:
Broader Government Priorities and Programmes in the BE
Skills Development initiatives in the BE
Research and Information on BE matters
BEPCs general matters

25. Governance Review - 4th Term Council Meeting Attendance

26. Financial and Audit Report

27. Analysis of Financial Statements
Category
2015
R’000
2014
% change
Analysis of movement
from prior year
Non Current Assets
3,147
3,385
-7.0%
q Due to reduced capital expenditure and utilisation of assets
Current Assets
15,937
12,301
29.6%
p Movement mainly from cash equivalents due to surpluses awaiting approval
Current Liabilities
5,012
4,138
-21.1%
p Due to increase in trade payables
Accumulated Surplus
14,072
11,548
21.9%
p Due to deferred projects awaiting approval to retain accumulated surplus
Total Revenue
43,745
40,017
9.3%
p Net increase mainly from Parliamentary Grant allocation
Total Expenditure
(41,221)
(33,798)
-22.0%
p Mainly due to increase in operating expenses as a result of the skills for infrastructure delivery projects
Net Surplus/(Deficit) for the year
2,524
6,219
59.4%
q Due to increased spending to minimise deferred projects

28. Comparison of Budget & Actual amounts for year ending 31 March 2015

29. Income statement Budget Review

30. Auditors Reports 2014/15 Year Audit Opinion Performance 2011/2012
Unqualified
59%
2012/2013
71%
2013/2014
86%
2014/2015
96%

31. Audit Report – 2014/15 Performance Report issues
Achievement of planned targets
Adjustment of material misstatements

32. Audit Report – 2014/15 Cont.

33. Audit Report – 2014/15 Cont.

34. Human Resource Report

35. Personnel Cost by Salary Band
Level
Personnel Expenditure (R’000)
% of personnel exp. to total personnel cost
No. of employees
Average personnel cost per employee (R’000)
Top Management
1 371
0.11 4
343
Senior Management
3 828
0.30 5
766
Professionally qualified
2 189
0.17
547
Skilled
3 475
0.27 7
496
Semi-skilled
1 790
0.14 8
224
Unskilled 92
0.01 1
TOTAL
12 745
100%  29
 2 468

36. CBE Human Resource
Total approved staff composition 32 of which only 29 is funded, 63%: 37% operations vs admin staff
Top & Senior Management consists of the following gender split:
4 Females & 3 Males
Middle Management/Professional Qualified consists of the following gender split:
1 Female & 3 Male
Table: CBE equity statistics by population groups and gender, March 2014
Population
group
Male
Female
Total
Number
% of male
population
% of female
% of total
African 6
60.0 13
81.3 19
73.1
Coloured 1
10.0
6.2 2
7.7
Indian/ Asian
0.0
3.8
White
20.0
12.5 4
15.4 10
100.0 16 26

37. Report on Activities of Professional Councils

38. Regulatory Mandate of the CBE
The CBE locates itself within the Developmental State paradigm and seeks to ensure that Built Environment Professionals through Professional Councils support the growth and development objectives of government as captured in its various planning documents, e.g. Medium Term Strategic Framework and National Development Plan.
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 transformation initiatives.
The Conduct of the Professional Councils and Built Environment Professions 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

39. Governance of Professional Councils
Recognition of Voluntary Associations (VAs):
In the year under review no new Voluntary Associations were recognized. VAs are important knowledge and skills custodians and their growth should be nurtured through formal recognition.
Code of Conduct for BEPs:
A policy framework for a Code of Conduct, developed by the CBE, was approved by the Minister and will inform the Codes developed by BEPCs.

40. Protection of Public Interest
Identification of Work (IDoW):
The CBE’s IDoW policy formalises the specification of the scope of professional practice in compliance with the CBE Act and the Professions Acts. The primary objective of IDoW, is however public protection by ensuring that only suitably qualified and registered professionals practice within the BE. The CC found the IDoW to be in contravention of the Competition Act, requiring exemption. The CBE submitted exemption applications in 2012 to the CC on behalf of all six BEPCs, which are currently being considered by the CC.
Promotion of Health and Safety in the Built Environment:
The role of the CBE is to influence the knowledge base of BEPs through directing and enhancing the curricula of the BE educational and CPD programmes to incorporate substantive health and safety and environmental sustainability content.

41. Protection of Public Interest Cont.
Another important policy instrument is the disciplinary procedures of the respective BEPCs, empowering them to investigate and sanction health and safety and environmental transgressions. The following deficiencies will be addressed by the Health and Safety Accord:
Lack of monitoring and reporting mechanisms on health and safety transgressions
Lack of awareness and promotion of BE health and safety issues
Disciplinary Cases:
The following table shows that since 2008 there has been a declining trend in the number of investigations of improper conduct by the BEPCs.

42. Governance of Professional Councils
Number and trend of disciplinary cases per Council

43. Sustainable and Integrated Development
Professional Fees:
BEPCs are enjoined by their enabling legislation to annually, after consultation with their VAs, determine guidelines for professional fees and gazette those. The CC determined that this publication of guideline fees is in contravention of the Competition Act, 89 of 1998 and will require exemption. The BEPCs applied for the required exemptions in 2014 and it is currently being investigated by the CC.
Recognition of new Professions:
The CBE has developed a policy framework on the Recognition of new Professions which broadly addresses emerging BE professions, including specified categories. The following table indicates the new professions and specified categories identified by the BEPCs:

44. New Profession/Category
Professional Council
New Profession/Category
SACPCMP
Professional Construction Health & Safety Agent
Construction Health & Safety Manager
Construction Health & Safety Officer
SACAP
Interior Design Profession
SACPVP
Machinery and Equipment Valuers
SACLAP
Landscape Manager
Park Professional
SACQSP
Registered Construction Surveyor – limited to providing professional services to building contractors only
Professional Cost Engineer – a Quantity Surveyor specialising in mega engineering projects
Registered Cost Technician – trained QS Technician who works within a PrQS office.

45. 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).
Accreditation: The CBE developed an accreditation time-table, in co-ordination with the CHE and the BEPCs, to monitor the accreditation of BE academic programmes and institutions. The following table indicates programmes that remain un-accredited.

46. Non-Accredited Programmes
SACPVP
SACQSP
SACAP
UKZN
BQS
BSc (Hons) QS – no new students taken since and negotiations are underway to reinstate the programme
NMMU
MSc in BE Facilities Management
MSc in BE Property Economics and Valuation
University of Johannesburg
ND in real Estate Property Valuation (discontinued)
UNISA
Inscape
Architectural Technology NQF 5

47. Professional Registrations

48. Change in Annual Registration per BEPC

49. Number of Aggregate Registration per Race in the six BEPCs

50. Aggregate Male and Female Registrations
(2009 – 2014)

51. Professional Registrations
Registration numbers reflect that BEPs are overwhelmingly White, with PDI numbers barely reaching 20% in all six professions. In 2013/14, professional registrations (excluding candidates) showed that Whites constitute 76% of total professional registrations followed by Africans at 15%, Indians at 6% and lastly Coloureds at 3%.
Candidate Registration
PDI candidate registration for 2014/15 were made up of African (52%), Indian (10%), Coloured (3%) and White (35%).
Racial Profile of Registered Professionals remains the most critical area of major concern. Some of the professions are still predominantly White, with Architectural and Landscape Architectural professions being the least transformed.

52. Professional Registrations Cont.
Gender transformation, like racial transformation, remains insignificant indicates that the professions were made up of 14% females. The transformation of BEPCs should address this issue and be accompanied by a Gender Strategy as a non-negotiable.
Continuous Professional Development (CPD)
The percentage of registered professionals complying with CPD requirements is 60%-80%.

53. Thank you