1. PRESENTATION TO THE PORTFOLIO COMMITTEE ON
PUBLIC WORKS.
COUNCIL FOR THE BUILT ENVIRONMENT
2016/17 ANNUAL REPORT PRESENTATION
Acting CEO: Priscilla Mdlalose
03 October 2017

2. PRESENTATION OUTLINE Purpose Mandate of CBE
Built Environment Structure
Five Year Strategic Goals and Priority Areas
CBE Performance Information
Financial Report
Professional Councils

3. The Mandate of CBE
CBE is established in terms of Act, No. 4 of 2014 as a juristic person. It is an Entity of the DPW, with the mandate to:
a) Promote and protect the interest of the public in the built environment;
b) Promote and maintain a sustainable built environment and natural environment;
c) Promote ongoing human resources development in the built environment;
d) Facilitate participation by the built environment professions in integrated development in the context of national goals;
e) Promote appropriate standards of health, safety and environmental protection within the built environment;

4. The Mandate of CBE
f) Promote sound governance of the built environment professions;
g) Promote liaison in the field of training in the Republic and elsewhere and to promote the standards of such training in the Republic;
h) Serve as a forum where the built environment professions may discuss the relevant
i) required qualifications
ii) standards of education
iii) training and competence
iv) promotion of professional status
v) legislation impacting on the built environment; and
i) Ensure uniform application of norms and guidelines are set by the councils for the professions throughout the built environment.

5. Built Environment Organogram Structure
DPW Minister
ECSA
Engineering Council of South Africa
SACLAP
South African Council for the Landscape Architectural Profession
SACAP
South African Council for the Architectural Profession
SACQSP
South African Council for the Quantity Surveying Profession
SACPCMP
South African Council for Project and Construction Management Professions
SACPVP
South African Council for the Property Valuers
CBE

6. Purpose
To provide an account of the CBE Performance during the 2016/17 financial year, as per the commitments made in the CBE Strategic Plan and 2016/17 Annual Performance Plan.

7. Five-Year Strategic Goals & key priorities for 2016/17
The CBE embraces the National Development Plan, The Medium Term Strategic Framework 2014–2019 and the Industrial Policy Action Plan – as reflected in the following Key Outcomes:
Outcome 4: Decent employment through inclusive growth
Outcome 5: A skilled and capable workforce to support an inclusive growth path
Outcome 12: An efficient, effective and development-oriented public service

8. Five-Year Strategic Goals & key priorities for 2016/17
Programmes
NDP Alignment
A built environment that is responsive to the developmental and economic priorities of Government.
Programme 1:Government Policies and Priorities
Outcome 4 – decent employment through inclusive growth (Chapter 3 of the National Development Plan [NDP])
Outcome 6 – an efficient, competitive and responsive economic infrastructure network (Chapter 4 of the NDP) and
Outcome 12 – an efficient, effective and development orientated public service (Chapter 13 of the NDP).
A transformed built environment with appropriate, adequate skills and competencies, responsive to the country’s infrastructure delivery needs.
Programme 2 - Skills for Infrastructure Delivery
An optimally functioning built environment with a responsive and relevant policy and legislative framework based, on informed and researched positions
Programme 3 –Built Environment Research, Information and Advisory
Built Environment Professionals (BEPs) that operate within a regulated policy and legislative framework
Programme 4 - Regulation and Oversight of six CBEP

9. PART A: CBE PERFORMNANCE INFORMATION

10. CBE Performance Highlights
The CBE achieved 73% of its targets, while 27% were not achieved.
Internal controls functioned optimally and no new instances of irregular expenditure was incurred during this financial year. The root cause of all identified irregular expenditure has been addressed.
There was an unqualified audit for 2015/16.

11. CBE Performance Highlights
The Project Plan for the production and development of high demand Built Environment Professional (BEP) skills categories (Land and Engineering Surveyors and Geographic Information Systems [GIS] professionals) was completed.
CBE’s partnerships with Universities of Technology (UoTs) and host employers worked very well, which made it possible to place a total of 200 interns.
A Transformation Strategy was developed for Councils for Built Environment Professions (CBEP).
450 learners were enrolled in the Maths and Science support programme.
50 candidates were placed for Workplace training.

12. CBE Performance Highlights
An advisory report on the implementation of the Occupation Specific Dispensation (OSD) by DPW (National and Provincial departments) was developed and presented at the DPW Skills Forum.
The final report on the implementation plans of the three partnerships to improve technical capacity within municipal, Provincial and National departments was developed. The partnerships were with the following entities:
The Defence Formation Unit of the National Department of Defence (DoD)
2. Municipal Infrastructural Support Agency (MISA), representing municipalities
3. A Memorandum of Agreement (MoA) with the Eastern Cape Department of Public Works

13. CBE Performance Highlights
The final report on the implementation of the Standards for Infrastructure Procurement and Delivery Management (SIPDM) MoA to support infrastructure delivery was developed.
All appeals lodged were finalised within the statutory time limit as required.
The final report on Corporate Governance was submitted to DPW.
The final report on Compliance with the PFMA by the six councils for the professions was developed.
The oversight report on the implementation of the Monitoring and Evaluation Framework by the six councils for the professions was developed.

14. Key Challenges and Remedial Actions
Some of the targets, which were not achieved, were due to a heavy dependence on external stakeholders for their success. The CBE has signed a number of MoUs to deal with the dependency.
The CBE also experienced IT challenges. Some of the identified challenges were caused by ageing servers and old switches, connectivity and access control. The CBE is currently reviewing and updating its systems and IT governance frameworks.
The management of CBE’s occupational lease remained a challenge in the financial year under review.
5 Vacancies at Council level still remain.

15. Key Challenges and Remedial Actions
The CBE relocated from Brooklyn to Menlyn in the last quarter of the financial year.
The Chief Executive Officer (CEO), suspended in April 2015, was dismissed on 29 August A recruitment process for this position is currently underway.
The Manager: Legal and Regulations Services acted in the CEO’s position from April 2015 to October The Chief Operations Officer (COO) has been acting in the position of the CEO from November 2015 to date.

16. Programme 1 - Adminisration
Programme 1 had five annual targets. Four were not achieved.
Refer to page 32 to page 36 of the annual report.
The targets were not achieved due to:
Lack of capacity in the IT department,
Further consultation regarding the draft documents

17. Programme 1 - Administration
Strategic Objective
Programme Performance
To ensure that the CBE has necessary capacity and capability to support Government’s development priorities within the built environment
Unqualified Audit Opinion

18. Programme 2 - Skills for Infrastructure Delivery
Programme 2 had six annual targets, all of which were achieved.
Refer to page 38 to 44 of the annual report.

19. Programme 2 - Skills for Infrastructure Delivery
Strategic Objective
Programme Performance
To drive and facilitate Skills Development and Transformation within the BE.
Three BEPs categories developed the Implementation Project Plan to support the production of two high demand BEPs skills categories (Land and Engineering Surveyors, and Geographic Information Systems [GIS] professionals) for the SIPs
450 learners enrolled for Maths and Science support programme
50 candidates/BE graduate placed in workplace training
200 interns placed for work-integrated learning
Report on accredited programmes and institutions
Developed transformation strategy for the BEPs

20. Programme 3 –Built Environment Research, Information and Advisory
Programme 3 had four annual targets in the 2016/17 APP.
One target was not achieved.
The reason for non-achievement was due to external dependency. The MoA was not signed by EPWP/ ILO.
Refer to page 46 to 49 of the annual report.

21. Programme 3 –Built Environment Research, Information and Advisory
Strategic Objective
Programme Performance
To provide informed and researched advice to Government on BE priority matters identified in the MTSF.
Three partnerships to support BE technical capacity within municipal, Provincial and National departments, implemented(MISA, Department of Defence and DPW provincial in Eastern Cape
One partnership with the Office of Chief Procurement Officer (OCPO) on the SIPDM programmes to support infrastructure delivery in the public sector
Advisory report on the implementation of OSD by DPW National and Provincial departments to attract and retain BEPs, developed

22. Programme 4 - Regulation and Oversight of six BEPCs
Programme 4 had seven annual targets.
The Programme achieved six targets, out of seven.
Refer to page 51 to 56 of the annual report.
The non-submission of Strategic Plans and APPs on time by the CBEP was the reason for the non-achievement of the one target.

23. Programme 4 - Regulation and Oversight of six BEPCs
Strategic Objective
Annual Targets
CBE to act as an appeal body on matters referred to it, in terms of the law regulating the BEPs, and to promote sound governance of BEPs.
100% finalisation of appeals within the statutory 60 days
Report on the facilitation of engagement between the Competition Commission with BE professional bodies, by 31 March 2017
Final report on the progress made by the six CBEP on the implementation of the Corporate Governance Framework
Three workshops to facilitate the alignment of the Ministerial approved BE policy frameworks by the six CBEP.
Submission of the six CBEP PFMA compliance report to DPW
Oversight report on the implementation of the CBE Monitoring and Evaluation Framework by the CBEP, submitted to Council and DPW

24. AUDITORS REPORTS 2016/17 Year Audit Opinion Performance 2012/13
Unqualified
91%
2013/14
86%
2014/15
96%
2015/16
73%
2016/17

25. PART B: CBE FINANCIAL REPORT

26. Financial Performance
For the year under review, the CBE received a grant allocation of R million from DPW.
Together with additional revenue from the CBEP levies and interest income, the CBE had a total revenue budget of R million for the year.
The total budgeted expenditure for the year is R million, which resulted in a zero deficit budget for the year.
The actual financial performance of the CBE resulted in a deficit of R1.814 million for the year.
Refer to page 103 for a detailed break down of the financials.

27. Financial Performance
The detailed financial performance is outlined in the annual financial statements for the 2016/17 financial year.
The total actual revenue earned for the year amounted R million against the budgeted revenue of R million.
The favourable variance of R0.777 million on revenue.

28. Report of the Auditor-General to Parliament on the Council for the Built Environment
Report on the audit of the financial statements Opinion 1. I have audited the financial statements of the Council for the Built Environment set out on pages 103 to 144, which comprise the statement of financial position as at 31 March 2017, and the statement of financial performance, statement of changes in net assets, cash flow statement and the statement of comparison of budget information with actual information for the year then ended, as well as the notes to the financial statements, including a summary of significant accounting policies.

29. Report of the Auditor-General to Parliament on the Council for the Built Environment
Report on the audit of the financial statements
2. In my opinion, the financial statements present fairly, in all material respects, the financial position of the Council for the Built Environment as at 31 March 2017, and its financial performance and cash flows for the year then ended in accordance with Generally Recognised Accounting Practice (SA Standards of GRAP) and the requirements of the Public Financial Management Act of South Africa, 1999 (Act No. 1 of 1999) (PFMA).

30. Summary of detailed Audit findings

31. SECTION 9: Summary of detailed audit findings 22
Page
no.
Finding
Classification
Rating
Number of times reported in previous three years
Status of implementation of previous year(s) recommendation
Misstatements in financial statements
Misstatements in annual performance report
Non-compliance with regulation
Internal control deficiency
Service delivery
Matters affecting the auditor’s report
Other important matters
Administrative matters 22
AoPO: Insufficient evidence submitted 
Not addressed 28
AoPO: Targets not specific
In progress 26
AoPO: Inconsistency between APP and APR
Commitments 23
Disclosure: Commitment disclosure incomplete
Employee costs 29
Employee cost: Control deficiency in acting positions
General IT controls 31
IT: No approved disaster recovery plan 33
IT: Governance Framework not approved 34
IT: Strategic Plan not in place 35
IT: Approved patch management processes not in place 36
IT: User Access Management - No formal documented processes in place 38
IT: Program Change Management - No approved processes in place 40
IT: Service Continuity - No approved backup and retention strategy in place
AFS
Page
no.
Finding
Classification
Rating
Number of times reported in previous three years
Status of implementation of previous year(s) recommendation
Misstatements in financial statements
Misstatements in annual performance report
Non-compliance with regulation
Internal control deficiency
Service delivery
Matters affecting the auditor’s report
Other important matters
Administrative matters

32. AFS: Review of annual financial statements  In progress Heading 3 25
Page
no.
Finding
Classification
Rating
Number of times reported in previous three years
Status of implementation of previous year(s) recommendation
Misstatements in financial statements
Misstatements in annual performance report
Non-compliance with regulation
Internal control deficiency
Service delivery
Matters affecting the auditor’s report
Other important matters
Administrative matters 49
AFS: Review of annual financial statements 
In progress
Heading 3 25
Statement of Comparison of Budget and Actual Amounts not prepared on approved budgets
Movable assets 41
PPE: Asset not verified
Operating expenditure 42
Expenditure: Suppliers that are not VAT vendors, charged VAT
Not addressed
Payable 51
Salary structures not signed by employees
Predetermined objectives 43
AoPO: Inconsistency between APP and Strategic plan
Procurement and Contract Management (to confirm for removal) 45
SCM: No declaration of interest 46
SCM: Catering paid for non-attendees 53
SCM: Publishing date could not be determined 48
SCM: PPPFA not properly applied

33. Management of Audit Issues
All previous year audit findings have been resolved.
The IT governance audit findings were the only repeat findings from prior years but has now been resolved with the appointment of an IT manager and the use of consultants to update the IT governance documents.

34. Management of Audit Issues
An Audit Matrix of all external and internal audit findings is used to track the progress of resolving the audit findings.
The progress of each audit finding is updated every quarter by the responsible Manager, reviewed by Executive Management and submitted to the Audit and Risk Committee.
Target = Clean audit 2017/2018.

35. Part C:Report on Activities of Professional Councils

36. Percentage number of registered candidates by race and gender
The table below indicates an increase in the number of Previously Disadvantaged Individuals (PDIs) at candidacy level.
PDIs make up 69% of registered candidates. Visible progress in racial transformation in the candidate phase is encouraging.
Refer to page 146 to 173 of the annual report.

37. Percentage number of registered candidates by race and gender
Professional Council
Candidate
African
White
Indian
Coloured
ECSA
19994
11852
5648
1981
513
SACAP
1991
574
1106
181
130
SACLAP 76 13 58 2 3
SACPVP
602
258
275 40 29
SACPCMP
3798
2332
1056
165
245
SACQSP
1993
1029
677
193 94
Total
28454
16058
8820
2562
1014
100%
56%
31% 9% 4%

38. Percentage number of registered professionals by race and gender
The table below indicates an increase in the number of Previously Disadvantaged Individuals (PDIs) at professional level.
PDIs make up 29% of registered professionals.

39. Percentage number of registered professionals by race and gender
Professional Council
Professionals
African
White
Indian
Coloured
ECSA
29340
6102
20609
1968
661
SACAP
7997
1078
5833
576
510
SACLAP
206 7
194 1 4
SACPCMP
2605
496
1871
145 93
SACPVP
1324
198
1005 66 55
SACQSP
2105
414
1472
177 42
Total
43577
8295
30984
2933
1365
100%
19%
71% 7% 3%

40. RPL Applications received Applications registered
CBEP
RPL Applications received
Applications registered
Applications
rejected
Applications pending
ECSA 15 14 1
SACPCMP 56
SACLAP
SACQSP 13 11 2
SACAP
SACPVP

41. International Agreements
CBEP
Partnerships and Agreements
SACPVP
International Valuation Standards Council
Member of African Real Estate Society
ECSA
Washington Accord
Sydney Accord
Dublin Accord
Engineers Mobility Forum
Engineering Technologists Mobility Forum
Mutual Exemption Agreement with the Institution of Civil Engineers (ICE) (UK)
Mutual Exemption Agreement with Engineers Ireland
African Engineering Organisations (FAEO)
SACPCMP
MoU with the National Home Builders Council (NHBRC)
SACLAP
Opened negotiations with International Federation for Landscape Architects (IFLA)
SACQSP
RICS/SACQSP Mutual Recognition of Competence Agreement
SACAP
Commonwealth Association of Architects

42. Complaints Received CBEP Complaints Received Complaints Completed
In progress
Withdrawn
SACPVP 45 7 22 16
ECSA 63 18
SACPCMP 2 1
SACLAP
SACQSP 31 6 24
SACAP
116
Total
257 59 65 17

43. Number of Voluntary Associations
CBEP
Number of recognised VAs
ECSA 49
SACAP 12
SACLAP 1
SACPCMP 11
SACPVP 3
SACQSP

44. Transformation Initiatives
Maths and Science
The CBE undertook the Maths and Science support programme during the 2016/17 financial year. The programme is aimed at enabling and initially assisting learners (in Grade12) from disadvantaged communities in Limpopo, North West, Free State and Gauteng to obtain better grades in both Maths and Science subjects in order to attract them into built environment professions.
The overall percentage pass rate of learners who were enrolled in the programme was 60,71% for Maths and 59,75% for Science.

45. Transformation Initiatives
Structured Candidates Programme
The CBE is implementing the Structured Candidacy Programme with the aim of offering young, black people an opportunity to undergo a structured mentorship programme leading to a professional registration with a relevant statutory council.
The Structured Candidacy Programme training fields are: Engineering (Civil, Electrical and Mechanical), Quantity Surveying, Architectural Services, Landscape Architectural, Construction Project Management, Property Valuations and Town Planning.

46. Transformation Initiatives
Interns and candidate placement
The Workplace Training Programme was initiated to oversee quality workplace training of built environment candidates and interns, using the CBE developed quality assured structured candidacy framework.
A total of 50 candidates are participating in the Workplace Training programme, and all are currently placed with host workplace training employers.
A total of 200 interns are currently placed with host workplace training employers.
Other initiatives by the six CBEP are detailed on page 61 of the annual report.

47. Thank You