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

2. 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

3. 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)

4. 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

5. 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

6. 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

7. 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

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

9. 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

10. 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

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

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

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

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

15. 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

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

17. ACHIEVEMENTS
Outreach
Unemployed graduates project

18. 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)

19. 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

20. 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

21. 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

22. 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

23. 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

24. 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

25. 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

26. 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

27. 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

28. Q & A Thank you