1. For a better built environment 1 PRESENTATION TO THE PORTFOLIO COMMITTEE ON PUBLIC WORKS 16 October 2009

2. For a better built environment 2 Overview 1.The CBE and the Professional Councils 2.The CBE Mandate 3.CBE’s Alignment to SONA and Government Programmes 4.Plans for Rural and Youth Development 5.Provincial skills demand distribution 6.Briefing on Strategic Plans and Budgets 7.Response to AG’s adverse opinion on VAT de-registration 8.Challenges 9.Future Outlook 10.Conclusion

3. For a better built environment 3 1. The CBE and the Professional Councils  The Council of the Built Environment is governed by a twenty member council which is appointed by the Minister of Public Works.  The Council is constituted of six (6) professional councils, government and the general public representatives with a proportional representation split of 12:4:4 respectively, with an equal even split between the Professional Councils.  The CBE is tasked with overseeing the six built environment professional councils who regulate the professions of Architects, Engineers, Landscape Architects, Quantity Surveyors, Project and Construction Managers and Property Valuers respectively.

4. For a better built environment 4 CBE and the Professional Councils cont...  Three of the six professional councils responsible for the Engineers, Architects and Quantity Surveyors existed prior to the enactment of 2000’s legislation that established the CBE and balance of three Professional Councils responsible for the Project and Construction Managers, Property Valuers and Landscape Architects were enacted in 2000.  The enactment of the 2000’s Built Environment profession’s legislation presented a confluence of challenges and opportunities informed by legacy issues and operationalization of a new regulatory regime.

5. For a better built environment 5 2. CBE Mandate  Derived from Act 43 of 2000  Started operations late 2001 and listed as section 3(a) entity in 2006  Guided by the vision/purpose of providing a sustainable built environment professions, serving the public and national interest  The mission statement: “through leadership of the built environment professions, facilitate integrated development, whilst promoting efficiency and effectiveness”, encapsulates the role as defined by the nine (9) mandate areas capturing the doing verbs of: “promoting, protecting, facilitating, ensuring and serving”

6. For a better built environment 6 CBE Mandate cont... 1.Promote and protect the interest of the public in the built environment 2.Promote and maintain a sustainable built environment and natural environment 3.Promote ongoing human resources development in the built environment 4.Facilitate participation by the built environment professions in integrated development 5.Promote appropriate standards of health, safety and environmental protection in the built environment 6.Promote sound governance of the built environment professions 7.Promote liaison in the field of training in the republic and elsewhere 8.Serve as a forum where the Built Environment Professions discuss relevant issues 9.Ensure uniform application of norms and guidelines set by the professional councils

7. For a better built environment 7 CBE Mandate cont.... CBE’s strategic thrust is governed by the following five (5) strategic objectives in pursuance towards the fulfilment of our mandate: 1.Improve stakeholder relations and create partnerships to improve service delivery 2.Intervene in improving the performance of the skills delivery pipeline 3.Ensure the alignment of the activities of the CBE and the BE professional councils with national imperatives and initiatives 4.Ensure an effective and efficient public protection regime 5.Transform and consolidate the regulatory, institutional and structural framework regulating the functioning of the CBE and the professional councils

8. For a better built environment 8 3. CBE Alignment to SONA  Our Strategic Objective number three (3) instructs us to: “ensure the alignment of the activities of the CBE and the BE professional councils with national imperatives and initiatives” and informs our current work programme for 2009/10 and provides an enabling platform to integrate the ten action areas of focus outlined in the State of the Nation address.  The building blocks of our alignment are informed by the 2008 Developmental Indicators dealing with ten broad areas that provide evidence based pointers to the evolution of our society to being a developmental state.

9. For a better built environment 9 CBE Alignment to SONA cont.... 2008 Development Indicators SONA 10 Priority Areas CBE’ s response 1. Economic growth and transformation 1. Programme to build economic and social infrastructure 1. Improved inflows, improved throughput and increased registrations (skills pipeline project) 2. Employment2. Creation of decent work 2. SHE policy guidelines (reduction of accidents and preservation of the environment, through consolidating the regulatory framework) 3. Poverty and inequality3. Promote a more inclusive economy 3. Improved demographic representation (access project)

10. For a better built environment 10 CBE Alignment to SONA cont.... 2008 Development Indicators SONA 10 Priority Areas CBE’ s response 4. Household and community assets 4. Ensure sustainable resource management 4. Green building policy guidelines (Green building project towards consolidation of regulatory framework) 5. Health5. Improve health profile of all South Africans 5. Combined output of both Green building and SHE consolidation of regulatory framework 6. Education6. Strengthen skills and human resource base 6. Aligned skills sets (professionals skill sets aligned with the needs of the country, through BE alignment project)

11. For a better built environment 11 CBE Alignment to SONA cont... 2008 Development Indicators SONA 10 Priority AreasCBE’ s response 7. Social Cohesion7. Build a developmental state 7. Annual state of the built environment report to facilitate policy - make and provide information on the state of the professional councils 8. Safety and Security8. Intensify fight against crime 8. Availability of regulations for all identified areas 9. International Relations9. Pursue African advancement and enhanced international co-operation 9. Increased coverage of international agreements (through alignment of International agreements SA’s Foreign Policy Doctrine)

12. For a better built environment 12 CBE Alignment to SONA cont... 2008 Development Indicators SONA 10 Priority Areas CBE’ s response 10. Good Governance10. Improve public service and strengthening democratic institutions 10. M&E quarterly reports covering all regulatory functions of the six professional councils and improved case flow management

13. For a better built environment 13 4. CBE’s plan for Rural Development and Youth Issues  Within our skills delivery pipeline seven (7) Skills Alignment on annexure A. We intend to include the newly established national department responsible for rural development in the dialogue towards a joint curriculum reviews between BE professional councils, tertiary institutions and government to ensure that relevant CPD and skills sets produced through the skills pipeline are conversant with rural development needs amongst the requirements of a developmental state.  The bedrock/target group of our bursary scheme and development of proposed planned expansion, consolidation of all the intervention elements within the skills pipeline value chain is the youth (under 35’s). We intend through the Minister of Public Works to present the proposal that seeks to mitigate the forecasted skills shortages within the built environment professions up to 2025.

14. For a better built environment 14 5. Provincial Skills demand distribution The diagram depicts that skills shortage varies with provinces. In 2008, Gauteng province was mostly affected by the shortage of engineers while there was high surplus of architects. Limpopo province had a high demand for engineers, high surplus of architects and low surplus of quantity surveyors North-West and Western Cape provinces generally had high demand for engineers and low surplus for architects KwaZulu-Natal and Eastern Cape generally had moderate demand for engineers and architects and high demand for landscape architects Landscape architects was in high demand in most provinces where data was available.

15. For a better built environment 15 6. Briefing on Strategic Plans and Budgets (the Details)  The next set of slides represent the summation of the detail and consolidation of budgetary information.

16. For a better built environment 16 Intervene in improving the performance of the skills delivery pipeline: Project TitleObjectivesProject BenefitsOutcome Indicators Skills Pipeline Improve performance of the Skills Development Pipeline Increased national resources (March 2012 - 70% throughput of bursary scheme) Improved inflows Improved throughput Increased registrations BE AccessIncrease access by HDIs Professions reflective of society (March 2010) Improved demographic representation BE MonitorMeasure the performance of the Skills Pipeline Availability of reliable information for policy- making(March 2010) Annual state of the Built Environment Professions Report BE AlignmentAccreditation CPD Professionals skill sets aligned with the needs of the country (31 December) Aligned skills sets

17. For a better built environment 17 Ensure an effective and efficient public protection regime Project TitleObjectivesProject BenefitsOutcome Indicators Monitoring and EvaluationTo monitor implementation of mandatory policy frameworks Will enable uniform implementation of policies (Sept ’09 / Dec ’09 / Mar 2010) Quarterly Reports covering all functions ComplianceTo assess compliance by CBEImproved compliance with legislation and Treasury regulations (Sept ’09 / Dec ’09 / Mar 2010) Quarterly Report International AgreementsTo facilitate development of international agreements Increased ability for SA to take advantage of international skills (Dec ember 2009) Increased coverage of international agreements Case ManagementTo develop a case management system Monitored non- compliance with legislation (Dec ember 2009) Improved case management RegulationsTo ensure that there are regulations where appropriate Regulations for identified deficiencies in the legislation governing the CBE and the Professional Councils (June 2010) Availability of regulations for all identified areas

18. For a better built environment 18 Transform and consolidate the regulatory, institutional and structural framework regulating the functioning of the CBE and the professional councils Project TitleObjectivesProject BenefitsOutcome Indicators Green buildingTo influence professionals to adopt green building principle SA will contribute to preservation of the environment (March 2010) Green building guidelines SHETo increase awareness of SHE issues Reduction of accidents and preservation of the environment (March 2010) SHE guidelines Policy Research (Consolidation of outstanding policy framework on mandates and functions) To provide leadership and advise government Availability of information for policy- making (Sept ’09 / Dec ’09 / Mar 2010) New policies and advisories Annual Sate of the Built Environment Professions Report To provide information on the state of the professions Will facilitate policy- making (December 2009) Annual Report Knowledge and Information Management To provide information to the industry and government Availability of information (December 2009) A functional K & I Centre

19. For a better built environment 19 Improve stakeholder relations and create partnerships to improve service delivery Project TitleObjectivesProject BenefitsOutcome Indicators Brand Improvement To increase awareness of the CBE and its functions Will enhance the value of the CBE to its stakeholders (December 2009) Brand Management Strategy Stakeholder Relations To improve stakeholder relations Will increase the value of CBE offerings (Oct ‘09 / Mar 2010) Stakeholder Forums PartneringTo increase the capacity of the CBE and take advantage of synergies Improved service delivery (December 2009) Partnership Agreements

20. For a better built environment 20 FINANCIAL ANALYSIS AND AUDIT RESPONSE

21. For a better built environment 21 Budget Analysis

22. For a better built environment 22 Budget Analysis cont…

23. For a better built environment 23 Financial Statement Analysis

24. For a better built environment 24 Further Financial Statement Analysis

25. For a better built environment 25 7. Responses to AG’s Qualified Report on Membership fees 2009 Year Membership fees  Background The CBE found not to have proper internal control systems in place to ensure completeness and accuracy of membership fee income.  Status to date  Fees received from Professional Councils.  Control measures implemented.  Challenge: Year end reconciliation, which depict different figures to those submitted throughout the year.

26. For a better built environment 26 8. Challenges  Lack of integrated planning with the Professional Councils.  Inadequate funding.  Professional Councils that are unable to deal with their mandates sufficiently due to funding.

27. For a better built environment 27 8. Future Outlook  Driving the skills pipeline.  Promoting integrated planning and implementation.  Providing “intelligence” for policy- making.

28. For a better built environment 28 9. Conclusion  The organisation has grown exponentially in the past two years.  Lack of integration remains a challenge.  Funding of smaller Professional Councils need consideration.