Annual Report 2007

1. 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 • Adjudicatingon 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 • 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 CPD TERTIARY CANDIDACY 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 • 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. 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 & AThank you