3rd QUARTER PERFORMANCE INFORMATION
FOR THE FINANCIAL YEAR 2015/16
Third Quarter 2015/16: 01 October – 31 December 2015
1
CONTENTS
1. ACRONYMS AND DEFINITIONS USED IN THE REPORT ............................ 3
PART A: EXECUTIVE SUMMARY
2. EXECUTIVE SUMMARY .................................................................................. 6
PART B: GOVERNANCE .................................................................................... 12
3. INTRODUCTION .............................................................................................. 13
3.1 EXECUTIVE AUTHORITY .............................................................................. 13
3.2 THE ACCOUNTING AUTHORITY .................................................................. 13
3.3 THE COMPOSITION OF THE COUNCIL ....................................................... 14
Committees of Council.......................................................................................... 15
Statutory Committees ........................................................................................... 15
Other Committees................................................................................................. 15
Executive Committee (EXCO) .............................................................................. 15
Audit and Risk Committee (ARC) ......................................................................... 16
Finance, Human Resources and Legal Committee (FHLC) .................................. 18
Built Environment Matters Committee (BEMC) ..................................................... 19
Meetings of Council and Committees ................................................................... 21
Remuneration of Council members ...................................................................... 22
3.4 RISK MANAGEMENT ..................................................................................... 22
3.5 INTERNAL CONTROLS AND FINANCIAL MANAGEMENT .......................... 23
3.6 INTERNAL AUDIT .......................................................................................... 23
Internal Audit Function .......................................................................................... 23
3.7 COMPLIANCE WITH LEGISLATION AND PROCEDURES ........................... 24
3.8 FRAUD AND CORRUPTION .......................................................................... 24
3.9 MINIMISING CONFLICT OF INTEREST ........................................................ 24
3.10 CODE OF CONDUCT .................................................................................. 24
3.11 HEALTH AND SAFETY AND ENVIRONMENTAL ISSUES .......................... 24
3.12 TRAINING AND DEVELOPMENT ................................................................ 25
3.13 SUPPLY CHAIN MANAGEMENT ................................................................. 25
PART C: PERFORMANCE INFORMATION ........................................................ 26
4.PERFORMANCE INFORMATION BY PROGRAMME/OBJECTIVE ................. 27
4.1 Programme 1: Government Policies and Priorities ......................................... 27
4.2 Programme 2: Skills for Infrastructure Delivery ............................................... 31
4.3 Programme 3: BE Research, Information and Advisory ................................. 34
2
4.4 Programme 4: Regulation and Oversight of six BEPCs .................................. 37
PART D: EXPENDITURE REPORT ..................................................................... 53
ADDENDUM TO EXPENDITURE REPORT ......................................................... 57
PART E: HUMAN RESOURCES EXCEPTION REPORT .................................... 59
SIGN - OFF
This quarterly report was approved by:
________________________
P. Mdlalose (Ms)
Acting Chief Executive Officer
3
1. ACRONYMS AND DEFINITIONS USED IN THE REPORT
Act
The CBE Act
AGSA
Auditor-General South Africa
ARC
Audit and Risk Committee
APP
Annual Performance Plan
BE
Built Environment
BEMC
Built Environment Matters Committee
BEP/s
Built Environment Profession/s
BEPC/s
Built Environment Professional Council/s
CC
Competition Commission
CBE
Council for the Built Environment
CHE
Council of Higher Education
cidb
Construction Industry Development Board
COGTA
Department of Cooperative Governance and Traditional Affairs
CPD
Continuous Professional Development
DHET
Department of Higher Education and Training
DPW
Department of Public Works
DPSA
Department of Public Service and Administration
ECSA
Engineering Council of South Africa
ENE
Estimates of National Expenditure
EPWP
Expanded Public Works Programme
FHLC
Finance, Human Resources and Legal Committee
FPP
Fraud Prevention Plan
HDI
Historically Disadvantaged Individual
IT
Information Technology
IDMS
Infrastructure Delivery Management System
ILO
International Labour Organization
Minister
Minister of Public Works
MoA
Memorandum of Agreement
MoU
Memorandum of Understanding
MTEF
Medium Term Expenditure Framework
MTSF
Medium Term Strategic Framework
NDP
National Development Plan
NPO
Non Profit Organization
NT
National Treasury
4
OSD
Occupation Specific Dispensation
PDI
Previously Disadvantaged Individual
PMDS
Performance Management and Development System
PFMA
Public Finance Management Act
PoE
Panel of Experts
PSC
Public Service Commission
QTCO
Quality Council for Trade and Occupations
SACAP
South African Council for the Architectural Profession
SACPCMP
South African Council for the Project & Construction Management Professions
SACPVP
South African Council for the Property Valuers Profession
SACQSP
South African Council for the Quantity Surveying Profession
SACLAP
South African Council for the Landscape Architectural Profession
SADC
South African Development Community
SALGA
South African Local Government’s Association
SAQA
South African Qualifications Authority
SCM
Supply Chain Management
SGB
Standards Generating Body
SIPS
Strategic Infrastructure Projects
SOE
State Owned Enterprise
ToR
Terms of Reference
UoT
University of Technology
VA/s
Voluntary Association/s
Programme 1:
Government Policies and Priorities
Programme 2:
Skills for Infrastructure Delivery
Programme 3:
Built Environment Research, Information and Advisory
Programme 4:
Regulation and Oversight of six Built Environment Professional
Councils
5
2. EXECUTIVE SUMMARY
This report presents the performance of the Council for the Built Environment (CBE) during
the third quarter of the 2015/16 financial year. It constitutes six parts. Part A is the Executive
Summary, which provides an overall synopsis of the performance of the CBE, in terms of its
mandate and strategic objectives as set out in the Strategic Plan. Part B provides a detailed
Governance Report. Part C provides a detailed analysis of the performance of each
programme. Part D provides a detailed Financial Report for the quarter. Part E provides a
Human Resource Exceptional Report.
The CBE implements its Annual Performance Plan (APP) through four programmes;
Programme 1 – Government Policies and Priorities, Programme 2 - Skills for Infrastructure
Delivery, Programme 3 – Built Environment Research, Information and Advisory and
Programme 4 - Regulation and Oversight of six Built Environment Professional Councils
(BEPCs).
The 2015/16 APP has 22 deliverables for the year, with 21 targets set for the third quarter.
Of these, 12 (57%) targets were achieved, 5 (24%) were partially achieved and 4 (19%)
were not achieved.
Table 1: Percentage of quarterly target achieved, partially achieved and not achieved
Number of quarterly
targets
Achieved
Partially
Not Achieved
Achieved
Quarter 1
22
13 (59%)
0
9 (41%)
Quarter 2
22
12 (54%)
3 (13%)
7 (33%)
Quarter 3
21
12 (57%
5 (24%)
4 (19%)
Quarter 3 Programme Highlights
Programme 1
5
4
1
0
Programme 2
4
2
2
0
Programme 3
5
0
2
3
Programme 4
7
6
0
1
The highlights for the quarter under review were the following:
Programme 1 - Government Policies and Priorities
The strategic objective of Programme 1 is to ensure that built environment (BE) academic
curricula and Continuous Professional Development (CPD) programmes embody health and
6
safety in construction, environmental sustainability, job creation through labour intensive
construction, as well as the Infrastructure Delivery Management System (IDMS).
During the third quarter, four out of five targets were achieved in Programme 1. The focus of
this quarter was to meet targets as planned in the APP, as well as to recover second quarter
targets that were not achieved.
Programme 2 - Skills for Infrastructure Delivery
The strategic objective of Programme 2 is to drive and facilitate skills development and
transformation within the BE. It contains the flagship programmes that will drive the
implementation of the Transformation Implementation Model of the CBE, with a focus on the
Workplace Training Model and the Maths and Science Support Programme.
Programme 2 had four targets in the third quarter of the financial year 2015/16. Two targets
were achieved and two were partially achieved. The reason for the partial achievement of
two targets was that all interns and candidates training progress reports were not completed
by mentors.
Programme 3 - Built Environment Research, Information and Advisory
The strategic objective of Programme 3 is for CBE to provide informed and researched
advice to government on BE priority matters, as identified in the Medium-Term Strategic
Framework (MTSF).
Programme 3 had five targets set for the third quarter. Two of these targets were partially
achieved, while three were not achieved. The non-achievement was due to delays
encountered in the second quarter, which were responses from government departments
and appointments with relevant stakeholders. However, the corrective action to deliver on
the second quarter target was achieved through the finalisation and submission of the first
draft reports.
Programme 4 - Regulation and Oversight of six Built Environment Professional
Councils
The strategic objective of Programme 4 is for the CBE to act as an appeal body on matters
referred to it, in terms of the law regulating the built environment professions (BEPs), and to
promote sound governance of BEPs.
7
Programme 4 had a total of seven targets in the third quarter, of which six were achieved.
One target was not achieved, due to lack of timely co-operation from BEPCs. The required
participation of BEPCs will be obtained during the fourth quarter through a direct approach
with the BEPCs.
Financial Performance
The table below reflects the variance between the actual and budgeted expenditure.
Table 2: Financial performance
Year To Date
Council for the Built
Actual
Budget
Variance to date
Environment
Percentage
variance
Dec-15
Dec-15
Dec-15
Dec-15
Income
Levies
1, 329, 858
1, 329, 479
379
0%
Total Grant allocated
40, 358, 294
41, 994, 000
-1, 635, 706
-4%
Total Income
41, 688, 152
43, 323, 479
-1, 635, 326.91
-4%
23, 767, 207
25, 935, 755
2, 168, 548
8%
Skills for Infrastructure Delivery
4, 733, 521
5, 852, 732
1, 119, 211
19%
BE Research, Information and
1, 186, 151
663, 000
-523, 151
-79%
313, 882
983, 770
669, 888
68%
Total Expenditure
30, 000, 761
33, 435, 257
-3, 434, 496
-11%
Net Surplus/ (Deficit)
11, 687, 391
9, 888, 222
-1, 799, 169
-18%
Programme
Administration and Government
Policies and Priorities
Advisory
Regulation and Oversight of six
BEPCs
8
Explanations for significant deviations
Revenue
The revenue consists mainly of the Parliamentary Grant received from the Department of
Public Works, which is disbursed in tranches. The first instalment was received as budgeted,
and the second tranche was paid in the third quarter.
The unfavourable variance of -4% shows a difference in the second tranche, which is being
followed up with DPW.
Expenses
Administration and Government Policies and Priorities Program
This program bears the administration expenditure of the CBE including personnel and,
infrastructure costs, as well as the Government Policies and Priorities Programme.
This explains the minor favourable variance of 8%. The main expenditure items under this
programme are of a fixed nature, which is incurred as budgeted in most accounts. The
favourable variance is due to a saving on the vacant positions.
Skills for Infrastructure Delivery Program
There is a favourable variance of 19% in this programme, due to under-expenditure of
R1.1m in the account group of Mentors. The reason for this variance is the delay in the
appointment of mentors during the first quarter, which resulted in a backlog. This has since
been corrected, and the expenditure will be in line with the budget for the year.
BE Research, Information and Advisory Program
There is an unfavourable variance of (79) % in this programme, due to over-expenditure in
the account group of Corporate communication and marketing costs for the printing of the
CBE official reports and corporate image design, which was not budgeted for.
Regulation and Oversight of six Built Environment Professional Councils
9
There is a favourable variance of 68% in this programme, amounting to R670K below
budget. The expenditure is dependent on the number of appeals lodged. As a result, the
following account groups were affected:
Less Travel and Accommodation:
R56K
Less Staff Training:
R70K
Less Publications:
R54K
Less Consulting Fees:
R350K
Less Project Support:
R78K
Areas of Concern
The annual targets 1 to 4 in Programme 1 will not be achieved fully. The Council for Higher
Education (CHE) will not endorse the frameworks developed for modalities to incorporate
health and safety in construction, environmental sustainability, labour intensive construction
and the Infrastructure Delivery Management System (IDMS) into BE curricula. It emerged
from the engagement with the CHE that their mandate is limited to the accreditation of
programmes in tertiary institutions, not inputs to modules (as required by the CBE). This
partial achievement will have a negative impact on the overall performance of the CBE, as
these annual targets constitute 19% of the total performance of the organisation.
The CEO remains on suspension. Advocate Pieter Fourie, who acted in this position, ended
his tenure as the Acting CEO on 01 November 2015. Ms Priscilla Mdlalose, the current
COO, assumed the position of Acting CEO on 2 November 2015 until further notice.
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Table 3: Summary of programme performance
Programme
Programme 1 - Government Policies and Priorities
The strategic objective of Programme 1 is to ensure that BE academic
curricula and CPD programmes embody health and safety in
construction, environmental sustainability, job creation through labour
intensive construction, as well as the IDMS.
Programme 2 - Skills for Infrastructure Delivery
The strategic objective of Programme 2 is to drive and facilitate skills
development and transformation within the BE. It contains the flagship
programme that will drive the implementation of the Transformation
Implementation Model of the CBE, together with the Workplace
Training Model.
Programme 3 - BE Research, Information and Advisory
The strategic objective of Programme 3 is to provide informed and
researched advice by the CBE to government on BE priority matters
identified in the MTSF.
Programme 4 - Regulation and Oversight of six BEPCs
The strategic objective of Programme 4 is to ensure that the CBE acts
as an appeal body on matters of law regulating the BE professions,
and to promote sound governance of BE professions.
Total
5
Total number
of Quarter 2
Targets
(01 October –
31 December
2015)
5
5
Total number of
Programme
Targets for the
Year
Number of
Quarterly
Targets
achieved
Number of
Quarterly
Targets
partially
achieved
Number of
Quarterly
Targets
not
achieved
4
1
0
4
2
2
0
5
5
0
2
3
7
7
6
0
1
22
21
12
5
4
11
PART B: GOVERNANCE
12
3. INTRODUCTION
Corporate governance is essentially about effective leadership, the ethics of responsibility,
accountability, fairness and transparency. In the context of the CBE, it entails:
a. The creation of an appropriate, ongoing monitoring and dynamic system of
checks and balances;
b. The implementation of a system to ensure compliance by the CBE with its legal
and regulatory obligations;
c. The implementation of a process whereby risks to the sustainability of the CBE`s
mandate are identified and managed ; and
d. The development of practices, which make and keep the CBE accountable to its
stakeholders.
The CBE takes its governance responsibility from the relevant legislation and principles of
the King III Report.
3.1 EXECUTIVE AUTHORITY
The Minister of Public Works (the Minister) is the Executive Authority of the CBE.
3.2 THE ACCOUNTING AUTHORITY
The CBE Council is the accounting authority of the organisation. The CBE was established
in terms of Act 43 of 2000 (CBE Act), hereafter referred to as the “Act”. Some of the key
functions assigned to the CBE by the Act include the following:
a.
advise government on any matter falling within the scope of the built environment,
including resource utilisation, socio-economic development, public health and safety
and the environment, and for this purpose carry out such investigations as it or the
relevant Minister deems necessary;
b.
facilitate inter-ministerial co-operation concerning issues relating to the built
environment;
c.
provide advice and consultation on national policy that could impact on the built
environment, human resource development in relation to the built environment
professions and the recognition of new professions;
d.
comment, if necessary, on all proposed legislation impacting on health and safety in
the built environment;
13
e.
advise the Councils for the Professions on matters of national importance where the
needs of the State, as communicated to the Council through the relevant Minister,
require joint and coordinated action by the built environment professions;
f.
ensure the consistent application of policy by the Councils for the Professions with
regards to: accreditation, registration, competence testing of registered persons,
codes of conduct for the professions, principles for determination of fees in
accordance with any legislation relating to the promotion of competition, and
standards of health, safety and environmental protection within the built environment;
and
g.
act as an appeal body with regards to matters referred to it in terms of law regulating
the built environment professions.
The CBE is mandated to effect policy coordination and to ensure consistency in application
of policy within the BE, promote the participation of BEPs in integrated development within
the context of national goals, and act as the conduit for communication between government
and BEPs.
3.3 COMPOSITION OF THE COUNCIL
The CBE Act stipulates that Council comprises twenty members (non-executive), appointed
by the Minister, consisting of:
a. One representative from the department;
b. Not more than three persons nominated by state departments within whose functional
areas the professions are also practised;
c. Two representatives nominated by each Council for the Professions; and
d. Not more than four persons nominated by the public.
Members are appointed through a formal process as stipulated in the CBE Act No. 43 of
2000. In terms of this Act, the Minister of Public Works appoints the Chairperson and
Deputy-Chairperson of the Council. Members are appointed for a period of four years. The
Council and its Committees are supported by a Company Secretary on governance matters.
The CEO and CBE staff are responsible for operational matters.
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Table 4: Fourth Term Council
Name
Designation (in
terms of the Public
Entity Board
structure)
Date appointed
Date resigned
IM Nkosi (Chairperson)
NF Sithole (Deputy
Chairperson)
Adv DJ Block
CA Breed
IS Kgomo
5(2)(c) SACPCMP
5(2)(d) Public
1 August 2014
1 August 2014
-
5(2)(d) Public
5(2)(c) SACLAP
5(2)(b) Department of
Public Enterprise
5(2)(c) SACAP
5(2)(d) Public
5(2)(c) SACPVP
5(2)(c) SACPVP
5(2)(c) ECSA
5(2)(c) SACQSP
5(2)(c) SACPCMP
5(2)(c) SACQSP
5(2)(a) Department of
Public Works
5(2)(b) Department of
Higher Education
5(2)(c) ECSA
5(2)(d) Public
5(2)(c) SACLAP
5(2)(c) SACAP
5(2)(c) Department of
Environmental Affairs
1 August 2014
1 August 2014
1 August 2014
16 February 2015
31 December 2014
1 August 2014
1 August 2014
1 August 2014
1 August 2014
1 August 2014
1 August 2014
1 August 2014
1 August 2014
1 August 2014
6 May 2015
11 February 2015
-
1 August 2014
-
2
1 August 2014
1 August 2014
1 August 2014
1 August 2014
1 August 2014
-
15
11
5
14
3
ND Lombard
N Maharaj
EG Makongwana
JL Margolius
Dr ZT Mathe
T Matunda
D Michell
Prof KA Michell
C Mtshisa
ZC Mvalo
A Sassenberg
RG Sefotlho
AA Steyn
S Thubane
MM Tshangela
No. of
Meetings
attended
19
5
4
11
10
5
13
14
5
16
2
Committees of Council
Statutory Committees
a. Executive Committee (as prescribed and mandated in the CBE Act).
b. Audit and Risk Committee (as prescribed and mandated in the PFMA).
Other Committees
a. Finance, Human Resources and Legal Committee (established as a combination
of the previous Finance and Human Resources committees).
b. Built Environment Matters Committee (established as a combination of the
previous Transformation, Education and Research and Identification of Work
[IDoW] Committees).
Executive Committee (EXCO)
In terms of the CBE Act, the EXCO may hold meetings as and when necessary, but at least
four times per year. The statutory mandate of EXCO is to:
a. Ensure that the resolutions of the Council are carried out.
15
b. Consider any matter delegated to it by the Council in terms of any law, and advise
the Council in connection therewith.
c. Prepare estimates of revenue and expenditure of the Council.
d. Control the expenditure of monies voted by Council in its approved estimates and all
other monies or funds made available by the Council.
e. Exercise or perform any power, duty or function delegated to it by the Council and
such other powers as may be delegated to it by Council in terms of clause 16 of the
CBE Act.
f.
Report at every ordinary meeting of the Council on the activities of the committee.
g. Establish an annual work plan to ensure that all relevant matters of the Committee’s
roles and responsibilities are covered.
There was one meeting scheduled for the quarter under review. Two meetings were
convened on 20 October 2015 and 28 October 2015; the first one being a special meeting to
address the performance of the CBE in the last quarter and the leadership of CBE.
Audit and Risk Committee (ARC)
The ARC is constituted in terms of Section 77 of the PFMA, read with Chapter 9 of the
Treasury Regulations. The ARC consists of three independent experts and two Council
members. The ARC Chairperson is one of the independent experts serving on the
committee. The ARC is satisfied about the expertise, resources and experience of the
CBE’s finance, supply chain management, procurement and internal audit function. The
ARC has a policy that outlines its terms of reference.
The role of the ARC is to assist Council to ensure thata. The CBE has implemented an effective policy and plan for risk management that will
enhance the CBE’s ability to achieve its strategic objectives.
b. The disclosure regarding risk is comprehensive, timely, and relevant.
c. Review the annual financial statements, interim reports, preliminary or provisional
result announcements, summarised integrated information, any other intended
release of price-sensitive information and prospectuses, trading statements and
similar documents.
d. Comment on the annual financial statements, the accounting practices and the
effectiveness of the internal financial controls.
16
e. Review the disclosure of sustainability issues in the integrated report to ensure that it
is reliable and does not conflict with the financial information.
f.
Recommend to Council the engagement of an external assurance provider on
material sustainability issues.
g. Recommend the integrated report for approval by Council.
h. Consider the frequency for issuing interim results.
i.
Consider whether the external auditor should perform assurance procedures on the
interim results.
j.
Review the content of the summarised information for whether it provides a balanced
view; and
k. Engage the external auditors to provide assurance on the summarized financial
information.
Table 4: The tabled below discloses relevant information on the ARC members.
Name
Internal
external
or
If internal,
Date appointed
position in
Date
No. of Meetings
Resigned
attended during
the public
the quarter under
entity
D Coovadia
review
st
External
6 December 2010 (1
member
Term)
1
6 December 2014 (2nd
Term)
M
External
8 February 2013 (1st
Mothipe
member
Term)
1
6 December 2014 (2nd
Term)
st
F
External
6 December 2014 (1
Docrat
member
Term)
NF
Council
1 August 2014
Sithole
Member
N
Council
Maharaj
Member
JL Margolius
Council
Appointed by Council on
Member
27 May 2015 to serve on
1 August 2014
1
0
6 May 2015
0
1
ARC
There was one meeting scheduled for the quarter under review, which was held on 14
October 2015.
17
Finance, Human Resources and Legal Committee (FHLC)
The mandate of the FHLC is as follows:
A.
Finance
a. Consider matters of financial strategy and policy, including procurement and supply
chain management, risk management and insurance, as they relate to the operation
of the CBE, in particular the optimum use of available and potential financial
resources (including internal investment options and their rate of return).
b. Consider and assess all investment opportunities available to the CBE, in respect of
all funds which it administers, and determine the manner and extent to which funds
are to be invested with a view to ensuring both security and optimisation of income.
c. Review the annual financial statements of the CBE in conjunction with the Audit and
Risk Committee, and make recommendations to Council.
d. Receive and consider budget proposals from the Executive and recommend to
Council, the annual operating and capital budgets.
e. Monitor compliance with the PFMA in respect of matters relating to the CBE Act.
f.
Review the adequacy of the working capital by comparing cash focus against the
actual.
g. Receive reports of fraud relating to the CBE.
h. Report at every ordinary meeting of the Council on the activities of the Committee.
i.
Establish an annual work plan to ensure that all relevant matters of the Committee’s
roles and responsibilities are covered.
B.
Human Resources
a. Consider and make recommendations on human resources strategy that will ensure
that CBE is able to attract, retain and develop the best possible talent to support
business performance.
b. Consider and make recommendations on the creation or review of an organisational
culture, structure and processes which seek to support the development of staff and
optimisation of their potential in particular those that have been previously
disadvantaged so as to address any existing inequalities in staff profiles and
organisational practice.
c. Ensure compliance with all employment legislation such as Employment Equity Act,
Labour Relations Act and Basic Conditions of Employment Act, etc.
18
d. Consider and make recommendations on a formal and transparent procedure for
developing a policy on remuneration with particular reference to Senior Management
e. Determination of annual remuneration adjustments for all staff members.
f.
Creation and abolition of Senior Management positions, appointments, transfers and
promotions of Senior Managers; appraisal of performance of the CEO, and
implementation of disciplinary action against the CEO.
C.
Legal
a. Deal with the BE Policy proposal by DPW relating to the repeal of the CBE Act.
b. Deal with IDoW; Appeals; Planning, Monitoring and Evaluation; and other legal
compliance matters within the BEPCs.
c. Deal with Corporate Governance matters in Council.
There was one scheduled meeting for FHLC for the quarter under review; however, two
meetings were held on 14 October 2015 and 11 December 2015 during this quarter, first one
being a special meeting to address, inter alia:

Human Resource (HR) policies,

Performance bonuses,

The newly approved organogram, and the absorption of fixed term contract
employees in positions therein; and

Communication between Council and staff.
Built Environment Matters Committee (BEMC)
The mandate of BEMC is as follows:
A. Broader Government Priorities and Programmes in the BE
1. Skills Plan for government infrastructure rollout programme through the Presidential
Infrastructure Coordinating Committee (PICC) and Strategic Integrated Projects
(SIPs).
2. Job Creation Initiatives of government (Links to Expanded Public Works Programme
(EPWP) within DPW and the involvement of BEPCs in labour intensive construction).
3. Environmental sustainability agenda (Links to DPW Green Building initiatives).
19
4. Health and Safety in Construction (Links to the Department of Labour’s initiatives and
incorporation of health and safety into the curricula of built environment academic
programmes).
5. Transformation:
5.1.
The proposal of the Non-Profit Organisation (NPO) that will undertake
transformation initiatives at schools, tertiary institutions and for quality
assured workplace training.
5.2.
Support for BEPCs transformation plans.
A. Skills development initiatives in the Built Environment
1. Maths and Science support programme in schools.
2. Monitoring of accreditation of academic programmes and academic institutions;
monitoring of registration including Recognition of Prior Learning (RPL).
3. Quality assured, workplace training for new BE graduates for candidature and interns
for experiential learning.
B. Research and information on BE matters
1. Research on BE matters that are of priority to DPW.
2. Research on BE matters that are of priority to BEPCs.
3. Research on BE matters that are of priority in service delivery (Municipalities,
National, Provincial and Infrastructure departments e.g. the IDMS).
4. Research on BE matters that are of priority to industry and the public.
C. BEPCs General Matters
1. Implementation of policies within BEPCs.
2. Business plan issues of BEPCs.
3. Support, guidance and monitoring of BEPCs.
4. Support for conclusion of IDoW regulations.
5. Other BEPC related matters.
There was one scheduled BEMC meeting for the quarter under review. It was held on
20
13 October 2015 and, inter alia approved the plans of the projects to be delivered on the
2016/17 APP. It also deliberated on the non-achievement of targets, and resolved to
escalate these immediately to EXCO. A special EXCO meeting was convened subsequently
on 20 October 2015, where resolutions regarding leadership, performance management and
a turn-around strategy were proposed.
Meetings of Council and Committees
There was one Council meeting scheduled for the quarter under review. It took place on
25 November 2015.
Since December 2014, Council received four resignations. The
resulting vacancies on Council were filled by a nomination process, as required by the Act.
Council established a Selection Panel to evaluate and recommend the nominations received
from the public and the SACQSP. The Selection Panel held two meetings and made its
recommendations to the Executive Committee (EXCO) and Council.
Table 5: Committees composition and meetings
No of
meetings
planned
1
No. of
meetings
held
2
No. of
members
5
ARC
1
1
5
FHLC
1
2
5
BEMC
1
1
9
Council
1
1
16
Committee
EXCO
Total fees paid per
meeting
Name of members
IM Nkosi (Chairperson)
NF Sithole (Deputy-Chairperson)
Prof KA Michell
Dr ZT Mathe
S Thubane (Alternate Member)
D Coovadia
M Mothipe
F Docrat
NF Sithole
JL Margolius
Prof KA Michell (Chairperson)
ND Lombard
JL Margolius
A Sassenberg
AA Steyn
Dr ZT Mathe
CA Breed
EG Makongwana
D Michell
C Mtshisa
ZC Mvalo
RG Sefotlhlo
S Thubane
MM Tshangela
IM Nkosi, Mr (Chairperson)
NF Sithole, Ms (D Chairperson)
CA Breed, Ms
ND Lombard, Mr
EG Makongwana, Ms
JL Margolius, Mr
ZT Mathe, Dr
D Michell, Mr
M KA Michell, Prof
R13104.00
R37 952.00
R13 104.00
R13 104.00
R26 584.00
21
Committee
No of
meetings
planned
No. of
meetings
held
No. of
members
Total fees paid per
meeting
Name of members
C Mtshisa, Mr
ZC Mvalo, Mr
A Sassenberg, Ms
RG Sefotlho, Mr
AA Steyn, Ms
S Thubane, Mr
MM Tshangela, Ms
Remuneration of Council members
The Minister approved the remuneration rate for Council on 22 January 2013 as Category
Classification A2 (Part time members) according to National Treasury prescripts. These
have, since, been adjusted on an annual basis.
The following members are not remunerated, either by choice or in terms of their public
service designation:

C Mtshisa

ZC Mvalo

AA Steyn

MM Tshangela
Council members receive a specific claim amount, and are reimbursed for parking, travel
and toll fees.
Remuneration paid to Council members appears in the table below:
Table 6: Remuneration paid to Council
Designation
Chairperson
Deputy Chairperson
Chairpersons’ of Committees
Members of Council / Committees
Per Day
Per Hour
R4,072
R3, 456
R3, 456
R3, 216
R509
R432
R432
R402
3.4 RISK MANAGEMENT
Risk management forms a central part of the CBE’s strategic management, with the task of
identification, assessment, management and monitoring of risks across the organisation.
The CBE’s Internal Auditor, Ngubane and Company, and the ARC play a vital role in Risk
Management.
The principles of good governance require Council, as the Accounting Authority, to be
directly responsible for risk management and planning. Risk Management is also a
22
compliance requirement, as per the Public Finance Management Act (PFMA). A follow up
Strategic Risk workshop was held with Council, the ARC, internal audit and CBE
Management during the period under review. A draft Risk Register, with action plans, has
been compiled and will be submitted to the relevant committees for the monitoring of action
plans.
3.5 INTERNAL CONTROLS AND FINANCIAL MANAGEMENT
The Auditor General (AGSA) finalised the 2014/2015 financial year audit during the quarter
under review. The audit covered all operational areas within the CBE viz. performance
information, finance, supply chain, information technology and human resource. The audit
steering committee, which comprises CBE management, internal audit and AGSA
representatives held meetings on a weekly basis to track the audit progress. The outcome
was an unqualified audit with 96% achievement of planned targets. There were numerous
internal control issues raised by the internal and external auditors, which will be addressed
and corrected, as a focus area in the next quarter.
3.6 INTERNAL AUDIT
Internal Audit Function
The internal audit function is to improve the CBE’s operations. It helps the CBE to
accomplish its objectives by introducing a systematic, disciplined approach to evaluate and
improve the effectiveness of the risk management, control, and governance processes. The
internal audit function reports to ARC meetings and, if necessary, meets with the ARC
Chairperson prior to, and immediately after, each ARC meeting.
The CBE’s internal auditors, Ngubane and Company have been continuously submitting
written audit reports to the ARC, based on an approved audit plan. These reports were
based on the status of the internal audit activities performed, which were, amongst others:
a. Significant findings and management action plans;
b. Follow up on previously reported audit findings; and
c. Fraud and non-compliance with legislation.
The internal audit charter and the three year internal audit plan were presented to the ARC
during the period under review. These documents have since been adopted by the
Committee.
23
3.7 COMPLIANCE WITH LEGISLATION AND PROCEDURES
The entity has policies and procedures to ensure compliance with all relevant legislation. It is
unfortunate that there was a lapse in compliance to relevant supply chain management
regulations in the third quarter of the previous financial year (2014/15), which resulted in
irregular expenditure. The matter was duly investigated and reported to the accounting
authority. The employee resigned when disciplinary processes were instituted. The matter
had been concluded. The CBE has no jurisdiction over the employee from a disciplinary
point of view after he left CBE’s employment. There will be no legal action against the CBE
in the future, and employee expressed his regret for the breakdown of trust between him and
CBE. The CFO confirmed that a full and final settlement had been reached with the
employee, with no further recourse.
3.8 FRAUD AND CORRUPTION
The entity focuses on the implementation of an up-to-date Fraud Prevention Plan (FPP), a
requirement set out in Section 3.2.1 of National Treasury Regulations.
Fraud management remains satisfactory, as no public reports have been received from the
Public Service Commission (PSC’s) anonymous hotline, to which the CBE is affiliated.
Management is currently in the process of procuring a service provider to monitor its fraud
hotline and improve reporting.
3.9 MINIMISING CONFLICT OF INTEREST
Declaration of Interest registers were presented at all meetings of the Council and its
Committees during the quarter.
3.10 CODE OF CONDUCT
The annual declaration forms indicating other business interests, as well as confirmation to
abide by the code of conduct of the organisation, were circulated to new employees who
joined the organisation during the quarter.
3.11 HEALTH AND SAFETY AND ENVIRONMENTAL ISSUES
Compliance with the Health and Safety Act is observed through ensuring a safe and
conducive working environment. Quarterly compliance with wellness, health and safety was
24
observed through relevant posters displayed conspicuously throughout the premises. The
Employee Assistance Programme held a Wellness Day to mark the annual World Aids Day.
3.12 TRAINING AND DEVELOPMENT
Staff development and training remains a priority to ensure continuous professional
development for employees of the CBE. As per the training plan, two employees attended an
Assessor course during the quarter. The postponement of scheduled dates affected
attendance at other courses.
3.13 SUPPLY CHAIN MANAGEMENT
The table below indicates the total procurement spend, which excludes long-standing
contracts, on Historically Disadvantaged Individuals (HDI) share as 61%. White males
account for 14%, and 25% of the spend is attributable to state owned entities. The CBE will
continuously endeavour to increase its HDI percentage.
Table 7: Procurement for 3rd Quarter ending December 2015
Procurement for the 3 rd Quarter ending December 2015
Procurement
Details
Contractual
Amount
Procurement
Other
(Funding
for
BEPCs)
Totals
R
R’
R’
%
R’
%
HDI
Women
Black Male
White Male
State owned
entities
Totals
Procurement
distribution
%
385177.79
61%
2150327
45%
2535504.6
36%
63143.9
10%
477850.4
10%
540994.3
8%
322033.89
51%
1672476
35%
1994510.3
28%
88401.46
14%
2628177
55%
2716578.7
38%
157859.75
25%
0
0%
1853565.8
26%
631439
100%
4778504
7105648
100%
1695706
100% 1695706
25
PART C: PERFORMANCE INFORMATION
26
4. PERFORMANCE INFORMATION BY PROGRAMME/OBJECTIVE
The CBE is implementing its APP through four programmes in the 2015/16 financial year,
namely: Government Policies and Priorities; Skills for Infrastructure Delivery; BE Research,
Information and Advisory; and Regulation and Oversight of six BEPCs.
4.1 Programme 1: Government Policies and Priorities
The strategic objective of Programme 1 is to ensure that BE academic curricula and CPD
programmes embody health and safety in construction, environmental sustainability, job
creation through labour intensive construction, as well as the IDMS.
This programme is responding to the following mandates of the CBE:

Section 3 (c) promote ongoing human resource development in the built
environment;

Section 3 (d) facilitate participation by the built environment professions in integrated
development in the context of national goals;

Section 3 (e) promote appropriate standards of health, safety and environmental
protection within the built environment; and

Section 4 (a) advise government on any matter falling within the scope of the built
environment, including resource utilisation, socio-economic development, public
health and safety and the environment, and for this purpose carry out such
investigations as it or the relevant Minister deems necessary.
It is contributing to the following outcomes of the DPW:
Direct outcomes

Outcome 4 – decent employment through inclusive growth (Chapter 3 of the 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).
27
Indirect outcomes

Outcome 2 - a long and healthy life for all (Chapter 10 of the NDP);

Outcome 5 – skilled and capable workforce to support an inclusive growth path
(Chapter 9 of the NDP);

Outcome 8 - sustainable human settlements and improved quality of household life
(Chapter 8 of the NDP); and

Outcome 10 - protect and enhance our environmental assets and natural resources
(Chapter 5 of the NDP).
For the 2015/16 APP, Programme 1 has a total of five annual targets. There were five
targets in the third quarter, which performed as follows:
4.1.1 Progress report on engagements with BEPCs on modalities to incorporate health and
safety in construction, in BE academic curricula framework - Achieved
The aim of this project is to develop a framework for the incorporation of health and safety in
construction in the curriculum of South African tertiary institutions that provide BE
programmes. In line with the government’s priority of health and safety in construction, this
project is ultimately aimed at ensuring that BEPs are conversant and able to implement
these concepts in the design, construction, maintenance and disposal of infrastructure. In
the broader context, health and safety is critical to ensure public protection during and after
construction.
During the quarter, a draft framework on health and safety was developed and submitted. A
meeting with CHE was held to discuss the proposed framework and potential areas of
collaboration. The quarterly target was achieved through engagements with the BEPCs at
the Registrars’ Forum held in December 2015. A discussion was held on the progress on the
development of the frameworks and inputs were received on the current initiatives of the
BEPCs linked to the project. All four frameworks will be consolidated during the upcoming
quarter, and a workshop is planned with the BEPCs for 26 February 2016, after which the
framework will be finalised and action plan developed.
It should be noted that annual targets 1 to 4 in Programme 1 will not be achieved fully. The
Council for Higher Education (CHE) will not endorse the frameworks developed for
modalities to incorporate health and safety in construction, environmental sustainability,
labour intensive construction and the Infrastructure Delivery Management System (IDMS)
28
into BE curricula. It emerged from the engagement with the CHE that their mandate is
limited to the accreditation of programmes in tertiary institutions, not inputs to modules (as
required by the CBE). This partial achievement will have a negative impact on the overall
performance of the CBE, as these annual targets constitute 19% of the total performance of
the organisation.
4.1.2 Progress report on engagements with BEPCs on modalities to incorporate
environmental sustainability, in BE academic curricula framework - Achieved
The aim of this project is to develop a framework for the incorporation of environmental
sustainability in the curriculum of South African tertiary institutions that provide BE
programmes. In line with the government’s priority of environmental sustainability, this
project is ultimately aimed at ensuring that BEPs are conversant and able to implement
these concepts in the design, construction, maintenance and disposal of infrastructure.
During the quarter, a draft framework on environmental sustainability was developed and
submitted. A meeting with CHE was held to discuss the proposed framework and potential
areas of collaboration. The quarterly target was achieved through engagements with the
BEPCs at the Registrars’ Forum held in December 2015. A discussion was held on the
progress on the development of the frameworks and inputs were received on the current
initiatives of the BEPCs linked to the project. All four frameworks will be consolidated into
one during the upcoming quarter, and a workshop is planned with the BEPCs for
26 February 2016, after which the framework will be finalised and action plan developed.
4.1.3 Progress report on engagements with BEPCs on modalities to incorporate labour
intensive construction in BE academic curricula framework – Achieved
The aim of this project is to develop a framework for the incorporation of labour intensive
techniques in the curriculum of South African tertiary institutions that provide BE
programmes. In line with the government’s priority of job creation, this project is ultimately
aimed at ensuring that BEPs are conversant and able to implement these concepts in the
design, construction, maintenance and disposal of infrastructure. In the broader context, job
creation is critical for the economic development of the country and the BEPs have an
opportunity to make a meaningful contribution in the light of the planned infrastructure
delivery.
29
During the quarter, a draft framework on labour intensive techniques was developed and
submitted. A meeting with CHE was held to discuss the proposed framework and potential
areas of collaboration. The quarterly target was achieved through engagements with the
BEPCs at the Registrars’ Forum held in December 2015. A discussion was held on the
progress on the development of the frameworks and inputs were received on the current
initiatives of the BEPCs linked to the project. All four frameworks will be consolidated into
one during the upcoming quarter, and a workshop is planned with the BEPCs for
26 February 2016, after which the framework will be finalised and action plan developed.
4.1.4 Progress report on engagements with BEPCs on modalities to incorporate the IDMS in
BE academic curricula framework – Achieved
The aim of this project is to develop a framework for the incorporation of the IDMS in the
curriculum of South African tertiary institutions that provide BE programmes. In line with the
government’s priority of improving service delivery this project is ultimately aimed at ensuring
that BEPs are conversant and able to implement these concepts in the design, construction,
maintenance and disposal of infrastructure.
During the quarter, a draft framework on IDMS was developed and submitted. A meeting
with CHE was held to discuss the proposed framework and potential areas of collaboration.
The quarterly target was achieved through engagements with the BEPCs at the Registrars’
Forum held in December 2015. A discussion was held on the progress on the development
of the frameworks and inputs were received on the current initiatives of the BEPCs linked to
the project. All four frameworks will be consolidated into one during the upcoming quarter,
and a workshop is planned with the BEPCs for 26 February 2016, after which the framework
will be finalised and action plan developed.
4.1.5 Second progress report and stakeholder consultations (SAQA, CETA, CHE, BEPC,
CIDB, DBW and NT) on the development of an IDMS skills programme - Partially Achieved
The objective of this project is to develop a CPD points bearing skills programmes on the
IDMS. This will enable wider dissemination of the IDMS body of knowledge to BEPs, thus
catalysing a greater adoption and use of the IDMS in the public sector for sustained public
sector infrastructure delivery.
30
During this quarter, a draft report on CPD points bearing skills programmes on the IDMS
was developed and discussed with NT and DPW. A report was developed on these
engagements. Engagements with other stakeholders will be scheduled during the first month
of the fourth quarter.
4.2 Programme 2: Skills for Infrastructure Delivery
The strategic objective of Programme 2 is to drive and facilitate skills development and
transformation within the BE. It contains the flagship programmes that will drive the
implementation of the Transformation Implementation Model of the CBE, together with the
Workplace Training Model.
This programme is responding to the following mandate of the CBE:

Section 3 (c) promote ongoing human resource development in the built
environment.
It is contributing to the following outcomes of DPW:
Direct outcomes

Outcome 4 – decent employment through inclusive growth (Chapter 3 of the NDP).
Indirect outcomes

Outcome 1 - quality basic education (Chapter 9 of the NDP); and

Outcome 5 – skilled and capable workforce to support an inclusive growth path
(Chapter 9 of the NDP).
For the 2015/16 APP, Programme 2 has five annual targets. There were four targets in the
third quarter, which performed as follows:
4.2.1 Second draft of a Project Plan for the production and development of three high
demand BEPs skills identified for SIPs (Engineers, Quantity surveyors, and Construction &
project managers) – Achieved
The goal of the project is to have an adequate number of BEPs with appropriate skills and
competencies to respond to the country's infrastructure delivery needs. In the 2015/16
financial year, the project is focusing on Engineers, Quantity Surveyors, and Project and
31
Construction Managers. Property Valuers will be engaged as well to prepare their
participation in the coming financial year.
The third quarter target as per the APP was achieved. The second quarter project plan for
the production and development of three high demand BEPs skills Identified for SIPs was
developed.
4.2.2 Third progress report on the academic status of 150 enrolled learners benefiting from
Maths & Science Support Programme - Achieved
CBE’s Maths and Science support programme aims to benefit school learners in Grade 10 –
12 from disadvantaged communities to obtain better grades in both Maths and Science
subjects, in order to improve their performance in these gateway subjects to BE careers.
The third quarter target as per the APP was achieved. Third quarter progress report was
developed.150 learners participated CBE Maths and Science Support Programme in the
Francis Baard Education District in Kimberley, Northern Cape Province. The 150 learners
include 15 Grade 10 learners and 18 in Grade 11, with the remaining 117 learners in Grade
12. Their baseline results show an improvement after the second quarter examination results
and the preliminary examination results of September / October 2015. The Grade 12 learner
numbers have increased substantially from 117 to 135.
4.2.3 Second progress report on workplace training of candidates/BE graduates - Partially
Achieved
This project is aimed at ensuring BE candidates achieve maximum professional
development and professional registration in the shortest possible time by:

Conducting workplace assessments and accreditation;

Drawing up a generic training plan for the profession, in alignment with the BEPCs
competency profile;

Drawing a detailed training plan for each candidate; and

Preparing mentors (through workshops), to conduct a formative assessment of each
outcome, according to SAQA requirements.
32
The second progress report was developed. This target was partially achieved, as only 17
out of the 39 progress reports were received for the candidates mentored. The following
challenges were experienced during this quarter:

Mogwariepa and SAICE mentors delay in signing the contract, due to revisions of the
contract and working through the organisations’ administrator, instead of working
directly with mentors.

Candidates relocating to other provinces, resulting in and mentors not being able to
continue the mentorship due to distance factor. CBE had to re-assign the candidates
to new mentors.
The above challenges incurred an administration burden, compromising the follow up on
mentors.
The corrective action is that the project manager will be assisted with human resources
support in order to follow up outstanding mentoring sessions. There is a weekly meeting by
the Chief Operations Officer (COO) to monitor progress.
4.2.4 Second progress report on workplace training of 50 interns - Partially Achieved
This project is the intern-training component of the candidate workplace-training model. It
entails supporting interns from the Universities of Technology (UoT) to undergo workplace
training to complete the practical training requirement of their tertiary qualification.
The second progress report was compiled. This target was partially achieved, as only 19
progress reports were received for the interns placed in training. The corrective action is that
mentorship schedule is developed. Weekly meetings are also held, and chaired by the COO
to monitor progress scheduled.
4.2.5 One project on accreditation of BE programmes and institution - No Target
The aim of the project is to ensure that the BEPCs adhere to an equitable and fair
accreditation process of tertiary institutions with readily accessible documentary procedures
to be followed.
There was no target for the quarter. However, five of the six BEPCs confirmed and
submitted their 2015 academic year accreditation schedules to the various universities.
ECSA completed a full accreditation visit to the Walter Sisulu University of Technology
33
(WSU) on the Butterworth and East London campuses.
SACAP has completed a full
accreditation visit to the University of KwaZulu Natal (UKZN) in Durban, which included an
International Observer Panel from the Commonwealth Architectural Association (CAA).
4.3 Programme 3 - BE Research, Information and Advisory
The strategic objective of Programme 3 is for the CBE to provide informed and researched
advice on BE priority matters identified in the MTSF to government.
This programme is responding to the following mandates of the CBE:

Section 3 (d) facilitate participation by the built environment professions in integrated
development in the context of national goals;

Section 3 (e) promote appropriate standards of health, safety and environmental
protection within the built environment; and

Section 4 (a) advise government on any matter falling within the scope of the built
environment, including resource utilisation, socio-economic development, public
health and safety and the environment, and for this purpose carry out such
investigations as it or the relevant Minister deems necessary.
It is contributing to the following outcomes of the DPW:
Direct outcomes

Outcome 4 – decent employment through inclusive growth (Chapter 3 of the 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).
Indirect outcomes

Outcome 8 - sustainable human settlements and improved quality of household life
(Chapter 8 of the NDP); and

Outcome 10 - protect and enhance our environmental assets and natural resources
(Chapter 5 of the NDP).
34
For the 2015/16 APP, Programme 3 has five annual targets. There were five targets in the
third quarter, which performed as follows:
4.3.1 Second draft survey report on currently existing BE industry initiatives on Maths &
Science support interventions at basic education level – Not Achieved
This project seeks to “Provide a status-quo analysis and spatial mapping of various Maths
and Science initiatives in order to develop a national platform to coordinate and scale up
these initiatives into viable and well-run BE Maths and Science support programmes, from
primary to the high school education phase, in support of the BE skills pipeline.”
The actual target for the quarter was not achieved due to the delays encountered in the
second quarter. However, the corrective action to deliver on the second quarter target was
achieved through the finalisation and submission of the first draft report. A survey
questionnaire was distributed to the BEPCs on their Maths and Science support initiatives.
One response was received from the BEPCs. The second draft report will be finalised in
February 2016. During the quarter, site visits were undertaken on the CBE’s Maths and
Science initiative in Kimberley and reports developed accordingly.
4.3.2 First draft report on profile of BE professionals employed at State Owned Entities
(SOEs) – Not Achieved
The aim of this project is to establish the numbers and profile of BEPs employed in national
and provincial government departments, as well as in SOEs. The study is aimed at informing
possible immediate and future interventions, commensurate with the proposed drive to
transform the sector and to improve the state’s capacity to deliver basic services. Ultimately,
these must synergise with the implementation of the National Infrastructure Development
Plan.
Due to the delays encountered in the second quarter, the third quarter target could not be
achieved. As a corrective measure the SOEs’ CEOs will be followed up by the Acting CEO
to seek their interventions. One of the key challenges faced in implementing the project is
that the APP target is constructed without consideration of the processes involved in getting
information from national and provincial departments as well as SOEs. Furthermore, the
approval of the introductory letters was delayed. The introductory letters and the electronic
questionnaire were sent to the SOEs at the beginning of December 2015. One of the key
delays in this project is getting responses from the departments and SOE’s. The finalisation
35
of the electronic questionnaire with the Project Expert also presented a challenge during the
quarter. The electronic questionnaire was circulated to all identified SOEs, and a follow up
will be undertaken in January 2016.
The second quarter target was a first draft report on the profile of BE professionals employed
at national and provincial departments; during the quarter information was received from
Provincial DPW and few other Departments responsible for infrastructure delivery. The
information has been captured and will be analysed during the fourth quarter. Literature
review and data analysis is being undertaken and will be submitted during February 2016.
As part of the bigger project, meetings were held with National Department of Defence,
Heritage Western Cape and the Western Cape Provincial Treasury to discuss issues relating
to technical capacity for infrastructure delivery. Much interest was expressed in formalising
partnerships with CBE on technical capacity initiatives. Proposed MoA’s are in the pipeline
with some these departments.
4.3.3 Stakeholder consultations (DPSA, DPW Infrastructure departments and COGTA) on
current OSD framework – Partially Achieved
The focus of this project is to undertake a critical analysis of the Occupation Specific
Dispensation (OSD) framework on how it enhances or hinders the attraction and retention of
BEPs within the public sector. The project aims at addressing the issues relating to the
capability of government structures to deliver infrastructure effectively. As part of the study,
engagements were undertaken with the relevant stakeholders involved in the application of
OSD through their recruitment processes.
In-depth engagements were held with the DPW Provincial Departments and detailed
information has been received on their experiences relating to implementation of the OSD. A
short synopsis has been developed. Meeting requests have been sent to DPSA, COGTA
and the Department of Human Settlements to be held during February 2016.
4.3.4 Stakeholder consultations on the first phase research on the viability of a government
infrastructure agency - Partially Achieved
The focus of the project is to review existing models that centralise the delivery of
infrastructure. The purpose is to improve service delivery in other countries. The project
36
execution will be mainly through literature review, engagements with key stakeholders and
role players in the delivery of infrastructure in South Africa.
A draft report on the viability of government infrastructure agency was developed in
November 2015. The report recommended that it is not viable to establish the agency. A
decision was made subsequently to develop a discussion document to engage different roleplayers, identified by the research, on the coordination of infrastructure delivery. Informal
engagement was held with DPW on the contents of the report and will be discussed in detail
during the fourth quarter.
4.3.5 Second draft report on incorporation of labour intensive construction and job creation in
public sector infrastructure and construction projects contracts – Not Achieved
The objective of this project is to provide a detailed analysis on how labour intensive
techniques can be incorporated in the public sector infrastructure projects. The study will
inform the development of a framework for the implementation of labour-intensive
techniques in construction projects. The delay in this project was caused by the late
procurement of the project expert.
The first meeting was held with the project expert in November where the project plan was
submitted and approved. The draft report will be submitted in January 2016.
As part of this project, a MoU with DPW/EPWP/ILO has been drafted and is awaiting
finalisation. The MoU is aimed at promoting the adoption of labour intensive techniques in
small and large scale projects.
4.4 Programme 4 - Regulation and Oversight of six BEPCs
The strategic objective of Programme 4 is to ensure that the CBE acts an appeal body on
matters referred to it in terms of the law regulating the BEPs, and to promote sound
governance of BEPs.
This programme is responding to the following mandate of the CBE:

Section 20 and 21 of the CBE Act 43 of 2000.
It contributes to the following outcomes:
37
Indirect outcomes
 Outcome 13 - social protection (Chapter 11 of the NDP); and
 Outcome 10: protect and enhance our environmental assets and natural resources.
For the 2015/16 APP, Programme 4 has seven annual targets. There were seven targets in
the second quarter, which performed as follows:
4.4.1 100% finalisation of appeals within 60 days - Achieved
The objective of the project is to ensure an effective appeals process and the enhancement
of processes by BEPCs. In terms of Section 21 of the Act, read together with Section 4
paragraph (m) thereof, the CBE is empowered and obliged to hear an appeal launched by a
party aggrieved by a decision of any of the BEPCs and in terms of the profession’s Act.
The third quarter target was achieved. One appeal was lodged during the quarter; however,
it was withdrawn by the appellant before the hearing took place. The appeal was on track to
be heard within the required 60 days of its lodgement at the time of withdrawal.
4.4.2 Draft report on the implementation of the Identification of Work – Achieved
Section 20 of the Act requires the IDoW to be performed by persons registered by a BEPC in
an appropriate category. The said IDoW is preceded by, inter alia, consultation with the
Competition Commission (CC). The CC required exemption applications on behalf of all six
BEPCs, which were lodged during previous financial years. The applications are still being
investigated by the CC.
The required draft report was prepared; referring to the process followed, the progress made
and the expected way forward.
The APP target furthermore requires “Stakeholder consultations on the first draft of IDoW in
other countries.” - Achieved
The target was achieved. The BEPCs, as relevant stakeholders, were consulted in writing.
38
4.4.3 Draft report on the assessment of BEPCs compliance to CBE Corporate Governance
framework – Achieved
The objective of this project is to solidify the Corporate Governance Framework that was
adopted by the BEPCs in the 2014/15 financial year, by determining the level of compliance
with various codes of governance applicable to the BEPCs. After determining the level of
compliance, the project aims to develop strategies to improve the compliance levels of each
BEPC. Section 3 (f) of the Act impels it to promote sound governance of the BEPs and has
thus developed a Corporate Governance Framework to assist BEPCs in enhancing good
governance in their operations.
During the quarter under review, a draft report was completed, reflecting the level of
compliance of the BEPCs according to the principles of good governance contained in the
Corporate Governance Framework.
4.4.4 Consultations with three BEPCs on draft Assessment Plan for translation of four BE
policies into rules – Achieved
This project envisages an implementation programme of Ministerial approved BE policy
frameworks and their translation into rules by the six BEPCs. Sections 3 (i), 4 (k) and 4 (o) of
the Act mandates the CBE to ensure the consistent application of policy by the BEPCs.
The target was achieved. All six BEPCs were consulted in writing on the CBE’s draft
Assessment Plan. The Assessment Plan explains a step-by-step process on how the
Ministerial approved BE policy frameworks will be translated into rules by the BEPCs.
In addition to the required consultation, a workshop was facilitated by the CBE between the
BEPCs, representatives of the Policy Unit of DPW and the CBE. Two policy frameworks
were discussed in detail to ensure a uniform interpretation thereof by all parties. A similar
workshop for more policy frameworks is planned for the fourth quarter.
4.4.5 Development of PFMA roadmap by two BEPCs – Achieved
The objective of this project is to assist each BEPC to design a roadmap towards their
compliance with the PFMA.
39
The target was achieved. All six BEPCs provided information on their current compliance
with the relevant PFMA requirements and their intended action to achieve compliance. Two
BEPCs (ECSA and SACPVP) provided the required PFMA roadmaps.
4.4.6 Development of Strategic Plans, APPs and ARs compliance framework by two BEPCs
– Not Achieved
This project seeks to ensure that the six BEPCs, on their path towards compliance with the
PFMA, are compliant with the statutory requirements of government-wide budgeting and
planning/reporting requirements. It means that their Strategic Plans and Annual Report must
be complaint with statutory requirements and government priorities in the BE.
The third quarter target was not achieved, due to non-submission from the BEPCs. It was
tabled at the Registrar’s Forum in December 2015. Subsequently, SACAP and SACLAP
requested the NT template populate their Strategic Plan and Annual Performance Plan. The
CBE submitted the template to the two BEPCs. As part of the corrective action, the CBE has
scheduled a meeting with the Registrars of the six BEPCs on 2 February 2016 to discuss the
issue.
4.4.7 Consultation with three BEPCs on a monitoring and evaluation framework – Achieved
The aim of this project is to propose a monitoring and evaluation system for the CBE and
BEPCs in the implementation of the 13 functions of the CBE and Professional Councils, as
stipulated in the Act.
The third quarter target as per the APP was achieved. The framework was tabled at the
Registrar’s Forum in December 2015.
40
Programme 1: Government Policies and Priorities
The strategic objective of Programme 1 is to ensure that BE academic curricula and CPD programmes embody health and safety in
construction, environmental sustainability, job creation through labour intensive construction, as well as the IDMS.
Strategic
Goal
Strategic
Objective
KPIs
Annual
Target
Annual
Budget
Quarterly
performance
Target
Q3
Actual
Q3
Quarterly Targets and Actuals
Deviation
Corrective Quarterly
from the
action
budget
Quarterly
target
R’000
1.1 A built
environment
that is
responsive to
the
developmental
and economic
priorities of
government.
BE academic
curricula and
CPD
programmes,
that
embodies
issues of
health and
safety in
construction,
environmental
sustainability
and job
creation
through
labour
intensive
construction
as well as the
IDMS.
BE academic
curricula and
CPD
programmes,
that embody
issues of
health and
safety in
construction,
environmental
sustainability
Actual
Expenditure
%
Variance
Corrective
Action in
case of
poor
spending
100%
The
expenditure
will be
realised in
the fourth
quarter.
R’000
One project
on academic
institutions
incorporation
of health &
safety in
construction,
into BE
academic
curricula.
Framework
developed on
modalities to
incorporate
health and
safety in
construction,
in the BE
curricula,
endorsed by
the CHE.
*162
Progress
report on
engagements
with BEPCs
on modalities
to incorporate
health and
safety in
construction,
in BE
academic
curricula.
Achieved
Engagements
held with the
BEPCs on 08
December
2015
None
20
0
One project
on academic
institutions
incorporation
of
environmental
sustainability,
into BE
academic
curricula
Framework
developed on
modalities to
incorporate
environmental
sustainability,
in the BE
curricula,
endorsed by
the CHE by
31 March
-
Progress
report on
engagements
with CHE on
modalities to
incorporate
environmental
sustainability
in BE
academic
curricula.
Achieved
Engagements
held with the
BEPCs on 08
December
2015.
None
-
-
-
41
Strategic
Goal
Strategic
Objective
KPIs
Annual
Target
Annual
Budget
Quarterly
performance
Target
Q3
Actual
Q3
Quarterly Targets and Actuals
Deviation
Corrective Quarterly
from the
action
budget
Quarterly
target
R’000
1.3 A built
environment
that is
responsive to
the
developmental
and economic
priorities of
government.
1.4 A built
environment
that is
responsive to
the
developmental
and economic
priorities of
government.
and job
creation
through
labour
intensive
construction
as well as the
IDMS.
BE academic
curricula and
CPD
programmes,
that embody
issues of
health and
safety in
construction,
environmental
sustainability
and job
creation
through
labour
intensive
construction
as well the
IDMS.
BE academic
curricula and
CPD
programmes,
that embody
issues of
health and
safety in
construction,
environmental
sustainability
and job
Actual
Expenditure
%
Variance
Corrective
Action in
case of
poor
spending
R’000
2016.
One project
on academic
institutions
incorporation
of labour
intensive
construction,
into BE
academic
curricula.
Framework
developed on
modalities to
incorporate
labour
intensive
construction
in the BE
curricula,
endorsed by
the CHE by
31 March
2016.
One project
on academic
institutions
incorporation
of the IDMS
into BE
academic
curricula.
Framework
developed on
modalities to
incorporate
the IDMS, in
the BE
curricula,
endorsed by
the CHE by
31 March
2016.
-
-
Progress
report on
engagements
with BEPCs
on modalities
to incorporate
labour
intensive
construction
in BE
academic
curricula.
Achieved
Engagements
held with the
BEPCs on 08
December
2015.
None
-
-
-
-
Progress
report on
engagements
with BEPCs
on modalities
to incorporate
the IDMS in
BE academic
curricula.
Achieved
Engagements
held with the
BEPCs on 08
December
2015.
None
-
-
-
-
42
Strategic
Goal
Strategic
Objective
KPIs
Annual
Target
Annual
Budget
Quarterly
performance
Target
Q3
Actual
Q3
Quarterly Targets and Actuals
Deviation
Corrective Quarterly
from the
action
budget
Quarterly
target
R’000
1.5 A built
environment
that is
responsive to
the
developmental
and economic
priorities of
government.
creation
through
labour
intensive
construction
as well as the
IDMS.
BE academic
curricula and
CPD
programmes
that embody
issues of
health and
safety in
construction,
environmental
sustainability
and job
creation
through
labour
intensive
construction
as well as
infrastructure
delivery
management
system
(IDMS).
Number of
CPD skills
programmes
developed on
the IDMS.
One CPD
skills
programme
on the IDMS
developed by
31 March
2016.
233
Second
progress
report and
stakeholder
consultations
(SAQA,
CETA, CHE,
BEPC, cidb,
DPW and NT)
on the
development
of IDMS skills
programme.
Partially
Achieved
None
None
0
Actual
Expenditure
%
Variance
Corrective
Action in
case of
poor
spending
R’000
0
0
43
Programme 2: Skills for Infrastructure Delivery
The strategic objective of Programme 2 is to drive and facilitate skills development and transformation within the BE. It contains the flagship
programme that will drive the implementation of the Transformation Implementation Model of the CBE, together with the Workplace Training
Model.
Strategic Goal
Strategic
Objective
KPIs
Annual
Target
Annual
Budget
Quarterly
performance
Target
Q3
Actual
Q3
Quarterly Targets and Actuals
Deviation
Correctiv
Quarterly
from the
e action
budget
Quarterly
target
Actual
Expenditure
R’000
2.1 A transformed
built environment
with appropriate,
adequate skills
and
competencies,
responsive to the
country’s
infrastructure
delivery needs.
Drive and
facilitate skills
development
and
transformation
within the BE.
Number of high
demand skills
professions
categories
developed for
SIPs.
2.2 A transformed
built environment
with appropriate,
adequate skills
and
competencies,
responsive to the
country’s
Drive and
facilitate skills
development
and
transformation
within the BE.
Number of
students
enrolled and
benefiting from
the Maths and
Science support
programme.
Developmen
t of the
Implementat
ion Project
Plan to
support the
production
of three high
demand
BEPs skills
categories
(Engineers,
Quantity
Surveyors,
Project and
Construction
Managers)
for SIPs,
submitted to
BEMC by 31
March 2016.
150 Grade
10 -12
learners
benefiting
from the
Maths and
Science
support
%
Variance
Corrective
Action in
case of
poor
spending
R’000
90
Second draft
of Project Plan
for the
production
and
development
of three high
demand BEPs
skills identified
for SIPs
(Engineers,
Quantity
Surveyors,
Construction
and Project
Managers).
Achieved.
Second
draft of
Project
Plan done.
None
None
6
16
1 455
Third progress
report
including
baseline of
Maths and
Science
results on the
academic
Achieved
The
baseline
results of
the 150
learners
has been
recorded
None
None
208
272
255%
130%
Previous
quarter
invoices
paid in this
quarter.
The actual
expenditure
exceeds the
budget but
was revised
during the
mid-term
review but
44
Strategic Goal
Strategic
Objective
KPIs
Annual
Target
Annual
Budget
Quarterly
performance
Target
Q3
Actual
Q3
Quarterly Targets and Actuals
Deviation
Correctiv
Quarterly
from the
e action
budget
Quarterly
target
R’000
infrastructure
delivery needs.
2.3 A transformed
built environment
with appropriate,
adequate skills
and
competencies,
responsive to the
country’s
infrastructure
delivery needs.
2.4 A transformed
built environment
with appropriate,
adequate skills
and
programme
by 31 March
2016.
status of the
150 enrolled
learners
benefitting
from the
Maths and
Science
support
programme.
Drive and
facilitate skills
development
and
transformation
within the BE.
Number of
candidates/BE
graduates
placed for
workplace
training.
50
candidates/
BE
graduates
placed for
workplace
training by
31 March
2016.
1 418
Second
Progress
report on
training of
candidates/
BE graduates.
Drive and
facilitate skills
development
and
transformation
Number of
interns placed
for workplace
training.
50 interns
placed for
workplace
training by
31 March
3 235
Second
progress
report on
training of 50
interns.
and
confirmed
in the
Northern
Cape
Province,
with 117
learners in
Grade 12,
15 in
Grade 10
and 18 in
Grade 11.
The Grade
12 learner
numbers
has
increased
from 117
to 135,
which was
confirmed
as
reported.
Partially
Achieved
Partially
achieved
Actual
Expenditure
%
Variance
Corrective
Action in
case of
poor
spending
R’000
not
reflected.
39
Candidate
s were
mentored;
and 17 out
of 50
reports
were
received.
Dates set
for the
mentorshi
p.
19 out of
50 interns
mentored.
Dates set
for
mentoring
in
January.
392 230
2 025
1 219
1 113
311%
Previous
quarter
invoices
paid in this
quarter.
55%
To visit
service
providers to
collect
outstanding
45
Strategic Goal
Strategic
Objective
KPIs
Annual
Target
Annual
Budget
Quarterly
performance
Target
Q3
Actual
Q3
Quarterly Targets and Actuals
Deviation
Correctiv
Quarterly
from the
e action
budget
Quarterly
target
R’000
competencies,
responsive to the
country’s
infrastructure
delivery needs.
2.5 A transformed
built environment
with appropriate,
adequate skills
and
competencies,
responsive to the
country’s
infrastructure
delivery needs.
within the BE.
Drive and
facilitate skills
development
and
transformation
within the BE.
Actual
Expenditure
%
Variance
R’000
2016.
One project on
accreditation of
BE academic
programmes and
institutions.
One project
on
accredited
academic
programmes
and
institutions,
submitted to
BEMC by 31
March 2016.
240
Report on the
accreditation
schedule of
BEPCs in
2015/16.
Achieved.
Five out of
the six
BEPCs
Accreditati
on visits
as
scheduled
was
undertake
n. Two
accreditati
on visits
(by ECSA
to WSU
and
SACAP to
UKZN)
undertake
n during
November
2015.
None
None
10
Corrective
Action in
case of
poor
spending
137
1377%
invoices on
subsidy of
stipend by
15 February
2016.
The
expenses
exceed the
budget as it
was revised
during the
mid-term
review but
not
reflected.
46
Programme 3: BE Research, Information and Advisory
The strategic objective of Programme 3 is to provide informed and researched advice by the CBE to government on BE priority matters
identified in the MTSF.
Strategic
Goal
Strategic
Objective
KPIs
Annual
Target
Annual
Budget
Quarterly
performance
Target
Q3
Actual
Q3
Quarterly Targets and Actuals
Deviation
Corrective
Quarterly
from the
action
budget
Quarterly
target
R’000
3.1 An
optimally
functioning
built
environment
with a
responsive
and relevant
policy and
legislative
framework
based on
informed
and
researched
positions.
To provide
informed
and
researched
advice to
government
on BE
priority
matters
identified in
the 2014
MTSF.
Number of
research
projects on
BE industry
skills
initiatives at
schools and
universities.
One
research
project on
currently
existing BE
industry
initiatives on
Maths &
Science
support
interventions
at basic
education
level,
submitted to
BEMC, by 31
March 2016.
99
Second draft
survey report
on existing
Maths and
Science
support
programmes
within the
BE.
Not
Achieved
The target for
the quarter
was not
achieved due
to the delays
encountered
in the first
quarter.
3.2 An
optimally
functioning
built
environment
with a
responsive
and relevant
policy and
legislative
framework
based on
To provide
informed
and
researched
advice to
government
on BE
priority
matters
identified in
the 2014
MTSF.
One research
project on the
survey on BE
technical
professionals
employed at
municipal,
provincial and
national
departments
and SOEs by
31 March
One research
project on BE
technical
professionals
employed in
municipalities
and,
provinces,
submitted to
BEMC by 31
March 2016.
1 658
First draft
report on the
profile of BE
professionals
employed at
SOEs.
Not
Achieved
Introductory
letters and
the
questionnaire
were
submitted
late, due to
late approval
of letters.
The
corrective
action to
deliver on the
second
quarter target
was achieved
through the
first draft
report. A
survey was
distributed to
the BEPCs
and the
response is
awaited.
SACLAP has
since sent a
response.
Follow up on
data
collection to
be done in
January.
Literature
review
underway.
Actual
Expenditure
%
Variance
Corrective
Action in
case of
poor
spending
R’000
56
5
90%
The
remainder
of the
expenditure
will be
realised in
the fourth
quarter for
project
Expert
payment.
229
166
9%
The
remainder
of the
expenditure
will be
realised in
the fourth
quarter for
project
Expert
payment.
47
Strategic
Goal
Strategic
Objective
KPIs
Annual
Target
Annual
Budget
Quarterly
performance
Target
Q3
Actual
Q3
Quarterly Targets and Actuals
Deviation
Corrective
Quarterly
from the
action
budget
Quarterly
target
R’000
informed
and
researched
positions.
3.3 An
optimally
functioning
built
environment
with a
responsive
and relevant
policy and
legislative
framework
based on
informed
and
researched
positions.
3.4 An
optimally
functioning
built
environment
with a
responsive
and relevant
policy and
legislative
framework
based on
informed
and
researched
positions.
Actual
Expenditure
%
Variance
Corrective
Action in
case of
poor
spending
R’000
2016.
To provide
informed
and
researched
advice to
government
on BE
priority
matters
identified in
the 2014
MTSF.
One research
project on the
OSD
Framework’s
role in
attraction and
retention of
BE
professionals
and skills in
the provinces
and
municipalities.
One research
project on
OSD
Framework’s
role in
attraction and
retention of
BE
professionals
in the public
sector,
submitted to
DPSA, by 31
March 2016.
104
Stakeholder
consultations
(DPSA, DPW
infrastructure
departments,
COGTA and
Dept of
Human
Settlements)
on current
OSD
Frameworks.
Partially
Achieved
As part of the
consultations,
questions on
the current
engagements
with
provinces
and national
were
incorporated.
Consultations
with the
national and
provincial
departments
are due to
start end of
January or
beginning of
February.
22
0
100%
The
expenditure
will be
realised in
the fourth
quarter
after
payment of
project
Expert.
To provide
informed
and
researched
advice to
government
on BE
priority
matters
identified in
the 2014
MTSF.
Research
project on the
viability of
government
infrastructure
agency.
First phase
research
project on the
viability of
government
infrastructure
agency
submitted to
Council by 31
March 2016.
103
First draft
report on the
first
Stakeholder
consultations
on the first
phase
research on
the viability
on a
government
infrastructure
agency.
Partially
Achieved
None
N/A
50
0
100%
The
expenditure
will be
realised in
January
after
payment of
project
Expert.
48
Strategic
Goal
Strategic
Objective
KPIs
Annual
Target
Annual
Budget
Quarterly
performance
Target
Q3
Actual
Q3
Quarterly Targets and Actuals
Deviation
Corrective
Quarterly
from the
action
budget
Quarterly
target
R’000
3.5 An
optimally
functioning
built
environment
with a
responsive
and relevant
policy and
legislative
framework
based on
informed
and
researched
positions.
To provide
informed
and
researched
advice to
government
on BE
priority
matters
identified in
the 2014
MTSF.
Research
project on the
incorporation
of labour
intensive
construction
and job
creation
requirements
in public
sector
infrastructure
and
construction
projects
contracts.
First phase
research
project on the
incorporation
of labour
intensive
construction
and job
creation
opportunities
in public
sector
infrastructure
and
construction
projects
contracts,
submitted to
Council by 31
March 2016.
153
Second draft
report on the
incorporation
of labour
intensive
construction
and job
creation in
public sector
infrastructure
and
construction
project
contracts.
Not
Achieved
During the
quarter, a
meeting was
held with the
project expert
to discuss the
project
inception
report. A
MoU with
EPWP/ILO
was drafted
and is
awaiting
finalisation.
Follow ups
with the PoE
to finalise
and submit
the draft
report.
110
Actual
Expenditure
%
Variance
Corrective
Action in
case of
poor
spending
99%
None
R’000
4
49
Programme 4: Regulation and Oversight of six BEPCs
The strategic objective of Programme 4 is to ensure that the CBE acts an appeal body on matters of law regulating the BEPs, and to promote
sound governance of BEPs.
Quarterly Targets and Actual
Annual
Budget
Strategic
Goal
Strategic
Objective
KPIs
Annual Target
Quarterly
performance
Target
Q3
Actual
Q3
Deviation
from the
Quarterly
target
Corrective
action
R’000
4.1 BEPs
who
operate
within a
regulated
policy and
legislative
framework.
Act as an
appeal body
on matters of
law regulating
the BEPs, and
promote and
ensure high
standards of
professional
ethics within
the BE.
Percentage of
appeals
submitted to
CBE by
persons
aggrieved by
decisions of
the six BEPCs,
finalised within
statutory 60
days from
lodgement.
100%
finalisation of
appeals within
the statutory
60 days by 31
March 2016.
316
100%
finalisation of
appeals within
60 days.
Achieved.
Lodged
appeal
withdrew
prior to
hearing
within
period of 60
days.
4.2 BEPs
who
operate
within a
regulated
policy and
legislative
framework.
Implementation
analysis of
CBE’s
corporate
governance
framework for
the six BEPCs.
Implementation
report of the
CC decision on
the IDoW
exemption
applications for
the six BEPCs.
Implementation
report
submitted to
Council on the
decision of the
CC on IDoW of
the six BEPCs
by 31 March
2016.
3
Draft report on
the
implementation
of the IDoW.
Achieved
Required
draft report
done.
N/a
N/a
Quarterly
budget
Actual
Expenditure
%
Variance
Corrective
Action in
case of
poor
spending
R’000
R’000
130
100%
Spending
depended
on
appeals
heard.
100%
0
100%
Budget to
be utilized
during Q4.
3
50
Quarterly Targets and Actual
Annual
Budget
Strategic
Goal
Strategic
Objective
KPIs
Annual Target
Quarterly
performance
Target
Q3
Actual
Q3
4.3 BEPs
who
operate
within a
regulated
policy and
legislative
framework.
4.4 BEPs
who
operate
within a
regulated
policy and
legislative
framework.
Adoption and
implementation
by the six
BEPCs of a
CBE all
encompassing
Monitoring and
Evaluation
Framework.
Implementation
analysis of
CBE’s
corporate
governance
framework for
the six BEPCs.
Implementation
programme of
Ministerial
approved BE
policy
frameworks
and their
translation into
rules by six
BEPCs.
45
Corporate
Governance
Implementation
Checklist
assessment in
the six BEPCs,
submitted to
Council and
DPW, by 31
March 2016.
Six BEPCs
implementation
programme on
translation of
our Ministerial
approved BE
policies into
rules by
BEPCs, by 31
March 2016.
2
5
Corrective
action
Quarterly
budget
R’000
R’000
Research
report
submitted to
Council on the
benchmarking
of IDoW in
other countries
by 31 March
2016.
Deviation
from the
Quarterly
target
Stakeholder
consultation on
the first draft
report on IDoW
in other
countries.
Draft report on
the
assessment of
BEPCs
compliance to
CBE’s
Corporate
Governance
Framework.
Consultation
with three
BEPCs on
Assessment
Plan for
translation of
four BE
Policies into
rules.
Achieved
45
%
Variance
Corrective
Action in
case of
poor
spending
0
100%
Budget to
be utilized
during Q4.
0
100%
Budget to
be utilized
during Q4.
Actual
Expenditure
R’000
Written
consultation
conducted.
1
Achieved.
Required
draft report
done.
Achieved
0
All six
BEPc
already
consulted.
51
Quarterly Targets and Actual
Annual
Budget
Strategic
Goal
Strategic
Objective
KPIs
Annual Target
Quarterly
performance
Target
Q3
Actual
Q3
Deviation
from the
Quarterly
target
Corrective
action
R’000
R’000
4.5 BEPs
who
operate
within a
regulated
policy and
legislative
framework.
PFMA
compliance
roadmap by
the six BEPCs.
PFMA
compliance
roadmap by
the six BEPCs,
submitted to
BEMC by 31
March 2016.
17
4.6 BEPs
who
operate
within a
regulated
policy and
legislative
framework.
Timetable on
the alignment
of the Strategic
Plan, APPs
and Annual
Reports of the
six BEPCs to
those of CBE
and DPW.
Timetable on
the alignment
of Strategic
Plans, APPs
and Annual
Reports of the
six BEPCs to
those of CBE
and DPW,
submitted to
Council and
DPW by 31
March 2016.
An all
encompassing
monitoring and
evaluation
framework,
developed by
the CBE and
adopted by the
six BEPCs.
submitted to
Council and
DPW by 31
March 2016.
0
Development
of Strategic
Plans, APPs
and ARs
compliance
framework by
two BEPCs.
0
Consultation
with three
BEPCs on a
monitoring and
evaluation
framework.
4.7 BEPs
who
operate
within a
regulated
policy and
legislative
framework.
Adoption and
implementation
by the six
BEPCs of a
CBE all
encompassing
Monitoring and
Evaluation
Framework.
Adoption and
implementation
by the six
BEPCs of a
CBE all
encompassing
Monitoring and
Evaluation
Framework.
Quarterly
budget
Development
of PFMA
compliance
roadmap by
two BEPCs.
Achieved
Two
BEPCs
(ECSA and
SACPVP)
submitted
required
PFMA
roadmaps.
Not
achieved,
due to nonsubmission
from the
BEPCs.
Achieved.
The
framework
was tabled
at the
Registrar’s
Forum in
December
2015.
Actual
Expenditure
%
Variance
Corrective
Action in
case of
poor
spending
R’000
0
The issue
of none
submission
was tabled
at the
Registrar’s
Forum in
December
2015.
SACAP
and
SACLAP
requested
the NT
template
populate
their
Strategic
Plan and
APP.
0
0
None
None
0
0
52
PART D: EXPENDITURE REPORT
53
Council For the Built Environment Expenditure Report for the period ending Dec-15
Council for the Built
Environment
Actual
Budget
Variance to
date
Percentage
variance
Actual
Budget
Variance to
date
Percentage
variance
Dec-15
Dec-15
Dec-15
Dec-15
Dec-15
Dec-15
Dec-15
Dec-15
Income
Levies
42,252
4,809
37,443
779%
1,329,8578
1,329,479
379
0%
-
-
-
0%
40,358,294
41,994,000
-1,635,706
-4%
779%
41,688,152.09
43,323,479.00
-1,635,326.91
Total Grant Allocated
Total Income
Programme
Government Policies and
Priorities
Skills for Infrastructure Delivery
BE Research, Information and
Advisory
Regulation and Oversight of six
BEPCs
Total Expenditure
Net Surplus/(Deficit)
42,252.00
4,809.00
37,443.00
-4%
2,751,289
2,672,271
-79,018
-3%
23,767,207
25,935,755
2,168,548
8%
990,362
294,174
-696,188
-237%
4,733,521
5,852,732
1,119,211
19%
179,853
2,000
-177,853
-8893%
1,186,151
663,000
-523,151
-79%
2,610
247,530
244,920
99%
313,882
983,770
669,888
68%
3,924,115
3,215,975
708,140
18%
30,000,761
33,435,257
-3,434,496
-11%
-3,881,863
-3,211,166
670,697
-21%
11,687,391
9,888,222
-1,799,169
-18%
54
Explanations for significant deviations
Revenue
The revenue consists mainly of the Parliamentary Grant received from the Department of Public Works, which is disbursed in tranches. The
first instalment was received as budgeted, and the second tranche was paid in the third quarter.
The unfavourable variance of -4% shows a difference in the second tranche, which is being followed up with DPW.
Expenses
Administration and Government Policies and Priorities Program
This program bears the administration expenditure of the CBE including personnel and, infrastructure costs, as well as the Government
Policies and Priorities Programme.
This explains the minor favourable variance of 8%. The main expenditure items under this programme are of a fixed nature, which is incurred
as budgeted in most accounts. The favourable variance is due to a saving on the vacant positions.
Skills for Infrastructure Delivery Program
There is a favourable variance of 19% in this programme, due to under-expenditure of R1.1m in the account group of Mentors. The reason for
this variance is the delay in the appointment of mentors during the first quarter, which resulted in a backlog. This has since been corrected, and
the expenditure will be in line with the budget for the year.
55
BE Research, Information and Advisory Program
There is an unfavourable variance of (79) % in this programme, due to over-expenditure in the account group of Corporate communication and
marketing costs for the printing of the CBE official reports and corporate image design, which was not budgeted for.
Regulation and Oversight of six Built Environment Professional Councils
There is a favourable variance of 68% in this programme, amounting to R670K below budget. The expenditure is dependent on the number of
appeals lodged. As a result, the following account groups were affected:
Less Travel and Accommodation:
R56K
Less Staff Training:
R70K
Less Publications:
R54K
Less Consulting Fees:
R350K
Less Project Support:
R78K
56
ADDENDUM TO EXPENDITURE REPORT
57
Statement of Comprehensive Income
COUNCIL FOR THE BUILT ENVIRONMENT
For: April 2015
To: December 2015
Income Statement
Account
Actual
Budget Variance
Var %
PY Actual
Other Income
1000 (Lev ies ECSA)
1000 (Lev ies SACAP)
1000 (Lev ies SACLAP)
1,016,064.00
808,010.00
208,054.00
25.75
808,010.00
209,307.00
295,533.00
-86,226.00
-29.18
295,533.00
7,803.00
0.00
0.00
4,914.00
12.70
38,682.00
7,803.00
1000 (Lev ies SACPCMP)
43,596.00
1000 (Lev ies SACPVP)
53,172.00
72,051.00
-18,879.00
-26.20
72,051.00
1000 (Lev ies SACQSP)
0.00
115,203.00
-115,203.00
-100.00
115,203.00
2500 (Grant Income)
2600 (Merseta Grant)
38,682.00
40,358,294.30 41,994,000.00 -1,635,705.70
-84.21
0.00
-3.90 41,572,000.00
-84.21
0.00
150,000.00
2900 (Sundry Income)
0.00
0.00
0.00
9,060.00
2930 (INSURANCE CLAIM MF)
0.00
0.00
0.00
22,948.79
T otal Income
41,688,152.09 43,323,479.00 -1,635,326.91
-3.77 43,083,487.79
Other Expense
3015 (Administration)
3025 (Audit Fees)
3050 (Adv ertising & Promotions)
3055 (Forums)
3115 (CBE Ev ents)
3200 (Bank Charges)
3222 (Council Honorariums - Other meeting)
3225 (CATERING)
0.00
4,460.00
4,460.00
100.00
0.00
1,331,253.75
1,359,400.00
28,146.25
2.07
1,372,868.14
237,281.80
250,000.00
12,718.20
5.09
290,830.44
3,240.00
140,000.00
136,760.00
97.69
0.00
106,541.93
200,664.00
94,122.07
0.00
419,907.35
31,630.61
24,430.00
-7,200.61
0.00
28,679.40
597,180.89
615,708.00
18,527.11
3.01
780,426.41
111,904.69
170,000.00
58,095.31
34.17
130,893.51
3230 (Consulting fees)
3,514,074.64
3,779,434.89
265,360.25
0.00
5,300,468.13
3233 (Mentors)
1,577,212.74
2,793,600.00
1,216,387.26
43.54
0.00
3235 (Project Support)
1,417,537.19
2,686,833.00
1,269,295.81
47.24
157,534.58
3260 (Communications)
265,023.21
325,905.00
60,881.79
18.68
298,626.31
3300 (COMPUTER EXPENSES)
851,703.46
447,500.00
-404,203.46
-90.32
481,321.00
3355 (Corporate Image)
359,356.81
-359,356.81
0.00
0.00
3450 (Depreciation)
3620 (Bursary Costs)
0.00
502,974.09
502,974.09
100.00
0.00
5,277.80
50,000.00
44,722.20
89.44
123,983.68
-307,889.55
0.00
273,790.44
-53,416.46
-31.80
129,031.45
-16,603.22
0.00
0.00
-10.87
357,808.13
103,681.93
3650 (Electricity & Water)
307,889.55
3850 (Insurance)
221,416.46
4155 (Office Refreshments)
168,000.00
16,603.22
4170 (Parking & Landscaping)
401,612.50
362,250.00
-39,362.50
4200 (Printing & Stationery )
236,594.05
36,000.00
-200,594.05
0.00
41,336.17
91,650.00
50,313.83
54.90
170,722.17
3,198,006.52
3,146,650.00
-51,356.52
-1.63
2,809,842.87
27,721.91
4295 (Building Costs)
4300 (Rent Paid)
4350 (Repairs & Maintenance)
167,200.00
139,478.09
83.42
44,582.56
4400 (Salaries & Wages)
7,763,260.05 13,968,337.00
6,205,076.95
44.42
7,350,933.14
4420 (PAYE)
3,897,877.15
-3,897,877.15
0.00
2,870,905.54
444,975.00
-444,975.00
0.00
431,467.00
4430 (Med Aid contributions)
4440 (Prov ident funds contributions)
-1,251,501.13
0.00
1,175,530.14
216,455.64
330,100.00
113,644.36
0.00
292,192.89
4450 (Staff Training)
0.00
70,000.00
70,000.00
100.00
0.00
4455 (Staff Incentiv es)
0.00
25,000.00
25,000.00
100.00
0.00
4445 (Staff Training, Dev elopment and other)
1,251,501.13
58
PART E: HUMAN RESOURCES EXCEPTION REPORT
59
Recruitment and Selection:
The positions of Strategic Planning, Monitoring and Evaluation Manager, Transformation
Officer and Projects Administrator remained frozen, and will be recruited in the next financial
year. The recruitment process for vacant positions of SCM Practitioner, Finance Manager
and Researcher was concluded during the quarter.
They will be finalised in the fourth
quarter.
Staff Movement:
The fixed term positions within the finance department were terminated during the months of
October and November 2015. The positions of Transformation Manager; Accountant and
Administrative Officer were filled during the quarter of reporting. The COO was appointed as
Acting CEO at the beginning of the month of November while the Strategic Planning,
Monitoring and Evaluation Officer continued acting as Strategic Planning Monitoring and
Evaluation Manager.
Table 8: Permanent employees
October 2015
Permanent Employees
African
Female
Male
11
Asians/Indians
Whites
Female
Female
5
Male
Coloured
Male
Female
Total
Male
Grand Total
Females
Males
0
1
2
3
1
1
14
10
24
1
0
0
1
1
0
10
2
12
Fixed Term Employees
8
1
November 2015
Permanent Employees
African
Female
Male
12
Asians/Indians
Whites
Female
Female
5
Male
Coloured
Male
Female
Total
Male
Grand Total
Females
Males
0
1
2
3
1
1
15
10
25
1
0
0
1
1
0
9
1
10
Fixed Term Employees
7
0
December 2015
Permanent Employees
African
Female
Male
13
Asians/Indians
Whites
Female
Female
5
Male
Coloured
Male
Female
Total
Male
Grand Total
Females
Males
0
1
2
3
1
1
16
10
26
1
0
0
1
1
0
9
1
10
Fixed Term Employees
7
0
60
Staff Turnover:
Number of employees at beginning of quarter and at end of quarter (24+26)
Divide by 2 = Total (50÷2 = 25)
Divide terminations over Total x 100 = turnover % (0÷25 x 100 = 0.0%)
Table 9: Racial and Gender Equity as at end of Quarter 3 of 2015/16
Population
Male
group
No.
Female
% male population
No
Total
% female population
Number
% of total CBE
Population
CBE
SA Population
CBE
SA Population
African
5
50.00
79.8
13
81.25
79.80
18
69.23
Coloured
1
10.00
8.9
1
6.25
9.1
2
7.69
Indian/Asian
1
10.00
2.6
0
0.00
2.4
1
3.85
White
3
30.00
2
12.50
5
19.23
Total
10
26
100.0
8.7
100.00
8.7
16
100.00
The population target figures provided have been benchmarked with the latest Statistics SA
demographic data.
The CBE demographics is skewed currently in terms of over-
representation in the white male and female population.
The African male, Indian and
Coloured female staff representation remains under-represented. The CBE will endeavor to
correct this deficiency, including African male, at its next recruitment opportunity.
Employee Relations
The Chief Executive Officer remained on suspension throughout the quarter. A disciplinary
process commenced during the third quarter and is in progress.
The CBE and the union (NEHAWU) entered into a Recognition Agreement.
Employee Leave
The table below depicts the number of leave types in terms of planned and unplanned days
taken during the period under review.
Table 11: Employee leave
Type of leave
October 15
November 15
Employees
Annual Leave
Days
Employees
December 15
Days
Employees
TOTAL
Days
Employees
Days
14
45
7
15
18
95
18
155
Sick Leave
3
17
4
5
1
9
8
31
Family Responsibility
0
0
1
5
0
0
1
5
61
Unpaid leave
2
5
0
0
0
0
2
5
Study leave
1
5
1
16
0
0
2
21
Maternity Leave
0
0
0
0
0
0
0
0
Paternity leave
0
0
0
0
0
0
0
0
Suspension
1
22
1
21
1
17
1
101
Absenteeism
The average absenteeism rate is benchmarked at 4%. A total of 101 unplanned person-days
were lost during the quarter, with an overall absenteeism rate
of 4.35%
It is an
improvement from the previous quarter, the slightly high rate is still attributed to the one
suspension that prevailed throughout quarter, as well as unplanned leave that was treated
as unpaid leave.
Table 12: Absenteeism
October 2015
#Empl
AL
14
#Empl
45
3
SL1
#Empl
17
FRL
#Empl
0
0
1
#Empl
FRL
#Empl
SL2
5
#Empl
SUS
#Empl
1
22
2
#Empl
SUS
#Empl
UL
Total
Total
Absentee
Man-
Staff
%
days
Comple
lost
ment
5
44
36
5.64%
November 2015
#Empl
AL
#Empl
SL1
SL2
UL
Total
Total
Absentee
Man-
Staff
%
days
Comple
lost
7
15
4
5
1
5
1
#Empl
FRL
#Empl
16
1
21
0
#Empl
SUS
#Empl
ment
0
31
35
4.09%
December 2015
#Empl
18
AL
#Empl
95
1
SL1
9
SL2
UL
Total
Total
Absentee
Man-
Staff
%
days
Comple
lost
ment
0
0
0
0
1
17
0
0
26
36
3.33%
1
5
2
21
1
60
2
5
101
36
4.35%
Total for the period under review
18
155
8
31
Formula: Absenteeism% = Man-days lost /Product of Average No of workdays for the period by staff complement X 100.
Whereas Average No. of workdays = 21.67 days per month.
Man days lost = Unplanned absences related to ill health and family responsibility and suspension
#Empl:
AL:
SL1:
FRL:
SL2:
SUS:
UL:
No. of employees
Annual leave
Sick leave
Family Responsibility leave
Study leave
Suspension
Unpaid leave
ACRONYMS
N/A: Not Applicable
62