CBE Communications March 2004

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PRESENTATION TO THE PUBLIC WORKS
PORTFOLIO/SELECT COMMITTEE
06 October 2009

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Overview

• The CBE and the Professional Councils
• The CBE Mandate
• CBEs Alignment to SONA and Government Programmes
  
• Plans for Rural and Youth Development
• Provincial skills demand distribution
• Briefing on Strategic Plans and Budgets
• Response to AGs adverse opinion on VAT
  de-registration
• Challenges
• Future Outlook
• Conclusion

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1. The CBE and the Professional Councils

• The Council of the Built Environment is governed
  by a twenty member council which is appointed by
  the Minister of Public Works.
• The Council is constituted of six (6)
  professional councils, government and the
  general public representatives with a
  proportional representation split of 1244
  respectively, with an equal even split between
  the Professional Councils.
• The CBE is tasked with overseeing the six built
  environment professional councils who regulate
  the professions of Architects, Engineers,
  Landscape Architects , Quantity Surveyors,
  Project and Construction Managers and Property
  Valuers respectively.

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CBE and the Professional Councils cont ...

• Three of the six professional councils
  responsible for the Engineers, Architects and
  Quantity Surveyors existed prior to the enactment
  of 2000s legislation that established the CBE
  and balance of three professional councils
  responsible for the Project and Construction
  Managers, Property Valuers and Landscape
  Architects were enacted in 2000.
• The enactment of the 2000s Built Environment
  professions legislation presented a confluence
  of challenges and opportunities informed by
  legacy issues and operationalisation of a new
  regulatory regime.

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2. CBE Mandate

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

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CBE Mandate cont...

• Promote and protect the interest of the public in
  the built environment
• Promote and maintain a sustainable built
  environment and natural environment
• Promote ongoing human resources development in
  the built environment
• Facilitate participation by the built environment
  professions in integrated development
• Promote appropriate standards of health, safety
  and environmental protection in the built
  environment
• Promote sound governance of the built environment
  professions
• Promote liaison in the field of training in the
  republic and elsewhere
• Serve as a forum where the Built Environment
  Professions discuss relevant issues
• Ensure uniform application of norms and
  guidelines set by the professional councils

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CBE Mandate cont....

• CBEs strategic thrust is governed by the
  following five (5) strategic
• objectives in pursuance towards the fulfilment of
  our mandate
• Improve stakeholder relations and create
  partnerships to improve service delivery
• Intervene in improving the performance of the
  skills delivery pipeline
• Ensure the alignment of the activities of the CBE
  and the BE professional councils with national
  imperatives and initiatives
• Ensure an effective and efficient public
  protection regime
• Transform and consolidate the regulatory,
  institutional and structural framework regulating
  the functioning of the CBE and the professional
  councils

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3. CBE Alignment to SONA

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

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CBE Alignment to SONA cont....
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CBE Alignment to SONA cont....
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CBE Alignment to SONA cont...
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CBE Alignment to SONA cont...
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4. CBEs plan for Rural Development and Youth
Issues

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

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5. Provincial Skills demand distribution

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

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6. Briefing on Strategic Plans and Budgets (the
Details)

• The next set of slides represent the summation
  of the detail and consolidation of budgetary
  information.

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Intervene in improving the performance of the
skills delivery pipeline
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Ensure an effective and efficient public
protection regime
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Transform and consolidate the regulatory,
institutional and structural framework regulating
the functioning of the CBE and the professional
councils
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Improve stakeholder relations and create
partnerships to improve service delivery
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Budget Summary
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Budget analysis cont
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Budget summary cont
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7. Responses to AGs adverse opinion on
VAT de-registration

• VAT de-registration
• Membership fees
• Irregular expenditures
• Trade and other payables
• Disclosure of 3rd parties
• Accumulated surplus

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Summary

• Adverse opinion received, based on the
• following critical issue
• VAT Liability

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Status to date

• VAT Liability
• Background
• In terms of the Revenue Laws Amendment Act of
• 2004, all section 3A public entities had to
  deregister
• for VAT from 1 March 2005. The CBE did not
• deregister for VAT as required.
• Progress to date
• CBE is deregistered for VAT.
• Contingent liability settled.
• Financial Statement 2008/09 adjusted to reflect
  the prior year error.

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Membership feesBackgroundThe CBE does not have
proper internal control systems in place to
ensure completeness and accuracy of membership
fee income.Progress to dateRegulation 915 has
been distributed to professional
councils.Commitment received from professional
councils to comply with the regulation.Controls
over collection of membership fees are being
implemented.
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Irregular expenditureBackgroundAt the time of
procurement of thefollowing services, CBE was
relatively small, making the contracted amount
to be below the open tender thresholdInternal
auditTravel agentProgress to dateTravel agent
appointedInternal audit under adjudication,
contract expired.
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Trade and other payablesBackgroundThis
resulted from the balances from prior years
(2005/2006). At year end the necessary
adjustments were not made pending the SARS PAYE
reconciliation in August to validate the
outstanding balance. Progress to dateAccounts
payables have been adjusted accordingly.
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Related party disclosure BackgroundPrior year
related party transactions for SARS were not
disclosed in the annual financial statements.
Action to be takenRelated party transactions
were properly disclosed in the annual financial
statements for the 2008/2009 financial year.
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Accumulated surpluses BackgroundDuring the
current and prior year, the CBE has accumulated
surpluses in its annual financial statements in
accordance with the CBE Act 43 of 2000. In terms
of section 53(3) of the PFMA the entity should
obtain prior approval to retain surpluses from
national treasury. Progress to dateApproval
was requested from National Treasury to that
effect and necessary approval is still pending
from National Treasury.
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7. Challenges

• Lack of integrated planning with the
• councils
• Inadequate funding
• Councils that are unable to deal with
• their mandates sufficiently due to
• funding

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8. Future Outlook

• Driving the skills pipeline
• Promoting integrated planning and
• implementation
• Providing intelligence for policy-
• making

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9. Conclusion

• The organisation has grown
• exponentially in the past two years
• Lack of integration remains a challenge
• Funding of smaller councils need
• consideration.