PRESENTATION TO THE PORTFOLIO COMMITTEE ON PUBLIC WORKSCBE’S ANNUAL REPORT 2011/12 16 October 2012
CBE Delegation • Mr. Lucky Molobela – CBE Council Member (Standing in for Ms Portia Tau-Sekati – CBE Chairperson) • Ms Gugu Mazibuko – Chief Executive Officer • Ms. Maphefo Sedite – Chief Financial Officer • Mr. Lucas Zepe – Acting Chief Operations Officer • Ms Nana Mhlongo – Acting Manager in the CEO Office
Purpose of the Presentation • To provide an account of the CBE Performance during the 2011/12 financial year as per the commitments made in the CBE 2011 CBE Strategic Plan and Business Plan
Presentation Structure • Contextual Overview • Background and Policy Context • Strategic Goals of the CBE • Description of Programmes • Performance Review/Report • Governance Review • Financial and Audit report • Report on Activities of Professional Councils • Current interventions on transformation and new high impact areas • Chairperson’s concluding remarks
Background and Policy Context • The CBE 2014 Strategic Plan is a product of the Strategic Planning Session held by the new CBE Council on the 11-12 February 2011. • The CBE Strategic Plan was informed by the following key policy documents: • Updated Government’s medium term strategic framework document • 2011 State of the Nation Address • Outline of the Minister’s key priorities • The 2011 National Budget including estimates of national expenditure • The 2011 Strategic Plan and 2011/12 Business Plan considered and integrated key national and sectoral policy priorities including inputs from key stakeholders such as Professional Councils • This resulted in realignment of CBE work in an effort to make the organisation and the Built Environment (BE) industry more responsive to important developmental priorities such as job creation and skills development. • The review of the mandate of the CBE was also a key input towards the strategic and business plan for the next MTEF period • The 2011/12 CBE Business Plan was tabled to the Minister of Public Works for consideration and approval.
Strategic goals of the CBE • The strategic planning and realignment processes mentioned in the previous slides resulted in formulation of 8 key strategic goals for the CBE which will guide and inform the work of the CBE over the next MTEF period. • The following are the 8 key strategic goals adopted by the council: • Drive, support and advise on transformation within the Built Environment. • Facilitate integrated development. • Perform a leading role in building stakeholder relations. • Develop CBE into a thought leader in the BE. • Reposition the CBE in the market. • Strengthen and maintain an effective and efficient public protection regime. • Inform and influence government infrastructure spend and professional practice so that they are responsive to national priorities • Strengthen the administration function of the CBE • To realise these important goals the organisation has arranged its work into four key programmes which represent a consolidation of key strategic priorities for the organisation going forward.
CBE Performance Overview • The CBE is on its 3rd Council term since establishment in 2002. • The year under review has seen the organisation comply with Occupational Health and Safety requirements, with no injury, loss of life in terms of its staff and facilities. • The year under review had a particular focus to initiating a process of aligning CBE’s and that of Built Environment professions to Government’s policy priorities, with the aim of ensuring tangible/auditable contribution to the developmental agenda.
CBE Performance Highlights • Corporate Governance framework developed and being implemented. • Risk Management strategy and plan developed and being implemented. • Good progress was made in improving our relations with other African Countries – MOAs in the process of being concluded. • CBE achieved an unqualified audit opinion in the year under review. • Good progress was made on the Identification of Work – 5 Policies for 5 Councils have since been completed and submissions made to the Competition Commission.
PROGRAMME 1 - Administration • Purpose: To provide strategic management and administrative support to the CBE • Targets achieved: • Appointment of Risk Champions and implementation of Risk Management Plans • Corporate Governance Framework developed and approved • New PMDS developed and implemented • Reduction on matters of emphasis • Report produced on organisational efficiency • Targets not achieved: • Implementation of the organisational dashboard – Dashboard developed in the last Quarter and to be implemented in the new financial year.
PROGRAMME 2 – Skills Academy • Purpose: To drive and facilitate skills and human resource development in the BE with the ultimate goal of transforming the BE • Targets Achieved: • 4 Regulations (Appeals, CPD, Registrations, Identification of Work) completed and submitted to DPW for consideration. • Continue to provide funding to students from the previously disadvantaged backgrounds through the CBE Bursary Scheme. • Accreditation of built environment academic programmes progressing well – as at the end of the financial year, 9 still to be accredited. • Targets not achieved: • Implementation of CPD regulations – Draft regulations submitted to DPW for promulgation. • Development of SGB Policy framework – Project has been rolled over to the new financial year.
PROGRAMME 3- Centre for Innovation and Integrated Planning • Purpose: To work together with member professions to orientate their expertise to the most immediate challenges of the BE and the developmental state • Targets Achieved: • Five research databases in place – to augment CBE research outputs and to provide information for decision-making to the industry. • Stakeholder management strategy and Communication Protocol developed and approved by Council. • Three stakeholder workshops for policy position papers – Recognition of new Professions, Continuous Professional Development and Standard Generation Bodies. • Targets not Achieved: • Advisory reports not completed – 2 Draft reports being reviewed by Panel of Experts and will be finalised in the new financial year • BE Indaba could not be held – CBE requested that the BE Indaba be a bi-annual event.
PROGRAMME 4 – Public Interest • Purpose: To promote and protect the interests of the public in the built environment • Targets Achieved: • 4 Identification of Work regulations finalised and submitted to Competition Commission • (The implication of regulating Identification of Work is that built environment professionals will only be allowed to practice in areas which they have been trained to practice and are competent to practice in. The Identification of Work will effectively mean that no person will be allowed to practice without registration). • Draft Appeals Regulation finalised and submitted to DPW • Targets not achieved: • 6 Appeal cases pending and have exceeded prescribed period – Business case being finalised to address bottlenecks around the appeals process
Governance Review • The CBE Council is the Accounting Authority as per section 49 of the PFMA. • The CBE Council reports to the Minister of Public Works (who is the Executive Authority). • The CBE complies with all relevant legislation . • The Accounting Authority assumes responsibilities as mandated by the CBE Act. • The Accounting Authority also discharges this responsibility in line with provisions of section 51 of the Public Finance Management Act, (Act No. 1 of 1999). • In line with good governance (as per the then King II report) and in ensuring the Accounting Authority fulfils its roles as mandated, the following statutory and governance committees were established:
Governance Review cont.... • Executive Committee The committee tasked with the approval and monitoring of internal policies and procedures. Also known as the Councils Working Committee, it is responsible for providing strategic guidance on overall management of the organisation. • Human Resource Committee Responsible for providing oversight and strategic advice on human resource matters • Audit Committee The audit committee was constituted in line with the PFMA and Treasury Regulations. Its key responsibility is to ensure a sound internal control environment and Risk Management.
Governance Review cont.... • Finance Committee Ensures sound financial management and provides budgetary oversight • Appeals committee The Committee is mandated to manage the Appeals processes. This is in line with the mandate given to the CBE to act as an Appeals body within the built environment.
Governance Review cont.... The following functional committees were also established: • Identification of Work (IDOW) Identification of Work Committee was established to manage and advice on the Identification of Work process within the built environment. • The ad hoc Committee on Professional Fees This is an ad hoc Committee established to review and provide guidance on the efficacy of the professional fees. • The Transformation Committee This is a committee established by Council to provide strategic advice on issues of transformation within the built environment. • Education and Research(EduRes) Committee was tasked with overseeing and providing strategic advice on research and education related projects.
Audit Report Outcomes for the financial year ending 31 March as performed by the Auditor General of South Africa • Obtained an unqualified report once again, with an emphasis of matter as outlined below: Restatement of corresponding figures • As disclosed in note 27 to the financial statements, the corresponding figures for 31 March 2011 have been restated as a result of an error.
Human Resource • Total approved staff composition 32 of which only 27 is funded. • 55%: 45% operations vs admin staff • Senior Management consists of the following gender split: • 1 Female • 2 Male • Middle Management consists of the following gender split: • 3 Female • 3 Male
Regulatory mandate of CBE • The CBE locates itself within the Developmental State paradigm and seeks to ensure that BEPs through Professional Councils support the growth and development objectives of Government as captured in its various planning documents, e.g. MTSF and NGP. • The regulatory approach of the CBE is to steer and guide the activities and performance of the Professional Councils to ensure that they contribute meaningfully to government’s policy priorities such as job creation, economic growth, skills development and reduction in green house gas emissions. • The Conduct of the PCs and BEPs should therefore be ultimately assessed against whether or not they contribute in meeting these policy priorities. • In addition Built Environment Professional Councils must be assessed on their ability to effectively discharge the mandate that has been delegated to them by the State through the Acts of Parliament.
1. Governance of Professional Councils • Recognition of Voluntary Associations (VA’s): In the year under review no new Vas were recognised but recognition of one VA was withdrawn by SACQSP. VA’s are important knowledge and skills custodians and their growth should be nurtured through formal recognition. • Code of Conduct: A Code of Conduct policy framework was developed by the CBE in 2009 and has been operational since then. All BE Councils have developed Codes of Conduct which govern ethical conduct within the Professions. Failure to adhere to ethical codes of conduct results in disciplinary action. • Disciplinary Cases: Our statistics show a decreasing trend in the number of disciplinary cases from 257 in 2008 to 172 in 2012 – a 33% decrease. CBE however remains concerned, because firstly the numbers are still high, secondly a significant number of cases relate to professional incompetence.
1. Governance of Professional Councils, cont… Number and trend of disciplinary cases per Council
2. Public Protection • Appeal body and procedures: The CBE is an Appeals Body within the industry as per section 4(m) of the CBE Act. As reported earlier there are challenges within this function both at CBE level and at Professional Councils level. CBE is developing a best practice model for Appeals, Panel of Chairpersons is being finalised and draft Appeals regulations are being refined following consultations with HPCSA. • IDoW: As at the end of March 2011, CBE had completed 5 of the 6 Identification of Work policies for Councils. ECSA’s IDoW is planned for completion by end of the 2012/13 financial year. Applications for exemption from the Competition Act have also been made. We are awaiting response from the Commission. • The implication of regulating Identification of Work is that built environment professionals will only be allowed to practice in areas which they have been trained to practice and are competent to practice in. The Identification of Work will effectively mean that no person will be allowed to practice without registration.
3. Sustainable and Integrated Development • Guideline on Professional Fees: CBE has developed a policy framework as a guideline for professional fees. As per their Acts Professional Councils continue to publish annual guideline professional fees. Competition Commission has raised concerns about the possible uncompetitive nature of professional fees. CBE is engaging with the Competition Commission to address the matter. • Recognition of new Professions: CBE completed a policy position paper that was approved by Council and submitted to Minister of Public Works for consideration. The CBE is currently developing a policy framework that will guide the recognition and incorporation of built environment professions that fall outside the ambit of the CBE Act (such as Town Planners and Land Surveyors because they operate within the built environment)
4. Human Resource Development • The CBE is given a mandate to promote ongoing human resource development within the built environment (with a specific focus on issues of skills development and education related matters). To this end various policy interventions were made in the year under review. • Key policy developments during the 2011/12 financial year include: • Development of draft registration regulations to regulate the registration function. • A policy position paper on continuous professional development and how this function could be used as a lever for the industry to contribute to development objectives of the state such as skills development. • Accreditation: There were 23 unaccredited programmes in 2009, 10 in 2009 with 9 remaining unaccredited in 2011. • The CBE developed an accreditation time-table which is used as a basis for monitoring accreditation of programmes within the built environment.
Percentage of professionals that comply with CPD requirements
4. Human Resource Development - Registrations • Registration: 10218 (22%) growth in new registrations between 2008 and 2011. • Registration: Candidate registration grew by 16% between 2009 and 2011. • Registration: Racial composition of candidates is encouraging. Statistics show that 62% of registered candidates are black and only 38% are white – challenge is slow progress to convert to registered professionals • However: these statistics hide a concerning picture in professions such as Architecture, Landscape Architecture and Property Valuers which still fall below 50% mark in black candidates. • Picture of Registered Professionals : improvement minimal - 64% White, 24% African; 7% Indian/Asian; 3% Coloured & 2% Other. • Previous Year – Registered Professionals - 66% White, 20 % African; 7 % Indian/Asian; 3 % Coloured & 4% Other. • Improvement is noted between the two years – but progress is still too slow.
Registrations Continued – Racial Profile of the professions
Remaining areas of concern • Transformation of the built environment professions • Poor throughput rates (school level, tertiary level and candidature level) • Compliance legislative time frames for Appeals • Completion of Identification of Work
Current interventions on transformation and new high impact areas • Transformation • Development of a transformation framework and Action Plan by the CBE Council. • Implementation of the CBE Skills Pipeline proposal – focusing on quality assured Structured Candidacy Programme for the built environment. • Research on incorporation of labour based techniques and health and safety into the built environment academic curricula. • Career exhibitions targeting rural and township schools – Schools Programmes working with DPW and VAs. • Learner support programmes for Maths & Science targeting Grade 11 and 12 learners. • Partnerships to encourage young female learners to pursue careers in built environment – Girl Engineering Events. • Public sector technical/built environment skills initiatives including Public Sector Engineers Forum, partnership with MISA (Municipal Infrastructure Support Agency) on technical skills development initiatives for municipalities; especially engineers.
Current interventions cont.. • Appeals • Appointment of the Panel of Chairpersons for Appeal Cases • Best practice model for holding appeals within the six BE Professions • Identification of Work • Fast-tracking the current engagement process with ECSA • Engagements with the Competition Commission