CRACKING THE CODES - SAFULA · 2017. 10. 12. · CRACKING THE CODES March 2017 Peter Ross and...
Transcript of CRACKING THE CODES - SAFULA · 2017. 10. 12. · CRACKING THE CODES March 2017 Peter Ross and...
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BBBEEforEducationNGOs
CRACKINGTHECODESMarch2017
PeterRossandNicoleCopley
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Findingourway:
CRACKINGTHECODESMarch2017
PeterRossandNicoleCopley
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ToB-BBEE ortoBEE?
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BasicConceptsandDefinitions
DefinitionofBlackPeople:GenerictermwhichmeansAfricans,ColouredsandIndians(andChinese?):• WhoareRSAcitizensbybirthordescent,OR• WhobecamecitizensofRSAbynaturalisation–o Before27April,1994o Onorafter27April,1994andwhowouldhavebeen
entitledtoacquirecitizenshipbynaturalisationtothatdate.
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QSEScorecard
REVISEDBBBEECODES QSESCORECARD
HIGHLEVELTARGETS
QSESCORECARDIndicatorweighting
Indicatortarget
Ownership(PriorityElement) 25,0 25%ofEquity
ManagementControl 15,0 50%- 88%
Skillsdevelopment(PriorityElement) 25,0 6%
EnterpriseandSupplierDevelopment(Priorityelement) 30,0
Preferentialprocurement: 20,0 80%
Supplierdevelopment: 5,0 2,00%
Enterprisedevelopment: 5,0 1%
Socio-economicdevelopment 5,0 1%
TOTAL 100,00
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GenericScorecard
REVISEDBBBEECODES GENERICSCORECARDHIGHLEVELTARGETS
Indicatorweighting
Indicatortarget
Ownership(PriorityElement) 25,0 25%ManagementControl 19,0 50%-88%Skillsdevelopment(PriorityElement) 20,0 6%EnterpriseandSupplierDevelopment(Priorityelement) 40,0
Preferentialprocurement: 25,0 80%Supplierdevelopment: 10,0 2,00%Enterprisedevelopment: 5,0 1%
Socio-economicdevelopment 5,0 1%TOTAL 109,00
GENERICSCORECARD
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ProcurementRecognitionTable
ContributionLevel OldCodes AmendedCodes Level
Level One ≥100points ≥100points 135%
Level Two ≥85<100 ≥95<100 125%
Level Three ≥75<85 ≥90<95 110%
Level Four ≥65<75 ≥80<90 100%
LevelFive ≥55<65 ≥75<80 80%
LevelSix ≥45<55 ≥70<75 60%
LevelSeven ≥40<45 ≥55<70 50%
LevelEight ≥30<40 ≥40<55 10%
Non-CompliantContributor <30points <40points 0%
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NGOsasSEDbeneficiaries
If75%+ofvaluebenefitsblackpeoplefullvaluemayberecognised
If<75%benefitsblackpeoplevalueXcontributionisrecognised
VeryNBtocalculateandprovethis%(independentcertificationpreferable)
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HowSpecialareyou?
“SpecialisedEnterprise”:• Companieslimitedbyguarantee• HigherEducationInstitutions• Non-ProfitCompanies• Publicentitiesandotherenterprisesownedbythestate• PublicBenefitSchemesor• PublicBenefitOrganisations
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“Special”EMEs
NPC/PBOunder10mt/overdeemed:• 75%+blackbeneficiaries
level1,135%recognition• 51-75%blackbeneficiaries
level2,125%recognition• <51%blackbeneficiaries
level4,100%recognition
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“Special”QSEs
NPC/PBO10m-50mt/overdeemed:• 75%+blackbeneficiaries
level1,135%recognition• 51-75%blackbeneficiaries
level2,125%recognition• <51%blackbeneficiaries
useSpecialisedQSEscorecard
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Toprovedeemedstatus
ToaccessdeemedstatusasEMEorQSE,eachyearseniordirectorofNGOsignsandswearstoanaffidavit:• turnoverforthepastyearis10m/lessOR
50m/less;and• %ofblackbeneficiaries
(rangeorexact%)
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AccessibleScorecardElements
TheMainScorecardElementswillbefocusingonare:
1. SocioEconomicDevelopment2. SkillsDevelopment3. EnterpriseDevelopmentandSupplierDevelopment
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SocioEconomicDevelopment
SocioEconomicDevelopmentScorecard
GENERIC&QSESCORECARDIndicatorweighting
Indicatortarget
Socio-economicdevelopment 5,0
AnnualvalueofallSEDcontributionsasa%ofNPAT 5,0 1,00%
NPAT:NetProfitafterTax
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SocioEconomicDevelopment
MainPrinciplesapplicabletoSED• Monetaryornonmonetarycontributions• Specificobjectiveoffacilitatingincomegenerating
activitiesfortargetedbeneficiaries• If75%ofvaluedirectlybenefitsblackpeoplethenfull
contributionisrecognised(if<75%thenactual%)• DefinitionofSED:Musthavetheobjectofpromoting
sustainableaccessofbeneficiariestotheeconomy
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SocioEconomicDevelopment
ExamplesofSEDcauses• Developmentprogrammesforwomen,youth,people
withdisabilities,peoplelivinginruralcommunities• HealthcareandHIV/AIDSprogrammes• Educationprogrammes,resourcesandmaterialsat
primary,secondaryandtertiaryeducationlevelsaswellasbursariesandscholarships
• Communitytraining,skillsdevelopmentforunemployedpeopleandABETprogrammes
• Arts,culturalorsportingdevelopmentprogrammes
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SocioEconomicDevelopment
Someformsofcontributions:
• Grants• Directcosts• Overheadcosts• Developmentalcapital• PaymentstothirdpartiestoperformSED
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SocioEconomicDevelopment
WaysinwhichNGOscanbenefitThecorporate:• MakesadonationtowardstheNGO’sbeneficiaries• Providesoldstockforfreeoratadiscounteg food,
clothing• ContractstheNGOasaserviceprovidertodevelop,
coach,mentorortrainblackbeneficiaries• ProvidestheNGOwithfreeofficesorpaysforoffice
rentals• Providescapitaltopurchaseneworusedequipment• FundstheNGO’stransportcosts
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SocioEconomicDevelopment
PBOswiths18AstatusDoublebonus:Corporatesliketogetthe18Adeduction(upto10%taxableincome)aswellas theBEEpointsNote:• notallPBOshave18A(educationshould)• onlycash/assetdonationsqualifyfor18A
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SkillsDevelopment
SkillsDevelopmentScorecard(Generic)
GENERICSCORECARDIndicatorweighting
Indicatortarget
Skillsdevelopment(PriorityElement) 20,0
Skillsdevelopmentspendforblackpeopleasapercentageofleviableamount(Referlearningprogrammematrix) 8,0 6,00%
Skillsdevelopmentspendforblackemployeeswithdisabilitiesasapercentageofleviableamount(referlearningprogrammematrix) 4,0 0,30%
BlackemployeesparticipatinginLearnerships,ApprenticeshipsandInternshipsasa%ofallemployees 4,0 2,50%
Blackunemployedpeopleparticipatingintrainingspecifiedinlearningprogrammematrixasa%ofallemployees 4,0 2,50%
Bonuspoints:Blackpeopleabsorbedbythemeasuredandindustryentityattheendofthelearnershipsprogramme 5,0 100,00%
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SkillsDevelopment
LearningProgrammeMatrix– Summary• CategoryA:Bursaries– Full-timestudy.Degree:University,
college,schoolorABETprovider• CategoryB:Internships– Mixedmodeinstitutionalinstruction
andsupervisedworkplacelearning.Degree:University,college,schoolorABETprovider
• CategoryC:Learnership – Registeredstructuralexperientiallearningintheworkplaceafterachievementofaqualification
• CategoryD:Apprenticeship:Workbasedlearningthatrequiresformalcontract.SAQAregisteredqualification
• CategoryE:Work-integratedlearning:Workbasedlearningthatdoesnotrequireformalcontractbutisformallyassessed.Creditsforunitstandards,CPD,PerformanceDevelopmentProgramme
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SkillsDevelopment
LearningProgrammeMatrix– Summary• CategoryF:InformalTraining– Informalinstructional
progammes.Workshops,seminars,conferencesandshortcourses.
• CategoryG:InformalTraining– Workbasedinformalprogammes intheworkplace.Onthejobtraining.
CategoryAtoEprogrammesarerecognisedinfull.CategoryFandGarecappedat15%oftotalSDexpenditure
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SkillsDevelopment
MajorChangesintheAmendedCodes• GenericscorecardSDtargethasdoubled from3%to
6%ofannualpayroll• Referencenowmadetoblackpeople asopposedto
blackemployees• Thetargetsandpointsbasedonoveralldemographic
representationofblackpeople• SkillsDevelopmentisapriorityelement. Failureto
achieve40%ofthetotalpointswillresultindiscountingbyonelevel
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SkillsDevelopment
• ContributetoSA’seconomicgrowthandsocialdevelopmentgoals.
• Creationofdecentworkandsustainablelivelihoods• Developindustrialskillsbaseinproductionand
manufacturing• Supportprofessional,vocational,technicalandacademic
learningthroughworkintegratedlearning,apprenticeships,learnershipsandinternships
• Supportinitiativesresultinginemploymentcreation
Note:MustbecompliantandhavelodgedWorkplaceSkillsPlan,AnnualTrainingReportandPivotalTrainingreport
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SkillsDevelopment
RecognisableTrainingExpenses• Coursefees,bursariesandscholarships• Salaries,wagesorstipendspaidtoalearnerparticipating
inLearnership,InternshiporApprenticeship• Costoftrainers• Costoftrainingfacilities• Administrationcosts• CostofSkillsDevelopmentFacilitatorortrainingmanager• Ancillarycostssuchasaccommodation,travellingand
cateringbutcannotexceedmorethan15%oftotalSDexpenditure
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NGOsandSkillsDevelopment
• Identifysuitablecandidatesforbursaries,internships,learnerships andapprenticeships
• ProvideNQFalignedtrainingcoursestocorporatesforemployeesor unemployedblackpeople
• ProvideanEmploymentEquityorSkillsDevelopmentcomplianceserviceeg lodgingstatutoryreturns
• Provideskillsdevelopmentfacilitatorservice• Findsuitableunemployedcandidatesfortraining• ProvideABETtrainingservicetocorporates
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EnterpriseDevelopmentandSupplierDevelopment
GENERIC SCORECARDIndicatorweighting
Indicatortarget
Enterprisedevelopment:
Annualvalueofallenterprisedevelopmentcontributionsasa%ofNPAT 5,0 1,00%Supplierdevelopment:
Annualvalueofallsupplierdevelopmentcontributionsasa%ofNPAT 10,0 2,00%BonusPoints:
BonuspointforgraduationofoneormoreEnterpriseDevelopmentbeneficiariestoSupplierDevelopmentlevel 1,0
BonuspointforcreatingoneormorejobsdirectlyasaresultofSupplierDevelopmentandEnterpriseDevelopmentinitiatives by theMeasuredEntity 1,0
QSESCORECARDIndicatorweighting
Indicatortarget
Enterprisedevelopment:
Annualvalueofallenterprisedevelopmentcontributionsasa%ofNPAT 5,0 1,00%Supplierdevelopment:
Annualvalueofallsupplierdevelopmentcontributionsasa%ofNPAT 5,0 1,00%
BonusPoints:
BonuspointforgraduationofoneormoreEnterpriseDevelopmentbeneficiariestoSupplierDevelopmentlevel 1,0
BonuspointforcreatingoneormorejobsdirectlyasaresultofSupplierDevelopmentandEnterpriseDevelopmentinitiatives by theMeasuredEntity 1,0
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EnterpriseDevelopmentandSupplierDevelopment
• EDcontributions aremonetaryornonmonetaryinitiativesmadewiththeobjectiveofcontributingtothedevelopment,sustainabilityandfinancialandoperationalindependenceofEMEsorQSEswhichareatleast51%blackowned
• SupplierDevelopmentcontributions areidenticalexceptthebeneficiariesareexistingmajorityblackownedsupplierstothecorporate
• Thesetwosubelementsbothformpartofapriorityelement.Failuretoachieve40%ofthepointsineachwillresultindiscountingbyonelevel
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EnterpriseDevelopmentandSupplierDevelopment
Qualifyingcontributions• Costofservicestoimproveoperationalor
financialcapacityand/orefficiencylevelsofqualifyingbeneficiariesincluding:• Professionalandconsultingservices• Trainingandmentoring
• Developmentofthecapacityofbeneficiaryentitieswhichenablethemtomanufactureandproducegoods/provideservicesnotpreviouslyavailableinRSA
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EnterpriseDevelopmentandSupplierDevelopment
SomewaysinwhichanNGOcanbenefit• Providetrainingworkshopsormentoring
programmesfortheowners,managersorstaffofmajorityblackownedEMEsorQSEs
• DevelopthecapacityofbeneficiaryentitieswhichwillenablethemtomanufacturegoodsorprovideservicesnotpreviouslyavailableinRSA
Opportunity:NGOscanprovidetailoredlearningprogrammeswithoutthestringentcriteriaapplicabletoSkillsDevelopment.
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EXERCISE!!
1. Whatis/aretheprimaryobjective(s)ofyourNGO?
2. Describeinbroadtermswhoyourbeneficiariesare.
3. Basedonthisworkshopsummarise5waysinwhichyourNGOcanhelpaCorporateearnscorecardpoints.
4. List5corporateswhoyouintendapproachinginthenext3monthstoexplorehowyoucanmeaningfullypartnerswithinamutuallybeneficialway.
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BEEforEducationNGOs