annual report 2014/2015 · 2015. 11. 12. · 2014/2015 annual report. 2 ecsa general information 5...

ENGINEERING COUNCIL OF SOUTH AFRICA

2014/2015A N N U A L R E P O R T

2

ECSA GENERAL INFORMATION 5LIST OF ABBREVIATIONS/ACRONYMS 6STRATEGIC OVERVIEW 8ECSA VISION 8ECSA MISSION 8ECSA VALUES 8STRATEGIC OUTCOMES ORIENTED GOALS 8LEGISLATIVE AND OTHER MANDATES 9ORGANISATIONAL STRUCTURE 10FOREWORD BY THE ECSA PRESIDENT 11CHIEF EXECUTIVE OFFICER’S OVERVIEW 13

ORGANISATIONAL ENVIRONMENT 17PERFORMANCE INFORMATION BY PROGRAMME 17

COMPOSITION OF THE COUNCIL 29REMUNERATION OF COUNCIL MEMBERS 35COMMITTEE STRUCTURES 37RISK MANAGEMENT 38INTERNAL AUDIT, RISK AND COMPLIANCE COMMITTEE 41KEY ACTIVITIES AND OBJECTIVES OF THE INTERNAL AUDIT 42ATTENDANCE OF ARC MEETINGS BY MEMBERS 44MINIMISING CONFLICT OF INTEREST 44

REGISTRATION OVERVIEW 47REGISTRATION 47REGISTRATION TRENDS 47REGISTRATION STATISTICS 48NEW REGISTRATION STATISTICS 2010 to 2014 (CALENDAR YEAR) 57 CONTINUING PROFESSIONAL DEVELOPMENT (CPD) 57EDUCATION 58ACCREDITATION 59CROSS BORDER ASSISTANCE 59ACCREDITATION TRAINING 60RELATIONSHIP WITH KEY EDUCATION STAKEHOLDERS 60CHE STANDARDS DEVELOPMENT PROCESS 60QUALIFICATION EVALUATON 61QUALIFICATION EVALUATION PROCESS 61INTERNATIONAL ACCORDS 61REGULATION OF ENGINEERING PRACTICE 62PUBLICATION OF GUIDELINE FEES 64RECOGNITION OF VOLUNTARY ASSOCIATIONS 64IDENTIFICATION OF ENGINEERING WORK 64

PART A: GENERAL INFORMATION 4

PART B: PERFORMANCE INFORMATION 16

PART C: GOVERNANCE 26

PART D: CORE MANDATE 46

ContentsSECTION SUB-SECTIONS

1

4

PART A: GENERAL INFORMATION

I

MARKETING & COMMUNICATIONS 67ECSA, UJ, GDID STUDENT SUPPORT PROGRAMME LAUNCH 69NEW REGISTRATION SYSTEMS (NRS) ROADSHOWS 71UNESCO - AFRICA ENGINEERING WEEK 2014 75INTERNATIONAL WOMEN’S DAY BREAKFAST 76EXHIBITIONS 78ADVERTISING 78ENGENIUS 78

OVERVIEW OF HUMAN RESOURCES 85HUMAN RESOURCE OVERSIGHT STATISTICS 86

PART E: STRATEGIC SERVICES 65

PART F: LIST OF RECOGNISED VOLUNTARY ASSOCIATIONS 80

PART G: HUMAN RESOURCE MANAGEMENT 83

PART H: FINANCIAL INFORMATION 90

ContentsSECTION SUB-SECTIONS

3

2. LIST OF ABBREVIATIONS/ACRONYMSAEW Africa Engineering WeekAoPI Audit of performance information ARC Audit, Risk and Compliance CommitteeBE Built EnvironmentCPUT Cape Peninsula University of TechnologyCBE Council for the Built EnvironmentCC Competition CommissionCEO Chief Executive OfficerCERTAC Certificated Engineer Accreditation CommitteeCESA Consulting Engineers South AfricaCHE Council on Higher EducationCIDB Construction Industry Development BoardCIM Communication, Information and Marketing COP Code of PracticeCPD Continuing Professional DevelopmentCPUT Cape University of TechnologyCRC Central Registration CommitteeCUT Central University of TechnologyDEA Department of Environmental AffairsDHET Department of Higher Education and TrainingDME Department of Minerals and EnergyDoL Department of LabourDPW Department of Public WorksDST Department of Science and TechnologyDUT Durban University of TechnologyEC Education CommitteeECN Engineering Council of NamibiaECSA Engineering Council of South AfricaECZ Engineering Council ZimbabweELOs Exit Level OutcomesEMF Engineers Mobility ForumEP Engineering ProfessionEPA Engineering Profession Act, 2000 (Act No 46 of 2000)EPAC Engineering Programme Accreditation CommitteeEPQEC Engineering Programme Qualifications and Examinations CommitteeESA Employer Surplus AccountESGB Engineering Standards Generating Body ETMF Engineering Technologists’ Mobility ForumEXCO Executive CommitteeF&S Finance and Staff CommitteeGGI Gillian Gamsy InternationalGRAP South African Standards of Generally Recognised Accounting PracticeGSSA Geological Society of South AfricaHEQC Higher Education Qualification CouncilHEQF Higher Education Qualifications Framework HESA Higher Education South AfricaHR Human ResourcesIAC International Affairs CommitteeIC Investigating CommitteeICE Institution of Civil EngineersIDOEW Identification of Engineering Work Steering CommitteeIFEES International Federation of Engineering Education Societies

6

1. ECSA GENERAL INFORMATION REGISTERED NAME: Engineering Council of South AfricaREGISTRATION NUMBER (if applicable): N/A PHYSICAL ADDRESS: 1st Floor Waterview Corner Building 2 Ernest Oppenheimer Avenue Bruma 2198POSTAL ADDRESS: Private Bag X691 Bruma Johannesburg 2026TELEPHONE NUMBER: + 27 11 607 9500FAX NUMBER: + 27 11 622 9295EMAIL ADDRESS: [email protected] ADDRESS: www.ecsa.co.zaEXTERNAL AUDITORS: PricewaterhouseCoopers Inc. 2 Englin Road Sunninghill 2157 www.pwc.com/zaBANKERS: Standard Bank East Gate BedfordviewCOMPANY/ BOARD SECRETARY None, Administration Department performs some of the duties

ECSA Annual Report 2015 I General Information5

ECSA seeks to achieve this vision through:• Determining standards for education and accreditation of educational programmes as well as registration of Engineering Practitioners• Developing and sustaining a relevant, transformed, competent and internationally recognised engineering profession• Educating the public on expected engineering quality standards and protecting the interests of the public against sub-stanard quality of engineering work• Regulatory efforts to ensure environmental protection; and• Engaging with Government to support national priorities

• Professional – Conduct beyond reproach to the highest ethical standards underpinned by quality, timeliness, trust and respect• Accountable – Doing what we commit to do in an environment of trust and respect and being answerable for our failures to meet our committed obligations• Collaborative – Working as a team to achieve exceptional results• Transparent – Honest and open communication and sharing of information between stakeholders

ECSA Mission

ECSA Vision3. STRATEGIC OVERVIEW

Strategic Outcomes Oriented Goals Table 1: Strategic Outcomes Oriented Goals

Engineering excellence, transforming the nation.

ECSA Values

Strategic objective 1.1 Engineering practitioners are recognised through excellent , relevant and globally accepted education standards

Strategic objective 1.2 Engineering practitioners are registered through accessible, fair, transparent, e�cient and credible system

Strategic objective 1.4 The Engineering profession is grown by increasing the number of engineering practitioners to meet existing and future demands

Strategic objective 1.3 Growth and retention of registered engineering practitioners

Strategic objective 2.1 Public awareness of the engineering profession and its standards through public education, information and awareness programmes

Strategic objective 3.1 Research undertaken into strategic contributions the profession could be making to support national programmes including but not limited to NDP, NIP and National Bene�ciation Strategy

Strategic objective 3.2 ECSA is responsive to the decision makers through excellent stakeholder relationships. ECSA is represented in or structurally linked to key Government decision making bodies and SOEs such as PICC, NDP, ESKOM , Transnet, Sasol , etc

Strategic objective 1.5 Practitioners successfully renew their registration through fair, credible, transparent and accessible processes

Strategic objective 2.2 Protection of the health , safety and interest of the public through e�ective regulation of the profession

Strategic objective 2.3 Regulate the profession in accordance with legislative requirements

Strategic objective 3.3 Proposals are developed and implemented for speci�c projects and funding sought from Government and other stakeholders

Strategic objective 4.1 A relevant organisation that signi�cantly meets the needs of both internal and external stakeholders within the ECSA mandate

Strategic Goal 1 Professional Thrust Engineering practitioners enjoy the benefit of world class education and registration

Strategic Goal 2 Public awareness of the profession and its standards and regulation to ensure the implementation of those standards in the public interest

Strategic Goal 3 Engineering practitioners proactively responsive to local and national socio-economic requirements

Strategic Goal 4 A sustainable, transformed and coherent organisation that is capable of delivering the impact desired by its stakeholders and society within the provisions of the EPA

LIST OF ABBREVIATIONS/ACRONYMS (cont)IFRS International Financial Reporting StandardsIMESA Institute of Municipal Engineering of Southern AfricaIMSSA Institute of Mine and Surveyors of South AfricaIT Information Technology CommitteeJIC Joint Implementation CommitteeLMI Lifting Machinery Inspectors registration committeeMoU Memorandum of UnderstandingMUT Mangosuthu University of TechnologyNATED National Technical EducationNDP National Development PlanNBS National Beneficiation StrategyNC National CertificateNHBRC National Home Builders Registration CouncilNIP National Infrastructure Plan NQF National Qualifications FrameworkNRCS National Regulator for Compulsory SpecificationsPAC Professional Advisory CommitteePICC Presidential Infrastructure Coordinating CommissionPLATO South African Council for Professional and Technical SurveyorsQEC Qualifications Evaluation CommitteeSAC Strategic Advisory CommitteeSACNASP South African Council for Natural Scientific ProfessionSACPE South African Council for Professional EngineersSAGI South African Geomatics InstituteSAICA South African Institute of Chartered AccountantsSAIMM Southern African Institute for Mining and MetallurgySALGA South African Local Government AssociationSAQA South African Qualifications AuthoritySASEE South African Society of Engineering EducationSAYEP South African Youth into Engineering ProgrammeSCM Supply Chain ManagementSEESA Society of Engineering Educators South AfricaTECHNO SGG Technology Standard Generating GroupTPAC Technology Programme Accreditation CommitteeTPQEC Technology Programme Qualifications and Examinations CommitteeTUT Tshwane University of TechnologyTT Task TeamUCT University of Cape TownUK United KingdomUKZN University of KwaZulu NatalUNESCO United Nations Education Scientific and Cultural OrganisationUP University of PretoriaVA Voluntary AssociationVC Vice -ChancellorWA Washington AccordWFEO World Federation of Engineering OrganisationsWSU Walter Sisulu University

87 ECSA Annual Report 2015 I General Information

4. LEGISLATIVE AND OTHER MANDATES 5. ORGANISATIONAL STRUCTUREThe Engineering Council of South Africa (ECSA) is a statutory body established in terms of the Engi-neering Profession Act, 2000 (Act No. 46 of 2000) (EPA). This Act superseded the Acts of 1990 and 1968 and progressively extended ECSA’s scope beyond the original purpose, namely to regulate Professional Engineers. ECSA and its predecessor have thus regulated engineering practice for forty years.

ECSA exists as a regulatory body for the profession of engineering because of the recognition that, while engineering activity is essential and beneficial to society and the economy, substantial risks to health, safety and the environment accompany engineering activity that must be managed by competent professionals. In addition, engineering services must be of adequate quality in the inter-ests of economy and avoidance of waste.

With these objectives in mind, the EPA requires and empowers ECSA to perform the following func-tions:

• Establish an engineering standards generating body (ESGB) and develop standards for engineering education and professional competency; • Visit education providers to evaluate programmes and accredit educational programmes that meet the educational requirements toward registration in each of the categories;• Register persons in professional categories who demonstrate competency against the standards for the categories; • Evaluate educational qualifications that are not already accredited or recognised; • Register persons who meet educational requirements in candidate categories;• Establish specified categories of registration to meet specific health and safety licencing requirements and register persons in these categories; • Require registered persons to renew registration at intervals and under conditions that the council prescribes; • Enter into international agreements for the recognition of educational programmes and registration;• Develop and maintain a code of conduct, supported where necessary by codes of practice;• Investigate complaints of improper conduct against registered persons and conduct enquiries and impose sanctions as each case requires; • Annually publish guideline professional fees and scope of work; • Recognise Voluntary Associations (VA’s); and• Recommend to the Council for the Built Environment (CBE) ECSA’s identification of the type of engineering work which may be performed by persons registered in any category.

In addition, ECSA is empowered to advise government and other parties and to take necessary steps to protect the public interest, health and safety, improve standards of engineering services, create awareness of the need to protect the environment and conduct research.

Professional Regulation of engineering in South Africa dates from the Professional Engineers’ Act 1968 (Act 81 of 1968) that provided for the registration of Professional Engineers. The Engineering Profession Act, 1990 (Act No 114 of 1990) expanded registration to engineering technologists, engi-neering technicians and certificated engineers. The EPA established ECSA in its present form and gave professional status to Engineering Technologists, Engineering Technicians and Certificated Engineers.

Ms. Conny Phalane

Executive: Corporate Services(Responsible for Finance, HR, IT and business processes)

Adv. Rebaone Gaoraelwe

Executive: Statutory Functions (Responsible for education, registrations, CPD professional conduct and legal services)

Ms. Thoko Machimane

Acting Executive: Strategic Services (01/04 - 06/10/2014)

Mr. Edgar Sabela

Executive: Strategic Servicesfrom 07/10/2014 (Responsible for strategy, stakeholder relations, marketing and communications, research, thought leadership and business development)

Council

Edgar Sabela

Sipho Madonsela CEO from 06/10/2014

Acting CEO 01/04 - 05/10/2014


Figure 1 – ECSA high level organogram

6. FOREWORD BY THE PRESIDENT

I have the honour and privilege of presenting to you the 2014/2015 Annual Report, a year in which we have noted numerous successes as a Council. Thank you to the Council for Built Environment (CBE) and the Department of Public Works (DPW) for their invaluable support. It is through these organs of state that the stature of ECSA has been elevated to a level where it has become a national support body of substance and worthy of its legislative engineering mandate.

The financial year under review denotes the second last year of the term of office of the current Council, meaning that the deliverables for its four year term are almost complete. The team has deliberated and succeeded in reforming the governance structure of the Council. Countless efforts have been directed towards establishing ECSA as a key advisor to government in matters of engineering, particularly in the areas of infrastructure development and addressing the national challenge of skills shortage. As an example, through the ongoing negotiations between the South African Local Government Association (SALGA), Ekurhuleni Metropolitan Municipality and ECSA, the Council seeks to support municipalities so that engineering practitioners obtain their professional registration in order to be accountable to the code of conduct and its impact on public safety.

In the third quarter of the year under review, the new Chief Executive Officer, in the person of Mr Sipho Madonsela, was appointed. Mr Madonsela is a professional mechanical engineer, with a wealth of experience in the management and execu-tive leadership. He continues to guide the organisation towards meeting its important objectives successfully and has hit the ground running by first strengthening his Executive Management team. The CEO’s first appointment was expressed in the intro-duction of a division for Standards Genera-tion and Policy Development. This is a key

department that is set to ensure that ECSA determines the standards for education and accreditation programmes. Its policies will also ensure that the Council remains relevant, transformed, competent and aligned to national and international standards.

The ECSA’s New Registration System (NRS) has been officially launched nationally and provincial roadshows were hosted to appraise the public and engi-neering practitioners about the usability of the system. In its totality, the campaign was very successful with good attendance and gave us a broad understanding of stakeholder expectations, especially from registered persons and aspirant persons embarking for professional registration. The participants also highlighted the role that they would like ECSA to play within the engineering sphere. The feedback will surely assist in propelling ECSA towards a full transformation trajectory and thus repositioning it as a relevant statutory organisation.

ECSA’s mandate is mainly dependent on industry partners that share the same vision as the organisation and their continued support brings sheer delight and strength to the entire ECSA operational structure. New formal operational agreements have been concluded and some have been renewed for the year under review. Some strategic partners are the Gauteng Department of Infrastructure Development (GDID) and the University of Johannesburg (UJ), who co-signed an agreement to support and coach engineering students that are recipients of the GDID bursaries. This tripartite initiative comes after GDID articulated the need to mentor first and second year engineering students whose majority fail to complete their qualifications due to lack of preparedness for the level of academic commitment. Therefore ECSA, as the custodian of the engineering profession in South Africa, has designed a pilot model to support students.

Financial management systems were also improved during the 2014/15 financial year in order to strengthen financial controls by purchasing a new Pastel Evolution Financial System. The Supply Chain functions were also integrated into the system so as to ensure administrative synergy and monitoring. This in turn had a direct impact on improving internal controls and segregation of duties.

Finally, I wish to appreciate the hard work and dedication displayed by all ECSA executives, managers and staff who have shown renewed energy and mission to make ECSA successful. It has been a remarkably positive experience to work with such dedicated teams.

My sincere appreciation is also directed at my colleagues who continue to serve on the Council and its various sub-committees; and to all the volunteers who serve in the structures of ECSA. Your commitment to advance the organisation has not gone unnoticed and you have served ECSA with dedication and distinction, often under challenging circumstances. Your input and criticism has always added significant value and allowed us to steer ECSA towards reach-

Mr. Cyril Vuyani Gamede, Pr EngPresident.

ing its full potential. It is a privilege to serve in the Council and to have a bird’s eye view of the activities within the engineering community in South Africa. It is heartening to experience the relentless efforts made by all key role players in order to make a difference in our country.

Lastly, this also affords us an opportunity to contribute to our country’s vision to create a better life for all. The journey is still long as we continue to cultivate a culture of engineering excellence. We shall continue to strengthen partnerships with national, provincial and local government agencies. The collective capacity must be coordinated and steered to ensure effective interventions in the engineering sector of Southern Africa.


9

13

7. CHIEF EXECUTIVE OFFICER’S OVERVIEW

Mr. Sipho Madonsela, Pr Eng

CEO: Engineering Council of South Africa


To all ECSA internal and external stakehold-ers, let me acknowledge the honour to present to you the first Annual Report (2014/15) since I joined ECSA. This report will go down as one of the most optimistic record of operations that reflects a journey that is steadily moving towards continuous accomplishments. It shows that a lot has been done in the past financial year, even though I resumed my portfolio halfway through the financial year under review. I can, however, assure you that as much as we are satisfied with the progress that has been made by the ECSA collective; we do acknowledge that there is plenty more to be done.

Firstly, ECSA’s mandate through the Engineer-ing Professions Act (46 of 2000) is a primary pillar connected and quantifiable through the registration of engineering practitioners. This means that the registration of engineering practitioners becomes a priority for the sustainability and relevance of the organisa-tion. Subsequent to this, the second biggest responsibility is to ensure that our profession-als’ interests are looked after and that their professional registration is maintained and active through the Continued Professional Development (CPD) programmes. We also have the onus to certify that engineering programmes are accredited to a level of inter-national competence so that the schooling system produces engineers that are skilled to improve the state of our engineering economy. Due to the aforementioned, the Executive collective felt the priority to balance the struc-tural setup of the Council by adding a unit for Policy Development and Standards Genera-tion. This also had a direct impact on the need for a quality assurance unit that would ensure that legislative standards of governance are adhered to.

Consequently, the Human Resources and Information Technology units have been realigned to the Corporate Services Depart-ment to create the kind of organisation whose human capital vision is intricately embedded within the strategy of the organisation and for purposes of better delivery towards the man-date of the Council. The Administrative functions have also been directed to the Quali-ty Assurance office and are no longer housed within the Statutory Department.

The picture of the ECSA committee structure still remained the same throughout this finan-cial year. However, with the review of the operational structure that is ongoing, looking into the new financial year, some of the committees and sub committees might have to be reviewed and realigned, while the number is also reduced to avoid duplication that has been experienced in the past.

At the backdrop of the understanding that the organisational strategy is the backbone of taking ECSA into a new era, we are confident that the approaches contained in the revised structure are key in delivering on the ECSA mandate. This is even more evident now that the momentum has already taken off and new structures are being implemented in phases to ensure smooth transition and optimum responsiveness.

It is also important to reiterate that the imple-mentation of our statutory plans and key deliverables is embedded in our business plan framework of sustenance and transfor-mation. Since the appointment of the current Council, significant inroads towards the improvement of the registration statistics have been made. A steady increase from 43,967members in 2014 to 45,806 in 2015 has been noted as an encouraging improve-ment. Going forward, with the recent intro-duction of the online New Registration System (NRS), we envisage a surpassing outlook in these statistics. As compared to the legacy system, the NRS has been designed to not only facilitate registering of engineering practitioners in a more efficient and quicker manner, but it will also help to fast track the transformed ECSA that we envisage. Moreover, the system is meant to display a Council whose skills chart will be equally divided to all deserving and qualifying engineering practitioners as spread across the entire South African demographic spec-trum.

In addition, our existence cannot stand in isolation from the contribution received from the recognised Voluntary Associations (VA’s). This is a network of engineering institutes that feed into our core function through regis-tration, development of CPD courses and training facilitation. Through the VA’s ECSA

has managed to source a hub of thought leaders and content generators, volunteers for ECSA committees, legal advisers and also strategic project partners. Our current stature with these organisations is partially formalised when it comes to the recognition process and the legalities thereto. The forum for synchronising this intellectual content perform-ing and monitoring of deliverables needs further attention so that all the partnerships become much more valuable to one another. This is going to be achieved through the review and strengthening of the framework of recognition of VA’s, of which process is under-way to be concluded during the third quarter of the 2015/16 financial year.

In recounting the narrative of this eventful year, I propose to revisit the genesis and the nucleus of South Africa’s journey towards inclusive strategic growth. It is a narrative that begins with the advent of real partnerships so that ECSA may position itself firmly. The first partnership was with the Gauteng Department of Infrastructure Development (GDID) where an MoA was signed with the main outcomes to improve the poor throughput pass rate at undergraduate level amongst previously disadvantaged engineering students. This would also help to transform the profession by delivering high level engineering skills through mentorship sessions.

ECSA has also been an active participant in the forum of World Federation of Engineering Organisations (WFEO) and has setup its strategic projects to feed into this world compendium. Thirdly, Sakhimfundo Trust has been setup to assist engineering students with their university studies and is steadily developing with submissions of numerous funding models for sponsorship. In as far as the government’s national infrastructure initia-tive is concerned, a draft MoU between ECSA and the Presidential Infrastructure Coordinat-ing Commission (PICC) was constructed for ECSA to provide support from a skills perspec-tive. A submission from CBE is pending and upon receipt of the document, stakeholders will be further consulted for inputs.

The Identification of Engineering Work (IDoEW) task remains a priority for the Council and in June 2014, the Competition Commis-

sion published the regulations in the Government Gazette. This was followed up by a direct consultation process with stake-holders such as DPW, municipalities and registered persons. It must be noted that there were some regulatory overlaps which were identified within the different Councils. These will be addressed at a meeting to be organised with the Minister of Public Works to discuss all the applications from all six Professional Councils.

I wish to conclude by thanking all volunteers, partners of ECSA, all staff members and service providers for your dedication towards the delivery of the ECSA mandate.

Admittedly, the task cannot be delivered single-handedly; it is only through our collec-tive effort and support.

Yours truly,

15 ECSA Annual Report 2015 16

PERFORMANCE PART B:

INFORMATION

1817 ECSA Annual Report 2015 I Performance

8. ORGANISATIONAL ENVIRONMENT

9. PERFORMANCE INFORMATION BY PROGRAMMEPROGRAMME 1

During the year under review, a number of factors were at play that had an impact on the performance of the organisation, such as (i) change of leadership in two of the key positions, (ii) late approval of the business plan and (iii) the budgeting process that was not aligned to the business plan. The organisation was under the leadership of Mr Edgar Sabela, as the acting CEO, following the resignation of the former CEO, Dr Oswald Franks. Mr Sabela acted from the 01 August 2013 up until the 06 October 2014 when Mr Sipho Madonsela took over as the CEO. Four months prior to the start of the 2014/15 financial year, Dr Faroon Goolam resigned as the Executive of the Statutory Function. Advocate Rebaone Gaoraelwe was later appointed as the Executive for Statutory Functions from the 01 April 2014. The change in leadership and the time lags in filling in the positions were some of the factors that caused instability. Further to that the organisation embarked on a process to review its strategy. A business plan was developed following the approval of the strategy and it was approved by EXCO on the 19 June 2014 and ratified by Council on the 31 July 2014. The delay in the approval of the business plan had an impact on the implementation; as a result, some of the key performance indicators were not achieved, in some cases due to resource constraints. The Council approved that those indicators can be rolled-over to the 2015/16 financial year. There were no major policy and legislative changes during the year under review.

Strategic GoalsThe following are the four strategic goals approved by Council for the period 2014 - 2017:• Strategic Goal 1 - Engineering practitioners enjoy the benefit of world class education and registration. (Programme 1)• Strategic Goal 2 - Public awareness of the profession and its standards and regulation to ensure the implementation of those standards in the public interest (Programme 2) • Strategic Goal 3 - Engineering practitioners proactively responsive to local and national socio-economic requirements (Programme 3) • Strategic Goal 4 - A sustainable, transformed and coherent organisation that is capable of delivering the impact desired by its stakeholders and society (Programme 4)

Strategic objective

1.1 Engineering practitioners are recognised though excellent, relevant and globally accepted educational standards

10 accreditation visits conducted

N/A

N/A

8 accreditation visits

10 accreditation visits

Actual achievement 2013/14


Deviation from the planned target to actual achievement for 2014/2015

Comment on deviation

1.2 Registration engineering practitioners are registered through accessible, fair, transparent, efficient and credible systems

Propose three alternative registration models and a roll-out plan

Pilot the use of the recording system for assessment interviews

Not achieved

Pilot conducted

Resources constraint

N/A

N/A

The system was not installed

Under achieved by 7 publications

Resource constraints

1.3 Growth and retention of registered engineering practitioners through promoting the engineering profession

Distribute 8 engineering inserts in publications in tertiary institutions

1 engenius advertorial was published on online magazine

Reached 12 000 learners

To reach 14 000 learners and promote engineering through the engenius programme

Not achieved

19 640 learners were reached

Over - achieved by 5640

59 role models trained

100 registration presentations made to companies and other stakeholders

Make 100 registration presentations to companies and other stakeholders

55 presentations made

Under-achieved by 45

The indicator is demand driven. ECSA respond to requests made by stakeholders.

To train 150 role models as engineering ambassadors

16 role models trained

Under achieved by 134



Strategic objective

N/A

N/A

N/A





80% compliance with the implementation plan for registra-tion security plan

Installation of the application information vetting system

Installation of a tracking system for lodged complaints and enquiries

65% success rate in processing new registration applications excluding deferrals

97.70% success rate achieved

Not achieved A plan was not developed

Not achieved No system was installed

The process was put on hold pending the outcome of the forensic investi-gation on registration certificates.

The process was put on hold pending the outcome of the forensic process.

Planned target 2014/2015


Table 2: Strategic Goal 1 - Engineering practitioners enjoy the benefit of world class education and registration.

4 722 new persons were registered

Increase the number of registrations by 3 290 (8% from a base of 41 125)

4 845 persons registered

Over achieved by 1555


N/A

N/A

Conduct 9 Provincial consultations on transformation policy

Reduce the number of registration cancellation by 10% in compari-son with the 2013/14 cancellations

No consulta-tions were done

2036 cancella-tions for the period were reported. The figure will form a baseline going forward.

A baseline was not determined.

N/A1.4 The growth of the Profession

Implementation of a mentor connector for engineering students

50 Commitments and Undertakings were concluded

Review and conclude seven Commitment and Undertakings (C&U) with participating companies

None achieved The C&U policy was reviewed


Not achieved Procurement process for the service provider underway

Resource constraints.


Strategic objective

N/A Under achieved by 7 publications





Influence curriculum in P1 and P2 towards National Diploma in Engineering

Not achieved

Conceptualisation and approval of the engineering education trust

Appointment of the initial trustees and the operationalisation of the Trust

Achieved. Trustees were appointed by the Master of high court.

N/A

3874 practitioners were successfully registered through the CDP process.

1.5 Practitioners successfully renew their registration through fair, credible, transparent and accessible processes

Renew registration of 6 500 registered persons through the CPD process

6604 renewals achieved

Over-achieved by 104

Conclude 9 MoUs with strategic partners to generate scholar interest in engineering

Not achieved Resource constraints




Strategic objective

N/A

N/A

N/A





Engage 10% of the recognised VAs for a joint transformation initiative by signing four MoUs.

Identify and engage 25% of employer bodies and organisations to influence employment practices

Offer registered persons one lifestyle benefit as a retention strategy

A package was agreed with Mercedes Benz to offer registered persons special discounts on specific car models.

No MoU were signed.

Engagements did not take place



N/A

N/A

Establish nine provincial community forums to enable understanding of the public needs around the built Environment

Implement a system to proactively investigate and finalise cases without compromising the quality of the investigation

Not achieved. Forums were not established


N/A

N/A

2.2. Public protection of the health, safety and the interest of the public through effective regulation of the profession

Finalise 20% of investigation cases

Conduct two workshops with repeat offenders in breach of the code of conduct

Workshops not conducted


Under achieved by 11.5%



PROGRAMME 2

Strategic objective

Under-achieved by 3 articles




Published nine Engineering themes in print media

4 articles were published

2.1 Promote public awareness of the profession and its standards through public education, information and awareness programmes

Publish nine Engineering themes in print media


Table 3: Strategic Goal 2 - Public awareness of the profession and its standards and regulation to ensure the implementation of those standards in the public interest



profi t and relevance as a provider of choice.

N/A Conclude 2 MoUs with the Department of Environmental Affairs and other constituencies to collaborate in poor quality work investigations

2 MoUs concluded with the Department of Labour and NHBRC

N/A2.3 Regulate the profession in accordance with legislative requirements

Publication of the IDoEW board notice

Consultation process was finalised and the proposed IDoEW submitted to CBE. Competition Comission published the IDoEW for comments

N/A

To publish annual guideline fees for 2015

Guideline fees for 2015 were published.

Not done

Published annual guideline fees for 2014

N/A Develop policy for the regulation of foreign engineers on special assignments

Not done It was resolved that the foreign engineers will perform duties under a registered person


Make submis-sions of the proposed EPA to the CBE and DPW

PROGRAMME 3Table 4: Strategic Goal 3 - Engineering practitioners proactively responsive to local and national socio-economic requirements

Strategic objective

N/A

N/A

Two research papers conducted.





3.2 ECSA is responsive to decision makers through excellent stakeholder relationships

3.1 Research undertaken into strategic contribu-tions the profes-sion could be making to NDP, NIP and National beneficiation strategy

To conduct Research on two topics

Conceptualised the thought leadership model

To operationalise the thought leadership forum

To build strategic relationships with Government and SOEs to enable ECSA to achieve its goals

Implementation plans for 3 disciplines were finalised.




Strategic objective

N/A





3.3 Projects development, funding and implementation (proposals are developed and implemented for specific projects and funding sought from Government and other stakeholders

To develop two funding proposals and engage strategic partners

Not achieved Resource constraint.


Strategic objective Actual achievement 2013/14




N/A

N/A 4.4 People management - ECSA enjoys a highly motivated and productive workforce (both employed and volunteers) Technical capability is built within ECSA workforce

4.3 ECSA values and behaviours support the achievement of ECSA strategy

Installation of performance management system

A performance enablement system was installed.

Development of succession plan policy


Not achieved

Conduct a culture survey

A cultural survey was conducted

PROGRAMME 4





N/A Not achieved 4.1 ECSA is transformed ethically, demographically and transparent at every level in terms of its transformation model

The new CEO reviewed the strategy and it became apparent that there is a need for alignment of the governance structure

To develop 33 charters for the subordinate committees


Table 5: Strategic Goal 4 - A sustainable, transformed and coherent organisation that is capable of delivering the impact desired by its stakeholders and society

4.2 Organisational coherence - Alignment and coherence is evident between all structures of ECSA including council, committees of Council and secretariat provide adequate support to Council operations

To develop and implement an organisational structure that support ECSA strategy

High level organisational structure was developed.

N/A



N/A Conclude seven Service level agreements between ECSA divisions and units

Not achieved

N/A Organisation wide governance training

Not achieved

N/A

N/A

4.6 Visible and measurable organisation wide governance culture and commitment to good governance best practice

To conduct selected number of the meetings through video conference

4 video conference meetings were held

Implementation of enterprise content management system selected documents types

The Terms of Reference for the appointment of the service provider were finalised




N/A To integrate the finance and registration system

Finance and registration systems integrated

N/A Launch the New Registration system(NRS)

Not launched

Achieved clean audit

N/A Compliance with effective SCM guidelines

SCM guidelines were adhered to

N/A All activities of ECSA are monitored quarterly and evaluated and reviewed annually

4.8 The execution and impact of ECSA strategy is monitored, evaluated and reviewed

Corporate Perfor-mance information was compiled and evaluated on quarterly basis for three quarters.

To achieve a clean audit

Clean audit achieved

The new registra-tion system is fully functional but could not be launched as there is a need to train assessors

N/A Development of training plans for the Departments and implement seven training plans


4.5 Systems - Effective and efficient systems to support execution of ECSA strategy

PROGRAMME 4






Table 5 (cont): Strategic Goal 4 - A sustainable, transformed and coherent organisation that is capable of delivering the impact desired by its stakeholders and society

24

PART C: GOVERNANCE


2827 ECSA Annual Report 2015 I Governance

1st Row:Sitting - Ms T Nkambule; Dr T Mathe; Ms P Mangakane; Prof T Marwala; Mr A Peters; Mr C Gamede; Ms R Botha; Dr A Lawless; Ms N Magubane; Dr N Tutu; Ms T Zuma; Ms A M Sassenberg.2nd Row: Mr R Patel; Mr K Greenwood; Mr R Vogt (late); Mr C Stuuman; Mr TB Maswanganyi; Dr B Mwaka; Mr P Erasmus; Adv. A Singh; Mr RJ Moloisane; Ms T Phiri; Prof L Masu; Ms M Padayachee - Saman; Mr M Ngcobo; Mr O Leburu.3rd Row: Mr S Makhetha; Mr N Myataza; Mr N Van den Burg; Mr D J Van Nlekerk; Mr S Jacobs; Prof B Van Wyk; Mr W Burger; Mr M Thunzi; Dr K Jacobs; Mr K Mistry; Mr E Sabela (Acting CEO); Mr P Petlane; Mr M Gxamza.

Mr. MMG. Mofokeng;Mr. D. Matthee;Mr. T. Maphumulo;Mr. Y. Brijmohan;Prof. B. Lacquet;Mr. R. Jennings;Mr. C. Soga;Mr. L. Dhlamini;Mr. N. Nqandela;Mr. M. Jele;Mr. L. MashileMr. M. Zitha

Absent from the photo:

Figure 2 – ECSA Council Members

3029 I GovernanceECSA Annual Report 2015

10. Composition of the CouncilThe EPA establishes the Council as the governing body of ECSA. Section 3 of the EPA provides for the composition of the Council. It consists of 50 members appointed by the Minister of Public Works as the Executive authority of the Council as follows:

• Section 3(1)(a) – Thirty (30) registered persons, excluding candidates, of whom at least 20 are actively practicing in the Engineering Profession. • Section 3(1)(b) – ten (10) persons of whom at least 6 must be professionals in the service of the State.• Section 3(1) (c ) - ten (10) members of the public nominated through an open process of public participation. The term of office for the Council is four years and the term of the current Council ends in July 2016.

In line with governance best practice :• All members of the Council are non-executive and independent.• The Council actively plays its role of oversight and giving strategic direction.• Council has approved charters for high impact committees and the Terms of Reference for all other committees.

7 NHDT (Eng) Civil (Pret) CPMP

Ms Anne Marie Sassenberg

Profession 31 January 2012 N/A TCCIMPr Techno

4/4

8 NHD (Civil)Mr Mbuleleni Ambrose Ngcobo

Profession 31 January 2012 N/A EXCOARCReg Comm. Technologist

4/4

9 BEng Electrical and Electronics (Honours)

Ms Tumisang Maphumulo

Profession 31 January 2012 N/A ICPAC: ElectricalReg Comm. Pr Eng

4/4

10 BSc Eng(Electri-cal); Diploma: Eng Bus Management; MEng Engineering Management

Mr Yashin Brijmohan

Profession 31 January 2012 N/A EXCOSAC

3/4

6 MSc (Civil);MTech (Civil) cum laude; BSc(Honours) (Transportation Technology); BTech: (Transportation Engineering); NDip (Civil)Diploma (Project Management)

Mr Ranthekeng Moloisane

Profession 31 January 2012 N/A EXCOCRCECESGBIACIDoEWSACTPACTPQECVAReg Comm. TechniciansReg Comm. Technologist

4/4

No. Name

Designation (in terms of the public entity board structure)

Date appointed

Number of Council meetings attended

Date resigned/ Death Quali�cations

Other committeesserved

2 PhD in Chemical Engineering and MBL

Dr Zwanani Titus Mathe

Profession 31 January 2012 N/A EXCOCRCTC

3/4

3 BSc Eng (Civil)Mr Nicholas van den Berg

Profession 31 January 2012 N/A TC 2/4

5 BSc Eng; MSc; DEng hc

Dr Allyson Lawless

Profession 31 January 2012 N/A JIC 4/4

4 BSc Eng (Civil)GDE (Civil)Cert.Arb

Ms Malani Padayachee-Sa-man

Profession 31 January 2012 PAC: Civil 4/4

1 BEng Aeronautical EngineeringMSc Flight Test & EvaluationTest Flight EngineerCommercial Pilot Licence

Mr Derick Norman Matthee

Profession 31 January 2012

N/A PAC: AeronauticalReg Comm. Pr Eng

2/4

No. Name

Designation (in terms of the public entity board structure)

Date appointed Number of

Council meetings attended

Date resigned/ Death

Qualifications Other committeesserved

Members of Council for the year under review are listed below: Table 6: Members of the ECSA Council

11 BSc (Eng); MEng (Electrical); MBA

Ms Thandiwe Nkambule

Profession 31 January 2012 N/A TCF&SSAC

2/4

12 BEng (Electri-cal) PDE (Electrical); MEng (Engineering Management)

Mr Pelei Petlane Profession 31 January 2012 N/A IC 3/4

13 NDip TelecomsNHDip EducationNHDip Electrical BTech ElectricalBComMScPhD

Prof Barend van Wyk

Profession 31 January 2012 N/A ESGBDeans’ Advisory Comm.

1/4

14 MTech (Electrical)

Mr Christian Stuurman

Profession 31 January 2012 N/A EPACTPACTPQEC

4/4


16 Postgraduate Certi�cate (Bus Eng Manage-ment), National Diploma (Financial Information Systems), National Diploma (Engineering), Certi�cate Installation Electrician

Ms Revona Botha

Profession 31 January 2012 N/A EXCOF&SVAICIDoEWReg Comm. Technicians

3/4

19 Mr Kenneth Greenwood

Profession 31 January 2012 N/A Reg Comm. LMI 2/4

20 Postgraduate EconomicsBSc (Civil)National Diploma (Civil)

Mr Mathuba Zitha

Profession 19 March 2015 N/A None n/a

21

17 BSc (Hons) Electrical & Electronic; MEng (cum laude) DEng

Prof Beatrys Lacquet

Profession 31 January 2012 N/A ECEPQECEPAC

0/4

18 NDip Industrial Engineering; Certi�cate: Project ManagementBTech (Industrial)

Ms Philisa Mangakane

Profession 31 January 2012 N/A F&SReg Comm. TechniciansCIM

3/4

15 Mr Philippus Erasmus

Profession 31 January 2012 N/A SACIDoEWTechno SGGESGBCRCReg Comm. TechnologistReg Comm. TechniciansReg Comm.LMIReg Comm. MEMsReg Comm. FPSIsJIC

4/4

No. Name Designation (in terms of the public entity board structure)

Date appointed




22 NDip (Mechani-cal Eng); NHDip (Mechanical Eng); GCC (OHS);NDip ( Project Management); BSc; Adv Programme (Risk Manage-ment) MSc (Operational Research)Executive Development ProgrammePost Graduate Certi�cate: Business Research Methods

Mr Nkosinathi Myataza

Profession 31 January 2012 N/A IDoEWSAC

4/4

23 MBA, BSc (Hons) Mech.Eng, Grad Dip Mkt Mgt (IMM)

BSc(Eng) Mechanical, MSc(Eng) Industrial, EMBA; Advanced Diploma in Labour Law; Certi�cate in Corporate Governance

Mr Kudzai Nyangoni

Profession 31 January 2012 N/A EXCO F&SIDoEWPAC: Mechanical

2/4

26 BSc (Hons) ; MSc Eng PhD Eng; PGDip BAdmin; MBA

NDip; NHDip; BTech Mechanical Engineering

Prof Leonard Masu

Profession 31 January 2012 N/A None 4/4

25 Prof Tshilidzi Marwala

Profession 31 January 2012 N/A EXCOECCRC

3/4

27 Mr Onkgopotse Leburu

Profession 31 January 2012 N/A CRCReg Comm. TechnologistJICTPQECIAC

4/4

24 Mr Cyril Gamede Profession 31 January 2012 N/A EXCO 3/4


Date appointed




28 PhDDr Keith Jacobs Profession 31 January 2012 N/A EXCOIACTPACTechno SGGESGBReg Comm. Technicians

3/4

NDip (Business Computing)

Mr Melusi Mofokeng

Public 31 January 2012 N/A ARCIACVAIDoEWCIM

4/4


31 Mr Dirk van Niekerk

Profession 31 January 2012 N/A IACIDoEWTechno SGGPAC: MiningJIC

4/4

32 BSc (Physics (Distinction); applied Mathematics (University of Fort Hare); BSc (Civil)

Mr Camagu Soga State 31 January 2012 N/A SACF&S

2/4

33 BEngMr Mongezi Gxamza

State 31 January 2012 N/A IDoEW 4/4

34 BSc Eng (Civil) , GDE, MBA

Mr Adrian Michael Peters

State 31 January 2012 N/A EXCOLegal MattersICIDoEW

4/4

35 BSc Eng (Civil)Mr Lungile Dhlamini

State 31 January 2012 N/A TCARCF&S

3/4

36 NDip (Agricul-ture Land Use Planning)

Mr Willem Schalk Brand Burger

State 11 May 2012 N/A None 3/4

29 BSc (Metallurgy & Material) MBL (Business Leadership)

Mr Kanak Mistry Profession 31 January 2012 N/A EPACCRCReg Comm. Pr EngPAC: MetallurgicalCIM

3/4

30 NHDT; Mine Managers Cert; MDP; AEP

BSc Eng (Mining); BSc Eng (Hons); MEng (Mining); MBL;GCC: Mine Manager (Metelliferous Mines GCC: Mine Manager (Fiery Mines)

Mr Richard Jennings

Profession 31 January 2012 N/A SACReg Comm. Cert Eng

4/4


Date appointed




37 PHD; MSc; BSc (Agricultural Engineering)

Dr Beason Litungilu Mwaka

State 11 May 2012 N/A None 3/4

38BEng (Mech); MBA

Mr Samuel Stephanus Jacobs

State 17 April 2012 N/A IDoEWIC 2/4

39 NDip Eng (Civil); MDP

Ms Tebogo Phiri State 17 April 2012 N/A IDoEW 2/4 47 Dr Nomzamo Tutu

Public 17 April 2012 N/A EXCOTCSACJIC

3/4

45 BTech (Civil) Eng

PDM; DOH;MB-ChB; BSc

Mr Lemias Mashile

Public 31 January 2012 N/A TCSACTPACJIC

2/4

46 BComm; APM; MDP; MP (Supply Chain Management); EMLog

Ms Trustworthy Zuma

Public 17 April 2012 N/A None 2/4

48 NDip (Mech) Eng

Mr Mthethunzima Thunzi

Public 11 August 2012 N/A VA CRC (co-opted) JICReg Comm. TechniciansLMC

4/4

41 NDip (Mech) Eng; BSc Mech

Mr Thomas Boy Maswanganyi

State 14 December 2012

N/A None 4/4

42 B(Proc)Mr Rashid Patel Public 31 January 2012 N/A LMC 3/4

44 BSc Hons (Applied Sciences) N/ATransportation Planning cum laude; BTech Civil Eng cum laude; NDip Civil cum laude

Mr Mphikeleli Jele

Public 31 January 2012 N/A None 4/4

43 HND (Civil Eng); Postgraduate Certi�cate in Medicine & Law; BA; BProc; LLB; MA; LLM; LLD

Dr Anirood Singh

Public 31 January 2012 N/A IACSACLMCIC

4/4

40 National Diploma Electrical Engineering; Programme in Project Management; Certi�cate in Telecomms Policy, Regulation & Management (TPRM); Certi�cate in Convergence and New Media in the Information Society; Master in Business Administration (MBA)

Mr Nqaba Nqandela

State 09 October 2012 N/A TC 3/4


Date appointed





49 Ms Nelisiwe Veronica Barbara Magubane

Public 31 January 2012 N/A EXCOARC

2/4BSc (Elect) Eng; MBA; Cert in Sasol EDP; Certi�cate: Managing Government Performance; Certi�cate: Leadership Decision Making

50 Mr Seutloali Makhetha

Public 11 May 2012 N/A BSc (Civil) Eng; NDip (Civil0 Eng; Post Grad Dip (Indust) Eng; Cert Construction Management; Cert Adv Management MSc Project Management

PAC: Civil 2/4


Date appointed




11. REMUNERATION OF COUNCIL MEMBERS (cont)

Name Honorarium Travel Reimbursable Total

Lawless A R50 227.50 R2 794.44 R0.00 R53 021.94

Leburu OL R113 095.00 R110 376.00 R955.99 R224 426.99

Magubane P R4 775.00 R1 909.68 R0.00 R6 684.68

Makhetha S R3 820.00 R1 226.40 R0.00 R5 046.40

Mangakane P R21 965.00 R7 884.00 R0.00 R29 849.00

Maphumulo TP R18 990.00 R6 053.16 R0.00 R25 043.16

Mashile BL R9 440.00 R3 749.28 R1 690.39 R 14879.67

Masu LM R7 530.00 R4 467.60 R0.00 R11 997.60

Maswanganyi TB R7 530.00 R11 037.60 R636.50 R19 204.10

Mathe ZT R9 440.00 R1 594.32 R85.00 R11 119.32

Matthee DN R6 685.00 R2 435.28 R0.00 R9 120.28

Mistry KC R17 870.00 R8 190.60 R62.70 R26 123.30

Mofokeng MMG R16 235.00 R5 256.00 R0.00 R21 491.00

Moloisane RJ R96 915.00 R48 193.14 R1 957.47 R147 065.61

Myataza NM R15 060.00 R0.00 R0.00 R15 060.00

Ngcobo MA R33 205.00 R88 677.48 R4 351.00 R126 233.48

Nqandela N R1 910.00 R175.20 R0.00 R2 085.20

Table 7 (cont): Remuneration of Council Members

Nyangoni K R21 855.00 R3 845.64 R0.00 R25 700.64

Padayachee-Saman M R5 730.00 R565.02 R0.00 R6 295.02

Patel R R16 180.00 R7 708.80 R828.29 R24 717.09

Peters AM R85 840.00 R5256.00 R11 668.98 R102 764.98

Petlane BP R19 646.00 R2 803.20 R140.00 R22 589.20

11. REMUNERATION OF COUNCIL MEMBERS

Name

1

2

3

4

5

6

7

8

9

10

11

12

Honorarium Travel Reimbursable Total

Botha RA R42 238.00 R14 335.74 R3 978.00 R60 551.74

Brijmohan Y R0.00 R0.00 R3 686.53 R3 686.53

Burger WSB R7 530.00 R5 431.20 R 0.00 R12 961.20

Dhlamini LT R4 775.00 R442.38 R 0.00 R5 217 38

Erasmus PM R224 095.00 R40 326.66 R885.10 R265 306.76

Gamede CV R0.00 R0.00 R1 563.00 R1 563.00

Greenwood K R20 790.00 R0.00 R4 134.72 R24 924.72

Gxamza M R1 800.00 R219.00 R0.00 R2 019.00

Jacobs KI R54 510.00 R4 625.28 R2 770.00 R 61 905.28

Jacobs SS R5 620.00 R0.00 R200.00 R5 820.00

Jele ME R9 440.00 R5 562.60 R360.00 R15 362.60

Jennings RE R16 125.00 R3 232.44 R2 523.00 R 21 880.44

Table 7: Remuneration of Council Members

Phiri T R3 820.00 R770.88 R0.00 R4 590.88

Sassenburg AM R47 020.00 R8 006.64 R61 722 76 R116 749.4

Singh AJ R29 605.00 R3 311.28 R0.00 R32 916.28

Stuurman CP R69 495.00 R16 543.26 R1 386.98 R87 425.24

Thunzi M R56 860.00 R7 358.40 R3 274.90 R67 493.3

Tutu N R17 080.00 R0.00 R0.00 R17 080.00

Van Den Berg N R25 530.00 R0.00 R0.00 R25 530.00

Van Niekerk DJ R5 730.00 R1 773.90 R75.65 R7 579.55

Van Wyk BJ R7 530.00 R3 460.20 R0.00 R10 990.20

Zuma TM R5 620.00 R525.60 R0.00 R5 872.60

13

14

15

16

17

18

19

20

21

22

23

24

25

26

27

28

29

30

31

32

33

34

35

36

37

38

39

40

41

42

43

44

NTC III (Mechanical & Electrical); ATC 1; NDip (Project Management); NDip (Project & Research Management)

Mr Roman Vogt Profession 31 January 2012 Deceased19 January 2015

ICReg Comm. TechniciansReg Comm. LMIReg Comm. FPSIs

1/3


COMMITTEE STRUCTURES

GOVERNANCE STRUCTURE

Figure 3 – Council committee structure

EXCO

COUNCIL

SACTRANSFORMATIONEC

HIGH IMPACT COMMITTEES

IACF&SARCCRCIC ESGB

PAC:Civil

BiannuallyPAC:

Aeronautical

PAC:Electrical

PAC:Chemical

BiannuallyPAC:

Mechanical

PAC:Metallurgical

PAC:Agricultural

Biannually

PAC:Mining

PAC:Industrial

Reg Comm.Technologists

BiannuallyReg Comm:Technicians

Reg Comm:Certi�catedEngineers

CPD

BiannuallySpeci�ed

Categories Comm

RegComm. Lift Inspectors

RegLMIs Comm.

Biannually

RegMEMs Comm.

RegComm. FPSIs

Presidents’Forum

Reg :Comm:Engineers

ECSADWADAMSComm.

Legalmatters Fees

Comm

EPQEC TPQEC

IDoEWComm

Deans’AdvisoryComm Techno

SGG

VAComm

JICCIME

PAC

TPAC

CERTAC

IT

IC - Investigating CommitteeCRC - Central Registration CommitteeARC - Audit, Risk and Compliance CommitteeF&S - Finance and Staff CommitteeIAC - International Affairs CommitteeEC - Education CommitteeTRANSFORMATION - Transformation CommitteeSAC - Strategic Advisory CommitteeESGB - Engineering Standards Generating BodyTECHNO SGG Technology Standards Generating GroupIT - Information Technology CommitteeIDoEW - Identification of Engineering Work Steering CommitteeEPAC - Engineering Programme Accreditation CommitteeEPQEC - Engineering Programme Qualification & Examination CommitteeTPAC - Technology Programme Accreditation CommitteeTPQEC - Technology Programme Qualification & Examination CommitteeCERTAC - Certificated Engineer Accreditation CommitteeJIC - Joint Implementation CommitteeCIM - Communications , Information & MarketingVA - Voluntary AssociationsCPD - Continuing Professional Development CommitteePAC - Professional Advisory CommitteeVA - Voluntary Associations

The Council has established committees to enable it to execute its mandate. In view of the numerous and complex functions, Council has established 44 committees and have delegated functions to those committees. The Committee structure is as per figure 3 below:

12. RISK MANAGEMENTThe following 16 risk factors were identified during the year under review as listed in table 4 below. The 2015/16 Annual Performance Plan and operational plan factored in the mitigation strategies as identified. Table 8: Risk Management matrix

9.90Insu�cient number of trained assessors

There are an insu�cient number of trained assessors and a heavy reliance on volunteers

3.00 3.30 Medium Develop and implement an enhanced training programme for assessors

13.32Insu�cient �nancial resources

Reduced income as registered persons cancel their registra-tion

3.60 3.70 High Develop a retention strategy for registered persons. Development and implemen-tation of the retention strategy is a performance target for the 2015/16 �nancial year.

10.50Inadequate processes and procedures

The risk of loss resulting from inadequate or failed internal processes and non-adherence to procedures

3.50 3.00 Medium Implement required internal controls

13.68Inadequate stakeholder support and cooperation

There is no e�ective stakeholder engagement, i.e. the process by which an ECSA involves people who may be a�ected by the decisions it makes or can in�uence the implementation of its decisions

3.60 3.80 High

10.56Shortage of experts in engineering

There is an ongoing shortage of engineering specialist to meet the demand

3.30 3.20 Medium

A plan was developed to engage stakeholders, three strategic partners have been engaged and are in the process of �nalising memorandums of understand-ing

Council has embarked on a process to develop speci�ed categories of registration to broaden the registration scope

No.

1

2

3

4

5

Risk Risk Descriptor Impact Action Strategies/Status

Likelihood Residual Risk Risk Rating


10.24Inadequate business continuity processes

No plan to continue business operations in the event of a major disrup-tion ( such as �re or power failure) to ECSA’s operations

3.20 3.20 Medium Develop and implement Business Continuity Plan. An assessment was carried out and administra-tion is in the process of implementing the recommen-dations.

13.32Lack of automated systems for statutory functions

Unreliable IT system and controls for capturing member’s data. Also poor record keeping practices resulting in the loss of import-ant documentation

3.70 3.60 High The New Registration System (NRS) when launched will mitigate the risks. NRS has been �nalized. Training is currently underway and plan to launch during the 2015/16 �nancial year.

9.92Outdated enabling legislation

The current legislation is not �t for purpose and needs reviewing

3.10 3.20 Medium E�orts are made to engage CBE to review the EPA.

9.92Lack of succession planning

Insu�cient succession planning and knowledge sharing in key positions poses a risk to ECSA’s sustainability and business continuity

3.20 3.10 Medium

13.32Alignment between government oversight role and ECSA’s mandate

The government oversight role stands in contrast or is not supportive of ECSA mandate and is thus not aligned with ECSA’s objectives

3.60 3.70 High

HR has drafted a succession plan that will be reviewed by the relevant committees within ECSA.

Management endeavors to engage the Department of Public through CBE for alignment of programmes.

No. Risk Risk Descriptor Impact Action Strategies/Status

Likelihood Residual Risk

Risk Rating

1.52Inappropriate structure and governance arrangements

The current structure and governance arrangements are inappropri-ate as they do not enable ECSA to deliver services well, meet the organisational objectives and achieve sustainable outcomes.

3.20 3.60 Medium Administration is in the process of reviewing ECSA governance structures. A quality manager has been appointed to address the misalignment.

14.43Lack of a sustainable �nancial model

Main revenue source (80% from member-ship fees) does not guarantee ECSA’s viability

3.90 3.70 High A sustainability model has been developed. The Council is in the process of looking for strategic �nancial partners and strategies that will lead to sustainability

11.55Inadequate ECSA awareness by the public

There is limited knowledge of ECSA and its activities by the broader public

3.50 3.30 Medium

11.22Weak value proposition

Reduced income due cancellation of registration because of the perceived lack of membership value

3.30 3.40 Medium

A Public relations agency was engaged to implement the ECSA brand strategy

ECSA value proposition is embedded in the corporate strategy

13.69Lack of e�cient registration processes

Long turnaround times for both registration and refusals are currently experienced

3.70 3.70 High Investigate and implement a streamlined and e�cient registration process through the NRS



Risk Rating

6

7

8

9

10

11

12

13

14

15


10.54Non-compliance with policies, procedures and regulations

The organisa-tion has not implemented the necessary systems and process (including the relevant compliance management plans) within the business to ensure the meeting of compliance obligations

3.40 3.10 Medium The Delegation of Authority was developed.



Risk Rating

14. KEY ACTIVITIES AND OBJECTIVES OF THE INTERNAL AUDIT

13. INTERNAL AUDIT ,RISK AND COMPLIANCE COMMITTEEThe Audit, Risk and Compliance Committee (ARC) accomplished the following in the year under review:

ITEM AUDIT PROCESS STATUS OF AUDIT

1

2

5

4

3

Facilitate the development of the 2014/15 ECSA Strategic Risk Register

The strategic risk assessment workshop was conducted on the 19th of August 2014. The report has been included in this submission for the Audit and Risk Committee’s approval.

The 2014/15 Internal Audit Plan has been developed and included in this submission for the Audit and Risk Committee’s approval.

Develop the ECSA Internal Audit Three Years Rolling Coverage Plan (Including the 2014/15 ECSA Internal Audit Coverage Plan)

Follow up was only performed on the internal audit findings for the following areas: Financial Management, Human Resources, Payroll and IT. The fieldwork has been completed. The report has been presented at the previous ARC meeting.

The internal audit team has completed the field work and the report was finalised and presented to the management team.

Conducting follow-up on both internal and external audit findings

Conducted an internal audit review of the Legal Unit

Instead of performing the AoPI for the first quarter, it was agreed that only the second and fourth quarters will be reviewed. The audit reports for the second and last quarter are finalised.

Conducting the 1st Quarter Performance Information Audit

The ARC has the following specific responsibilities:I. Integrated reporting

The Committee oversees integrated reporting, and in particular the Committee must:

a. Give regard to all factors and risks that may impact on the integrity of the integrated report, including factors that may predispose management to present a misleading picture, significant judgments and reporting decisions made, monitoring or enforcement actions by a regulatory body, any evidence that brings into question previously published information, and forward-looking statements or information;

b. Review the annual financial statements;

c. Comment in the annual financial statements on the financial status, the accounting practices and the effectiveness of the internal financial controls;

d. Review the disclosure of sustainability issues in the integrated report to ensure that it is reliable;

e. Recommend to Council the engagement of an external assurance provider on material sustainability issues; and

f. Recommend the integrated report for approval by the Council.

II. Combined assurance

The Committee ensures that a combined assurance model is applied to provide a coordinated approach to all assurance activities, and in particular the Committee must:

a. Adopt and apply an internationally Com-bined Assurance Framework;

b. Make sure that the combined assurance received is appropriate to address all the

significant risks facing the organisation; and

c. Monitor the relationship between the external assurance providers and the organisation.

III. Governance and compliance

The Committee is responsible for overseeing governance and compliance and must:

a. Ensure compliance to the prescripts of the PFMA;

b. Establish an Ethics Committee;

c. Monitor the application of good governance principles by ECSA;

d. Monitor the progress of governance implementation plans; and

e. Review and monitor the process in place to ensure that ECSA complies with all relevant legal and statutory require-ments.

IV. Internal audit

The Committee is responsible for overseeing the internal audit, and in partic-ular the Committee must:

a. Have input into the appointment, performance assessment and/or dismissal of the Internal Auditor;

b. Approve the Annual Internal Audit Plan;

c. Evaluate the performance of the internal audit function;

d. Ensure that the internal audit function is subject to an independent quality review, as and when the Committee determines it appropriate; and

e. Receive and oversee internal audit results and recommendations.

Table 9: Internal Audit work done in the 2014/15 Financial Year

16


V. Risk management

The Committee is an integral component of the risk management process and specifically the Committee must:

a. Adopt and apply an internationally accepted Risk Management Framework;

b. Oversee the development and annual review of a policy and plan for risk man-agement to recommend for approval to the Council;

c. Monitor implementation of the policy and plan for risk management through risk management systems and processes;

d. Monitor the dissemination of the risk management plan throughout the organi-sation, and integration into the day-to-day activities of the organisation;

e. Ensure that risk management assess-ments are performed on a continuous basis;

f. Ensure that frameworks and methodolo-gies are implemented to increase the possibility of anticipating unpredictable risks;

g. Ensure that management considers and implements appropriate risk responses;

h. ensure that continuous risk monitoring by management takes place;

i. Express the Committee’s formal opinion to the Council on the effectiveness of the system and process of risk management; and

j. Review reporting concerning risk management that is to be included in the integrated report for timeliness, completeness and relevance.

VI. External audit

The Committee is responsible for recommending the appointment of the external auditor and to oversee the external audit process. In this regard the Committee must:

a. Nominate the external auditor for appointment by the Council;

b. Approve the terms of engagement and remuneration for the external audit engagement;

c. Monitor and report on the independence of the external auditor in the annual financial statements;

d. Define a policy for non-audit services provided by the external auditor;

e. Pre-approve the contracts for non-audit services to be rendered by the external auditor; and

f. Review the quality and effectiveness of the external audit process.

Table 10: Attendance of meeting by ARC members

Name Qualifications No. ofMeetings attended

DateAppointed

Ms Nelisiwe Veronica Barbara Magubane

Mr Mbuleleni Ambrose Ngcobo

NHD (Civil) 31 January 2012

3/4

3/4

Mr Lungile Dhlamini BSc Eng (Civil) 31 January 2012 2/4

Mr Melusi Gregory Mofokeng N Dip (Business Computing) 31 January 2012 3/4

Mr L Mpambani ND Internal Audit, BCom, CA 14 July 2014 2/4

Mr AY Singh BCom (Acc), B.Compt, CIMA 14 July 2014 0/4

31 January 2012

15. ATTENDANCE OF MEETINGS BY ARC MEMBERS

16. Minimising Conflict of Interest

BSc (Elect) Eng, MBA, Cert in Sasol EDP, Certificate: Managing Government Performance, Certificate: Leadership Decision Making

ECSA established a supply chain office during the previous financial year in order to be aligned to best practice in procurement processes. Below is a brief description of the processes implemented to minimise conflict of interest in supply chain management.

1. SCM Policy requires that any official who participates in procurement processes such as BEC/BAC members must complete a “conflict of interest” declaration and confidentiality agreement prior to the commencement of the evaluation/adjudication process. No official who has an interest (or whose relative or friend has an interest) in a particular offer will be allowed to participate in the evaluation, consideration and adjudication of the relevant tender/bid or quotes.

2. Bidders are expected to complete a “Declaration of interest questionnaire” (SBD 4 Form) whenever they compete for a tender, this is for the bidder to indicate if there is a conflict of interest or not.

3. SCM Officials always observe segregation of duties (where one official cannot start a transaction until the final stage) whenever they do transactions either electronically or manually. For example, the Procurement system does not allow an SCM officer to capture requisition, request quotes and issue a purchase order-different officials are required to do transactions between the processes. Furthermore, the suppliers database system automatically and randomly selects suppliers for quotations. SCM Delegation of authority regulates approval powers of officials as per prescribed thresholds.

4. The newly acquired Lexis system assists in checking the registered owners/shareholders of a particular service provider.


PART D: CORE MANDATE

46 I

4847 I Core MandateECSA Annual Report 2015

17. REGISTRATION OVERVIEW17.1 REGISTRATION

Registration is ECSA’s key strategic function. Primarily, ECSA exists to, first and foremost, register Engineering Professionals in all the legislatively- prescribed registration categories in terms of the Engineering Professions Act No. 46 of 2000, subject to them meeting the stringent competency and educational requirements.

ECSA, being a signatory to global/international agreements in the form of the Washington, the Dublin and the Sydney Accords (all of which relate to the recognition of Educational Qualifications Standards for Professional Engineering, Technologists and Technicians in signatory counties); as well as being a signatory to International Professional Engineers, the International Professional Technologists and the International professional Technicians Agreements (all of which relate to the recognition of competency Standards for Professional Engineering, Technologists and Technicians in signatory counties).

Essentially, person who are from any of the aforementionded accords, who is recognised as reaching the agreed international standard of educational qualifications or competence, should only be minimally assessed (primarily for local knowledge) prior to obtaining registration in anoth-er country. South Africa, in carrying out is registration legislative mandate, also has to comply with the international obligations as a signatory thereto.

The Engineering Professions Act as ECSA’s founding legislation does not make it mandatory for all Engineering Graduates or professionals to register with ECSA as a pre-condition to undertaking Engineering work in South Africa. This is a challenge that has an unintended effect of containing ECSA’s authority to fully regulate the profession. Currently ECSA’s regulatory realm is limited to those Engineering candidates and/or professionals that opt to register with the Council.

Going forward, a rigorous legislative review excise aimed at modernising the Engineering Professions Act and repositioning legislation to be an enabler to effective regulation of the Engineering profession, is planned. This might take some time due to Government and Parliamentary processes.

Having due regard to the current environment articulated above under which ECSA exercises its Registration mandate, below are salient registration trends and statistics:

17.2 REGISTRATION TRENDS

One of ECSA’s key strategic thrusts is the growth of registered engineering professionals. In this regard, ECSA managed to maintain growth in registration numbers during the 2014/2015 financial year. The continued growth trajectory in registration numbers can be a result of many factors which include, among others, awareness campaigns on the benefits of registration presented to industry and higher education institutions by ECSA. The database of registered persons increased from 43 967 on 31 March 2014 to 45 806 on 31 March 2015, which represents an increase of 4.1% over the reporting period. Like in the previous years, a large number of cancellations due to non-payment of annual fees were noted.

Remarkably, the year-on-year increase in new registration in various categories from 2010 to 2014 (see figure 13,14,15) is indicative of government and industry becoming more and more committed to good quality service provision in the country. This is elaborated by these important stakeholders’ commitment towards the creation of enabling training environments which also facilitate the development and progression of candidates towards achieving the desired competencies for professional registration.

Transfers from Candidates

Cancellations Deregistrations

16423 556 361 180 58

Male 15710 484 304 166 54

Female 713 72 57 14 2

African 1496 145 107 22 0

White 13794 315 179 141 56

Indian 967 87 69 24 1

Coloured 166 9 6 3 1

5156 400 215 65 14

Male 4857 333 170 63 14

Female 299 67 45 2 0

African 1270 238 134 12 0

White 3240 114 54 48 14

Indian 447 34 18 4 0

Coloured 199 14 9 1 0

1165 26 13 18 4

Male 1158 24 12 18 4

Female 7 2 1 0 0

African 65 10 5 3 0

White 1048 14 6 15 4

Indian 40 1 1 0 0

Coloured 12 1 1 0 0

4598 315 142 111 26

Male 3998 241 104 97 26

Female 600 74 38 14 0

African 2049 251 117 60 1

White 2095 36 15 41 22

Indian 273 14 8 6 2

Coloured 181 14 2 3 0

Total registered

Gen

der

R

ace

R

ace

Gen

der

R

ace

Gen

der

R

ace

Gen

der

Total registered

Total registered

Total registered

17.3 REGISTRATION STATISTICSTable 11: Professional Category Registration Statistics

Professional Engineering Technologist

Professional Certificated Engineer

Professional Engineering Technician

Professional EngineerTotal registrations New registrations


REGISTRATION REGISTRATION STATISTICS

Professional Engineer 16423

Professional Engineering Technologist 5156

Professional Certificated Engineer 1165

Professional Engineering Technician 4598

Professional Registrations Statistics by Gender & CategoryCategory Male FemaleProfessional Engineer 15710 713Professional Engineering Technologist 4857 299Professional Certificated Engineer 1158 7Professional Engineering Technician 3998 600

16423 5156

11654598

Professional Engineer

Professional EngineeringTechnologist

Professional CertificatedEngineer

Professional EngineeringTechnician

15710

4857

11583998

713

299

7

600

0

2000

4000

6000

8000

10000

12000

14000

16000

18000

ProfessionalEngineer

ProfessionalEngineeringTechnologist

ProfessionalCertificated

Engineer

ProfessionalEngineeringTechnician

Female

Male

Professional Registrations Statistics by Category

Professional Registrations Statistics by Race & Category

Category African White Indian Coloured

1496 13794 967 166 16423

1270 3240 447 199 5156

65 1048 40 12 1165

2049 2095 273 181 4598

0

2000

4000

6000

8000

10000

12000

14000



ProfessionalCertificated

Engineer


1496 1270

65

2049

13794

3240

10482095

967447 40 273166 199 12 181

African

White

Indian

Coloured

Professional EngineerProfessional Engineering TechnologistProfessional Certificated EngineerProfessional Engineering Technician

Figure 4: Professional Registration by Category

Figure 5: Professionnal Registration by Gender

Figure 6: Professional Registration by Race and Category


REGISTRATION STATISTICS

Total registrations Number of Candidates registered (3 Years and

less)

Number of Candidates registered (4 - 5 Years )

Number of Candidates registered (Over 6

Years)

7902 3795 1810 2360

Male 6320 2980 1437 1955

Female 1582 815 373 405

African 2480 1359 576 571

White 4108 1826 876 1429

Indian 1130 519 296 327

Coloured 184 91 62 33

3486 2001 736 774

Male 2770 1591 586 617

Female 716 410 150 157

African 2407 1453 530 443

White 636 298 133 207

Indian 315 166 40 102

Coloured 128 84 23 22

262 89 64 113

Male 257 86 62 113

Female 5 3 2 0

African 115 63 27 30

White 114 17 29 67

Indian 21 5 5 11

Coloured 12 4 3 5

5772 3348 1344 1122

Male 4213 2417 960 637

Female 1559 931 384 485

African 4635 2839 1096 739

White 655 263 136 254

Indian 327 142 79 109

Coloured 155 104 33 20

R

ace

Total registered

Gen

der

R

ace

Total registered

Gen

der

R

ace

Total registered

Gen

der

R

ace

Total registered

Gen

der

Candidate Categories: Registration StatisticsTable 12: Candidate registrations Candidate Registrations Statistics by Category

Canditate Engineer 7902Candidate Engineering Technologist 3486Candidate Certificated Engineer 262Candidate Engineering Technician 5772

Candidate Registrations Statistics by Gender & CategoryCategory Male FemaleCandidate Engineer 6320 1582Candidate Engineering Technologist 2770 716Candidate Certificated Engineer 257 5Candidate Engineering Technician 4213 1559

6320

2770

257

4213

1582

716

5

1559

0

1000

2000

3000

4000

5000

6000

7000

8000

9000

CandidateEngineer

CandidateEngineeringTechnologist

CandidateCertificated

Engineer

CandidateEngineeringTechnician

Female

Male

7902

3486 262

5772

Canditate Engineer

Candidate EngineeringTechnologist

Candidate Certi�catedEngineer

Technician

Candidate Engineering Technologist

Candidate Certificated Engineer

Candidate Engineering Technician

Candidate Engineer

Figure 7: Candidate Registration by Cateory

Figure 8: Candidate Registration by gender and Category


REGISTRATION STATISTICSCandidate Categories: Registration Statistics

African White Indian Coloured Total2480 4108 1130 184 79022407 636 315 128 3486

115 114 21 12 262

4635 655 327 155 5772

0

500

1000

1500

2000

2500

3000

3500

4000

4500

5000

CandidateEngineer


CandidateCertificated

Engineer


2480 2407

115

4635

4108

636

114

655

1130

31521

327184 128 12 155

African

White

Indian

Coloured

Registered Lifting Machinery Inspectors

Registered Medical Equipment

Maintainers

Registered Fire Protection Systems

Inspectors

Registered Lift Inspectors

969 6 4 153

Male 965 5 3 152

Female 4 1 1 1

African 83 1 0 8

White 798 5 4 118

Indian 60 0 0 18

Coloured 28 0 0 9

Total registered

Gen

der

R

ace

Professional Registrations Statistics by CategoryRegistered Lifting Machinery Inspectors 969Registered Medical Equipment Maintainers 6Registered Fire Protection Systems Inspectors 4Registered Lift Inspectors 153

Professional Registrations Statistics by Gender & CategoryCategory Male Female

Registered Lifting Machinery Inspectors 965 4Registered Medical Equipment Maintainers 5 1Registered Fire Protection Systems Inspectors 3 1Registered Lift Inspectors 152 1

969 6

4153

Registered LiftingMachinery Inspectors

Registered MedicalEquipment Maintainers

Registered Fire ProtectionSystems Inspectors

Registered Lift Inspectors

0

200

400

600

800

1000

RegisteredLifting

MachineryInspectors

RegisteredMedical

EquipmentMaintainers

RegisteredFire

ProtectionSystems

Inspectors

RegisteredLift

Inspectors

965

5 31524 1

11

Male

Female

Candidate Engineering TechnologistCandidate Certificated EngineerCandidate Engineering Technician

Figure 9: Candidate registration by race and category

Figure 10: Speci�ed categories

Figure 11: Speci�ed categories by genderTable 13: Specified Categories by race and gender

CategoryCandidate Engineer

Candidate Registrations Statistics by Race & Category


Specified Categories

Category African White Indian Coloured TotalRegistered Lifting Machinery Inspectors 83 798 60 28 969

Registered Medical Equipment Maintainers 1 5 0 0 6Registered Fire Protection Systems Inspectors 0 4 0 0 4

Registered Lift Inspectors 8 118 18 9 153

0

100

200

300

400

500

600

700

800

RegisteredLifting

MachineryInspectors

RegisteredMedical

EquipmentMaintainers

Registered FireProtection

SystemsInspectors

Registered LiftInspectors

83

1 0 8

798

5 4

11860

0 0 1828 0 0 9

African

White

Indian

Coloured

Registration Statistics by Race & Category

Summary registration trends (2010 - 2014)

0

100

200

300

400

500

600

700

800

900

2010 2011 2012 2013 2014



ProfessionalCertificatedEngineer


0

20

40

60

80

100

120

140

2010 2011 2012 2013 2014

Registered LiftingMachineryInspector

Registered LiftInspector

Medical EquipmentMaintainers

Fire ProtectionSystem Inspectors

0

200

400

600

800

1000

1200

1400

1600

2010 2011 2012 2013 2014

Candidate Engineer


CandidateCertificatedEngineer


Figure 12: Speci�ed categories registration by race and category

Figure 13: Professional categories registrations

Figure 14: Speci�ed categories registrations

Figure 15: Candidate categories registrations


17.4 New Registrations Statistics from 2010 to 2014 (Calendar Year)Table 14: New registrations over a five year periodCategory of registration Year 1

(2010)Year 2 (2011)

Year 3 (2012)

Year 4(2013)

Year 5(2014)

Grand Total

Candidate Certificated Engineer 38 58 39 24 23 219

Candidate Engineer 1243 1261 1146 1178 1433 7405

Candidate Engineering Technician 1014 1216 1261 1178 1237 6671

Candidate Engineering Technologist 561 645 520 690 804 3696

EMF 1 1 1 2 6

ETMF Technologist International Register 2 1 2 8

Fire Protection System Inspectors 4 4

Medical Equipment Maintainers 5 1 6

Professional Certificated Engineer 34 29 25 30 26 192

Professional Engineer 473 547 650 801 556 3424

Professional Engineering Technician 241 340 353 392 315 1900

Professional Engineering Technologist 306 372 435 412 400 2248

Registered Lift Inspector 2 5 9 2 19

Registered Lifting Machinery Inspector 129 75 60 65 46 543

Grand Total 4044 4548 4501 4780 4845 26341

17.5 CONTINUING PROFESSIONAL DEVELOPMENT (CPD)The discretion provided for in the Act to make use of Continuing Professional Development (CPD) as a mechanism to determine renewal of registration, gives Council the opportunity to comply with both the renewal of registration and CPD requirements. ECSA’s point of departure is to assist with the creation of a culture of CPD for the South African engineering profession.

ECSA received good co-operation from registered persons whose registration became due for renewal during this financial year. Of the 4566 registered persons due for renewal 11% could not renew for various reasons including but not limited to, cancellations, retirement, death, etc. The renewal rate received per month for the 2014 Calendar year is as per table 15.

Please note that the response rate during the last financial year was 78%.

18. EDUCATION As per the provisions of the Engineering Professions Act, No. 46 of 2000, read together with the National Qualification Framework Act, No. 67 of 2008, ECSA is mandated to evaluate and maintain the quality and standard of engineering programmes offered at institutions of higher learning in the country. This key function falls under the auspices of ECSA’s Education Department. As the custodian of quality assurance in engineering higher education, ECSA also plays an integral role in respect of policy matters relating to engineering education.

The second key function of the Education Department at ECSA is the assessment of educational qualifications for purposes of registration, which are not accredited by ECSA nor recognized under an international educational agreement. Such qualifications must be evaluated for substantial equivalence to a South African accredited qualification.

Developments related to each of the key functions of the Education Department will be described below.

Month Renewals Due Renewals Received Renewal Rate

January 118 71 60.2%

February 268 163 60.8%

March 472 301 63.8%

April 230 143 64.2%

May 421 270 64.1%

June 252 124 49.3%

July 464 210 45.3%

August 436 211 48.4%

September 583 162 29.5%

October 542 175 32.3%

November 619 353 57.1%

December 161 62 38.4%

Totals 4566 2255 51.1%

Table 15: Renewal Statistics


19.1 AccreditationThe purpose of accreditation is to evaluate and, subsequently, maintain the quality and stan-dard of engineering programmes offered at public South African higher education providers. The 237 programmes accredited by ECSA may be disaggregated as follows:

• 52 BEng/BSc(Eng) programmes in 8 universities• 96 BTech Tech programmes in 10 universities• 86 National Diploma programmes in 10 universities.

Records of accredited BEng-type, BTech and National Diploma Programmes are published and regularly updated on the ECSA website.

ECSA successfully fulfilled its scheduled timetable of accreditation visits to higher education providers. Visits conducted during the reporting period are shown in the table 16 below.

19.2 Cross border assistanceECSA has also been approached by the University of Botswana which offers four year engineering programmes to evaluate their programmes with a view to obtaining accreditation. A paper evaluation of the programmes was undertaken and the results presented to the university management and staff. The top management of the University is committed to obtaining accreditation and ECSA is now awaiting correction of the deficiencies identified so as to take the matter forward. Botswana does not have the capacity to set up and operate an accreditation system.

ECSA also conducted a desktop review for the University of Mauritius. The Review process started on the 4th February 2015 and the reports were finalized and considered by EPAC on 8 June 2015.

The University of Venda, in South Africa, that does not offer engineering programmes has approached ECSA and the Department of Education and expressed a wish to offer engineering programmes. Training of the university staff has been completed and the university has already submitted a request to the Department of Education to proceed with the presentation of engineering programmes.

Institution Type of Visit Number of

ProgrammesPeriod

University of Pretoria Follow-up visit 5 24 July 2014University of Johannesburg Follow - up visit 1 14 August 2014Nelson Mandela Metropolitan University

Regular visit 1 04 & 05 September 2015

Durban University of Technology Regular visit 5 1 & 2 Aug 2014Cape Peninsula University of Technology

Provisional visit 1 25 February 2015

Table 16: Renewal statistics accreditation activities during the reporting period:

19.3 Accreditation TrainingECSA’s accreditation process is guided by a sound accreditation policy that has been benchmarked against international criteria and best practice. As such, periodic reviews are conducted under the international agreements in order to audit the ECSA policies and processes.

To ensure that ECSA policies and processes are aligned to international criteria, a review of the policies and procedures for the accreditation of engineering programmes was also undertaken and revisions to improve and better define the processes and procedures was approved by ECSA Council for implementation for accreditation of engineering programmes from 2016. The revised policies and procedures are available on the ECSA Web.

ECSA has a database of seasoned programme evaluators which comprises members from both academia as well as industry. Together with a well documented training manual, ECSA hosts accreditation training workshops to further entrench the use and application of the accreditation policy.

The above is further supported by academic representation on the accreditation committees and evaluation panels and ongoing liaison with the Deans of Engineering through the ECSA Deans Committee (recently renamed as the ECSA Deans’ Advisory Committee). A recent development and enhancement of the service that is provided to our stakeholders that make use of ECSA’s accreditation policy, was the conducting of assessor- and institu-tion-specific training workshops. The institution based training workshop was conducted on the 27 – 28 May 2015.

19.4 Relationship with key Education StakeholdersECSA’s strategic objectives, especially those of the Education Department, requires close working relationships with key stakeholders. The Memorandum of Understanding (MoU) signed by the Council on Higher Education (CHE) and ECSA in August 2012 mandates ECSA to undertake the accreditation process of engineering programmes in terms of its obligation under the Engineering Professions Act. ECSA communicates its accreditation decisions to the CHE, thus obviating the need for duplicate programme accreditation visits by the CHE.

19.4.1 CHE Standards Development ProcessProf. Francis Faller, Director of Standards Development, and Ms Olivia Mokgatle from the CHE were invited to provide an update on the CHE process on the 24 November 2014. According to the NQF Act the CHE is the sole Quality Council for Higher Education (CHE) and in terms of the HEQSF, one of the mandates of the CHE is to develop qualification standards. It was noted that qualifications standards were not the same as teaching and learning standards, assessment standards or resource standards. The purpose of the Standards is to provide benchmarks (both internally and externally, of the programmes that lead to qualifications) i.e. accreditation, implementation, development and quality assurance. The framework for Standards Development can be found on the CHE website.

Central University of Technology Interim 1 10-11 April 2014Mangosuthu University of Technology Interim 1 8-9 May 2014Tshwane University of Technology Interim 3 26-29 May 2014 UNISA Regular 6 17-18 March 2015Cape Town University of Technology Interim 1 24-25 February 2015


20. INTERNATIONAL ACCORDSECSA’s international obligations fall under the mandate of the International Affairs Committee (IAC). ECSA continues to be a signatory to the following international agreements:1.Washington Accord: mutual recognition of educational qualification for education of engineers;2.Sydney Accord: mutual recognition of educational qualification for education of engineering technologists;3.Dublin Accord: mutual recognition of educational qualification for education of engineering technicians;4.Engineers Mobility Forum: promoting the international recognition of registration of professional engineers;

19.4.3 Qualifications Evaluation Process

Application status/decision Considered by EP-QEC

Forwarded to TP-QEC

Total

New applications allocated to each QEC 380 260 640Washington Accord recognition 10 0 10Substantially equivalent to the type of quali�cation shown

BEng: 87 BTech: 79ND: 68Alternate Route: 85

319

ECSA recognised 23 23

Interview 149 6 155Not recognised / File closed (no response) 3 5 8Refused Candidate Engineer 0 0 0Information outstanding / Awaiting Interview 95 15 110Applications in process: Next EP QEC/TP QEC 13 2 15

Table 17: Qualifications evaluation21. REGULATION OF ENGINEERING PRACTICE

Investigation of Complaints

Key Function:The Engineering Profession Act, 46 of 2000 (the EPA) enjoins ECSA to refer matters relating to improper conduct by a registered person to an Investigating Committee (IC) appointed by ECSA.

The IC, through delegated powers from Council, investigates matters to determine breaches of the Code of Conduct.

Key Function:Complaints of improper conduct lodged against registered persons, or incidents regarding engineering related activities that may indicate improper conduct by registered persons are investigated. The legal department of ECSA manages these investigations through the IC. The IC is mandated to investigate matters and to obtain evidence to determine whether or not, in its opinion, a registered person may be charged for breach of the Code of Conduct and, if so, to prefer the charge or charges against that registered person. The IC furthermore endeavors to determine trends, and initiate preventative steps, regarding unprofessional conduct. To this end, it conducts peer counseling meetings, issues advisory letters and generates practice notes.

The investigating of complaints and subsequent action against the registered person involved is focused on the enhancement of public safety, safeguarding the image of the profession and maintaining professional standards. A comparative summary of investigations over the past four years is provided in Table 18.

In its quest to improve the turnaround times in the finalisation of cases, the Legal Unit has successfully established and trained a pool/database of legal practitioners from which it draws expertise in the speedy handling of the cases.

5.Engineering Technologists Mobility Forum: promoting the international recognition of registration of Professional engineering technologists or equivalent;6.Mutual Exemption Agreement with the Institution of Civil Engineers (ICE) (UK): providing an accelerated procedure for Chartered Engineers (registered via the ICE) to gain Profession Engineer Registration with ECSA and the converse.7.Mutual Exemption Agreement with Engineers Ireland: providing an accelerated procedure for Chartered Engineers (registered with Engineers Ireland) to gain Profession Engineer Registration with ECSA and the converse.

Further to the above, ECSA had been involved in a number of international initiatives, listed below:

• Deans’ were reminded that when the next review is done in 2018, the signatories will look for implementation of the outcome-based standards in the accreditation process. ECSA will need to demonstrate that the standard achieved in practice is substantially equivalent to the Graduate Attribute exemplar for the Accord in question. This means that, to provide evidence, the Universities of Technology visited in 2018 will need to have at least one round of exit level outcomes (ELOs) assessment completed by at least 2017.• The letter received from Australia to recognise four Bachelor of Engineering Technology programmes at the Australian College of Kuwait.

At a meeting of the Deans and the CHE convened by CHE in May 2014 it was noted work had already been completed by ECSA towards the development of Standards. It was agreed that the CHE had no intention to deviate from some of the fundamental principles behind those Standards. It was therefore proposed to invite an individual who had experi-ence in all three dimensions; namely in the higher education institutional space, the professional council space as well as with the CHE. The proposal was adopted and Prof. Hu Hanrahan had been invited to draft, as a pilot, standard statements for two qualifications.

19.4.2 Qualification EvaluationSubsequent to the implementation of the educational qualification evaluation policy, the demand for qualification evaluation has grown rapidly. A total of 640 applications with foreign qualifications were received for evaluation during the reporting period. 33 applicants were recognized as holding Washington Accord qualifications and were eligible to apply directly for registration. The remaining applications were considered by the Engineering Programme Qualification Evaluation Committee (EPQEC) or Technology Programme Qualification Evaluation Committee (TPQEC) as appropriate. The following is a summary the applications received and the outcomes of the evaluations.

Steps to prevent improper conductThe Legal Services Unit is currently benchmarking its investigating and case management procedures, against those of similar organizations both locally and internationally. The Rules for Inquiry into Alleged Improper Conduct, Board Notice 171 of 2011 (Method of Inquiry) is currently under review. The revised Method of Inquiry will be published during the 2015/16 financial year .The Method of Inquiry is revised annually.

Practice NotesThe following practice notes were published during the reporting period:

(a) The importance of taking Seismic loading on a building structure fully into account.(b) The results of a failed Concrete Raft foundation.(c) Inadequate assessment of timber roof structure, followed by unacceptable remedial work. (d) Inadequate attention to foundation design and construction of a house.


21.1 Publication of Guideline Fees

Amendments to the Code of ConductThe Code of Conduct for Registered Person, Board Notice 256 of 2013 is currently under review. The revised Code of Conduct would be published during the 2015/16 financial year. The Code of Conduct is revised annually.

21.2 Recognition of Voluntary AssociationsCurrently ECSA has 48 recognized voluntary associations. Three (3) new voluntary associations were recognized in the reporting period.

Key Function:In terms of Section 34 of the Engineering Profession Act 46 of 2000, the Engineering Council of South Africa (ECSA), in consultation with the voluntary associations, represen-tatives of service providers and clients in the public and private sector, is required to pub-lish Guideline Fees: Consultative Framework for Determination of ECSA Professional Fees (Guideline Fees). Section 34(2) of the Act requires ECSA to review the Guideline Fees and to publish them in the Government Gazette.

The Guideline Fees are applicable from the first of January of every year until the 31st December of that year.

The Competition Commission (CC) is giving priority to the exemption applications on the Draft Identification of Work Regulations for all the six Built Environment Councils and would only consider the exemption applications on the Guideline Fees after. The latest update from the CC, confirming the above have since been received.

21.3 Identification of Engineering Work The Competition Commission (CC) submitted questions to the ECSA Consultative Process Task Team (TT) on 21 January 2015 with regards to the Draft Regulations, which the TT responded to on 10 February 2015. A follow-up meeting with the CC was held on 28 January 2015, wherein the CC had advised ECSA to engage the following stakehold-ers who raised objections to the draft regulations:

• South African Council for Natural Scientific Professions (SACNASP)• South African Council for Professional and Technical Surveyors (PLATO)• Construction Industry Development Board (CIDB)• Southern African Institute for Mining and Metallurgy (SAIMM)• AMREC/SAMVAL Committee (SSC)• Geological Society of South Africa (GSSA)• Institute of Mine and Surveyors of South Africa (IMSSA)• South African Geomatics Institute (SAGI)

During the month of February 2015 and March 2015 the TT met with the stakeholders, including the CC. The objective of the meetings was to present the CC with a roadmap of how ECSA and the relevant stakeholders will address overlaps and to put these processes in place. The CC had intended to meet with the Minister: Department of Public Works during the 2015/16 financial year, however the meeting did not take place and a new date has not been confirmed yet.

ECSA INVESTIGATIONS: COMPARATIVE CHART Number of Matters 2014-2015 2013-2014 2012-2013 2011-2012 New Complaints received for investigation 40 58 35 54 Complaints carried over from the previous reporting period 38 33 37 43 Complaints finalized after investigation 45 44 42 50 Disciplinary hearings concluded 8 3 12 15 Peer Counseling meetings held 4 2 2 11 Advisory Letters Issued 2 3 1 5

Table 18: Investigations comparative chart over a 4 year period

Figure 16: ECSA Investigations

65 ECSA Annual Report 2015 I

STRATEGIC SERVICESPART E:

66

22.1 Marketing & Communications

The 2014/2015 financial year has been full of significant events in promoting ECSA as a preferred advisor of choice in the engineering field, an engineering regulatory body responsible for generating registration standards and policies. ECSA stepped up as a representative and ambassador of the engineering profession in the country and displayed commitment in aligning their systems with international accords.

ECSA continued to engage in events, activities, stakeholder engagements projects as a reliable voice on matters pertaining to the engineering profession. ECSA had appointed a Public Relations company, Gillian Gamsy International (GGI) to show its commitment towards building and maintaining a better reputation and profiling ECSA as a brand to be reckoned with.

22.2 Stakeholder Relations

ECSA continued to strengthen its relationship with stakeholders and also explored new stakeholders they can develop partnerships with for the benefit of the engineering profession as well as the public.

The highlights of the stakeholder engagement was embedded on the following events:

1. Media roundtable where the South African Local Government Association (SALGA), ECSA, Office of the Public Protector were invited.

2. University of Johannesburg (UJ) - Gauteng Department of Infrastructure Development (GDID) –ECSA student mentorship programme.

3. The New Registration System (NRS) road shows in 9 provinces and 12 venues across the country.

4. The UNESCO Africa Engineering Week 2014.

5. The International Women’s Day breakfast – Cape Town.

22.3 Media Roundtable 2015

Local government media roundtable: An important element of ECSA’s PR mandate relates to strengthening both stakeholder and media relationships.

It is in this light that GGi undertook to bring both stakeholders and media together in one room, for ECSA’s benefit.

The spotlight was recently shone on the engineering profession, stemming from the deployment into the Free State Province, of a group of non-South African engineers, to service the province’s engi-neering needs. Various questions arose from this event, both within the media and the profession.

The Engineering Council of South Africa (ECSA) hosted a panel discussion to unpack the broader issues at play in service delivery at a municipal level.

6867 ECSA Annual Report 2015 I Strategic Services

The primary objective of the engagement was to address the specific issue of poor service delivery at a municipal level – to which ECSA and its stakeholders illustrated technical solutions, based on their varying roles and government mandates. On June 11 2015 ECSA organised a media roundtable which was held at the O R Tambo Cultural Precinct within the Ekurhuleni municipality. It stemmed out that an opportunity exists for closer collaboration between municipalities and ECSA in order to ensure that the constitutional right to service delivery of every South African is met. This is as a result of challenges faced by municipalities in ensuring a seamless flow of service delivery and an ongoing focus on quality infrastructure development.

The panel was comprised of the Executive Mayor of Ekurhuleni, Cllr Mondli Gungubele; Executive Mayor of Midvaal, Cllr Bongani Baloyi in his capacity as SALGA’s chairperson Municipal Trading Services; Deputy Public Protector, Advocate Kevin Malunga, and Engineering Council of South Africa (ECSA) Executive Education Standards and Policies, John Cato.


Psychological support

Life skills

Offer extra lessons in particular subjects and concepts including

To address problems that are non-academic in nature such as:• Acclimatisation of the physical environment, • Uncertainty with regard to personal choices• Relationship with peers and teaching staff• Lack of self-confidence and low-esteem

• Interpersonal skills• Communication skills• Stress management • Self-awareness building skills• Problem solving• Decision making• Critical thinking• Assertiveness• Negotiations skills

• Study techniques and strategies.• Time management and organisation of studies

Speaking on behalf of the people, Advocate Malunga indicated that the bulk of queries coming to the office of the Public Protector in the last financial year have been targeted at municipalities.

Out of the complainants received, the highest number was against municipalities, with the top five complaints being: Poor service delivery; Land and housing; Billings & service delivery; Tender process irregularities; Housing delivery gone wrong.

ECSA and SALGA have since drafted an MOU which will be signed during the course of 2015 focussing of several areas of collaboration on how they can work together to address the lack of technical expertise in local authorities resulting in poor service delivery.

22.4 ECSA, UJ, GDID Student Support Programme launch

On October 06, 2014, the Engineering Council of South Africa (ECSA), Gauteng Department of Infrastructure Development (GDID) and the University of Johannesburg (UJ), signed a memorandum of understanding which is aimed at supporting and coaching the engineering students at the UJ, who are recipients of the GDID bursaries.

This tripartite initiative came about following the recommendations of the student throughput Research conducted by ECSA, GDID articulated the need to mentor first and second year students, since the majority fail to complete their qualifications as they are unprepared for the

level of academic commitment required when studying engineering. This is a pilot project with an intention to replicate the same model for all other institutions of higher learning that offer engineering programmes. The programme will offer the following support over and above offering bursaries:

Table 19: Schedule of support services for engineering students

Delegates at the student support programme launch

Signing of the MoU between ECSA,UJ and GDID


Mr Cyril Gamede, President of ECSA pointed that this initiative allows ECSA to play a significant role in the social development in South Africa.

Mr Sipho Madonsela, CEO of ECSA, added to this by indicating that the launch marks a proudly South African moment and that the “Pipeline Model, utilised in this programme is modelled according to the Thuthuka Model, founded by the South African Institute of Chartered Accountants (SAICA) which has proven to be very effective.”

Listed as priority focus areas for ECSA are matters pertaining to:

• Improve the ‘talent pipeline’ and talent schools into the University of Johannesburg on a pilot project basis;

• Improve the poor throughput pass percentage at undergraduate level amongst the previously disadvantaged students;

• Transform the profession by delivering high level Engineering skills with a specific focus on the previously disadvantaged engineering practitioners;

• Facilitate mentorship for engineering graduates.

“This partnership is a true demonstration of organisations that are aimed at addressing problems that are undeniably visible in the academic environment. As ECSA, we are obliged to go beyond the regulatory function and add value to the society” Gamede concluded.

22.5 The New Registration System (NRS) road showsThe Engineering Council of South Africa (ECSA) conducted public consulting roadshows throughout the country from 02 to 25 March 2015. The main objective of the roadshows was to look into the New Registration System (NRS) enjoined by section 36 of the Engineering Profession Act (EPA).

“As a council, we are committed to protecting both the profession and the public, and to fulfil our main objectives; we need to regularly review and enhance our registration system thereby increasing efficiencies, security as well as integrity,” said Mr Sipho Madonsela, CEO of ECSA.

“By engaging with the registered and non-registered engineers, we were able to address any concerns in respect of registering with ECSA, and informed them on the NRS,” says Madon-sela.

As a statutory body, ECSA’s primary role is to regulate the engineering profession through, standards generation and policy development, accreditation and quality assurance, registration of engineering practitioners, and professional conduct management.

The NRS documents and annexures are also available for public comment on the ECSA website, www.ecsa.co.za or on www.gpwonline.co.za, as published in the Government Gazette 38454 dated 06 February 2015.

ECSA travelled around the country, to all provinces to engage with its stakeholders and professionals, as a means of keeping in constant touch with them, and also as a means of sharing pertinent industry-related information. These sessions allowed the professionals in each province to have direct engagement with the leadership of ECSA, to address the issues

pertaining to the new registration system. These road shows were conducted in Gauteng, Free State, Limpopo, Mpumalanga, Western Cape, Northern Cape, North West and the KZN.

Port Elizabeth


East London

Johannesburg

BloemfonteinMafikeng

Durban

Nelspruit

Cape Town

Pretoria

Kimberley


22.6 The UNESCO- AFRICA Engineering Week 2014ECSA collaborated with the United Nations Educational, Scientific and Cultural Organization (UNESCO), the Department of Science and Technology (DST) to host the UNESCO Africa Engineering Week event which took place at the University of Johannesburg's Doornfontein Campus from 01 – 04 September 2015.

The main objective of Africa Engineering Week was to educate the youth and the general public about the significance of engineering in their lives. The week-long event was themed "Engineering is a life changer!" and was filled with activities ranging from educational workshops and public awareness activities, to mentoring activities and women's events.

Engineering is one of the most sought after skills in the world, and it is necessary to feed new talent into the profession continually if South Africa is to meet its people's basic needs and improve their quality of life. Engineers solve problems using mathematics and science, and it is important that they continue to devise practical solutions to the challenges faced by our country and continent.

President of ECSA, Mr Cyril Gamede, affirmed that the profession needs more young blood to bring new innovative thinking to dealing with the challenges of the future. "We need the youth to transcend our expectations and elevate the profession to new heights by applying modern technologies and systems to the resolution of the challenges our grandchildren will face one day. We intend to impact and influence the profession with topical discussions that look at global best practice, and hope to inspire the youth to pursue a rewarding career in engineering," says Gamede.

22.7 The International Women’s Day breakfast ECSA is on the drive to encourage female engineering practitioners to remain in the profession and to make engineering attractive to the young girls as a career of choice. ECSA is also aware that the challenge of a low number of female engineering practitioners registered with the Council has to be addressed.

To show their commitment to the latter course, ECSA invited all female registered engineering practitioners to treat them to a networking encounter and a celebration of Women’s month.The event was held at Bay Hotel in Cape Town on August 21 2014.

Timothy Maurice Webster was the host. This event saw over 50 female engineering practitioners conversing and having a good time. The feedback has been “we want more of these events”.

ECSA will endeavour to take this event nationally to every province subject to availability of funds. This is a massive initiative which has been yielding very exciting results and interests.

Learners at the UNESCO Africa Engineering Week

Learners at the UNESCO Africa Engineering Week

77 ECSA Annual Report 2015 I Strategic Services 78

22.8 Exhibitions

77 ECSA Annual Report 2015 I Strategic Services 78

ECSA has continued to retain its corporate visibility through engaging with its stakeholders and professionals through participation at various industry events in the form of exhibitions. Below are some of stakeholder events attended:

Civilution Congress - Emperor’s Palace, 06 – 08 April 2014. African Construction Expo - Sandton Convention Centre, 27-28 May 2014.Sustainability Week - CSIR International Convention Centre, 17 – 19 June 2014. Infrastructure Africa Conference - Sandton Convention Centre from 21 - 22 July 2014.Southern African Transport Conference - CSIR convention Centre 07 – 10 July 2014.Consulting Engineers South Africa (CESA) Young Professionals Forum -Premier Hotel, 11 – 12 August 2014.Institute of Municipal Engineering of South-ern Africa (IMESA) 78th Annual conference - Durban Convention Centre, 28 – 31 Octo-ber 2014.

Consulting Engineers South Africa (CESA) annual conference - Legend Golf & Safari Resort, 09 – 11 November 2014. Women in Engineering workshop - Gallagher Conven-tion Centre, 26 to 28 November 2014. Africa Energy Indaba - Sandton Convention Centre, 17 – 18 February 2015.

22.9 Advertising

ECSA has continued to retain its corporate visibility through engaging with its stakeholders and professionals through media advertising in different publications which are distributed to stakeholders such as Government Digest, SAICE Civil Engineering Magazine, Watt now (Electrical Engineering magazine), Engineering News, Sunday Times, Black Business Quarterly, SA Building Review, SADC government handbook, NDP 2030 vision publication.ECSA has shared information quarterly with their stakeholders through the E-Bulletin, which has now been made modern and user-friendly on a digital copy. The E-Bulletin covers regulatory activities ECSA engages in within every 3 months. For copies of the E-Bulletin, please follow this link: www.ecsa.co.za/news/SitePages/Bulletins.aspx

22.10 Engenius

The current financial year remains a year in which Engenius has moved from strength to strength in terms of achieving its goals of promoting engineering to young learners throughout the country. The strategic objectives of the programme are three-fold:

1) To promote national collaboration, coordination and support amongst partner organisations (including engineering departments & VAs).

79 I Strategic ServicesECSA Annual Report 2015

Several presentations and papers were presented at several conferences and exhibitions to spread the message that “Engineering Makes It Happen” to seek partners who would find synergies with this mandate and co-deliver on it. The objective was to standardise the content that gets disseminated to the aspiring engineers and get industry bodies and companies to give a consistent message when it comes to engineering. Some of these partner organisations included IMIESA, Randwater, Scibono, Department of Public Works, Department of Basic Education, Eskom Young Scientist Expo, Uitenhage Science Centre, University of Kwazulu Natal, Wits University, Chemical Industries Education and Training Authority, Youth-In- Construction, Scifest Africa – Grahamstown, Rural Education Festival - Limpopo and the North West Department of Education. 2) Promote the engineering profession to primary and high school learners nationallyOver 14 000 learners were reached through practical engineering workshops and partner exhibitions that took place across the country. These learners were reached in mostly rural areas such as East Coast Kwazulu Natal, Grahamstown, Rustenburg, and schools around the Greater Letaba Municipality in Limpopo. The workshops that are currently distributed in schools include civil engineering, mechanical engineering, and mining engineering hands-on workshops that are designed to create interest towards engineering. They have also been proven as much more effective for learners and have a long lasting effect as compared to general career advice talks. Negotiations with the South African National Space Agency (SANSA) are still ongoing for the possibility of an Engenius kit that will depict engineering disciplines within the space industry.

3) Empower partners to spread the driving messageNotably, the success of Engenius also relies on the training of young engineering practitioners that can be used to promote the profession within their areas. A partnership was agreed upon between ECSA and the National Youth Development Agency (NYDA) to train 21 career advisors. These career advisors were spread across the provinces and were equipped with the resources of Engenius so that they could utilize it in their daily interactions with learners.

In closing, the road is still long ahead of us. The need to nurture engineering minds and channel them towards the correct path needs more focused efforts with key stakeholders that are keen to take this country forward. We strive to empower not only the youth but to ensure that as the Engineering body within South Africa, we lead the development process of this scarce skill.

PART F: LIST OF RECOGNISEDVOLUNTARY ASSOCIATIONS

Aspiring young engineers across the country

80

8281 ECSA Annual Report 2015 I A List Of Reconised Voluntary Associations

Recognised Voluntary Association as at 31 March 2015

No Acronym NameReferenceNumber

DateRecognised

1 AeSSA Aeronautical Society of South Africa VA A0022 11 August 2011

2 AMMSA Association of Mine Managers of South Africa VA A0031 24 January 2007

3 AMRE Association of Mine Resident Engineers VA A0032 22 August 2013

4 CEASA Clinical Engineering Association of South Africa VA A0040 26 August 2010

5 COET The Chamber of Engineering Technology VA A0001 19 October 2010

6 CSSA Concrete Society of Southern Africa VA A0019 11 August 2011

7 ICMEESA Institution of Certificated Mechanical and Electrical Engineering VA A0002 24 November 2010

8 IEEE Institute of Electrical and Electronic Engineers South African Section VA A0036 22 August 2013

9 IMESA Institution of Municipal Engineering of Southern Africa VA A0003 14 April 2011

10 IPET Institute of Professional Engineering Technologists VA A0004 19 October 2010

11 LIASA Lift Inspectors Association of South Africa VA A0026 15 March 2012

12 NSBE National Society of Black Engineers VA A0037 23 May 2013

13 SAAMA South African Asset Management Association VA A0025 14 May 2009

14 SACEA South African Colliery Engineers' Association VA A0005 11 August 2011

15 SACMA South African Colliery Managers Association VA A0029 23 May 2013

16 SAIAE South African Institute of Agricultural Engineers VA A0020 11 August 2011

17 SAICE South African Institution of Civil Engineering VA A0006 24 November 2010

18 SAIChE South African Institution of Chemical Engineers VA A0007 11 August 2011

19 SAIEE South African Institute of Electrical Engineers VA A0008 14 April 2011

20 SAIIE Southern African Institute of Industrial Engineers VA A0009 11 August 2011

21 SAIMechE The South African Institution of Mechanical Engineering VA A0021 14 April 2011

22 SAIMENA South African Institute of Marine Engineers and Naval Architects VA A0010 11 August 2011

23 SAIMM South African Institute of Mining and Metallurgy VA A0011 14 April 2011

24 SAIRAC South African Institute of Refrigeration and Air-Conditioning VA A0028 10 May 2012

25 SAT Society for Asphalt Technology VA A0043 26 August 2010

26 STE Society of Telkom Engineers VA A0035 22 August 2013

27 INCOSE

International Council of Systems Engineering

(SA Chapter) VA A0030 24 January 2007

28 SANCOLD South African National Committee on Large Dams VA A0046 4 December 2014

29 SASRE South African Society for Railway Engineers VA A0047 4 December 2014

30 LEEASA Lifting Equipment Engineering Association of South Africa VA A0048 4 December 2014


DateRecognised

36 AMEU Association of Municipal Electricity Undertakings VA C0027 11 August 2011

37 BEPEC Built Environment Professions Export Council VA C0044 24 November 2010

38 CESA Consulting Engineers South Africa (p.n.a. SAACE) VA C0013 14 April 2011

39 IESSA Illumination Engineering Society of South Africa VA C0012 11 August 2011

40 IQSA Institute of Quarrying Southern Africa VA C0014 11 August 2011

41 ITC Institute for Timber Construction VA C0015 11 August 2011

42 SAFA South African Flameproof Association VA C0016 26 August 2010

43 SAFCEC South African Federation of Civil Engineering Contractors VA C0017 11 August 2011

44 SAFPA South African Fluid Power Association VA C0039 26 November 2008

45 SAISC South African Institute of Steel Construction VA C0018 11 August 2011

46 SAIW South African Institute of Welding VA C0034 22 August 2013

47 SARF South African Road Federation VA C0042 26 August 2010

48 SASTT Southern African Society for Trenchless Technology VA C0041 26 August 2010

Table 20: List of recognised Voluntary Associations - Category A

Table 22: List of recognised Voluntary Associations - Category C

11 April 2011 31 SAFHE South African Federation of Hospital Engineers VA B0023

32 SAID South African Institute of Draughting VA B0033 22 August 2013

33 SAIMC South African Institute of Measurement and Control VA B0024 11 August 2011

34 WISA Water Institute of Southern Africa VA B0038 12 June 2008

35 SABTACO South African Black Technical and Allied Careers Organisation VA B0045 23 May 2013

Table 21: List of recognised Voluntary Associations - Category B


DateRecognised

PART G: HUMAN RESOURCE MANAGEMENT

83 ECSA Annual Report 2015 I Human Resource Management 8284

8685 ECSA Annual Report 2015 I Human Resource Management and It

24. OVERVIEW OF HUMAN RESOURCES

Table 24: Performance Rewards – complete personnel expenditure in rand value

Table 23: Personnel cost by salary band

HUMAN RESOURCE OVERSIGHT STATISTICS

The Human Resources Data Management system was successfully implemented in the beginning of 2014/2015. This initiative has contributed to:

• Improved efficiency and administration of personnel records • Managed and controlled access to information through dedicated user rights • Improved communication through electronic workflows• Reduced costs • An integrated Human Resources Data System (Premier HR) and the payroll system (VIP Payroll) which amongst other things, has contributed to minimised human errors

PERFORMANCE MANAGEMENT AND TRAINING AND DEVELOPMENT

Successful implementation of an Online Performance Management System has positively changed the organisation’s culture on performance management and probation management. Electronic auto-mation of the processes has enabled timely and effective tracking of documen-tation, management of communication through workflows, effective data analysis and reporting. This initiative has also contributed to an increased level of aware-ness and overall understanding of the benefits of a performance management system within the organisation

Time and effort was spent on ensuring that all staff receive training on key factors influencing successful implementation of a performance management system i. e

development of KPA’s and KPI’s, alignment of individual objectives to business goals, development of performance agreements and individual training and development plans.

CHANGE MANAGEMENT

A six months change management programme yielded remarkable strides in creating an improved positive culture of open communication within the organisation. The programme included a variety of engagement structures i.e. culture surveys, coaching and mentoring sessions for managers and executives, overcoming obstacles sessions and conflict management workshops.

Through this programme, individuals have shown commitment in their personal development and there has been a marked improvement in acknowledging and embracing change.

EMPLOYEE WELLNESS

One of the benefits for ECSA employees and their immediate families is the ECSA Wellness Programme which offers a variety of telephonic, face to face and on- site support programmes. ECSA has part-nered with reputable Wellness providers to encourage and assist employees to lead healthy lifestyles and prevent and manage diseases.

The establishment of the ECSA Wellness Crew has created a recognised structure where individuals with a passion for wellness are taking proactive steps in driving wellness initiatives within ECSA, including annual Wellness Days which take place towards the end of each year.

2015/2016 HUMAN RESOURCES GOALS

Our key focus for 2015/2016 is in the development and implementation of the following:

• Human Resources Strategy• Learnership Programme• Review current Job Grading and Evaluation policy, processes and practices• Continuous training on Performance Management Systems and processes• Enhance alignment of Human Resources and payroll processes • Human Resources policies enhancements

Level Personnel Expenditure (R’000)

% of personnel exp. to total personnel

cost (R’000)

No. of employees Average personnel cost per employee

(R’000)Top Management 1 605 000.00 5.93% 1 1 605 000.00 Senior Management

4 484 326.00 16.58% 3 1 494 775.33

Professional qualified

4 897 802.00 18.11% 7 699 686.00

Skilled 2 873 039.00 10.62% 7 410 434.14 Semi-skilled 1 3 186 101.00 48.76 54 244 187.05 Unskilled 0 0 0 0 TOTAL 27 046 268.00 100.00% 72 4 454 082.52

Programme//activity/objective Performance rewards Personnel Expenditure (R’000)

% of performance rewards to total

personnel cost (R’000) Top Management R 40 125.00 1 605 000.00 2.50% Senior Management R 221 826.00 4 484 326.00 18.00% Professional qualified R 237 862.52 4 897 802.00 33.00% Skilled R 155 253.79 2 873 039.00 39.00% Semi-skilled R 585 607.38 13 186 101.00 237.94%

Unskilled 0 0 0 TOTAL R 1 240 675.62 27 046 268.00 330.44%

HUMAN RESOURCES AND PAYROLL SYSTEMS


Table 25: Training costs

Table 27: Employment changes

Table 29: Misconduct and disciplinary actions

Table 30: Employment equity (male)

Table 31: Employment equity (female)

Table 28: Reasons for leaving

Table 26: Employment and vacancies

Programme/activity/objective Personnel Expenditure

(R’000)

Training Expenditure

(R’000)

Training Expenditure as

a % of Personnel

Cost.

employees trained

Avg training cost per

employee

Management Development 1 432 733.21 R 3 500.00 0.24% 1 3500.00 Computer Skills 135 072.00 R 1 307.02 0.96% 1 1307.02 Time Management Training 4 399 543.00 R 14 950.00 0.93% 14 314 246.64 Supply Chain Management for Public Service

196 170.00 R 4 925.00 2.52% 1 4925.00

End Year Tax 440 175.00 R995.00 0.23% 1 995.00 Training Venue for Pastel Training

N/A R 1 140.00

Research and Intelligence Workshop

1 300 972.00 R9 160.00 0.70% 4 2290.00

Catering for Training N/A R 49.00 1 Pastel Training: Catering N/A R 912.00 6 Performance Management Design Workshop

5 405 503.00 R24 750 0.02% 5 1 081100.00

HR Job Management 1 248 223.00 R4 200 0.34% 2 2100.00 HR Employee Management 1 248 223.00 R4 200 0.34% 2 2100.00 HR Performance Management 1 248 223.00 R4 200 0.34% 2 2100.00

Programme/activity/objective 2014/2015 No. of

Employees

2014/2015 Approved

Posts

2014/2015No. of

Employees

2014/2015 Vacancies

% of vacancies

Top Management 1 1 1 1 100% Senior Management 3 3 3 3 100% Professional qualified 7 9 7 2 22.22% Skilled 7 8 7 1 12.50% Semi-skilled 54 57 54 3 5.26% Unskilled 0 0 0 0 0 TOTAL 72 78 72 10 12.82

Salary Band Employment at beginning of period

Appointments Terminations Employment at end of the

period

Top Management 1 1 0 1 Senior Management 3 0 1 4 Professional qualified 9 0

4 5

Skilled 7 1 2 6 Semi-skilled 51 14 11 54 Unskilled 0 0 0 0 Total 71 16 18 70

Reason Number % of total no. of staff leavingDeath 0 0% Resignation 11 15% Dismissal 0 0% Retirement 0 0% Ill health 0 0% Expiry of contract 6 8% Other 0 0% Total 17 23%

Nature of disciplinary Action Number Verbal Warning 2 Written Warning 1 Final Written warning 1 Dismissal 0

LevelsMALE

African Coloured Indian WhiteCurrent Target Current Target Current Target Current Target

Top Management

1 0 0 0 0 0 0 0

Senior Management

2 0 0 0 0 0 0 0


1 0 0 0 0 0 1 0

Skilled 2 0 0 0 1 0 0 0 Semi-skilled 13 0 2 0 0 0 1 0 Unskilled 0 0 0 0 0 0 0 0 TOTAL 19 0 2 0 1 0 2 0

LevelsFEMALE

AFRICAN COLOURED INDIAN WHITECurrent Target Current Target Current Target Current Target

Top Management

0 0 0 0 0 0 0 0

Senior Management

1 0 0 0 0 0 0 0


4 0 0 0 0 0 0 0

Skilled 0 0 0 0 1 0 2 0 Semi-skilled 28 0 0 0 5 0 0 0 Unskilled 0 0 0 0 0 0 0 0 TOTAL 33 0 0 0 6 0 2 0

No. of


PART H:FINANCIALINFORMATIONfor the year ended 31 March 2015

90

Levels Disabled StaffMale Female

Current Target Current TargetTop Management 0 0 0 0 Senior Management 0 0 0 0 Professional qualified 0 0 0 0 Skilled 0 0 0 0 Semi-skilled 0 0 0 0 Unskilled 0 0 0 0 TOTAL 0 0 0 0

Table 32: Employment equity (disabled)

91 91 I Financial InformationECSA Annual Report 2015 898992

The Engineering Council of South Africa The Engineering Council of South Africa

Council’s responsibilities and approval

The Council is required to maintain adequate accounting records and is responsible for the content and integrity of the financial statements and related financial information included in this report. It is the responsibility of the Council to ensure that the financial statements fairly present the state of affairs of the Council as at the end of the financial year and the results of its operations and cash flows for the period then ended. The external auditors are engaged to express an independent opinion on the financial statements and was given unrestricted access to all financial records and related data.

The financial statements have been prepared in accordance with South African Standards of Generally Recognised Accounting Practice (GRAP) including any interpretations, guidelines and directives issued by the Accounting Standards Board.

The financial statements are based upon appropriate accounting policies consis-tently applied and supported by reason-able and prudent judgements and estimates.

The Council acknowledges that they are ultimately responsible for the system of internal financial control established by the Council and place considerable importance on maintaining a strong control environment. To enable the Council to meet these responsibilities, the Council sets standards for internal control aimed at reducing the risk of error or deficit in a cost effective manner. The standards include the proper delegation of responsibilities within a clearly defined framework, effective accounting procedures and adequate segregation of duties to ensure an acceptable level of risk. These controls are monitored throughout the Council and all employees are required to maintain the

highest ethical standards in ensuring the Council’s business is conducted in a manner that in all reasonable circumstances is above reproach. The focus of risk management in the Council is on identifying, assessing, managing and monitoring all known forms of risk across the Council. While operating risks cannot be fully eliminated, the Council endeavours to minimise it by ensuring that appropriate infrastructure, controls, systems and ethical behaviour are applied and managed within predetermined procedures and constraints.

The Council is of the opinion, based on the information and explanations given by management, that the system of internal control provides reasonable assurance that the financial records may be relied on for the preparation of the financial state-ments. However, any system of internal financial control can provide only reason-able, and not absolute, assurance against material misstatement or deficit.

The Council has reviewed the Council’s cash flow forecast for the year to 31 March 2016 and, in the light of this review and the current financial position, they are satisfied that the Council has or has access to ade-quate resources to continue in operational existence for the foreseeable future.

The external auditors are responsible for independently auditing and reporting on the Council’s financial statements. The financial statements have been examined by the Council’s external auditors and their report is presented on pages 92 to 93.

The financial statements set out on pages 95 to 135, which have been prepared on the going concern basis, were approved by the Council on 27 August 2015 and were signed on its behalf by:

Sipho Madonsela Pr Eng Chief Executive O�cer

Independent auditor’s report

To The Engineering Council of South Africa

We have audited the financial statements of the Engineering Council of South Africa set out on pages 95 to 135, which comprise the statement of financial position as at 31 March 2015, and the statements of financial performance, changes in net assets and cash flows for the year then ended, and the notes, comprising a summary of significant accounting policies and other explanatory information.

Councils’ Responsibility for the Financial Statements

The Council is responsible for the prepara-tion and fair presentation of these financial statements in accordance with South African Standards of Generally Recognised Accounting Practice and for such internal control as the Council determines is neces-sary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

Auditor’s Responsibility

Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accor-dance with International Standards on Auditing. Those standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance whether the financial state-ments are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor’s judgement, including the assess-ment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assess-ments, the auditor considers internal

control relevant to the entity’s preparation and fair presentation of the financial statements in order to design audit proce-dures that are appropriate in the circum-stances, but not for the purpose of expressing an opinion on the effective-ness of theentity’s internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by management, as well asevaluating the overall presentation of the financial statements.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.

Opinion

In our opinion, the financial statements present fairly, in all material respects, the financial position of the Engineering Council of South Africa as at 31 March 2015, and its financial performance and its cash flows for the year then ended in accordance with the South African Stan-dards of Generally Recognised Account-ing Practice.

Other matter

The supplementary information set out on page 136 does not form part of the annual financial statements and is presented as additional information.We have not audit-ed these schedules and accordingly we do not express an opinion thereon.

Cyril Gamede Pr Eng President

PricewaterhouseCoopers Inc.Director: R RamdhanyRegistered Auditor Sunninghill17 September 2015

9493 ECSA Annual Report 2015 I Financial Information

for the year ended 31 March 2015 (continued)

Council’s reportfor the year ended 31 March 2015

Review of activities

Main business and operations

The Engineering Council of South Africa (ECSA) is established in terms of the Engi-neering Profession Act (No. 46 of 2000). The Act empowers the ECSA to perform the following functions, in order to protect the health and safety of citizens and the environment from the risks associated with engineering work:

• Set standards for engineering education and professional competency;

• Accrediting engineering education programmes, offered by public and private providers, that meet with the educational requirements for registration in the various categories;

• Register persons in professional categories who demonstrates competency against the standards for the categories;

• Evaluate educational qualifications that are not already accredited or recognised. • Register persons who meet educational requirements in candidate categories;

• Establish specified categories of registration to meet specific health and safety licensing requirements and registered persons in these categories;

• Require registered persons to renew registration at intervals and under conditions that the Council prescribes;

• Enter international agreements for the recognition of educational programmes and registration;

• Develop and maintain a code of conduct, supported where necessary by codes of practice;

• Investigate complaints of improper conduct against registered persons and conduct enquiries and impose sanctions as each case requires;

• Recognise Voluntary associations; • Recommend to the Council for the Built Environment (CBE), ECSA’s identification of the type of the engineering work which may be performed by persons registered in any category.

The operating results and state of affairs of the entity are fully set out in the attached financial statements and do not in our opinion require any further comment.

Address1st Floor Waterview Corner Building 2 Ernest Oppenheimer Avenue Bruma Lake Office Park Johannesburg2198

Going concern

The financial statements have been prepared on the basis of accounting policies applicable to a going concern. This basis presumes that funds will be available to finance future operations and that the realisation of assets and settlement of liabilities, contingent obliga-tions and commitments will occur in the ordinary course of business.

Council report

Subsequent events

The CEO is not aware of any matter or circumstance arising since the end of the financial year that could have a material effect on the financial statements.

Council membersThe Council members of the organisation during the year and to date of this report are as follows:

Mr CV Gamede (President) Mr A Peters (Vice-President)Ms RA BothaMr Y Brijmohan Mr WSB Burger Mr LT Dhlamini Mr PM Erasmus Mr K Greenwood Mr M Gxamza Dr KI JacobsMr SS JacobsMr ME JeleMr RE Jennings Prof. BM Lacquet Dr A LawlessMr OL LeburuMs NVB Magubane Mr S MakhethaMs P Mangakane Ms TP Maphumulo Prof. T Marwala Hon LB Mashile Prof. ML MasuMr T MaswanganyiDR ZT Mathe

Mr DN Matthee Mr KC MistryMr MMG Mofokeng Mr RJ MoloisaneDr B L Mwaka Mr NM Myataza Mr MA Ngcobo Mr N Nqandela Ms T Nkambule Mr K NyangoniMs M Padayachee-Saman Mr R PatelMr BP Petlane Ms T PhiriMr M ThunziMs AM Sassenberg Mr AJ SinghMr CM SogaMr CP Stuurman Dr N TutuMr NP van Den Berg Mr DJ van Niekerk Prof. BJ van WykMs TM ZumaMr M Zitha (from March 2015)Mr RM Vogt (deceased January 2015)

SecretaryThe duties of a company secretary of the ECSA are fully fulfilled by the administrative staff. The Engineering Profession Act does not require the ECSA to appoint a dedicated company secretary.

AuditorsPricewaterhouseCoopers Inc. will continue in office in accordance with the procurement policy.

Legal formCouncil.

PFMA complianceThe Engineering Council of South Africa is on a plan to become PFMA compliant within the next year.



Statement of Financial Position

Statement of Financial Performance For the year ended 31 March 2015as at 31 March 2015

Statement of Changes in Net AssetsFor the year ended 31 March 2015

R

Note

Total net assets

Note 2015 2014 R R

Assets

Non-current assets 48 927 548 49 355 162 Property, plant and equipment 4 8 383 728 9 036 486 Intangible assets 5 2 327 564 1 720 733 Investments 6 11 932 256 10 748 943 Retirement benefit asset 7 26 284 000 27 849 000

Current assets 17 085 884 12 827 794 Trade and other receivables 8 5 891 480 3 224 333 Cash and cash equivalents 9 11 194 404 9 603 461

Total assets 66 013 432 62 182 956

Liabilities

Non-current liabilities 24 719 660 27 439 489 Borrowings 11 438 660 1 374 489 Retirement benefit obligation 7 24 281 000 26 065 000

Current liabilities 12 598 432 8 798 289 Borrowings 11 994 613 871 136 Trade and other payables 12 9 958 648 5 741 047 Provisions 13 1 645 171 2 186 106

Total liabilities 37 318 092 36 237 778

Net assets Other non-distributable reserves 10 – 2 547 540 Accumulated surplus 28 695 340 23 397 638

28 695 340 25 945 178

Total liabilities and net assets 66 013 432 62 182 956

Note 2015 2014 R R

RevenueOperating revenue 16 68 764 453 60 162 762 Other income 17 358 118 918 027

Total revenue 69 192 099 61 080 789

Operating expenses (68 932 433) (62 550 190)

Operating (deficit)/surplus 20 259 666 (1 469 401)

Investment revenue 21 4 156 496 3 414 650 Fair value adjustments 6 968 799 983 298 Actuarial gains/(losses) 7 (188 000) (259 000) Finance costs 22 (2 446 799) (1 778 404)

Surplus for the year 2 750 162 891 143

Other non-distributable

reserves Accumulated

surplus Total net

assets R R R

Balance at 31 March 2013 2 547 540 22 506 495 25 054 035

Changes in net assets

341 198 341 198 – raey eht rof sulpruS

Balance at 31 March 2014 2 547 540 23 397 638 25 945 178

Changes in net assets – raey eht rof sulpruS 2 750 162 2 750 162

Reversal of provision (2 547 540) 2 547 540 –

Balance at 31 March 2015 – 28 695 340 28 695 340

01 etoN



Statement of Cash Flowsfor the year ended 31 March 2015 for the year ended 31 March 2015

2015R2014 R

Notes to the financial statements

1. Presentation of financial statements

The financial statements have been prepared in accordance with the South African Standards of Generally Recognised Accounting Practice (GRAP) including any interpretations, guidelines and directives issued by the Accounting Standards Board.

These financial statements have been prepared on an accrual basis of accounting and are in accordance with historical cost convention unless specified otherwise. They are presented in South African Rand.

These accounting policies are consistent with the previous period.

1.1 Significant judgements and sources of estimation uncertainty

In preparing the financial statements, management is required to make estimates and assumptions that affect the amounts represented in the financial statements and related disclosures. Use of available information and the application of judgement is inherent in the formation of estimates. Actual results in the future could differ from these estimates which may be material to the financial statements. Significant judgements include:

Trade receivables and loans and receivables

The entity assesses its trade receivables and loans and receivables for impairment at the end of each reporting period. In determining whether an impairment loss should be recorded in surplus or deficit, the Council makes judgements as to whether there is observable data indicating a measurable decrease in the estimated future cash flows from a financial asset.

The impairment for trade receivables and loans and receivables is calculated on a portfolio basis, based on historical loss ratios, adjusted for national and indus-try-specific economic conditions and other indicators present at the reporting date that correlate with defaults on the portfolio. These annual loss ratios are applied to loan balances in the portfolio and scaled to the estimated loss emergence period.

Post-retirement benefits

The present value of the post retirement obligation depends on a number of factors that are determined on an actuarial basis using a number of assumptions. The assumptions used in determining the net cost (income) include the discount rate. Any changes in these assumptions will impact on the carrying amount of post retirement obligations.

The entity determines the appropriate discount rate at the end of each year. This is the interest rate that should be used to determine the present value of estimated future cash outflows expected to be required to settle the pension obligations. In determining the appropriate discount rate, the entity considers the interest rates of government bonds that are denominat-ed in the currency in which the benefits will be paid, and that have terms to maturity approximating the terms of the related pension liability.

Other key assumptions for pension obliga-tions are based on current market condi-tions. The assumptions used are consis-tent with assumptions used in the statutory valuation. However, GRAP 25 requires the valuation to be carried out on a prescribed market value basis and a number of the assumptions therefore differ from those used in the statutory valuation.

Note 2015 2014 R R

Cash flow from operating activities Receipts Cash receipts from customers 65 622 744 58 985 270 Investment revenue 21 4 156 496 3 414 650

Payments Cash payments to suppliers (63 590 000) (61 162 969)Finance costs 22 (2 446 799) (1 778 404)

Net cash flows from operating activities 27 3 742 441 (541 453)

Cash flows from investing activities Purchase of property, plant and equipment 4 (621 492) (1 298 533)Disposal of property, plant and equipment 4 202 378 4 449 Purchase of other intangible assets 5 (705 468) (1 196 642)Net movements in financial assets 6 (214 514) (153 660)

Net cash flows from investing activities (1 339 096) (2 644 386)

Cash flows from financing activities Repayment of borrowings 11 (812 352) (654 397)

Net cash flows from financing activities (812 352) (654 397)

Net decrease in cash and cash equivalents 1 590 943 (3 840 236)

Cash and cash equivalents at beginning of year 9 603 461 13 443 697

Cash and cash equivalents at end of year 9 11 194 404 9 603 461



Notes to the financial statements

1.1 Significant judgements and sources of estimation uncertainty (continued)

Post-retirement benefits (continued)

Valuation rate of interest – GRAP 25 requires rates to be determined by reference to the current market yield of government bonds. The bulk of the liabilities have a short term, whilst one remaining pensioner has a potentially very long remaining outstanding term.

Allowance for doubtful debt

On debtors an impairment loss is recognised in surplus and deficit when there is objective evidence that it is impaired. The impairment is measured as the difference between the debtors carrying amount and the present value of estimated future cash flows discounted at the effective interest rate, computed at initial recognition.

1.2 Property, plant and equipment

Property, plant and equipment is tangible non-current assets (including infrastruc-ture assets) that are held for use in the production or supply of goods or services, rental to others, or for administrative purposes, and are expected to be used during more than one period.

The cost of an item of property, plant and equipment is recognised as an asset when:

• it is probable that future economic benefits or service potential associated with the item will flow to the entity; and

• the cost of the item can be measured reliably.

Property, plant and equipment is initially measured at cost.

Costs include costs incurred initially to acquire or construct an item of property, plant and equipment and costs incurred subsequently to add to, replace part of, or service it. If a replacement cost is recognised in the carrying amount of an item of property, plant and equipment, the carrying amount of the replaced part is derecognised. All other repairs and main-tenance are charged to the statement of financial performance during the financial period in which they are incurred.

Property, plant and equipment is depreciated on the straight line basis over their expected useful lives to their estimat-ed residual value.

Property, plant and equipment is carried at cost less accumulated depreciation and any impairment losses.

Property, plant and equipment is tested for impairment on an annual basis.

The useful lives of items of property, plant and equipment have been assessed as follows:

1. Presentation of financial statements (continued)

1.2 Property, plant and equipment (continued)

The residual values, the useful lives and depreciation methods of assets are reviewed at the end of each reporting date. If the expectations differ from previous estimates, the change is accounted for as a change in accounting estimate.

Each part of an item of property, plant and equipment with a cost that is significant in relation to the total cost of the item is depreciated separately.

The depreciation charge for each period is recognised in surplus or deficit unless it is included in the carrying amount of another asset.

Property plant and equipment is assessed for impairment when there are indicators of impairment.

The gain or loss arising from the derecog-nition of an item of property, plant and equipment is included in surplus or deficit when the item is derecognised. The gain or loss arising from the derecognition of an item of property, plant and equipment is determined as the difference between the net disposal proceeds, if any, and the carrying amount of the item. An asset’s carrying amount is written down immedi-ately to its recoverable amount if the asset’s carrying amount is greater than its estimated recoverable amount.

1.3 Intangible assets

An asset is identified as an intangible asset when it:

• is capable of being separated or divided from an entity and sold, transferred,

licensed, rented or exchanged, either individually or together with a related contract, assets or liability; or

• arises from contractual rights or other legal rights, regardless whether those rights are transferable or separate from the entity or from other rights and obligations.

Intangible assets are initially recognised at cost.

An intangible asset acquired at no or nomi-nal cost, the cost shall be its fair value as at the date of acquisition.

Expenditure on research (or on the research phase of an internal project) is recognised as an expense when it is incurred.

An intangible asset arising from develop-ment (or from the development phase of an internal project) is recognised when:

• it is technically feasible to complete the asset so that it will be available for use or sale;

• there is an intention to complete and use or sell it; there is an ability to use or sell it;

• it will generate probable future economic benefits or service potential;

• there are available technical, financial and other resources to complete the development and to use or sell the asset;

• the expenditure attributable to the asset during its development can be measured reliably.

for the year ended 31 March 2015Notes to the financial statements for the year ended 31 March 2015 (cont)

The Engineering Council of South AfricaThe Engineering Council of South Africa

Item

BuildingsFurniture and fixtures Motor vehicles Office equipment Computer equipmentImprovements to property

Average useful life

50 years 6 years 5 years 5 years 3 years 10 years

I Financial InformationECSA Annual Report 2015 8989102


1.3 Intangible assets (continued)

Intangible assets are carried at cost less any accumulated amortisation and any impairment losses.

An intangible asset is regarded as having an indefinite useful life when, based on all relevant factors, there is no foreseeable limit to the period over which the asset is expected to generate net cash inflows or service potential. Amortisation is not provided for these intangible assets, but they are tested for impairment annually and whenever there is an indication that the asset may be impaired. For all other intangible assets amortisation is provided on a straight line basis over their useful life.

The amortisation period and the amortisa-tion method for intangible assets are reviewed at each reporting date.

Reassessing the useful life of an intangible asset with a finite useful life after it was classified as indefinite is an indicator that the asset may be impaired. As a result the asset is tested for impairment and the remaining carrying amount is amortised over its useful life.

Internally generated brands, mastheads, publishing titles, customer lists and items similar in substance are not recognised as intangible assets.

The useful lives of items of intangible assets have been assessed as follows:

Intangible assets are derecognised: • on disposal; or• when no future economic benefits or service potential are expected from its use or disposal.

The gain or loss is the difference between the net disposal proceeds, if any, and the carrying amount. It is recognised in surplus or deficit when the asset is derecognised.

1.4 Financial instruments

A financial instrument is any contract that gives rise to a financial asset of one entity and a financial liability or a residual interest of another entity.

The amortised cost of a financial asset or financial liability is the amount at which the financial asset or financial liability is measured at initial recognition minus principal repayments, plus or minus the cumulative amortisation using the effective interest method of any difference between that initial amount and the maturity amount, and minus any reduction (directly or through the use of an allowance account) for impairment or uncollectibility.

Credit risk is the risk that one party to a financial instrument will cause a financial loss for the other party by failing to discharge an obligation.

Derecognition is the removal of a previously recognised financial asset or financial liability from an entity’s statement of financial position.

The effective interest method is a method of calculating the amortised cost of a financial asset or a financial liability (or group of financial assets or financial liabilities) and of allocating the interest income or interest expense over the relevant period.

The effective interest rate is the rate that exactly discounts estimated future cash payments or receipts through the expected life of the financial instrument or, when appropriate, a shorter period to the net carrying amount of the financial asset or financial liability.

When calculating the effective interest rate, an entity shall estimate cash flows considering all contractual terms of the financial instrument (for example, prepayment, call and similar options) but shall not consider future credit losses.

The calculation includes all fees and points paid or received between parties to the contract that are an integral part of the effective interest rate (see the Standard of GRAP on Revenue from Exchange Transactions), transaction costs, and all other premiums or discounts.

There is a presumption that the cash flows and the expected life of a group of similar financial instruments can be estimated reliably.

However, in those rare cases when it is not possible to reliably estimate the cash flows or the expected life of a financial instru-ment (or group of financial instruments), the entity shall use the contractual cash flows over the full contractual term of the financial instrument (or group of financial instruments).

Fair value is the amount for which an asset could be exchanged, or a liability settled, between knowledgeable willing parties in an arm’s length transaction.

A financial asset is:• cash;• a residual interest of another entity; • or a contractual right to: – receive cash or another financial asset from another entity; or

–exchange financial assets or financial liabilities with another entity under conditions that are potentially favourable to the entity.

A financial liability is any liability that is a contractual obligation to:

• deliver cash or another financial asset to another entity; or• exchange financial assets or financial liabilities under conditions that are potentially unfavourable to the entity.

Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market interest rates.

Liquidity risk is the risk encountered by an entity in the event of difficulty in meeting obligations associated with financial liabilities that are settled by delivering cash or another financial asset.

Loans payable are financial liabilities, other than short-term payables on normal credit terms.

Market risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market prices. Market risk comprises three types of risk: currency risk, interest rate risk and other price risk.


Notes to the financial statements for the year ended 31 March 2015

Notes to the financial statements for the year ended 31 March 2015 (cont)

Item

Registration system Accounting system

Average useful life 3 years 3 years

101



1.4 Financial instruments (continued)

Classification

The entity has the following types of financial assets (classes and category) as reflected on the face of the statement of financial position or in the notes thereto:

The entity has the following types of financial liabilities (classes and category) as reflected on the face of the statement of financial position or in the notes thereto:

Initial recognition

The entity recognises a financial asset or a financial liability in its statement of financial position when the entity becomes a party to the contractual provisions of the instrument.

The entity recognises financial assets using trade date accounting.

Initial measurement of financial assets and financial liabilities

The entity measures a financial asset and financial liability initially at its fair value plus transaction costs that are directly attributable to the acquisition or issue of the financial asset or financial liability.

Subsequent measurement of financial assets and financial liabilities

The entity measures all financial assets and financial liabilities after initial recognition using the following categories:

• Financial instruments at fair value; and

• Financial instruments at amortised cost.

All financial assets measured at amortised cost, or cost, are subject to an impairment review.

Class

Cash and cash equivalents Trade and other receivables Investments

Class

Trade and other payables Borrowings

Category

Financial asset measured at amortised costFinancial asset measured at amortised costFair value

Category

Financial liability measured at amortised cost Financial liability measured at amortised cost



Fair value measurement considerations

The best evidence of fair value is quoted prices in an active market. If the market for a financial instrument is not active, the entity establishes fair value by using a valuation technique. The objective of using a valuation technique is to establish what the transaction price would have been on the measurement date in an arm’s length exchange motivated by normal operating considerations. Valuation techniques include using recent arm’s length market trans-actions between knowledgeable, willing parties, if available, reference to the current fair value of another instrument that is substantially the same, discounted cash flow analysis and option pricing models. If there is a valuation technique commonly used by market partici-pants to price the instrument and that tech-nique has been demonstrated to provide reliable estimates of prices obtained in actual market transactions, the entity uses that tech-nique. The chosen valuation technique makes maximum use of market inputs and relies as little as possible on entity-specific inputs. It incorporates all factors that market participants would consider in setting a price and is consis-tent with accepted economic methodologies for pricing financial instruments. Periodically, an entity calibrates the valuation technique and tests it for validity using prices from any observable current market transactions in the same instrument (i.e. without modification or repackaging) or based on any available observable market data.

Reclassification

The entity does not reclassify a financial instru-ment while it is issued or held unless it is:

• combined instrument that is required to be measured at fair value; or• an investment in a residual interest that meets the requirements for reclassification.

If fair value can no longer be measured reliably for an investment in a residual interest measured at fair value, the entity reclassifies the investment from fair value to cost. The carrying amount at the date that fair value is no longer available becomes the cost.

If a reliable measure becomes available for an investment in a residual interest for which a measure was previously not available, and the instrument would have been required to be measured at fair value, the entity reclassifies the instrument from cost to fair value.

Gains and losses

A gain or loss arising from a change in the fair value of a financial asset or financial liability measured at fair value is recognised in surplus or deficit.

For financial assets and financial liabilities measured at amortised cost or cost, a gain or loss is recognised in surplus or deficit when the financial asset or financial liability is derecognised or impaired, or through the amortisation process.







Impairment and uncollectibility of financial assets

The entity assess at the end of each reporting period whether there is any objective evidence that a financial asset or group of financial assets is impaired.

Financial assets measured at amortised cost:

If there is objective evidence that an impairment loss on financial assets measured at amortised cost has been incurred, the amount of the loss is mea-sured as the difference between the asset’s carrying amount and the present value of estimated future cash flows (excluding future credit losses that have not been incurred) discounted at the finan-cial asset’s original effective interest rate. The carrying amount of the asset is reduced directly OR through the use of an allowance account. The amount of the loss is recognised in surplus or deficit.

If, in a subsequent period, the amount of the impairment loss decreases and the decrease can be related objectively to an event occurring after the impairment was recognised, the previously recognised impairment loss is reversed directly OR by adjusting an allowance account. The reversal does not result in a carrying amount of the financial asset that exceeds what the amortised cost would have been had the impairment not been recognised at the date the impairment is reversed. The amount of the reversal is recognised in surplus or deficit.

Derecognition

Financial assets

The entity derecognises financial assets using trade date accounting.

The entity derecognises a financial asset only when:

• the contractual rights to the cash flows from the financial asset expire, are settled or waived;

• the entity transfers to another party substantially all of the risks and rewards of ownership of the financial asset; or

• the entity, despite having retained some significant risks and rewards of owner ship of the financial asset, has transferred control of the asset to another party and the other party has the practical ability to sell the asset in its entirety to an unrelated third party, and is able to exercise that ability unilaterally and without needing to impose additional restrictions on the transfer. In this case, the entity:

• derecognise the asset; and

• recognise separately any rights and obligations created or retained in the transfer.

The carrying amounts of the transferred asset are allocated between the rights or obligations retained and those transferred on the basis of their relative fair values at the transfer date. Newly created rights and obligations are measured at their fair values at that date. Any difference between the consideration received and the amounts recognised and derecognised is recognised in surplus or deficit in the period of the transfer.



On derecognition of a financial asset in its entirety, the difference between the carrying amount and the sum of the consideration received is recognised in surplus or deficit.

If the transferred asset is part of a larger financial asset and the part transferred qualifies for derecognition in its entirety, the previous carrying amount of the larger financial asset is allocated between the part that continues to be recognised and the part that is derecognised, based on the relative fair values of those parts, on the date of the transfer. The difference between the carrying amount allocated to the part derecognised and the sum of the consideration received for the part derecognised is recognised in surplus or deficit.

If a transfer does not result in derecognition because the entity has retained substantially all the risks and rewards of ownership of the transferred asset, the entity continue to recognise the transferred asset in its entirety and recog-nise a financial liability for the consider-ation received. In subsequent periods, the entity recognises any revenue on the transferred asset and any expense incurred on the financial liability. Neither the asset, and the associated liability nor the revenue, and the associated expenses are offset.

Financial liabilities

The entity removes a financial liability (or a part of a financial liability) from its statement of financial position when it is extinguished – i.e. when the obligation specified in the contract is discharged, cancelled, expires or waived.

An exchange between an existing borrow-er and lender of debt instruments with substantially different terms is accounted for as having extinguished the original financial liability and a new financial liability is recognised. Similarly, a substantial modification of the terms of an existing financial liability or a part of it is accounted for as having extinguished the original financial liability and having recognised a new financial liability.

The difference between the carrying amount of a financial liability (or part of a financial liability) extinguished or transferred to another party and the consideration paid, including any non-cash assets transferred or liabilities assumed, is recognised in surplus or deficit. Any liabilities that are waived, forgiven or assumed by another entity by way of a non-exchange transaction are accounted for in accordance with the South African Standard of GRAP on Revenue from Non-exchange Transactions (Taxes and Transfers).

1.5 Leases

A lease is classified as a finance lease if it transfers substantially all the risks and rewards incidental to ownership. A lease is classified as an operating lease if it does not transfer substantially all the risks and rewards incidental to ownership.

When a lease includes both land and building elements, the entity assesses the classification of each element separately.






Operating leases – lessor

Operating lease revenue is recognised as revenue on a straight-line basis over the lease term. The difference between the amounts recognised as an income and the contractual receipts are recognised as an operating lease liability. This liability is not discounted.

Initial direct costs incurred in negotiating and arranging operating leases are added to the carrying amount of the leased asset and recognised as an expense over the lease term on the same basis as the lease revenue.

Income for leases is disclosed under reve-nue in surplus and deficit.

Operating leases – lessee

Operating lease payments are recognised as an expense on a straight-line basis over the lease term. The difference between the amounts recognised as an expense and the contractual payments are recognised as an operating lease asset or liability.

Any contingent rents are expensed in the period they are incurred.

1.6 Employee benefits

Employee benefits are all forms of consideration given by an entity in exchange for services rendered by employees.

Other long-term employee benefits are employee benefits (other than post-employment benefits and termination benefits) that are not due to be settled within twelve months after the end of the

period in which the employees render the related service.

Short-term employee benefits

Short-term employee benefits are employee benefits (other than termination benefits) that are due to be settled within twelve months after the end of the period in which the employees render the related service.

Short-term employee benefits include items such as:

• wages, salaries and social security contributions;

• short-term compensated absences (such as paid annual leave and paid sick leave) where the compensation for the absences is due to be settled within twelve months after the end of the reporting period in which the employees render the related employee service;

• bonus, incentive and performance related payments payable within 12 months after the end of the reporting period in which the employees render the related service; and

• non-monetary benefits (for example, medical care, and free or subsidised goods or services such as housing, cars and cell phones) for current employees.


1.6 Employee benefits (continued)

When an employee has rendered a service to the entity during a reporting period, the entity recognise the undiscounted amount of short-term employee benefits expected to be paid in exchange for that service:

• as a liability (accrued expense), after deducting any amount already paid. If the amount already paid exceeds the undiscounted amount of the benefits, the entity recognises that excess as an asset (prepaid expense) to the extent that the prepayment will lead to, for example, a reduction in future payments or a cash refund; and

• as an expense, unless another Standard requires or permits the inclusion of the benefits in the cost of an asset.

The entity recognises the expected cost of bonus, incentive and performance related payments when the entity has a present legal or constructive obligation to make such payments as a result of past events and a reliable estimate of the obligation can be made. A present obligation exists when the entity has no realistic alternative but to make the payments.

Post-employment benefits

Post-employment benefits are employee benefits (other than termination benefits) which are payable after the completion of employment.

Post-employment benefit plans are formal or informal arrangements under which an entity provides post-employment benefits for one or more employees.

Post-employment benefits: Defined benefit plans

GRAP 25 became effective for financial years commencing on or after 1 April 2014 and has been applied for the 2015 year end.

Defined benefit plans are post-employ-ment benefit plans other than defined contribution plans.

Actuarial gains and losses comprise expe-rience adjustments (the effects of differ-ences between the previous actuarial assumptions and what has actually occurred) and the effects of changes in actuarial assumptions. In measuring its defined benefit liability the entity recognise actuarial gains and losses in surplus or deficit in the reporting period in which they occur.

Assets held by a long-term employee ben-efit fund are assets (other than non-trans-ferable financial instruments issued by the reporting entity) that are held by an entity (a fund) that is legally separate from the reporting entity and exists solely to pay or fund employee benefits and are available to be used only to pay or fund employee benefits, are not available to the reporting entity’s own creditors (even in liquidation), and cannot be returned to the reporting entity, unless either:

• the remaining assets of the fund are sufficient to meet all the related employee benefit obligations of the plan or the report-ing entity; or

• the assets are returned to the reporting entity to reimburse it for employee benefits already paid.







Current service cost is the increase in the present value of the defined benefit obliga-tion resulting from employee service in the current period.

Interest cost is the increase during a period in the present value of a defined benefit obligation which arises because the benefits are one period closer to settlement.

Past service cost is the change in the present value of the defined benefit obligation for employee service in prior periods, resulting in the current period from the introduction of, or changes to, post-employment benefits or other long-term employee benefits. Past service cost may be either positive (when benefits are introduced or changed so that the present value of the defined benefit obliga-tion increases) or negative (when existing benefits are changed so that the present value of the defined benefit obligation decreases). In measuring its defined bene-fit liability the entity recognise past service cost as an expense in the reporting period in which the plan is amended.

Plan assets comprise assets held by a long-term employee benefit fund and qualifying insurance policies.

The present value of a defined benefit obligation is the present value, without deducting any plan assets, of expected future payments required to settle the obligation resulting from employee service in the current and prior periods.

The return on plan assets is interest, dividends and other revenue derived from the plan assets, together with realised and unrealised gains or losses on the plan assets, less any costs of administering the plan (other than those included in the actu-arial assumptions used to measure the defined benefit obligation) and less any tax payable by the plan itself.

The amount recognised as a defined ben-efit liability is the net total of the following amounts:

• the present value of the defined benefit obligation at the reporting date;• minus the fair value at the reporting date of plan assets (if any) out of which the obligations are to be settled directly;• plus any liability that may arise as a result of a minimum funding requirement.

The amount determined as a defined ben-efit liability may be negative (an asset). The entity measure the resulting asset at the lower of:

• the amount determined above; and• the present value of any economic bene-fits available in the form of refunds from the plan or reductions in future contribu-tions to the plan. The present value of these economic benefits is determined using a discount rate which reflects the time value of money.

Any adjustments arising from the limit above is recognised in surplus or deficit.

The entity determines the present value of defined benefit obligations and the fair value of any plan assets with sufficient regularity such that the amounts recognised in the financial statements do not differ materially from the amounts that would be determined at the reporting date.



Post-employment benefits: Defined benefit plans (continued)

The entity recognises the net total of the following amounts in surplus or deficit, except to the extent that another Standard requires or permits their inclusion in the cost of an asset:

• current service cost; • interest cost;• the expected return on any plan assets and on any reimbursement rights; • actuarial gains and losses;• past service cost;• the effect of any curtailments or settlements; and• the effect of applying the limit on a defined benefit asset (negative defined benefit liability).

The entity uses the Projected Unit Credit Method to determine the present value of its defined benefit obligations and the related current service cost and, where applicable, past service cost. The Projected Unit Credit Method (sometimes known as the accrued benefit method pro-rated on service or as the benefit/years of service method) sees each period of service as giving rise to an additional unit of benefit entitlement and measures each unit separately to build up the final obligation.

In determining the present value of its defined benefit obligations and the related current service cost and, where applicable, past service cost, an entity shall attribute benefit to periods of service under the plan’s benefit formula. However, if an employee’s service in later years will lead to a materially higher level of benefit than in earlier years, an entity shall attribute

benefits on a straight-line basis from:

• the date when service by the employee first leads to benefits under the plan (whether or not the benefits are conditional on further service); until• the date when further service by the employee will lead to no material amount of further benefits under the plan, other than from further salary increases.

Actuarial valuations are conducted on an annual basis by independent actuaries separately for each plan. The results of the valuation are updated for any material transactions and other material changes in circumstances (including changes in market prices and interest rates) up to the reporting date.

Actuarial assumptions

Actuarial assumptions are unbiased and mutually compatible.

Financial assumptions are based on market expectations, at the reporting date, for the period over which the obligations are to be settled.

The rate used to discount post-employment benefit obligations (both funded and unfunded) reflect the time value of money. The currency and term of the financial instrument selected to reflect the time value of money is consistent with the currency and estimated term of the post-employment benefit obligations.




111 I Financial InformationECSA Annual Report 2015 112



Post-employment benefit obligations are measured on a basis that reflects:

• estimated future salary increases;• the benefits set out in the terms of the plan (or resulting from any constructive obligation that goes beyond those terms) at the reporting date; and• estimated future changes in the level of any state benefits that affect the benefits payable under a defined benefit plan, if, and only if, either:• those changes were enacted before the reporting date; or• past history, or other reliable evidence, indicates that those state benefits will change in some predictable manner, for example, in line with future changes in general price levels or general salary levels.

1.7 Provisions and contingencies

Provisions are recognised when:

• the entity has a present obligation as a result of a past event;• it is probable that an outflow of resources embodying economic benefits or service potential will be required to settle the obligation; and• a reliable estimate can be made of the obligation.

The amount of a provision is the best estimate of the expenditure expected to be required to settle the present obligation at the reporting date.

Where some or all of the expenditure required to settle a provision is expected to be reimbursed by another party, the

reimbursement is recognised when, and only when, it is virtually certain that reimbursement will be received if the entity settles the obligation. The reimbursement is treated as a separate asset. The amount recognised for the reimbursement does not exceed the amount of the provision.

Provisions are not recognised for future operating profits.

If an entity has a contract that is onerous, the present obligation (net of recoveries) under the contract is recognised and mea-sured as a provision.

1.8 Revenue

Revenue is the gross inflow of economic benefits or service potential during the reporting period when those inflows result in an increase in net assets, other than increases relating to contributions from owners.Conditions on transferred assets are stipulations that specify that the future economic benefits or service potential embodied in the asset is required to be consumed by the recipient as specified or future economic benefits or service potential must be returned to the transferor.

Control of an asset arise when the entity can use or otherwise benefit from the asset in pursuit of its objectives and can exclude or otherwise regulate the access of others to that benefit.

Fee income consists of annual fees, applications fees, and accreditations of universities.


Professional fees are payable by members who are qualified as engineers (members who have obtained a university degree).

Fee income is recorded in the financial statements at the date when the fee is raised.

Candidates fees are payable by members who are not yet qualified as engineers (e.g. students or technicians).

Application fees are once-off fees payable on submission of an application form. These fees are to compensate for the costs incurred during the evaluation process.

Revenue is measured at the fair value of the consideration received or receivable, net of trade discounts and volume rebates.

Revenue from exchange transactions

An exchange transaction is one in which the entity receives assets or services, or has liabilities extinguished, and directly gives approximately equal value (primarily in the form of goods, services or use of assets) to the other party in exchange.

Fair value is the amount for which an asset could be exchanged, or a liability settled, between knowledgeable, willing parties in an arm’s length transaction.

Accreditation visit revenue is recognised as revenue from exchange transactions.

Interest

Revenue arising from the use by others of entity assets yielding interest, royalties and dividends is recognised when:

• It is probable that the economic benefits

or service potential associated with the transaction will flow to the entity, and• The amount of the revenue can be measured reliably.

Interest is recognised, in surplus or deficit, using the effective interest rate method.

1.9 Revenue from non-exchange transactions

Non-exchange transactions are transac-tions that are not exchange transactions. In a non-exchange transaction, an entity either receives value from another entity without directly giving approximately equal value in exchange, or gives value to another entity without directly receiving approximately equal value in exchange.

Transfers are inflows of future economic benefits or service potential from non-exchange transactions, other than taxes.

Application and registration fees are recognised as revenue from non-exchange transactions.

Recognition

An inflow of resources from a non-exchange transaction recognised as an asset is recognised as revenue, except to the extent that a liability is also recognised in respect of the same inflow.





1. Presentation of financial state-ments (continued)

1.8 Revenue (continued)

As the entity satisfies a present obligation recognised as a liability in respect of an inflow of resources from a non-exchange transaction recognised as an asset, it reduces the carrying amount of the liability recognised and recognises an amount of revenue equal to that reduction.

Measurement

Revenue from a non-exchange transaction is measured at the amount of the increase in net assets recognised by the entity.

When, as a result of a non-exchange transaction, the entity recognises an asset, it also recognises revenue equivalent to the amount of the asset measured at its fair value as at the date of acquisition, unless it is also required to recognise a liability. Where a liability is required to be recognised it will be measured as the best estimate of the amount required to settle the obligation at the reporting date, and the amount of the increase in net assets, if any, recognised as revenue. When a liabil-ity is subsequently reduced, because the taxable event occurs or a condition is satisfied, the amount of the reduction in the liability is recognised as revenue.

2. New standards and interpretations

2.1 Standards approved not yet effective

The following standards and interpretations have been published and are mandatory for the entity’s accounting periods beginning on or after 1 April 2015 or later periods but are not yet effective to

its operations:

GRAP 20 – Related Party Disclosures

Subject to exemptions in paragraph 32, if a reporting entity has had related party transactions during the periods covered by the financial statements, it shall disclose the nature of the related party relationship as well as information about those transactions and outstanding balances, including commitments, necessary for users to understand the potential effect of the relationship on the financial statements. These disclosure requirements are in addition to those in paragraph 35 to disclose remuneration of management. At a minimum, disclosures shall include:

• the amount of the transactions• the amount of outstanding balances, including commitments; and

– their terms and conditions, including whether they are secured, and the nature of the consideration to be provided in settlement; and

• details of the guarantees given or received.• provisions for doubtful debts related to the amount of outstanding balances; and• the expense recognised during the period in respect of bad or doubtful debts due from related parties.

Not applicable to the ECSA as yet as this standard is not yet effective.

3. Risk management

Capital risk management

The Council’s objectives when managing capital are to safeguard the Council’s ability to continue as a going concern in order to provide services as enacted by




the Engineering Profession Act 2000, (Act 46 of 2000) and to maintain an optimal capital structure to reduce the cost of capital.

The capital structure of the Council consists of debt, which includes the borrowings (excluding derivative financial liabilities) disclosed in notes 11, cash and cash equivalents disclosed in note 5, and equity as disclosed in the statement of financial position. The Council monitors capital on the basis of the gearing ratio.

This ratio is calculated as net debt divided by total capital. Net debt is calculated as total borrowings (including ‘current and non-current borrowings’ as shown in the statement of financial position) less cash and cash equivalents. Total capital is

calculated as ‘equity’ as shown in the statement of financial position plus net debt.

There are no externally imposed capital requirements. There have been no changes to what the entity manages as capital, the strategy for capital maintenance or externally imposed capital requirements from the previous year.


Note 2015 2014 R R

Borrowings 11 1 433 273 2 245 625 Less: Cash and cash equivalents 9 (11 194 404) (9 603 461)

Net debt (9 761 131) (7 357 836) Total equity 28 695 340 25 945 178

latipac latoT 18 934 209 18 587 342

oitaR 0.52 0.40

Financial risk management

The Council’s activities expose it to a variety of financial risks: market risk (including fair value and interest rate risk), credit risk and liquidity risk. The Council’s overall risk management programme focuses on the unpredictability of financial markets and seeks to minimise potential adverse effects on the Council’s financial performance. Risk management is carried out by an audit and risk committee under policies approved by the Council. The Council provides written principles for overall risk management, as well as written policies covering specific areas, such as interest rate risk and credit risk and investment of excess liquidity.

Liquidity risk

Cash flow forecasting is performed by the Council. The Council’s finance division monitors rolling forecasts of the Council’s liquidity requirements to ensure it has suffi-cient cash to meet operational needs while maintaining sufficient headroom on its

undrawn committed borrowing facilities at all times so that the company does not breach borrowing limits or covenants (where applicable) on any of its borrowing facilities. The Council invests surplus cash in interest bearing current accounts, time deposits, money market deposits and mar-ketable securities, choosing instruments with appropriate maturities or sufficient liquidity to provide sufficient head-room as determined by the above-mentioned forecasts.

The table below analyses the Council’s non-derivative financial liabilities and net-settled derivative financial liabilities into relevant maturity groupings based on the remaining period at the statement of financial position date to the contractual maturity date. Derivative financial liabilities are included in the analysis if their contrac-tual maturities are essential for an under-standing of the timing of the cash flows. The amounts disclosed in the table are the contractual undiscounted cash flows.

Less than 1 year

Between 1 and 2 years

Between 2 and 5 years

Over 5 years

R R R R 5102

Trade and other payables 9 958 648 – – – Borrowings 994 613 438 680

10 953 261 438 680

2014

Trade and other payables 5 741 047 – – – Borrowings 871 136 1 374 489

6 612 183 1 374 489

Interest rate risk

As the Council has no significant interest-bearing assets, the Council’s income and operating cash flows are substantially independent of changes in market interest rates.

The Council analyses its interest rate exposure on a regular basis. Various scenarios are simulated taking into consideration refinancing, renewal of existing positions and alternative financing. Based on these scenarios, the Council calculates the impact on profit and loss of a defined interest rate shift. For each simulation, the same interest rate shift is used for all currencies.


3. Risk Management (continued) 3. Risk Management (continued)



The gearing ratio at 2015 and 2014 respectively were as follows:

Total borrowings


Property, plant and equipment

Credit risk

Credit risk consists mainly of cash deposits, cash equivalents and trade debtors. The Council only deposits cash with major banks with high quality credit standing and limits exposure to any one counter-party. Refer to table below for quality ratings.

Standard Bank

National long-term credit rating AA (ZAF) National short-term credit rating F1+ (ZAF)

Investec

National long-term credit rating A+National short-term credit rating F1 (ZAF)

Trade receivables comprise a widespread customer base. Management evaluates credit risk relating to customers on an ongoing basis. The ECSA has to comply with statutory obligations and no choice is exercised on the customer’s ability to pay membership fees.

4. Property, plant and equipment



3. Risk Management (continued)


Cost

Accumulated depreciation and

accumulated impairment

losses Carrying

value R R R

2015 Buildings 7 691 993 (1 306 323) 6 385 670 Furniture and fixtures 1 477 568 (1 339 215) 138 353 Motor vehicles 198 064 (198 064) –

Office equipment 545 713 (450 991) 94 722 Computer equipment 2 100 185 (1 546 982) 553 203 Improvements to property 2 085 572 (873 792) 1 211 780

14 099 095 (5 715 367) 8 383 728

Cost

Accumulated depreciation and


losses Carrying

value R R R

2014

Buildings 7 691 993 (1 152 483) 6 539 510 Furniture and fixtures 739 838 (567 373) 172 465 Motor vehicles 198 064 (198 064) –

097 906 )538 715( 526 721 1 tnempiuqe eciffO 850 029 )773 535 1( 534 554 2 tnempiuqe retupmoC 366 497 )978 546( 245 044 1 ytreporp ot stnemevorpmI

684 630 9 )110 716 4( 794 356 31

Reconciliation of property, plant and equipment

Opening balance Additions Disposals Reclassification Depreciation Total

R R R R R R 5102

Buildings 6 539 510 – – – (153 840) 6 385 670 Furniture and fixtures 172 445 139 646 (14 773) – (158 985) 138 353 Motor vehicles – – – – – –

Office equipment 609 790 35 856 (6 836) (595 434) 51 346 94 722 Computer equipment 920 058 362 320 (155 501) – (573 674) 553 203 Improvements to

property 794 663 83 670 (25 268) 595 434 (236 719) 1 211 780

9 036 486 621 492 (202 378) – (1 071 872) 8 383 728

2014

Buildings 6 693 350 – – – (153 840) 6 539 510 Furniture and fixtures 225 808 28 433 – – (81 776) 172 465 Motor vehicles – – – – – –

Office equipment 81 032 666 527 – – (137 769) 609 790 Computer equipment 1 065 304 384 607 (4 449) – (525 404) 920 058 Improvements to

property 704 376 218 966 – – (128 679) 794 663

684 630 9 )864 720 1( – )944 4( 335 892 1 078 967 8


2013R

2015 R

NoteAssets

Total net assets

2014RNote

R R

Total net assets

Accumulated surplus R

Details of properties

2015 2014 R R

Building section 5 to 8 Waterview Corner

T013126/2009 Section 5 includes 631 square metres Section 6 includes 383 square metres Section 7 includes 237 square metres Section 8 includes 456 square metres – Purchase price 29 April 2009 6 280 750 6 280 750

Building section 9 to 10 Waterview Corner

T57554/1999 Section 9 includes 212 square metres Section 10 includes 329 square metres – Purchase price 30 September 1999 1 411 243 1 411 243

Section 16

T044549/2005 – Purchase price 10 August 2005 5 000 5 000

An undivided share in the common property (Section 5.8, 9-10 and 16) in the scheme apportioned to the said section in accordance with the participation quota as endorsed on the said sectional plan. Property is security over borrowings disclosed in note 11

Cost

Accumulated amortisation and


Carrying value

R R R 2015

Registration system 1 984 233 (149 855) 1 834 378 Accounting system 591 823 (98 637) 493 186

2 576 056 (248 492) 2 327 564

2014

655 624 1 )558 941( 114 675 1 metsys noitartsigeR 771 492 – 771 492 metsys gnitnuoccA

337 027 1 )558 941( 885 078 1

4. Property, plant and equipment (continued) Reconciliation of intangible assets

Opening balance Additions Amortisation Total

R R R R 2015

Registration system 1 426 556 407 822 – 1 834 378 Accounting system 294 177 297 646 (98 637) 493 186

1 720 733 705 468 (98 637) 2 327 564

2014

Registration system 673 946 902 465 (149 855) 1 426 556 Accounting system – 294 177 – 294 177

337 027 1 )558 941( 246 691 1 649 376

2015 2014 R R

Financial asset at fair value

SIS Inflation plus 1-3 Investments 11 932 256 10 748 943

These instruments consist of investments held at financial institutions and their market values quoted in the market place

Non-current assets

For debt securities classified as available-for-sale, the maximum exposure to credit risk at the reporting date is the fair value.

The entity has not reclassified any financial assets from cost or amortised cost to fair value, or from fair value to cost or amortised cost during the current or prior year.

SIS Inflation – opening balance 10 748 943 9 611 985 Fair value adjustment – current year recognised in surplus or deficit 968 799 983 298 Earnings recognised in surplus and deficit for the period net of earnings and admin fees 214 514 153 660

Fair value at year-end 11 932 256 10 748 943

5. Intangible assets (continued)

6. Investments .




5. Intangible assets


2013R

2015 R

NoteAssets

Total net assets

2014RNote

R R

Total net assets


2015 2014 R R

Defined benefit plan

Retirement benefit

rof snoitagilbo teehs ecnalaB Pension benefits – current liabilities – –– non-current liabilities 24 281 000 26 065 000

24 281 000 26 065 000

rof egrahc tnemetats emocnI Employee benefit expense – wages and salaries 31 812 820 29 811 002 – pension cost – defined benefit plan (219 000) (208 000)

31 593 820 29 603 002

Actuarial losses/(gains) recognised in the statement of financial performance (7 529 000) 2 243 000 Cumulative actuarial losses/(gains) recognised in statement of financial performance (2 593 000) (4 836 000)

(10 122 000) (2 593 000)

Pension benefits

Plan assets are held in a Sanlam Matrix 50 portfolio and the return is based on the performance of the portfolio. The assets underlying the Employer Surplus Account and the Solvency Reserve have been included in the asset value. The funds are administered by a separate legal entity and as a result, the assets belonging to the Fund are credit remote.

2015 2014 R R

eulav gniyrraC Present value of the defined benefit obligation-partially or wholly funded (24 281 000) (26 065 000) Fair value of plan assets 36 701 000 30 549 000 Asset not recognised (10 417 000) (2 700 000)

2 003 000 1 784 000

Non-current assets 26 284 000 27 849 000 Non-current liabilities (24 281 000) (26 065 000)

2 003 000 1 784 000

7. Employee benefit obligations

The amounts recognised in the statement of �nancial position are as follows:

7. Employee benefit obligations (continued)

Net asset amount recognition was determined on the following basis:

The definitions of the Fund provide for the establishment of an Employer Surplus Account (”ESA”). Rule 13.3.3 states that future surplus be allocated between the ESA and Member Surplus Account in proportions as determined by the trustees.

In these circumstances, AC 504 states that the present value of the economic benefits available to the employer (par. 68(b) of GRAP 25) is the value of the ESA plus the accounting surplus available as a reduc-tion in future contributions. As confirmed by Absa Consultants and Actuaries, the value of the ESA was R2 003 000 as at 31 March 2015. Furthermore, since there are no active Defined Benefit members in the Fund (as per the valuation report), accounting surplus available as a reduc-tion in future contributions is zero. The present value of the economic benefits

available to the employer is therefore R2 003 000.

The value of the asset reflected on the balance sheet should be determined in terms of par. 68 of GRAP 25. This states that the net asset recognised should be the lower of the value determined under par. 64 and the present value of the economic benefits available to the employ-er (par. 68(b)). The values for the past three years are as follows (the actuary provided the ESA balance as at each date):

The value determined under par. 64 was R12 424 000 as at 31 March 2015 and the value of par. 68(b) was R2 003 000. There-fore, the net asset as at 31 March 2014 should be limited to R2 003 000.

The value determined under par. 64 was R4 484 000 as at 31 March 2014 and the value of par. 68(b) was R1 784 000. There-fore, the net asset as at 31 March 2014 should be limited to R1 784 000

The fair value of plan assets includes:

2015 2014 R R

oiloftrop 05 xirtaM malnaS

The assets underlying the Employer Surplus Account and the Solvency Reserve have been included in the asset value.

Assets not recognised (GRAP 25, paragraph 68(b)) 10 417 000 2 700 000

Movement in the defined benefit obligation are as follows

Opening balance 26 065 000 21 749 000 Interest cost 2 295 000 1 579 000 Actuarial (gains)/losses (2 413 000) 4 187 000 Benefits paid (1 666 000) (1 450 000) Settlement amount paid – (25 747 000)

24 281 000 318 000





2013R

2015 R

NoteTotal net assets

2014RNote

R R

Total net assets


2015 2014 R R

Net expense recognised in the statement of financial performance

Interest cost (2 295 000) (1 579 000) Actuarial gains/(losses) 7 529 000 (2 243 000) Effect of the limit in GRAP 25, par. 68 (b) (7 717 000) 1 984 000 Expected return on plan assets 2 702 000 2 046 000

219 000 208 000

The movement in the fair value of plan assets are as follows

Opening balance 30 549 000 28 006 000 Expected return 2 702 000 2 046 000 Actuarial gains (losses) 5 116 000 1 944 000 Benefits paid (1 666 000) (1 450 000)

36 701 000 30 549 000

Reconciliation between the present value of the defined benefit obligation and fair value of assets and net asset recognised in the balance sheet

Present value of Defined Benefit obligation (24 281 000) (26 065 000) Fair value of plan assets 36 701 000 30 549 000

Net assets 12 420 000 4 484 000 Effect of the limit in GRAP 25, par. 68 (b) (10 417 000) (2 700 000)

2 003 000 1 784 000

% %The principal actuarial assumpti ons used were as follows:

Assumptions used at the reporting date Discount rates used 6,68 6,93 Expected rate of return on assets 8,51 9,09 Expected rate of return on reimbursement rights 10,68 10,93


The expected long term real return is 4%, calculated as follows:

Portfolio Real return Weighted

return% % %

Equity 70 4.50 3.10 Bonds 30 3.00 0.90

100 7.50 4.00

2015 2014

Number of pensioners 10 10 Annual pension 1 666 000 1 666 000 Pension weighted average age 45 44


Valuation rate of interest – GRAP 25 requires rates to be determined by reference to the current market yield of government bonds. Just for completeness, since the obligation is already settled at 1 March 2015, the yield of the R186 government bond was 8.4% and the long-term liability on the yield of the R197 government bond 1.71% at 31 March 2015. Rates given are the weighted average rates.

The expected return on assets are based on an average balances portfolio.

The difference between the yield on a fixed interest government bond and the yield on an index linked government bond will give an indication of the inflation expectation in the market. For this purpose, the yield on the R186 and R209 fixed interest government bond and the R197 and R202 index linked government bond as at valuation date were used. The index-yields were 0.8% and 1.7% respectively. The rate given is a weighted average rate.

In accordance with the Pension Increase Policy, increases should be granted equal to the increase in the Consumer Price Index, subject to affordability.

In respect of the period after retirement, the published a (55) tables for males and females have been used. The number of pensioners as at 31 March 2015, their annual pension and weighted average age, compared to that as at 31 March 2014 were as follows:




The assumptions used are consistent with assumptions used in the statutory valuation. However, GRAP 25 requires the valuation to be carried out on a prescribed market value basis and a number of the assumptions therefore differ from those used in the statutory valuation.


2013R

2014RNote

R R

Total net assets


2015 2014 R R

Trade and other debtors 10 962 440 7 079 022 Impairment of trade receivables (5 083 425) (3 996 176) Deposits 2 000 138 614 Staff loans and study assistance 10 465 2 873

5 891 430 3 224 333

Receivables from exchange transactions – 463 521 Receivables from non-exchange transactions 10 962 440 6 615 501

10 962 440 7 079 022

The following deposits are held:

Deposits 2 000 138 614

Fair value of trade and other receivables

Trade and other receivables 5 891 480 3 224 333

Trade and other receivables impaired

The amount of the provision was 5 083 425 as at 31 March 2015 (2014 – 3 996 176).

Reconciliation of provision for impairment of trade and other receivables

Opening balance 3 996 177 2 434 196 Provision for impairment 1 087 248 1 561 981 Reversal of prior year provision – –Bad debts written off – –

5 083 425 3 996 177

8. Trade and other receivebles . 2015 2014 R R

Cash and cash equivalents consist of:

Cash on hand 8 753 2 662 Bank balances 11 185 651 9 600 799

11 194 404 9 603 461

Other reserves consist of provision for extraordinary legal expenses

Funds received for future expenses – 2 547 540

The funds received for future expenses has been reclassified to accumulated surplus in the current year.

Held at amortised cost Bond on Section 5-8 – ABSA Bank 1 433 273 2 245 625

Interest at a rate of 8.25% is applicable on the bond and is to be repaid within 10 years.

Non-current liabilities At amortised cost 438 660 1 374 489

Current liabilities At amortised cost 994 613 871 136

1 433 273 2 245 625

Trade payables 6 523 652 227 896 Payments received in advanced – contract in process – 2 107 060 South African Revenue Services – VAT 642 992 95 864 Accrued payroll expenses 1 279 815 1 017 705 Accruals 1 512 189 2 292 522

9 958 648 5 741 047

Fair value of trade and other payables Trade payables 9 958 648 5 741 047

7. Cash and cash equivalents

10. Other reserves

11. Borrowings

12. Trade and other payables





2013R

2014RNote

R

13. ProvisionReconciliation of provision

Openingbalance Movement Total

R R R 2015

Leave pay provision 2 186 106 (540 935) 1 645 171

2014

601 681 2 649 831 061 740 2 noisivorp yap evaeL

14. Financial asset by category

The accounting policies for financial instruments have been applied to the line items below:

Fair value Amortised

cost Total R R R

5102

Trade and other receivables – 5 891 430 5 891 430 Cash and cash equivalents – 11 194 404 11 194 404 Investments 11 932 256 – 11 932 256

11 932 256 17 085 834 29 018 090

2014

Trade and other receivables – 3 224 333 3 224 333 Cash and cash equivalents – 9 603 461 9 603 461 Investments 10 748 943 – 10 748 943

10 748 943 12 827 794 23 576 737

15. Financial liabilities by category

The accounting policies for financial instruments have been applied to the line items below:

Financial liabilities at

amortised cost Total R R

5102

Trade and other payables 9 891 881 9 891 881 Borrowings 1 433 273 1 433 273

11 325 154 11 325 154

2014

Trade and other payables 5 728 871 5 728 871 Borrowings 2 245 625 2 245 625

7 974 496 7 974 496

2015 2014 R R

Annual fees 59 219 927 51 073 362 Application fees 8 283 526 6 831 299 Accreditation visits 1 261 000 2 258 100

68 764 453 60 162 761

The amount included in revenue arising from exchanges of goods or services are as follows:

Accreditation visits 1 261 000 2 258 100

The amount included in revenue arising from non-exchange transactions is as follows:

Annual fees 59 219 927 51 073 362 Application fees 8 283 526 6 831 299

67 503 453 57 904 661

16. Operating revenue





2013R

2014RNote

R

2015 2014 R R

Evaluation of qualifications – 436 385 Disciplinary fines 25 000 20 000 Rental income – 289 108 Income from Setas and Corporate affairs 247 681 43 860 Recoveries from cancelled registration persons 71 698 46 505 (Loss)/profit on sale of fixed asset (46 930) 5 733 Other income 60 669 76 436

358 118 918 027

Acquisition of small fixed assets 5 117 105 262 Auditors remuneration 556 631 304 040 Bank charges 276 651 258 661 Casual labour 57 916 93 994 Committee room expenses 101 182 81 445 Consulting fees 2 627 286 1 334 992 Corporate Community Services 2 350 929 2 114 574 Council and committee meetings 11 586 197 12 495 778 Disciplinary matters and fines 75 714 147 759 Electricity and water 1 151 090 –Insurance 231 551 214 714 Investment fees 131 925 118 538 IT expenses 422 355 710 647 Legal expenses 760 031 1 159 094 Membership fees 153 018 223 130 Motor vehicle expenses 29 775 20 315 Office expenditure 401 416 237 344 Parking – 41 555 Personnel recruitment 520 711 499 607 Printing stationery and publications 627 638 763 336 Project cost 1 919 404 1 771 991 Rental expense 322 508 2 914 031 Repairs and maintenance 2 561 418 1 427 657 Security 13 799 40 184 Staff study assistance 179 010 429 073 Staff welfare 892 498 573 912 Telephone and fax 752 468 901 185 Training 153 938 287 520 Travel – local 718 819 731 818

29 580 995 30 002 159

17. Other revenue

18. General expenses

2015 2014 R R

Basic 27 046 268 25 727 898 Medical aid – company contributions 1 859 936 1 887 429 UIF 123 637 118 438 SDL 279 293 258 736 Post-employment benefits – Pension – Defined contribution plan 2 530 382 1 676 466 Staff insurance scheme 106 394 142 035

31 945 910 29 811 002

Operating surplus/(deficit) for the year is stated after accounting for the following:

Operating lease charges Premises – contractual amounts 200 092 2 236 Impairment on trade and other receivables 6 165 491 1 559 708 Actuarial (gains)/losses 188 000 259 000 Depreciation on property, plant and equipment 1 071 872 1 027 469 Employee costs 31 945 910 29 811 002 Repairs and maintenance 2 561 418 2 914 031 Amortisation of intangible assets 98 637 149 855

Interest revenue Investment revenue on available-for-sale investments 346 439 272 200 Bank 1 108 057 1 096 450 Expected return on defined benefit assets 2 702 000 2 046 000

4 156 496 3 414 650

Interest paid 151 799 199 404 Defined benefit plan interest cost 2 295 000 1 579 000

2 446 799 1 778 404

The Council is exempted from income tax in terms of Section 10(1)(cA) of the Income Tax Act.

19. Employee related costs

20. Operating surplus/(deficit)

21. Investment revenue

22. Finance costs

23. Income tax expense




2013R

2014RNote

R

2015 2014 R R

Consulting 556 631 304 040

Provision for debts/Bad debts written off 6 165 491 1 559 708

Impairments Trade and other receivables 5 083 425 3 996 176

Surplus 2 750 162 891 143 Adjustments for: Depreciation 1 071 872 1 027 469 Amortisation of intangibles 98 637 149 855 Actuarial (gains)/losses 188 000 259 000 Fair value adjustments (968 799) (983 298) Movements in retirement benefit assets and liabilities (407 000) (467 000) Movements in provisions (540 935) 138 946 Changes in working capital: Trade and other receivables (2 667 097) (1 132 207) Trade and other payables 4 217 601 (425 361)

3 742 441 (541 453)

Operating leases – as lessee (expense)

Minimum lease payments due – within one year 247 142 149 101 – in second to fifth year inclusive 237 272 80 718

484 414 229 819

24. Auditors’ remuneration

25. Debt impairment

26. Impairment of assets

27. Cash generated from operations

28. Commitments

29. Key personnel emoluments

Remuneration paid to key personnel

Months employed Emoluments

Contributions to retirement

plan Total 2015 R R R

SE Madonsela Chief Executive Officer (6 October 2014 – 31 March 2015) 6 722 876 69 317 792 193 ME Sabela Acting Chief Executive Officer (1 April 2014 to 6 October 2014) 6 704 106 53 194 757 300

Executive: Strategic Services (7 October 2014 to 31 March 2015) 6 554 737 53 194 607 931 MC PhalaneExecutive: Chief Financial Officer (1 April 2014 to 31 March 2015) 12 1 322 136 115 903 1 438 039 RN Gaoraelwe Executive: Statutory Services (1 April 2014 to 31 March 2015) 12 1 052 069 103 034 1 155 103 TY Machimane Acting Executive: Strategic Services (1 April 2014 – 6 October 2014) 6 577 445 – 577 445

4 933 369 394 642 5 328 011

4102

Dr OSW Franks Chief Executive Officer (1 April 2013 to 30 June 2013) 3 671 007 46 037 717 044

Mr ME Sabela Executive: Strategic Services (1 April 2013 to 30 June 2013) 3 427 682 24 857 452 539

Acting Chief Executive Officer (1 July 2013 to 31 March 2014) 9 862 893 74 571 937 464

Dr F Goolman Executive: Statutory Services (1 April 2013 to 31 December 2013) 9 1 064 350 90 673 1 155 023

MC Phalane Executive: Corporate Services (1 August 2013 to 31 March 2014) 8 762 685 72 214 834 899

TY Machimane Executive (acting): Strategic Services (1 July 2013 to 31 March 2014) 9 719 100 – 719 100

960 618 4 253 803 717 705 4





Operating lease payments represent rentals payable by the entity for certain of its equipment. Leases are negotiated for an average term of seven years and rentals are fixed for an average of three years. No contingent rent is payable.


2013R

2014RNote

R

Approved Final Actual

amounts

Difference final budget and actual

R R R R 5102

Receipts

Annual fees 55 665 106 55 665 106 59 219 927 3 554 821 Application fees 7 363 100 7 363 100 8 283 526 920 426 Accreditation 2 250 000 2 250 000 1 261 000 (989 000) Revenues from other short

and long term investments 1 170 000 1 170 000 1 454 496 284 496

Fair value adjustments on investments

– – 968 799 968 799

Other miscellaneous revenue 163 500 163 500 358 118 194 618

66 611 706 66 611 706 71 545 866 4 934 160

Payments

Salaries 34 198 711 34 198 711 31 393 646 2 805 065 Rent and parking 2 348 983 2 348 983 1 274 428 1 074 555 Stationery and printing 752 029 752 029 627 638 124 391 General expenses 1 317 435 1 317 435 7 304 959 (5 987 524) Personnel expenses 2 866 700 2 866 700 3 017 240 (150 540) Telephone and postage 868 973 868 973 752 468 116 505 Maintenance 3 450 451 3 450 451 3 013 548 436 903 Financial expenses 890 418 890 418 482 894 407 524 Council and committee

Expenses 11 433 246 11 433 246 11 687 379 (254 133)

Corporate and affairs and legal departments

5 409 742 5 409 742 4 657 725 752 017

Specialist services 3 075 017 3 075 017 3 632 270 (557 253) Depreciation (not cash) – – 1 170 509 (1 170 509)

66 611 705 66 611 705 69 014 704 (2 402 999)

30. Going concern

The financial statements have been prepared on the basis of accounting policies applicable to a going concern. This basis presumes that funds will be available to finance future operations and that the realisation of assets and settlement of liabilities, contingent obligations and commitments will occur in the ordinary course of business.

31. Events after the reporting date

The CEO is not aware of any matter or circumstance arising since the end of the financial year.

32. Statement of budgeted and actual information

32. Statement of budgeted and actual information (continued)

Approved Final Actual

amounts

Difference final budget and actual

R R R R 2014

Receipts

Annual fees 47 745 409 47 745 409 51 073 362 (3 327 953) Application fees 7 531 300 7 531 300 6 831 299 700 001 Accreditation 2 250 000 2 250 000 2 258 100 (8 100) Revenues from other short

and long term investments 1 120 000 1 120 000 1 234 060 (114 060) Other revenue 1 048 500 1 048 500 1 056 693 (8 193)

59 695 209 59 695 209 63 436 812 (3 741 603)

Payments

Salaries 31 072 272 31 072 272 29 811 002 1 261 270 Rent and parking 2 277 708 2 277 708 2 609 906 (332 198) Stationery and printing 657 200 657 200 763 336 (106 136) General expenses 347 260 347 260 586 053 (238 793) Personnel expenses 2 007 334 2 007 334 2 557 153 (549 819) Telephone and postage 888 280 888 280 901 185 (12 905) Maintenance 2 145 000 2 145 000 1 790 953 354 047 Financial expenses 1 636 269 1 636 269 1 334 830 301 439 Council and committee

Expenses 9 634 879 9 634 879 13 667 552 (4 032 673) Corporate and affairs and

legal departments 2 580 090 2 580 090 2 675 531 (95 441) Specialist services 6 448 918 6 448 918 4 813 813 1 635 105 Depreciation (not cash) – – 1 027 469 1 027 469

59 695 210 59 695 210 62 538 783 (788 636)





2013R

2014RNote

R

33. Contingent asset

The Engineering Council of South Africa has a cost order in its favour of which the final amount is estimated to be R400 000. The finalisation date of the dispute is unknown at this stage.


Detailed income statementfor the year ended 31 March 2015


Note 2015 2014 R R

Revenue 73 279 067 64 495 439 Annual fees 59 219 927 51 073 362 Application fees 8 283 526 6 831 299 Accreditation visits 1 261 000 2 258 100 Evaluation of qualifications – 436 385 Disciplinary fines 25 000 20 000 Rent received – 289 108 Corporate affairs 247 681 43 860 Bad debts recovered 71 698 46 505 Sundry income 60 669 76 436 Profit on sale of fixed asset (46 930) 5 734 Interest received 21 4 156 496 3 414 650

Expenditure (71 309 704) (64 328 594) Personnel 19 (31 945 910) (29 811 002) Depreciation (1 071 872) (1 027 469) Amortisation on intangibles (98 637) (149 855) Impairment loss/reversal of impairments 25 (6 165 491) (1 559 708) Finance costs 22 (2 446 799) (1 778 404) Reversal of impairment 25 – – Projects – – General expenses 18 (29 580 995) (30 002 156)

Fair value adjustments 968 799 983 298

Actuarial gains/(losses) (188 000) (259 000)

Surplus for the year 2 750 162 891 143

The supplementary information presented does not form part of the financial statements andis unaudited

P H Y S I C A L A D R E S S1 s t F l o o r , W a t e r v i e w C o r n e r B u i l d i n g

2 E r n e s t O p p e n h e i m e r A v e n u eB r u m a

2 1 9 8

P O S T A L A D R E S SP r i v a t e B a g X 6 9 1

B r u m aJ o h a n n e s b u r g

2 0 2 6

ENGINEERING COUNCIL OF SOUTH AFRICA

annual report 2014/2015 · 2015. 11. 12. · 2014/2015 annual report. 2 ecsa general information 5...

Documents