Preparing for a Successful B-BBEE Verification

18 February 2021

22

AGENDA

• Introduction

• Generic B-BBEE Verification Process

• Defining a Successful B-BBEE Verification

• Verification Support Programme

• Key Verification Success Factors

• Q&A

• Appendix I: Verification Evidence Checklist

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Introduction

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Introducing your Alternative Prosperity Hosts

Erosha Govender

Transformation Specialist and CEO of Alternative Prosperity Advisory and Products (Pty) Ltd

Erosha holds B.Eng. (Chemical), PDBM (UKZN), SMDP (USB) degrees. She is responsible for operations management at Alternative Prosperity, thus ensuring effective execution of the business strategy through the client facing team; development of bespoke Transformation Strategies for large listed clients and practices as a Transformation Specialist. She worked on Financial Sector clients such as Discovery, Sanlam, Santam, Allan Gray and Investec Asset Management. She held various positions within the BHP Billiton Group, including as Transformation Manager of the Manganese division where she was responsible for accelerating BBBEE and Transformation, external stakeholder engagement and internal and external communications. Erosha has extensive experience in the mining, metals and manufacturing sectors, which includes process optimization, project management, community development and socio-economic transformation within the South African context.

Eric Ackroyd

Transformation Specialist and COO of Alternative Prosperity Advisory and Products (Pty) Ltd

Eric is a Chartered Accountant, a registered Economic Empowerment Professional and has completed the B-BBEE Management Development Programme. He served as Technical Director of the Association of B-BBEE Professionals and has accumulated 14 years’ experience in Transformation and B-BBEE. Eric was the Verification Director with EmpowerLogic for 11 years before joining Alternative Prosperity. Prior to moving into the B-BBEE field he worked as a financial auditor for 12 years, including 3 years in the UK and in Germany. Given his 27 years in the audit, verification and financial world, Eric has an in-depth understanding of best practice B-BBEE, financial and ownership concepts. His client experience ranges from sole proprietors to small, medium, large and multinational businesses. Eric is particularly experienced in the Financial, ICT, MAC, Construction and Property sectors.

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Gianna Le Roux

•Verification Executive, EmpowerLogic

•Gianna holds a BCom degree in Internal Audit and has successfully completed the B-BBEE Management Development Programme. She has more than 10 years’ B-BBEE experience as a Verification Analyst and Technical Signatory.

•Gianna manages the verification team at EmpowerLogic and is passionate about building relationships with clients, continuously improving the verification processes and empowering people through sharing her knowledge and experience in the B-BBEE industry.

Japie Britz

•Commercial Director, BDO Verification Services

•Japie completed his LLB degree in 2007 He has gained extensive B-BBEE knowledge and experience in the past 10 years as a Verification Analyst, Technical Signatory and Consultant. Japie held positions with AQRate Gauteng, Premier Verification and Siyaya Skills Institute (an EOH subsidiary).

•He completed the B-BBEE Management Development Programme in 2016. Since August 2018, Japie is heading the Gauteng operations of BDO Verification Services and was appointed as Commercial Director in March 2020.

Marsha Arnold

•General Manager, The Legal Verification Team

•Marsha holds an MBA and successfully completed the B-BBEE Management Development Programme. She has been working in B-BBEE since 2008 and has been a Technical Signatory ever since. Marsha was the Regional Manager for Grant Thornton for 5 years. Marsha became a SANAS Technical Assessor in 2010 and has been a SANAS Lead Assessor since 2019. She has extensive business experience in a number of industries, including finance and manufacturing.

Introducing the Verification Agency Panellists

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Introducing the Verification Agency Panellists

Kyle Mitchell

•Operations Director, Honeycomb BEE Ratings

•Kyle has worked in the B-BBEE industry since 2010 and has been a Technical Signatory since 2017. He successfully completed the NQF7 B-BBEE Management Development Programme. Kyle acts as Technical Signatory on De Beers, Anglo, Massmart, Discovery, Pick n Pay, Hollard and others.

•Kyle is a top cyclist and heads up the Honeycomb pro cycling team.

Tebogo Morare

•Director & Shareholder, Siyandisa

•Tebogo holds a National Diploma in Internal Auditing and has completed the UNISA BBBEE MDP course NQF Level 7 (With Distinction). Tebogo has been in the BBBEE verification industry for more than 14 years and has occupied senior positions in verification companies as Senior/Lead analyst & Technical Signatory. Tebogo’s industry contributions include being appointed as a consultant responsible for the re-alignment of the BBBEE Construction Sector Codes. He is a Lecturer at Unisa and Wits offering the B-BBEE MDP course. Tebogo serves on the board of the Association of BEE Professionals (ABP) previously known as ABVA. Siyandisa Verification Solutions is an accredited verification agency established in 2015 and owned by 3 black partners. Siyandisa is the 1st agency to conduct all their verification process on line with our own built-in system named the BEE Doctor.

Gabi Greyling

•Technical Director, AQRate

•Gabi completed a BCom Economics and Finance at UCT. She entered the B-BBEE industry when employed by Codex Ratings in April 2011 where she gained experience in the B-BBEE Codes as well as Sector Codes. Gabi joined AQRate Verification Services in 2012 as a Senior Verification Analyst. She successfully completed the B-BBEE Management Development Programme through UNISA in 2014 whereafter she became a Technical Signatory. She was appointed as Technical Verification Manager in May 2015 and Technical Director in 2021.

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Generic B-BBEE Verification Process

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Generic B-BBEE Verification Process

Engage VA

Kick-off meeting

Submit data

VA advises samples

and evidence

Submit /present evidence

VerificationProvisio

nal report

Formal appeal period

CertificateRevised

certificate

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Defining a Successful Verification Process

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Defining a Successful B-BBEE Verification

Achieve expected B-BBEE status level;

Achieve expected Black ownership credentials;

Meet process timelines;

Obtain B-BBEE certificate on time;

Obtain a robust B-BBEE certificate;

Achieve a cost effective verification

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Alternative Prosperity Verification Support Programme

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Alternative Prosperity Verification Support Programme

Appeal process

FacilitateVA

engagement

Short-term Actions forYear-end

Scorecard Assessment -

Measured period

Verification on planning

session

Facilitate“kick-off” meeting

Validate verification

evidence

Data submission

reviewVerification process management

Technical support

Annual BEECompliance

Plan

Review provisional verification

report

Lodge possible appeal

Verification debrief

VA“Kick-off” meeting

Interim Scorecard

Data submission

Verification

Provisional BEE report

Appeal process

Interim scorecard

validation & Gap Analyses

Mock audit / scorecard validation

BEE Certificate

Financial Year-end

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Key Verification Success Factors

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Key Verification Success Factors

Know your Scorecard;

Know your Verification Agency;

Plan the Verification;

Submit Quality Data;

Evidence the Scorecard;

Review Provisional Scorecard and Appeal;

Request a Revised Certificate

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Know your Scorecard

Prepare an annual compliance plan• Align with an Integrated Transformation Strategy;• Forecast scorecard• Forecast targets• Identify required initiatives

Implement the annual compliance planMonitor the scorecard3rd Quarter scorecard, validation and gap analysis. Identify actions before year-end;

• Address identified scorecard gaps (transactions and initiatives);• Address identified evidence gaps;

Prepare a measured period scorecard so that you know what to expect;Stay up to date - train

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Know your Verification Agency

SANAS accredited, Sector Code accredited;

Continuity;

Accessible;

Competent;

Experience in Sector;

Approachable;

On the same page

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Plan the Verification

Effective kick-off meeting• Ensure relevant people attend;• Prepare questions to be asked;• Ensure clarity is obtained regarding process, required evidence, timelines

and any new developments;

Ensure relevant staff are available and accountable;

Effectively communicate and commit to timelines (diarise);

Ensure timelines are met.

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Submit Quality Data

Submit data in required format;

Ensure data agrees to internal scorecard for measured period;

Submit data on time;

Submit data in one go, not in haphazard mails;

Track submission of data;

Independent review of data;

Ensure data is complete;

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Evidence the Scorecard

Know what supporting evidence the Verification Agency wants;

Build supporting documents into the B-BBEE information system;

“File” verification evidence at the time of transacting;

Include B-BBEE information system in the Internal Audit programme;

Perform a “mock audit” / Interim scorecard validation;

Present evidence in a logical understandable manner;

Organise evidence and mail/hand over in one go;

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Review Provisional Scorecard, Appeal in Necessary

Know what to expect, i.e. prepare an internal scorecard;

Perform an analytical review of the provisional verification report;

Compare provisional scorecard to prior scorecard;

Compare provisional scorecard to internal scorecard;

Obtain technical support regarding complex calculations and interpretations;

Utilise the formal appeal process to submit appeals to technical interpretations and

matters pertaining to evidence

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Request a Revised B-BBEE Certificate

B-BBEE certificate can be updated in the following cases:

• Changes in Ownership;

• Changes in Management Control;

• New evidence becoming available for existing transactions/initiatives

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Start Again

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Q&A