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B-BBEE Consultation

ENSLINS PUBLIC AUDIT & CONSULTING IS A B-BBEE LEVEL 1  CONTRIBUTOR

Click Here To Download our B-BBEE Certificate

Click Here To Download our QSE Scorecard

B-BBEE SERVICES

 

We provide the following B-BBEE services:

  • B-BBEE Consultation Services
  • Preparation of complete file for verification
  • Drafting of affidavits where applicable

 

B-BBEE have been a part of South Africa for quite some time now.

 

The new Codes of Good Practice came into effect on 1 May 2015.

 

The new codes are much stricter than the old codes and therefore businesses need to align their structures accordingly so that they are not downgraded by not adhering to the subminimum requirements of the three priority elements i.e. Ownership, Skills Development as well as Enterprise and Supplier Development.

 

This may seem very complicated to you but we are there to help you through the process.

 

In a nutshell - There are three categories of entities that can be measured:

  •  Exempted Micro Enterprises (EME)
  • Qualifying Small Enterprises (QSE)
  • Generic : Consists of two types:
    • Generic
    • Adjusted Generic

 

Now let's look at these different types of entities:

 

1. EXEMPTED MICRO ENTERPRISES (EME)

TURNOVER LESS THAN R10 MILLION

 

An EME does not require a certificate anymore. Only a affidavit is required. Black ownership needs to be included in the affidavit.

 

  • 100% black ownership = Level 1
  • More than 50% black ownership = Level 2
  • Less than 50% black ownership = Level 4

 

 

2. QUALIFYING SMALL ENTERPRISES (QSE)

TURNOVER R10 MILLION TO R50 MILLION

 

QSE WITH AT LEAST 50% BLACK OWNERSHIP ONLY REQUIRES AN AFFIDAVIT AND NO CERTIFICATE

 

  • 100% Black ownership = Level 1
  • More than 50% black ownership = Level 2

 

 

 

QSE WITH LESS THAN 50% BLACK OWNERSHIP

 

These QSE's must use the QSE Scorecard to be rated on all 5 elements. The table below compares the old QSE Scorecard on the left with the new QSE Scorecard on the right.

 

 

2007 Codes of Good Practice

 

Amended Codes of Good Practice October 2014

 

Elements

 

Points

 

Bonus

 

Elements

 

Points

 

Bonus

 

Ownership

 

25

 

3

 

Ownership

 

25

 

0

 

Management Control

 

25

 

2

 

Management Control

 

 

15

 

 

0

 

 

Employment Equity

 

25

 

3

 

Skills Development

 

25

 

0

 

Skills Development

 

25

 

0

 

Preferential Procurement

 

25

 

0

 

Enterprise and Supplier Development

 

 

30

 

 

0

 

 

Enterprise Development

 

25

 

0

 

Socio-Economic Development

 

25

 

0

 

Socio-Economic Development

 

5

 

0

 

Total (after selecting any 4 of the above elements)

 

100

 

8

 

Total

 

100

 

0

 

 

 

3. GENERIC

 

3.1 GENERIC - NORMAL

 

TURNOVER ABOVE R50 MILLION

 

The Generic entities use the following scorecard and must be rated on all 5 the elements. The table below shows the old Generic scorecard on the left compared to the new Generic Scorecard on the right.

 

2007 Codes of Good Practice

 

Amended Codes of Good Practice October 2014

 

Elements

 

Points

 

Elements

 

Points

 

Ownership

 

 

 

Ownership

 

25

 

Management Control

 

15

 

Management Control

 

15

 

Employment Equity

 

15

 

Skills Development

 

20

 

Skills Development

 

20

 

Preferential Procurement

 

20

 

Enterprise and Supplier Development

 

40

 

Enterprise Development

 

15

 

Socio-Economic Development

 

15

 

Socio-Economic Development

 

5

 

Total

 

100

 

Total

 

100

 

 

3.2 ADJUSTED GENERIC SCORECARD

 

The adjusted scorecard is applicable to organisations where the Ownership element cannot be assessed for example Public Entities, Higher Education Institutions, Non-Profit Organisations, etc.  The table below compares the old Adjusted Scorecard on the left with the Amended Adjusted Scorecard on the right:

 

2007 Codes of Good Practice

 

Amended Codes of Good Practice October 2014

 

Elements

 

Points

 

Elements

 

Points

 

Management Control

 

15

 

Management Control

 

20

 

Employment Equity

 

15

 

Skills Development

 

20

 

Skills Development

 

25

 

Preferential Procurement

 

20

 

Enterprise and Supplier Development

 

50

 

Enterprise Development

 

15

 

Socio-Economic Development

 

15

 

Socio-Economic Development

 

5

 

Total

 

100

 

Total

 

100

 

 

RECOGNITION LEVELS - OLD on the left vs NEW on the right

 

BBBEE Status

 

2007 Qualification

 

Amended Qualification 2013

 

BBBEE Recognition Level

 

Level 1

 

≥100 points

 

≥100 points

 

135%

 

Level 2

 

≥85 points <100

 

≥95 points <100

 

125%

 

Level 3

 

≥75 points <85

 

≥90 points <95

 

110%

 

Level 4

 

≥65 points <75

 

≥80 points <90

 

100%

 

Level 5

 

≥55 points <65

 

≥75 points <80

 

80%

 

Level 6

 

≥45 points <55

 

≥70 points <75

 

60%

 

Level 7

 

≥40 points <45

 

≥55 points <70

 

50%

 

Level 8

 

≥30 points <40

 

≥40 points <55

 

10%

 

Non-compliant

 

<30

 

<40

 

0%

 

 

 

SECTOR CHARTERS

 

There are also Sector Charters for certain industries which have unique industry related targets and scorecards. Charters must be brought in line with the new Codes before 31 August 2015. If Charters are not changed by that date the DTI may scrap the Charter and then the entities that fall in that category must then adhere to the Generic scorecard. At the moment the following Charters exist:

 

  • Agri
  • Financial
  • Information and Communication
  • Property
  • CA
  • Integrated Transport
  • Forest
  • Construction
  • Tourism

 

 

IS BEE RELEVENT FOR MY SMALL BUSINESS?

 

 

  • The answer is YES!

     

  • B-BBEE is driven by procurement and with the new Codes more businesses will be forced to get their B-BBEE rating in order for them to retain clients.

 

    • If you render services to government or if your clients are getting their B-BBEE status rated every year then it’s time for you to do the same. Get rated now and be B-BBEE compliant.

 

    • Enslins can assist you in getting your file ready for B-BBEE verification.

 

  • Contact Enslins today before BEE gets the better of you.