1. Presentation of Annual Report 2008/09
cidb
Presentation of Annual Report 2008/09
Parliamentary Portfolio Committee
Tuesday, 20 October 2009
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2. Presentation Layout Introduction Legislative framework & Mandate
Highlights for the FY 2008/09
Performance Summary
Presentation of Financials
Audit Process
Audit findings
Management’s corrective action
Conclusions
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3. Introduction Legislative Framework & Mandate
CIDB Act 38 of 2000…mandates the cidb to
provide strategic leadership to industry stakeholders to stimulate sustainable growth, reform and development
Regulate the construction industry
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4. Highlights for 2008/09 Challenges
Boom in the construction industry, followed by the credit crunch that affected sectors of the economy
Good performance by industry due to commitment by government
Continued exponential growth of the Register of Contractors
Internal Growth –expansion programme in response to the growth of the RoC
Strain on resources and systems
Budget shortfall
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5. Highlights for 2008/09 Focus areas/Projects Regulation amendments
Rollout of the Std for Uniformity
Construction Contact Centers, 3 launched
National Contractor Development Programme-NCDP
National Infrastructure Maintenance Strategy-NIMS
Support to 2010 Infrastructure Team (stadia)
Infrastructure Development Improvement Programme-IDIP
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6. Performance Summary Phase 1 and Phase 2 – rollouts
Growth and Contractor Development-GCD
National Contractor Development Programme-NCDP
Phase 1 and Phase 2 – rollouts
Signed MoUs with ABSA and STD Bank
Construction Contact Centres-CCCs.
3 CCCs launched
Mpumalanga, Northern Cape and Free State
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7. Performance Summary CRS/Registers
High quality registration service and further enhancement of CRS-Business Process management (BPM), staff training
Regulation amendments-effective Jan 2009
Phasing out of outsourced help Desks
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8. Performance Summary Procurement and Delivery management-PDM
Improving Public Sector Procurement Reform-amendment to regulations-SfU, Practice Notes and Briefing Notes
Improving Public Sector Infrastructure Delivery-IDIP Brochure
Development of construction Procurement as a profession-discussion paper
Leadership, Stakeholder Relations and Communications-Procurement Focus Group
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9. Performance Summary Construction Industry Performance-CIP
Institutional support
Status Reports & CII
Practice guides
Phase II-Best Practice Schemes, met and some ready for pilot
Research and Development
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10. Performance Summary Office of the CEO Stakeholder Forum – Sept 2008
Publications
Fraud and corruption
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11. Financial Performance
Revenue
Revenue from government decreased by 16% to R41,891m from R49,891m in the previous year.
Revenue from registers increased by 21.11% to R35,325m from R29,168m in the previous year
Total expenditure
Total expenditure increased by 4,4% compared to the previous year. The bulk of this increase relates to Staff costs which increased by R6,085m(19%) from previous year.

12. Financial Performance
Finance income
Interest income decreased by 6,54% to R2,948m from R3,154m in the previous year.
The Deficit
Deficit for the year is (R1,351m) after depreciation of R4,238m(R1,225m – 2008).
Cash & Cash Equivalents
Cash & cash equivalents increased by R5,511m from R30,287m. The bulk of this increase relates to Investments which grew by R8,754m(38%) from R22,774m.

13. Financial Performance
Accounts Payable & Income Received in advance
Total Accounts payable increased by R2,305m from R14,408m. The bulk of this increase relate to ‘Trade and other payables’ which grew by R3,518m(61%) from R5,733m
Income Received in advance increased by R10,526 to from R13,748m

14. Auditor General Findings 2008/09
OVERVIEW
One(1) Qualification
Two(2) Emphasis of matter
One(1) Other matters
Other Legal & Regulatory Requirements

15. Auditor General Findings 2008/09 Planned Date of Completion
Impact
Detail
Planned Date of Completion
Qualification 1
Prior year errors on PPE not being properly disclosed in the AFS
30-Nov-10
Planning will be improved with regards to the co-ordination of the audit by utilising the Audit Steering Committee more effectively. New accounting standards training has been arranged and is scheduled for November 2009.
Emphasis of matter
Irregular Expenditure on finance lease entered into without prior approval by National Treasury
31-Mar-10
Application to National Treasury for condonation will be made. 2
Restatement of Corresponding Figures
Other Matters
Strategic plan did not include the materiality and significance framework as per National Treasury Regulations
30-Sep-09
Completed

16. Auditor General Findings 2008/09 continued… Planned Date of Completion
Impact
Detail
Planned Date of Completion
Governance framework 1
Internal control defficiencies - Prior period error
30-Nov-09
Training is currently taking place on the effective use of the Accounting system, especially the use of the Reporting Module. New accounting standards training has been arranged and is scheduled for November 2009.
Key Governance Requirements Implementation
No significant difficulties were experienced during the audit concerning delays or the availability of requested information.
28-Feb-10
Planning will be improved with regards to the co-ordination of the audit by utilising the Audit Steering committee more effectively. A dry run of the year end will be performed in January/February 2010 2
The financial statements were not subject to any material amendments resulting from the audit.
Training is currently taking place on the effective use of the Accounting system, especially the use of the Reporting Module. New accounting standards training has been arranged and is scheduled for November A dry run of the audit will be performed in January/February 2010. 3
The annual report was submitted for consideration prior to the tabling of the auditor’s report.
31-May-10
Planning will be improved on the co-ordination of the entire audit process including the compilation of the annual report. 4
The information systems were appropriate to facilitate the preparation of the financial statements. 5
The prior year audit findings have been substantially addressed.
Monitoring and follow up on audit querries has been implemented. Risk Manager has been appointed and his role will include monitoring progress on all audit report issues and to report to ceo/audit committee and Board. 6
The information systems were appropriate to facilitate the preparation of a performance report that is accurate and complete.
31-Jan-10
Training is taking place on the effective use of the system especially on the Reporting Module. New accounting standarsd training has been arranged and is scheduled for November 2009. 7
Adequate control processes and procedures are designed and implemented to ensure the accuracy and completeness of reported performance information.
The entire process around the Performance management system and Internal Controls Regarding Performance Management is being reviewed to comply strictly with the guidelines as set out in the Framework for Managing Programme Performance Information as issued by National Treasury.

17. Auditor General Findings 2008/09 continued… Planned Date of Completion
Impact
Detail
Planned Date of Completion
Report on other Legal and Regularity Requirements 1
Submission of strategic plan
30-Sep-09
The 2010/11 startegic plan was submitted timeously to the NDPW 2
Lack of effective, efficient and transparent systems and internal controls regarding performance management
31-Jan-10
The entire process around the Performance management system and Internal Controls Regarding Performance Management is being reviewed to comply with strictly with the guidelines as set out in the Framework for Managing Programme Performance Information as issued by National Treasury. 3
Inconsistently reported performance information 4
Reported performance information not relevant 5
Lack of source documentation

18. Conclusions
Our systems are being beefed up-EDMS, CRS software improvement-major vs incremental
Review of registration criteria-resolutions, stakeholder consultations
HR Resource allocation being increased
New structure to deal with risk and governance management implemented
New approach on Internal audit & AG’s recommendations being implemented
Registration process simplified

19. Conclusion
……………………….Thank you
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