Please note that this process must be completed within 2 months from date of signing the Budget Breakdown to certification

Transcription

1 B1/1 BROAD-BASED BEE INFORMATION GATHERING WORKBOOK QSE This workbook specifies all the documentation that we require to complete your audit. In terms of the SAB&T BEE SERVICES AUDIT PROCESS, we need to have this information with us BEFORE we can undertake your on-site audit and certification. The allocated Verification Analyst will visit you before the on-site audit to gather as much of this information as possible. OFF-SITE, we will evaluate this information and, where the information is insufficient or inappropriate; we will require you to submit this further evidence prior to the onsite audit. As this off-site analysis precedes the on-site analysis, inaccurate or incomplete submissions will delay your verification and thus your certification. Please validate company size through: a. Submission of audited financials for the period that we are reviewing (if you are unclear, please confirm with the Verification Analyst). If you do not have audited financials...we will need: a. Detailed year-to-date Income Statement b. Latest management accounts and Annual Financial Statements for the year prior to these management accounts c. Spreadsheet of list of numerical sales invoices for period year-to-date d. Additional requirements per Documentation Requirements for Verification for all Measured Entities to be supplied Please note that this process must be completed within 2 months from date of signing the Budget Breakdown to certification

2 B1/2 DOCUMENTATION REQUIREMENTS FOR VERIFICATION INFORMATION TO BE GATHERED IN RESPECT OF THE MEASURED ENTITY PLEASE NOTE THAT THESE EVIDENCE REQUIREMENTS APPLY TO ALL MEASURED ENTITIES ALL MEASURED ENTITIES Annual Financial Statements (AFS) for the latest financial year end Should Audited AFS not be available, Management Accounts for the 12 months leading up to the year end If Management Accounts are used: VAT201 s, Monthly Revenue Summary, IT returns & GP Analysis required Certified Copies of ID's of all shareholders Certified Copies of Share Certificates for all shareholders CIPRO / CIPC Company Registration Documents VAT Registration Certificate CODE 100: Ownership Equity INFORMATION TO BE GATHERED TO SUPPORT OWNERSHIP EQUITY ALL ENTITIES MEASURING BLACK OWNERSHIP Proof of all dividend declarations for the past 2 years If loans outstanding for the shares of black shareholder, supply loan agreement and details of outstanding amt Minutes of last 2 shareholders' meetings Current business evaluation (reflecting date and method of evaluation) if money outstanding on black-owned shares Black shareholders to sign affidavit (Annexure A) Measured Entity to be aware that interviews will be conducted with a sample of black shareholders at the time of the onsite verification audit PTY's: Shareholders Agreement - signed and certified CM 1 (Certificate of Incorporation) and CM 2 (Memorandum of Incorporation)

3 B1/3 CC's: CK 1 and CK 2: Founding Statement and Amended Founding Statement Members Agreement - signed and certified Partnerships: Partnership agreement - signed and certified Trusts / Employee Ownership Schemes and Broad-based Ownership Schemes: Trust Deeds, Shareholders Agreements for Broad-Based & Employee Ownership Schemes Audited and signed financial statements of the trust or scheme Proof required to confirm that the Trust meets the Rules for equity participation per Annexure D Sole Proprietors Personal tax return Current business evaluation (reflecting date and method of evaluation) - once this method chosen, needs to be followed for the full duration of the codes Designated Groups a. Disabled - valid disability certificate or evidence of registration to receive disability grant or letter of confirmation from medical specialist b. Youth - Copies of ID's certified c. Rural - letter from tribal chief or proof of postal address d. New entrant - signed affidavit that total, combined shareholding does not exceed R20 million (Annexure B) DEPARTMENT OF LABOUR REPORTING REQUIREMENTS THE FOLLOWING APPLIES TO THE MEASUREMENT OF MANAGEMENT CONTROL & EMPLOYMENT EQUITY: IF YOU HAVE MORE THAN 50 EMPLOYEES OR YOUR TURNOVER EXCEEDS THE TURNOVER THRESHOLDS BELOW, YOU NEED TO SUBMIT EEA2 AND EEA4 REPORTS TO THE DEPT. OF LABOUR. AGRICULTURE R6 MILLION MINING AND QUARRYING R22.5 MILLION MANUFACTURING R30 MILLION ELECTRICITY, GAS, WATER R30 MILLION CONSTRUCTION R15 MILLION RETAIL, MOTOR AND REPAIR R45 MILLION WHOLESALE, COMMERCIAL AGENTS & ALLIED SERVICES R75 MILLION CATERING, ACCOMMODATION R15 MILLION TRANSPORT, STORAGE AND COMMUNICATIONS R30 MILLION FINANCE & BUSINESS SERVICES R30 MILLION COMMUNITY, SPECIAL AND PERSONAL SERVICES R15 MILLION

4 B1/4 CODES 802: Management Control INFORMATION TO BE GATHERED TO SUPPORT MANAGEMENT CONTROL PTY: CM 27 and CM 29: List of Directors (most recent) and Consent to act as director Certified copies of ID's of all directors - executive and non-executive CC: Certified copies of members' ID's if not already provided under OWNERSHIP EQUITY ALL: Letters of appointment for all BLACK TOP management Minutes of last management / EXCO meeting Minutes of last Board Meeting Interviews to be conducted with a sample of black employees CODES 803: Employment Equity INFORMATION TO BE GATHERED TO SUPPORT EMPLOYMENT EQUITY NOTE: AN EMPLOYEE IS ANY PERSON FOR WHOM THE COMPANY PAYS UIF, PAYE, SDL & WC Complete EE Table as per Annexure C on attached Excel spreadsheet EEA2 Employment Equity Report (if more than 50 employees or turnover exceeds threshold) EE-A4 Employment Equity Income Differentials (if more than 50 employees or turnover exceeds threshold) Proof of the submission of the EEA2 and EEA4 reports from the Department of Labour if applicable Company Organogram / Organisational Chart depicting organisational structure & reporting lines Payroll report reflecting cost-to-company per employee for last full month EVIDENCE REQUIRED AT TIME OF ON-SITE AUDIT Employment contracts for black employees sampled (if no employment contracts, letter confirming employment of each employee) Certified copies of ID s for black employees sampled Copies of qualifications for black employees sampled at management level Interviews to be conducted with a sample of black employees NOTE: Verification Analyst will indicate which employees to be sampled PRIOR to the audit

5 B1/5 CODES 804: Skills Development INFORMATION TO BE GATHERED TO SUPPORT SKILLS DEVELOPMENT EMP 201's for the 12 months of the period being audited or EMP501 if available as per page 1 Schedule of training expenditure by gender and race as per the SD table for the financial period under review as per Annexure C EVIDENCE REQUIRED AT TIME OF ON-SITE AUDIT For EXTERNAL training invoices, proof of payment, proof of attendance of BLACK employees For INTERNAL training signed register of all attendees / proof of hourly remuneration rate of trainer(s) For Internal Training claimed we may require evidence of the training programme contents and outcomes For LEARNERSHIPS claimed Signed Learnership, Apprenticeship, Internship Agreements for sampled staff Certificates / Qualifications obtained in respect of the above may also be required for further validation Certified ID Copies for all learners sampled per above NOTE: Verification Analyst will indicate which invoices / training interventions to be sampled PRIOR to the audit CODES 805: Preferential Procurement INFORMATION TO BE GATHERED TO SUPPORT PREFERENTIAL PROCUREMENT Spend per supplier for the financial period under review including BEE Levels on Annexure C Copies of all valid and current supplier BEE certificates List of any foreign spend per foreign supplier on Annexure C Documentation proving that there is a valid (under the codes) reason for the foreign spend being excluded SARS Importers Licence / Registration Code (if foreign spend is excluded) EVIDENCE REQUIRED AT TIME OF ON-SITE AUDIT Sample of invoices and proof of payment for BEE Spend as well as claimed foreign spend SARS Customs Documentation relating to the sampled foreign supplier spend Summary Supplier Ledger showing total spend per supplier excluding VAT from your accounting system Detailed Supplier Ledgers for sampled BEE compliant suppliers to tie up to Summary Ledger & invoices NOTE: Verification Analyst will indicate which invoices and payments to be sampled PRIOR to the audit

6 B1/6 CODES 806: Enterprise Development INFORMATION TO BE GATHERED TO SUPPORT ENTERPRISE DEVELOPMENT Completed ED contributions table per Annexure C spreadsheet Details of all ED beneficiaries including their contact details BEE verification certificates or proof of BEE ownership of chosen beneficiaries Management accounts / AFS of BEE beneficiaries to prove whether is EME / QSE or GENERIC company SIGNED AGREEMENT between the ME and the ED beneficiary showing that both parties understand what is being done and why. Supporting documentation of all ED initiatives undertaken reflecting value (invoices, proof of payments, etc) Letter of Acknowledgement from ED beneficiary confirming value Please note that no payments made outside of the measurement period can be included CODES 807: Socio-Economic Development INFORMATION TO BE GATHERED TO SUPPORT SOCIO-ECONOMIC DEVELOPMENT Completed SED contributions table per Annexure C spreadsheet Proof of payment of donations (monetary) or proof of value (non-monetary) Supporting evidence in the form of invoices, Section 18A receipts, etc Letters of acknowledgement from beneficiaries indicating the VALUE of the spend (monetary) or a DESCRIPTION of the donation (non-monetary) with beneficiary contact details and a demographic breakdown of the beneficiaries Report from an independent, competent person verifying that the SED beneficiary qualifies in terms of the requirements of the code i.e. that 75% of the value of the contributions has benefitted black people Please note that no payments made outside of the measurement period can be included

7 ANNEXURE A AFFIDAVIT Confirming Financial Information & Authority to sign it off Full Name Identity Number In my capacity as Entity Name Measurement period I the undersigned, declare that I am the accounting officer/owner and have done the minimum steps to verify the accuracy, completeness, occurrence and cut-off of revenue as shown in the financial statements. I declare this information supplied is true and correct. I understand that providing false information constitutes misrepresentation. I further declare that in terms of the * Shareholders Agreement / Company Resolution / Partnership Agreement / Close Corporation document as sole member, I am authorised by the demarcated document and hold the authority to sign-off and take responsibility for Company Financial Information. I declare this information supplied is true and correct. I understand that providing false information constitutes misrepresentation. (* delete that which is not applicable) SIGNED at on the day of 20. AUTHORISED SIGNATORY NAME IN FULL Confirmation of Turnover R Signature: Confirmation of Asset Acquisition R (Value of CAPEX Assets purchased in the last financial year) Signature: COMMISSIONER: SIGNED and sworn before me at on the day of 20. The deponent has acknowledged that *he/she knows and understands the contents and that is true and correct and binding on *his /her conscience. COMMISSIONER OF OATHS

8 ANNEXURE B AFFIDAVIT Ownership Fulfillment, Voting Rights & Gearing of Shares Definition: Ownership Fulfilment occurs on the release of all black participants in a Measured Entity from all third-party rights arising from financing their transaction with the Measured Entity, or if all black Participants in the Enterprise have never been subject to any such thirdparty rights. (Happens when payment for the company and its shares has been made in full) Definition: Voting Right means a voting right attaching to an Equity Instrument owned by or held for a participant measured using the Flow though Principle or the Control Principle. NAME OF MEASURED ENTITY: For Broad-based Ownership Schemes, Employee Ownership Schemes, Trusts or other legal entity which holds an interest in the measured enterprise, an authorized representative of such entity can sign on behalf of the members, beneficiaries or shareholders of such entity. (For individual black shareholders directly holding an interest in the Company, each shareholder signs a declaration.) The status of my total shareholding in the companies called is as follows: Registration Number: No. of Shares % Shares % Voting Rights Value Loan Value Value Less Loan Value % % R R R % % R R R % % R R R % % R R R I, ID Number, in my capacity as *Shareholder / Fiduciary / Trustee / Director of [entity name], Declare that no claims exist against the equity interest of *myself / participants of aforementioned entity in the above Measured Entity in terms of the definition of ownership fulfilment and I therefore enjoy all voting rights and economic interest associated with *my/our shareholding. * delete that which is not applicable Furthermore I declare that the information listed above is the total of all and any of my shareholdings and I confirm that such *DOES/DOES NOT exceed the value of R ,00 (Twenty Million Rand). * delete that which is not applicable Signed : Date : SIGNED and sworn before me at on the day of 20. The deponent has acknowledged that *he/she knows and understands the contents and that is true and correct and binding on *his /her conscience. COMMISSIONER OF OATHS

9 ANNEXURE D RULES FOR TRUSTS PARTICIPATING IN OWNERSHIP