1 st presentation larry feinberg – executive director 2 nd presentation
DESCRIPTION
PRESIDENTIAL CHAPTER TOUR 2013. 1 st Presentation LARRY FEINBERG – EXECUTIVE DIRECTOR 2 nd Presentation DEON VERMEULEN – ASAQS VICE PRESIDENT / TREASURER 2012 3 rd Presentation QINISANI MBATHA – ASAQS PRESIDENT 2012. 2012 AT A GLANCE. `. - PowerPoint PPT PresentationTRANSCRIPT
1st PresentationLARRY FEINBERG – EXECUTIVE DIRECTOR
2nd PresentationDEON VERMEULEN – ASAQS VICE PRESIDENT / TREASURER 2012
3rd PresentationQINISANI MBATHA – ASAQS PRESIDENT 2012
PRESIDENTIAL CHAPTER TOUR 2013
` Voluntary Association Status with SACQSP regained
Financially successful and profitable ICEC 2012 World Congress professionally hosted in Durban which attracted 600 local and international delegates
Implementation of a completely new membership portal, database and website
Membership database information verification campaign completed
Marketing and advertising campaign in Engineering News magazine, website and news letter – suite of new adverts
Reinstatement of Property Development Course at UKZN is well on track towards being confirmed and course reinstated
2012 AT A GLANCE
`
2012 AT A GLANCE (continued) Tabularisation of Standard System complete – the updating of the content
will commence in the next few weeks and will take approximately 12 to 18 months to complete
Continuous Professional Development (CPD) – policy framework to accredit courses is complete and will be given to the ASAQS Board and SACQSP for comment / approval
New guide to Elemental Estimating and Analysis for Building Works 2013 is complete and available on our website free for all members
Review of ASAQS bylaws and Constitution is currently being undertaken, and has substantially progressed. A complicated and intricate process
Hosting of ASAQS events online through membership portal
Online membership registration and payment
` The Creation of an online Web portal that allows our members to check and verify their
personal details the Association has captured on its database – 24/7 from anywhere
Ability to pay online and view membership & document invoices 24/7 from anywhere
A database verification campaign – asking our members to use the web portal to verify their details
Each member who did not update their details using the web link was called by a call centre agent acting on the Associations behalf
Streamlining of all processes relating to the way in which membership data is captured, filed and / or archived
Overall enhancement of all internal administration
Data filtration continuously tweaked and enhanced
PROJECTS DELIVERED DURING 2012
` All software upgraded (including financial software -Pastel)
Hardware was upgraded where necessary – including a new server
Bulk e-mailing
Streamlining of physical office infrastructure and office layout - complete
PROJECTS DELIVERED DURING 2012 (Continued)
`Since 2011 all of our bookkeeping functions at ASAQS have been independently outsourced to AVN Registered Accountants for strict oversight, allocation, collation and compilation of all accounting reports and oversight on all internal accounting functions.
Load and Release – AVN load invoices for payment and Exec Director releases payment
Reconciliation of the ASAQS bank accounts Responsible for all allocations of payments from bank account to individual
members accounts VAT, PAYE and salaries In collaboration with the Executive Director ensuring all internal management
account security measures are in place and strictly adhered to Reconciliation of all cash-ups which are completed on a daily basis by staff and
signed daily by the executive director Reconciliation of any cash for banking, petty cash and cash slips (done periodically) Stock taking – opening stock balances to closing stock on a monthly basis by
reconciling invoice sales to receipts and back to closing stock levels
AVN REGISTERED ACCOUNTANTS
`
JENNY RYGARD – Background
Outsourced temporary employee
Services engaged for a specific project from Only The Best Labour Brokers
Was given a debtors list and required to follow up outstanding payments
Worked on this specific project only
Simply asked to chase up outstanding invoices and provide AVN Registered Accountants with proof of payment once received in order for them to allocate the payment
If payment was already made by the member - to then provide our accountants with proof of payment in order for them to assign the payment from the ASAQS suspense account (payments that are deposited in our bank account without sufficient information for us to allocate to a member or firm are placed in this suspense account)
`
REYGARD - ALLEGATIONS
Payment allocations not being made to the correct account
Cash was not banked timeously and
Cash received was spent on unauthorised purchases
Cash receipts were not recorded accurately
Purchases of inventory were not recorded since 2010
The following allegations were expressed in an unauthorised email sent to random members, past presidents and current board members directly after Rygard was informed that the project had been completed
`
EXCO INVESTIGATION
• Immediate response by the President by way of letter to all members informing them that the allegations will be investigated
• BDO Spencer Steward immediately engaged during the ASAQS audit process to investigate the validity of the accusations – the audit was due to coincidentally begin the following week
• Only The Best (OTB) contacted and requested to consult with their employee and request evidence from their employee to support these serious allegations
• Rygard confirmed attendance at this meeting at OTB but did not pitch
• OTB conducted their own disciplinary hearing and the ASAQS informed of the outcome – dismissal
• BDO Spencer Steward asked to compile a separate report from the audit upon completion of their audit
`
BDO SPENCER STEWARD REPORT Based on Rygards email – BDO themselves decided which areas of internal
control were to be tested and reported upon
RECEIPTS (period 1 March 2012 to 28 February 2013) • “No discrepancies were noted throughout the sample”
DEPOSITS (period 1 March 2012 to 28 February 2013)• 1 allocation not done during February 2013 due to AVN not having an opportunity
to do the allocation while focusing on the audit• “No further discrepancies were noted”
INVENTORY PURCHASE (period 1 March 2012 to 28 February 2013)• “all transactions were successfully traced to the relevant account, no
discrepancies noted”
REPORT & FINDINGS – Full BDO report available online in ASAQS members section
`
FRAUD INVESTIGATION
• Criminal Case has been opened at Midrand Police Station and formal charges laid in April 2012
• Case moved between 3 different warrant officers until September 2012 – different subpoenas issued by different Warrant Officers and frustratingly never adequately enforced and chased up
• Subpoena answered by FNB and information supplied
• February 2013 – Private outsourced investigator engaged to case manage subpoenas and police investigation
• Case moving swiftly
• Chain of evidence being compiled and completed and paper trail being thoroughly followed
• Completion envisaged within the next 3 – 6 months
• Complete case and evidence to be handed to prosecutor
`
PROJECTS FOR COMPLETION 2013 Edutech Manager Position – Board Approval and recruitment of manager
Chapter interface through membership portal
Allowing our chapter chairs to send communications to their constituent members Gain access to membership statistics both regionally and nationally Provide administrator right to chosen individuals nominated by the chapter Upload event information and manage events remotely
Strategy and vision
Strong Board focus on following through on key deliverables identified through the
ASAQS’s strategic vision Delivery of structured programmes by the ASAQS Board to reach specific
deliverables during 2013
MEMBERSHIP CATEGORY STATISTICS AS AT 04 APRIL 2013REGION PMAQS MAQS AAQS SAAQS SENIOR RETIRED LIFE HONORARY TOTAL
Eastern Cape 129 45 17 47 15 0 1 0 254
Border 63 52 21 33 0 0 0 0 169
Free State 62 49 14 302 9 1 1 0 438
Gauteng North 268 182 51 107 51 6 3 0 668
Gauteng South 393 310 113 115 57 6 2 2 998
KwaZulu-Natal 209 178 98 98 44 1 0 0 628
Limpopo Province 39 42 37 37 2 1 0 0 158
Mpumalanga 39 40 15 28 4 0 0 0 126
North West Province 42 21 13 41 2 0 0 0 119
Northern Cape 12 20 6 36 2 0 0 0 76
Rest of Africa 37 74 17 29 0 0 0 0 157
Overseas 77 60 25 4 5 1 0 4 176
Western Cape 288 208 47 253 48 7 0 1 852
Category No Address 2 3 2 2 5 0 0 0 14
Total as at 14/11/2011 1541 1147 336 864 217 29 6 7 4147
Total as at 29/08/2012 1567 1225 390 1002 239 23 6 7 4459
Total as at 02/04/2013 1660 1284 476 1132 244 23 7 7 4833
`
MEMBERSHIP BY CHAPTER AND CATEGORY
Easte
rn Cape
Border
Free S
tate
Gauten
g North
Gauten
g South
KwaZulu-N
atal
Limpopo Provin
ce
Mpumalanga
North W
est Provin
ce
Northern
Cape
Rest of A
frica
Overse
as
West
ern Cap
e
Catego
ry No Addres
s0
100
200
300
400
500
600
700
800
900
1000HONORARYLIFERETIREDSENIORSAAQSAAQS MAQSPMAQS
`
1 2 3 4 5 6 7 8 90
1000
2000
3000
4000
5000
6000
Total as at 14/11/2011
Total as at 29/08/2012
Total as at 02/04/2013
Growth per cat-egory
Last column is final growth of all cat-egories
`
Eastern
Cape
Border
Free St
ate
Gauteng North
Gauteng South
KwaZulu-N
atal
Limpopo Pro
vince
Mpumalanga
North W
est Pro
vince
Northern
Cape
Rest of A
frica
Overse
as
Weste
rn Cape
0102030405060708090
100
AAQS
MAQS
PMAQS
NEW MEM-BERS IN ALL CATEGORIES FOR LAST 12 MONTHS
= 433
MEMBERSHIP GROWTH PER CATEGORY AND PROVINCE
`
FINANCIAL REPORT FOR 2013 ASAQS PRESIDENT’S TOUR
DEON VERMEULEN – VICE PRESIDENT AND TREASURER
ASAQS
PRESENTATION BY
FINANCIAL REPORT FOR 2013 ASAQS PRESIDENT’S TOUR
Status of Annual Financial Statements: • 2010: Theron Naidoo signed Annual Financial Statements off on 15 March 2013. Their termination of appointment was also effective from this date. • 2011 & 2012: Draft financial statements were prepared by BDO. They will be able to officially sign these statements off, once approval of their appointment is confirmed and lodged with their council in terms of their code of professional conduct.
• 2013: BDO is busy with the audit of the 2013 AFS that will be completed towards the end of April 2013. Notes regarding 2011 annual financial statements: Renny Moodly’s employment ended September 2010 and the statements allows for corrections of fraudulent transactions (pg. 20).
2012 / 2013 ACTUAL INCOME vs. BUDGET
• Notes: ICEC 2012 netted R293 658,72 of income not budgeted for.
• The increase in membership fees is for Invoiced income.
2012 / 2013 EXPENSES BUDGET
Operating Expenditure11%
Staff salaries, etc28%
Fraud case8%SACQSP VAT
5%
Board, Committees & Chapters
11%
Marketing & Member Benefits
7%
Conferences8%
Memberships, Prizes, etc1%
Research & devel-opment
7% Funds (levied)2%
Document Costs13%
2012/2013 Expenses budgetNotes: • Research &
development 7% (low)
• Fraud case
7% (carry over)
• SACQSP VAT 5% (once off)
2012 / 2013 ACTUAL EXPENSES vs. BUDGET
Notes: • Fraud case
budget to stay as is.
• Research & development As well as Capital Expenditure activities must increase in the following financial years.
ASAQS BANK BALANCES
BANK BALANCES 28-Feb-13 29-Feb-12 28-Feb-11
8400/ 000 Standard Bank - 202529029 525 708.43 2 281 840.56 830 199.03
8430/ 000 Standard Bank - Call Deposit (002) 1 664.59 1 644.82 1 620.28
8440/ 000 Standard Bank - 32 Day Notice (999) 3 741 981.48 1 344 487.90 1 278 874.93
8450/ 000 Standard Bank - Benevolent Fund (010) 352 667.41 158 359.90 153 672.81
8460/ 000 Standard Bank - BEDT Fund (011) 355 482.34 293 086.35 284 411.66
8470/ 000 Standard Bank - Education Fund (012) 431 551.19 367 450.39 356 574.71
8480/ 000 Standard Bank - DJ Laing Fund (013) 237 311.19 231 009.21 224 171.88
5 646 366.63 4 677 879.13 3 129 525.30
ASAQS cash 4 269 354.50 3 627 973.28 2 110 694.24
Funds 589 978.60 1 049 905.85 1 018 831.06
Edutech 787 033.53
INDUSTRY UPDATE - Underdeveloped
INFRASTRUTURE DEVELOPMENT – Partially developed
WHAT DO WE UNDERSTAND – Underdeveloped
STRATEGIC OBJECTIVES AND KEY DRIVERS – Done!
MILESTONE ACHIEVEMENT” – to be listed on a slide as follows:
Successful hosting of the ICEC Congress - Done
Reinstatement of ASAQS as voluntary body of council
Review of the bylaws and standard system
Representation to the Construction Sector
University of Natal
Business Planning in November 2012
MOU WITH NHBRC
Feature article to Engineering News and Architect Magazine
CCN Update
FUTURE QS OPPORTUNITIES - the green factory – how much of it do we really know!
PRESIDENTIAL TOUR 2013
INDUSTRY INSIGHT Construction Growth VS the rest of SA Economy: Source SARB & BER
Construction Industry in general performed reasonably well until the forth quarter of 2012
dropping by 0.2% and overall recording a Year on Year growth of 2.5% for the period of 2012, a
noticeable drop as compared to the previous years.
Fixed investment growth slightly accelerated in 2012 but still performed poorly when compared to
an average of approx. 7.5% maintained from 2002 up to 2012 and recorded a real gross fixed capital
formation (private business enterprises, public corporations, general government) of approx. 5.7%
(almost similar to the GDP record of 5.8%): source SARB.
Albeit such activity, investment in transport equipment surged with a mild recovery in building and
construction however private building sector remains under pressure for a number of reasons:
Tight lending criteria by the financial institutions
The commercial risk by the developers
Willingness to negotiate and commit to long leases by the Nationals and/or Anchor Tenants
INDUSTRY INSIGHT Truth be told, the public sector in the past period somehow remained supportive of the construction
sector as a whole with a reported BER “Civil confidence index” gradually increasing above the high of
40% mark and evidently from a “Residential business confidence” recording an approx. low of 32%
coupled with a “Non residential business confidence” which recorded an all time low of approx. 20%.
In the language that we all understand, this presents a further tightening period for the construction
companies profit margins and a very competitive time for the rest of the market, equally so with our
service offering hence these ridiculous discounts recorded. If the building activity doesn't improve at an
expected rate,
Growth in this sector will remain under pressure
Competitions will remain stiff for both services and construction companies
INFRASTRUCTURE GROWTHStill a target market?
POLITICAL LANDSCAPE Service delivery protest
Mangaung Policy Conference
2014 Elections
Future work procurement - • PRASA – How many of you are in this space???????
• TRANSNET - How many of you are in this space ??????
• ESKOM – How many of you are in this space??????
• SOCIAL INFRASTRUCTURE – School, Dams, Hospitals – How many of you are
in this space ????????
INFRASTRUCTURE GROWTH – IN BRIEF!!! Budgeted spending for public-sector infrastructure totals R827 billion over the
next three years. A much larger set of projects is under consideration over the
longer term.
Decisions on which projects to implement will be guided by the National
Development Plan (NDP), accompanied by thorough assessments of feasibility
and value for money.
The first of two new large, coal-fired power plants will begin producing
electricity in 2014, significantly easing the country’s power constraints.
Transnet’s pipeline, rail and port investments will gain further impetus in 2013.
Construction and upgrading of dams, water transfer schemes, schools,
hospitals, clinics and housing are under way. Government has a range of
initiatives in place to address identified shortcomings in infrastructure
planning and project management.
NATIONAL DEVELOPMENT PLAN “NDP”Opening the path to stronger economic growth requires that identified barriers to growth be addressed. The NDP emphasises the
importance of:
Rebuilding confidence and encouraging private investment through establishing policy and regulatory certainty, maintaining
fiscal credibility and demonstrating effective public service delivery.
Addressing the country’s distorted spatial legacy through urban planning and public transport policies that reduce the cost and
time of travel to work, and improve the quality of life by lowering living costs.
Lowering the costs of doing business to improve competitiveness, including actions to reduce regulatory burdens, and promote
entrepreneurship and small business.
Strong regional growth, with opportunities for firms with expertise in mining, construction, retail and finance, and
manufactured exports.
Removing bottlenecks in economic and social infrastructure.
Implementing labour activation policies that get young people into employment and onto career paths
WHAT DO WE REALLY UNDERSTAND ABOUT OUR BUSINESS?
Is this business growing, have we set realistic targets for growth and implemented in past 3 - 4 Years?
Is our service offering still relevant to our existing clientele or we are just coasting along our past glory which
will land us to an untimely death - statistic ? Do we understand the economic and political landscape within
which we procure our work ? Is our service offering still relevant to our existing clientele or we are simple
coasting along our past glory which will land us to an untimely death? Are we visible and well disposed to all
sectors of our economy i.e. Engineering and Infrastructure projects?
Does our back of house “systems and procedures” still adequate to support the business and service offering
What is the role that should be played, if at all required, by retired practitioners in assisting with validation of
existing skill set whilst we pursue growth and diversification of service offering?
THE CHALLENGE THAT LIES AHEAD
SA Rating by International Rating Agency
Uncertainty about the financing of private and
public projects
Unchallenged corruption and fraud and political
interference in awarding tenders)
Communication barriers
Competitions Commission and Government’s
reluctance in paying gazetted Fees
Matrix of responsibility amongst different built
environment professions in project delivery
Continued political instability
Colonial pact
Quality of basic education “Sister Engie Motsheka”
Education and training post tertiary education
Poor Mentorship in PrQS Firms
QS’s willing to join the state organs
Transfer of skills and mutual recognition of transformation
Tender rigging and the bureaucracy in supply chain
management
Lack of emphasis on local procurement
Standardization of form of contract
Inconsistency with procurement of services contracts and
more emphasis on “price” instead of “functionality”
Late payment which impact negatively on cash flow
Poor design and specification
KSO 1 BRANDING
THE PROFESSION
• Poor image of the Profession• Market perception of the Name QS• Ailing state of our corporate identity
• Multidisciplinary survive offering the identify with different specialisation.
• Name change not a viable option as a lot of industry practitioners are well vested to the name
• Improve the organisations’ state of corporate identity
• Involve the council to this discussion and seek their views
• Get more exposed to corporate invest that promotes community involvement and education, awareness
Low Medium High
STRATEGIC OBJECTIVES & KEY DRIVERS
Low Medium High
KSO 2 PROMOTING AND MARKETING THE PROFESSION
• Past history has failed us on Marketing • Not much visibility by a QS in terms of media exposure and
advertisement, i.e. News paper and other media articles, QS Magazine • Reactive approach then proactive to get the QS agenda out to the public,
i.e. invite by other professions to participate in govern forums (MBSA Invite to talk to Reserve Bank Governor July 2012)
• Periodic info sharing to the membership
• Structure of the CEO’s Office to have a Public Relations and/or Marketing Officer to engage further with experts on marketing to better shape our targets market/s and develop our internal business
• Redefine the role, structure of both the CEO and the President of ASAQS• Use of chapter chairs and committees to identify business areas of
interest for engagement, parastatals, departments• Identify profession's experts to be placed on different boards and
committees outside ASAQS and Council i.e. Competitions tribunal • Permanent advertisement to industry media and conferences i.e. SAPOA,
Council of Shopping Centre, NHBRC, etc., • Explore closer ties with journalists covering construction related news for
periodic industry expert comments shared to the public
Low Medium High
KSO3: ENSURE THAT QS WORK IS PERFORMED BY
QUALIKFIED QS’s
• Maintain establish strong regulatory compliance. Also develop and communicate compliance procedures
• Reaffirm the minimum entry standards• Threat of other professions eroding the market because of poor performance • Poor QS work creates bad industry image • Disciplinary actions to those that are not qualified to perform the task
assigned to professional individuals • Enforcement, capability and capacity
• Closer relations with the council in order to maintain that rogue agents are properly brought to book and that feedback is timeously communicated to the members on reported incidences.
• Relook at the existing constitutions and by laws including code of conduct to see relevance and update where necessary
• Coordinate the actions of the chapters and the subcommittees in all endeavours that are explore to poor workmanship
• Revisit the work reservations with other disciplines particularly to engineering related services ought to be performed by the QS which overtime had been fully performed by others.
• Government institutions i.e. NHBRC, SANRAL, TRANSET RAIL, etc, must be engaged with MOU that promotes the QS as a relevant body for all procurement, construction cost related matters.
Low Medium High
KSO4: ESTABLISH & MAINTAIN A
COMPREHENSIVE & UPDATE OF THE MEMBERSHIP DATABASE
• Internal communication to the membership is still very low• Co-operations between firms and the linking of national footprint of companies • Membership administration and inaccurate database used to distribute internal
communication • Cleansing of the existing data base to better communicate with the members and
refine budgetary accuracy, billing and membership categories.
• Upgrade of a user friendlier database is very close to implementation • Synchronise the data base with that of council to maintain consistency of
information and closer relations with the council.• Extend the use of the database to link up with sms, internet, website for ease of
reference• Must maintain that a backup is available when ADSL line goes down and conduct
road shows with chapter chairs to make sure that proper training is available to the users nationally in terms of the system.
• The database link to pastel to be investigated in order that financial control and statements are easily generated for reporting purposes
Low Medium High
KSO 5: TRANSFORMATION
• Transformation initiatives are neglected if not totally ignore within the profession, be it chapter or board representation
• Geographic preparatory work at learnership level and exposure particularly to black schools is on adhoc and limited bases, if not ignored by board or chapter representatives.
• Transformation to be viewed as an opportunity Vs. a threat - it’s a reality that will exist for a long time!!!!
• Organisation is top heavy with limited numbers of the middle tier between grey beards and youth
• Promote quantity surveying profession at learnership/school level, especially to black schools as the future workforce depends on it.
• Attract more black students into tertiary education• Budgetary provision to be allocated from ASAQS to ensure that transformation initiatives are
implemented by chapter chairs and committees• Promote mentorship programme that could be linked to SETA and/or other government programs to
make sure that there's always training and development alongside transformation.• Initiatives such as “bring a girl or boy child” to work must be promoted and /or construction week, =
show visibility • Transformation portfolio to be included to the chapter reports that gets reviewed by the board with
defined targets and progress made.• Approach the department of education in all provinces to provide names and contact numbers of
schools that has students with a good pass rate of maths and science.• Promote a fair balance of intake to the Universities and Technology with much emphasis now
promoted to University of Technology
Low Medium High
“New”KSO 6: EDUCATION
• Poor education support and knowledge factory from the office of the CEO, i.e Edutech in order to provide technical support and product development
• Guidelines and strategy/ terms of reference for an Edutec Manager to provide education of professionals, the library of publications, interactions with educational statutory institutions and develop a strategic niche market for our marketing and forging relations. Investigate with keen interest current material and recommend amendment or improvement with industry consultation i.e. feasibility studies, contract documentation.
• Create a separate management structure for EduTech consisting of current and past ASAQS Board members, executive director to develop guidelines and the structure. This structure to report on a quarterly basis to the board
• EduTech appoint a director and have its own budget and/or finance structure in order to be self sustainable. This shall further be detailed in a business plan to be circulated early 2013
• Board to approve a seed funding to be determined by the appointed management structure tasked with setting up this costs centre.
• Time frame for resuscitating EduTech to commence in 2013 with an appointment on or before 3-6months from November 2012.
MILESTONE ACHIEVEMENT 2012/13
Successful hosting of the ICEC Congress
Reinstatement of ASAQS as voluntary body of council
Review of the bylaws and standard system
Representation to the Construction Sector
Participation with CBE and Construction SETA in resuscitating the QS
Programme at the University of KwaZulu Natal
Business Strategy Planning in November 2012
Signing MOU With NHBRC
On going articles to Engineering News and Architect & Specification Magazine
Review of JBCC for Turn Key Contract
Closer ties with the Municipal Engineering Council
Cross Boarder “Rest of Africa” Infrastructure Programmes
Diversification of the core QS service
Green Building Technology “Lets be the first to be consulted”!!!
Closer ties with National Treasury Department
Development finance institutions are expected to maintain financial sustainability, and care has to be taken to balance
sustainable lending and non-revenue-generating activities. Over the next three years, these institutions will concentrate
on financing infrastructure and industrial development, low-cost housing, rural development and land reform, small
business growth and black economic empowerment enterprises, and regional development.
Government's debt management strategies will ensure that the borrowing requirement is financed at the lowest possible
cost, while minimising repayment risk. The strategy complements the fiscal guidelines, which emphasise long-term debt
sustainability. Government will continue to support state-owned companies and, through prudent financial oversight,
ensure that they remain financially sound and contribute to the rollout of economic infrastructure.
QS FUTURE OPPORTUNITIES