10 steps to obtaining a Compliant BEE Certificate, the BDO way
05 February 2019
Understanding, implementing and monitoring your BEE score is as important as monitoring your company’s financial performance. Since your scorecard is also based on your financial period, ensuring the initiatives are implemented prior to your next year end is critical. The need for a monthly BEE report has become as essential as your monthly management accounts. Monitoring can be achieved using internal staff, software or BEE professionals and consultants.
What else can you do to ensure compliance? Follow these 10 steps to a compliant BEE certificate:
UNDERSTAND AND EDUCATE YOURSELF ABOUT B-BBEE
Lack of understanding leads to incorrect implementation. Attend courses, sign up to newsletters, and ask your local business development agencies, industry bodies or chambers of commerce to alert you when they run information sessions. Many companies are now upskilling staff to become BEE champions, or employing transformation managers to ensure they are compliant.
UNDERSTAND HOW BEE AFFECTS YOUR BUSINESS
Is a compliant BEE certificate a requirement for your customers, your licence, or your industry? If this is a case, non-compliance could cost you millions. Are you competing against other suppliers? You need to know what their score and level is to stay one-step ahead.
UNDERSTAND THE LEGISLATIVE REQUIREMENTS FOR YOUR BUSINESS
Are you required to submit employment equity reports, workplace skills plans, pay the skills development levy? Failure to comply with these legislative requirements could severely impact your score.
There are different scorecards for different sized businesses, and some industry sectors have scorecards specific to their industry – make sure you understand these, and comply accordingly.
ASK A SPECIALIST
Use a consultant or ask your verification agency for guidance. There are many areas in the BEE codes where the spend required to meet target can be mitigated in some way or be implemented more cost effectively. If considering changes to ownership, ensure that you understand the implications of 10%, 25%, 30% or 51% ownership. Each of these milestones can have a very different outcome on your score.
USE THE CORRECT TOOLS
Online scorecards and standard documentation can assist with record keeping, tracking and implementation of BEE in your business. There are many software providers in the market, providing tools to help track and manage your score and even your suppliers’ scores.
UNDERSTAND THE INDICTORS FOR SCORING POINTS
Each element has indicators against which points are measured – make sure that you understand how to obtain a maximum score for each element, in the most cost effective way.
KEEP A RECORD OF EVERYTHING
No points without evidence. Ask your verification agency for a list of documentation they will require for verification. A verification audit is a paper intensive and document oriented process. Inadequate proof could mean no points.
DESIGN POLICIES AND STRATEGIES TO ASSIST YOUR BUSINESS TO SCORE POINTS
Is your training spend targeted correctly across the required race and gender groups? Do you require suppliers to provide BEE certificates? Do you have an existing supplier/customer who you can assist with enterprise or supplier development? Build policies that support your chosen strategies for compliance – such as obtaining new BEE certificates from your suppliers every year.
SELF ASSESSMENT AND MONITORING
Constantly monitor your scorecard as you would your company’s management accounts. Your procurement, enterprise and development, skills and socio economic development points are all based on spend on a prior financial period. There is nothing you can do to change this once the year is over. Don’t miss the opportunity to close gaps before the year end.
Once you have implemented BEE in your business and collected the documentation required, have your achievement verified by an accredited verification agency.
For further information, contact Jenni Lawrence, BDO Verification Services [email protected]
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