| |
What is an Emex BEE Scorecard?
The Emex BEE Scorecard is a verified report on your current status as a BEE
contributor according to the latest DTI codes of good practice (released 9
February 2007).
BEE Scorecards versus Exemption Certificates
Department of Trade and Industry (DTI) has indicated that businesses with a
turnover of less than 5 (five) million rand per annum automatically obtain a
level 4 (four) contribution status and are not expected by the DTI to obtain
BEE scorecards. However, many companies are not interested in exemption status
for various reasons more fully described hereunder. Should you have the need
for a scorecard even though your turnover is less than 5 (five) million rand
per annum or need to know more about the advantages, we invite you to read on
and make an informed decision.
What is an Emex BEE Scorecard?
A scorecard is an exact calculation and report of your contribution towards
BEE. It is categorised in 8 (eight) different levels and each level indicates
the level of contribution of your business. When tenders are awarded by
government, scorecards are required to prove BEE contributions. Therefore, the
Emex BEE Scorecard is a verified report of your current status as a BEE
contributor according to the latest DTI codes of good practice (released 9
February 2007).
What are the criteria used to calculate scorecards?
The BEE Codes of Good Practice have been drafted by the DTI to set the standard
of calculations for scorecards. The BEE scorecard has seven levels of
contribution and each has its own formula against which data received from
clients are to be tested. The sum of all the individual scores is termed a BEE
scorecard.
How would I know what kind of scorecard I need?
When no industry specific charters are applicable, there are three different
categories of scorecard statuses, which are Generic, Qualifying Small
Enterprise and Exemption Certificates. Each one is divided from the other by
the turnover of a particular business. The three categories are:
|
Type
of scorecard
|
Turnover
per annum
|
|
Generic
Scorecards (GS):
|
35
million rand and more
|
|
Qualifying
Small Enterprises (QSE):
|
Between
5 and 35 million rand
|
|
Exempted
Enterprises (EE):
|
Less
than 5 million rand
|
|
Industry
Specific Scorecards (ISS):
|
Variation
indicated in industry charters
|
The scorecard to be used by your business is indicated by what your clients
require. Categories above indicate the default category your business resorts
under, but it remains the choice of the client that you supply your service or
your product to. Example: You may have a turnover of 4 million per annum, but
you supply to a state owned body that requires a QSE or Generic scorecard. It
remains your choice to obtain the required form of scorecard.
What are Industry Specific Charters and how do they fit in with DTI
scorecards?
The South African Economy has been divided into industries. Certain industries
resort under the DTI scorecards and others have their own industry charters and
scorecards. The industries that have their own scorecards are subject to
different criteria than that of the DTI scorecard division. Examples of
industries that have or are about to receive their own scorecards are:
Agriculture, Mining, Maritime, Construction, ICT, Tourism, Financial Services,
Petroleum and Legal Industry. The list is not exhaustive and additions are to
be expected.
All businesses subject to industry charters are to adhere to the charters but
when relationships are of governmental nature, DTI scorecards are required. In
other words when you are dealing with government and you are subject to an
industry charter, you will be in need of two scorecards. Emex offers dual
scorecards as a part of its service to clients. The need for dual scorecards
arises out of the procurement section of the scorecard. Should two businesses
be measured against each other, they are obliged to at least use the same kind
of ruler. In other words the measuring criteria should at least be of the same
nature; otherwise the score fails the reason/requirement.
How do I know what my score will be?
Scorecards are drafted by entering client detail into the Emex system. Scores
in all divisions will only be known once this has been done. Keep in mind that
different categories are required to be measured by a different amount of the
elements on the scorecard, i.e.:
|
Type
of Scorecard
|
Units
measured
|
|
Generic
Scorecards (GS):
|
All
seven elements of the scorecard
|
|
Qualifying
Small Enterprises (QSE):
|
Four out
of seven elements of the scorecard
|
|
Exempted
Enterprises (EE):
|
Automatic
level four contributor unless QSE
|
|
Industry
Specific Scorecards (ISS):
|
Variation
indicated in industry charters
|
When industry charters and generic scorecards are taken into account, there is
no variation on choice within the scorecard, but when one has a look at the QSE
scorecard and Exemption Status businesses; it seems that there is indeed a
choice to be made that may be to the advantage of the business verified by
Emex. QSE businesses may choose 4 of the 7 elements on the scorecard that hold
the greatest advantage in terms of the outcome, for instance employment equity,
preferential procurement, skills development and management control may be your
strongest elements, in which case it would make sense to choose these elements
to be verified on. Exemption status offers a business an automatic level 4
status, but with the choice of 4 of the seven elements referred to on the QSE
scorecard, one may opt to be verified as a QSE business and rise to a level 3
or 2 contributor.
What are the steps and time frames involved in verification?
There are a few easy steps towards obtaining a scorecard.
An appointment is made with an Emex agent to explain BEE, the processes
and advantages of the Emex system and scorecard. During the initial appointment
clients enter into a relationship with Emex Trust by completing the necessary
entry form. An appointment is scheduled with an Emex Verification Agent during
which an audit of information and data takes place. A communiqué with
information required for the Audit is sent to the client in preparation of the
Audit. On the day of the audit all documentation is evaluated, verified and
validated. Subsequent to the audit being
done on the premises of the client, a scorecard and certificate is issued by
Emex head office.
Steps one through six have an average time span of 21 days. As soon as the
procurement section of the scorecard is completed, which is normally done
within 21 days, the process is complete.
How do I improve my score once I have been verified?
According to Code 020 of the Codes of Good Practice, no verification agency may
at any time render both the service of verification and optimisation. Emex
adheres to the code. Although advice is excluded from the service of
verification agencies, Emex offers clients a variation report which shows
clients exactly how far they are from their targets. These variation reports
indicate the most cost effective way to increase scores without advising
clients on any of the aspects of the scorecard. Should clients wish to optimise
their scorecards, they are referred to third parties conversant with the
subject of BEE and improvement of scores.
Will I be able to search for a BEE supplier on the Emex system?
Emex has a supplier record of more than 100 000 and clients are encouraged to
search for suppliers and their BEE status on the system. This is the largest
system of the kind and may be used for the most valuable for searches to
enhance procurement spending contributions.
What should I do if my largest supplier is not a BEE contributor?
Emex will gladly contact this supplier on your behalf and inform them of the
advantages of scorecards and the value it has for your company’s procurement
score. You are welcome to indicate the advantage and importance to these
suppliers beforehand.
Do I get points for in-house training?
All training done in terms of BEE is a contribution toward the scorecard of
your business. There is however a table that indicates that training is to be
done in different categories and that certain of the training is to be done by
skills development facilitators who are registered with the relevant Sector
Education Training Authority (SETA) that you resort under.
Should I get a black partner?
When the spirit of the Act is taken into account, one should apply every effort
to advantage black people and especially black women, but one should also
assess the need of the business at any point in time as well as the
requirements of the client that you are supplying to. It is always good to keep
in mind that the business should at least be in existence. One should consider
the spirit of the Act and Codes of Good Practice as well as the economic
viability both on the medium and long term and then make an informed decision.
To read the full summary as supplied by the DTI click here.
|
