B-BBEE Portfolio of evidence for Verification
Skills Development is the measurement of expenditure incurred by the entity in the financial period. The target is derived as a percentage of the Leviable amount. Leviable amount is calculated by the annual skills development levies times a 100.
Skills Development is one of the three priority elements on the B-BBEE scorecard. It is imperative to meet the subminimum of 40% of the skills scorecard to avoid an overall level discount.
Firstly, it is also important to note that an entity should meet the skills development act requirements before any skills points can be allocated. The skills development act requires a qualifying entity to have the following in place to open the door for skills points:
Compliant with the Skills Development Act
Registered with a SETA
SETA Approved Workplace Skills Plan and Annual Training Reports
Implemented programmes that addresses priority, scare and critical skills, as stipulated by each specific SETA
Mandatory training does not constitute to any points to the skills development scorecard i.e., Firefighting, Working at Heights and First Aid.
Skills development scorecard consists of the following criterion:
Expenditure on Learning Programmes for Black People – 6,00 points
Expenditure on Bursaries for Black People – 4,00 points
Expenditure on Learning Programmes for disabled Black people - 4,00 points
Number of Black People participating in learnerships, apprenticeships and internships – 6,00 points
The B-BBEE Codes of Good Practice Statement 400 provides a Skills Matrix that differentiate between the different types of training:
Cat A. Bursaries or Scholarships
Cat B. Internships
Cat C. Learnerships
Cat D. Learnerships or Apprenticeships
Cat E. Work Integrated Learning
Cat F Informal Training (Occupationally directed informal instruction programmes)
Cat G. Informal Training (Work-based informal programmes)
As Skills Development is classified as a “Monetary Element” all initiatives must be initiated and implemented in the financial period being verified. The following are core evidence required for verification purposes.
Certified ID Document
Invoices in the financial period
Proof of Payment in the financial period
SETA - Proof of registration
Proof of completion / Certificate of Attendance
Salaries / Stipends for the financial period
When learnerships are registered and implemented, the salary cost of the learner can contribute to skills expenditure, if it falls in the measured period.
Skills development is an integral element that requires detailed monitoring to ensure all the statutory requirements are met and captured correctly.
Edrich Linde: Executive Consultant - Compliance Hub