Acts Online
GT Shield

Broad-Based Black Economic Empowerment Act, 2003 (Act No. 53 of 2003)

Industry Charters

Chartered Accountancy Charter

Section B: Framework

8. Implementation

 

8.1 Sector Code Council

 

1. A Charter Council will be established as an independent body with a mandate to oversee the implementation of the Sector Code.

 

2. The Charter Council membership will be drawn equitably from stakeholders (see Appendix 3 for a list of stakeholders).

 

3. The Charter Council will consist of representatives from each of the following stakeholder groups:

 

 

Members

Small practices

1

Large firms

1

Medium size firms

1

Black Firms Forum

1

IRBA

1

SAICA

1

ABASA

1

AWCA

1

Commerce and Industry

1

Academics

1

Trainees

1

Auditor-General

1

National Treasury

1

Total

13

 

4. The B-BBEE Negotiation Forum will set up the Charter Council by calling for nominations from the stakeholder groups. It will consider diversity in terms of gender, race and disability. The B-BBEE Negotiation Forum will dissolve once the Sector Code has been completed and signed and the first Charter Council has been established. The Charter Council will then take the process forward.

 

5. At the first Charter Council meeting members will determine amongst themselves a term of office ranging from one to three years, which could be renewable. The intention is that there will be rotation, on an annual basis, of one third (1/3) of the Charter Council members.

 

6. The Charter Council will operate on a part-time basis with secretarial and administrative support being provided by SAICA so as to keep any additional costs of running such a Charter Council at a minimum. All such costs will be borne by SAICA.

 

7. In the appointment of the chairman of the Charter Council, the need for independence from the CA sector will be considered.

 

8. The Charter Council will address issues of principle and in particular-
• supply guidance on sector specific matters affecting B-BBEE to the entities within the sector;
• compile reports on the status of B-BBEE within the sector;
• share information with the national monitoring mechanism and approved accreditation agencies that may have specific relevance to B-BBEE in the sector;
• undertake ongoing monitoring of the pipeline of undergraduates, postgraduates and trainees as they relate to the CA profession to ensure a positive shift in terms of race, gender and pass percentages; and
• undertake ongoing monitoring of the achievement of targets as set out in the scorecard. If it is deemed appropriate, new targets will be set if these targets are achieved during the period.

 

8.2        Administration

 

1. The Charter Council will agree with the SAICA Executive President on an executive of SAICA to attend to its work and specifically to -
• receive and consider audited scorecards and reports,
• confirm ratings, where appropriate,
• issue guidance notes on the interpretation and application of the Sector Code,
• prepare an annual review which outlines progress and evaluates new areas of intervention,
• submit the annual review to the B-BBEE Advisory Council, and
• engage with government and the B-BBEE Advisory Council as well as regulatory agencies to promote the implementation of the Sector Code.

 

2. The Charter Council will ensure that the executive, through SAICA, has adequate resources and capacity and is supported in the fulfilment of its mandate as envisaged in the Sector Code.

 

8.3        Reporting and Review

 

1. The Charter Council will report annually on the progress made by the CA sector to the Minister of Trade and Industry and to the B-BBEE Advisory Council.

 

The report shall outline the following:

• Baseline indicators for all the different elements of B-BBEE;
• Aggregate scores of all the indicators of the B-BBEE scorecard for all the entities reporting within the ambit of the Sector Code;
• Types of initiatives that are undertaken by the entities within the sector; and
• Any other relevant information that would be useful in assessing the state of B-BBEE within the sector.

 

2. Each entity will report annually within the stipulated time frames to the Charter Council on its progress and implementation of the provisions of the Sector Code.

 

3. The reporting period will be 31 December of each year and an annual report will be submitted to the dti by 30 April of each year.

 

8.4        Verification of Compliance

 

In terms of statement 000 of code series 000, verification of B-BBEE compliance is encouraged and to this end the dti will from time to time issue clear guidelines on the verification process.

 

The Charter Council will report to the dti annually (30 April of each year) on the consolidated position of the CA sector. It will thus be incumbent on the CA sector to provide the Charter Council with their individual scorecards. These scorecards must either have been verified by an accredited verification agency, or the relevant entities should be able to provide evidence or documentation to substantiate all measured items.