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

`

To be the professional organization of choice for Quantity Surveyors.

ASAQS STRATEGY

`

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

`PMAQSMAQSAAQSSAAQSSENIORRETIREDLIFEHONORARY

TOTAL ASAQS MEMBERSHIP BY CATEGORY

`

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: 65%

of our income is based on membership fees etc.

 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

Presentation by Qinisani

Mbatha

PRESIDENT ASAQS - 2012

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.

92% spend22.86% 2.69% 3.15% 8.16%

INFRASTRUCTURE GROWTHStill a target market?

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

WHAT IF MONEY WAS NO OBJECT – WHAT WOULD YOU DOBY ALAN WATTS