It is common knowledge that the B-BBEE Verification process is quite challenging based on all the data and documents required, finding out about unexpected interpretational changes which could negatively impact your B-BBEE scores and overall level as well as the tedious time-consuming process of having your information verified. It is no wonder, why most companies shy away from B-BBEE compliance as the verification process in itself, can leave you and your team disgruntled and defeated.
Fortunately, there is no need to brace yourself or muster up the required courage to face your upcoming B-BBEE Verification as the preparation process can be made simple using the steps below:
Based on when your company’s actual financial period will come to an end, when you will have either management accounts or signed financial statements available and taking into consideration the expiry date of your current B-BBEE certificate or affidavit, you can draft an action plan to confirm when your organisation will be ready for verification. If your company has not yet been verified, liaise with your clients and sales department to confirm if there are any pending tenders or specific B-BBEE pressure.
Once drafted, you can confirm suitable timeslots for the formal verification and decide on a SANAS Accredited Verification Agency (for more details on all the accredited agencies or the agencies operating within your region, please make use of the following link to the SANAS website https://www.sanas.co.za/pages/index.aspx?page=AccreditationServices).
With your selected Verification Agency confirmed, request a list of the data and general documentation required for your verification. This list will be specific to your industry and the applicable Codes or Sector Codes.
It is important to note that there is no standard document list or procedure and that this differs from Verification Agency to Verification Agency. This difference also extends to interpretation and methodologies used, all of which you can confirm in advance.
To effectively utilise the available time and to ensure that all internal deadlines are met, the following is critical:
Start preparations as soon as possible i.e., at the start of your financial period
To manage the intricacies, collation of information and to drive your team, identify a B-BBEE Champion within your organisation who will take charge of the process
As multiple departments within your organisation will be involved, ensure that all employees are aware of the document requirements and extend this to any third party you are working with (i.e., your financial auditors, training providers and beneficiaries). With everyone updated and informed of what is expected from them, your B-BBEE evidence file can be created once off and be updated as and when contributions are made.
For tracking your progress and to ensure that it is possible to obtain or maintain your desired B-BBEE Level, conduct bi-monthly or quarterly internal quality control audits. This will allow you to confirm that your B-BBEE evidence file is truly updated regularly and that the documentation on file is valid, accurate and sufficient. If you are unsure of the validity or format of a specific document, contact your selected Verification Agency for clarity and assistance.
Having regular internal quality control audits, will further allow you to accurately track your target spend requirements throughout the year and will provide you with ample opportunity to make the needed adjustments whereby you save money and time by making smart informed decisions.
By implementing the above in your organisation, the B-BBEE Verification process is not just simplified but will provide you and your team with a pleasant and utterly rewarding experience.
For more details, please contact your respective LabourNet branch.
T: +27(0)31 266 6570