WHAT IS B-BBEE FILE BUILDING?
If an organisation requires a B-BBEE Compliance Level, the next step is B-BBEE Verification. B-BBEE file building is a formal gathering of information to substantiate the submitted claim. Such a submission aims to comply or reach a particular B-BBEE compliance level. The acquired information and documentation will be presented to the verification agency, either by a consultant or the measured entity.
The verification agency will then validate the data, and additional requests for information might occur.
After validation, the issued B-BBEE Certificate indicates the compliance level, and a company can proceed using their updated Certificate.
As a B-BBEE agency, we assist companies in gathering and building a B-BBEE File with all the relevant information needed during a verification process. The evidence needs to be valid and fall within the measured period.
If your company falls under Generic, for example, all B-BBBEE elements will need to be measured, and for each component, there will be documentation required.
The B-BBEE file building Elements are:
Ownership
Management Control
Skills Development
Enterprise and supplier Development [Including Preferential Procurement]
Socio-Economic Development
Hereunder are a few examples of documentation we require for each B-BBBEE Element:
GENERAL:
Power of Attorney
Company Letterhead
Company Profile
Registration Document (CIPC – not older than 90 days of current date)
Memorandum of Incorporation (MOI)
Certified ID Copies of Owners
Proof of Vat Registration (VAT103) or Tax Compliance Status Pin
Signed and Audited Financial Statements (previous five years including the current year)
Auditors Letter
Last B-BBEE Certificate / Affidavit
OWNERSHIP:
Share Certificates
Share Register
Shareholders (Ownership) Organogram
Shareholders Agreement
Shareholders’ Minutes of Meetings
Sale of Shares Agreement (If applicable)
Financing Agreement (only relevant if there are Sales of Shares)
Certified ID copies of Shareholders
Black Designated Group Affidavit (If applicable)
Black New Entrant Affidavit (If applicable)
Ownership Fulfilment Affidavit (only relevant if there is Black New Entrant)
MANAGEMENT CONTROL:
Company Organogram
Latest EEA2 & EEA4
Acknowledgement letter of submission of the EEA2 & EEA4 to the Department of Labour
Employee list
Directors’ Minutes of Meetings
Last three months’ payroll
Annual/Yearly payroll report for the measuring period
Letter explaining any Salary Deviations
SKILLS DEVELOPMENT:
EMPSA (EMP Statement of account)
EMP201’s for the measuring period
Proof of Training Expenditures (Invoices &Proof of Payments)
WSP & ATR (Workplace Skills Plan & Annual Training Report)
Proof of submission of WSP & ATR from the relevant SETA
Program targeting priority skills and a letter of Proof
Training Providers Accreditation
Attendance registers, certificates, training records
Training tracking tool
PROCUREMENT:
Suppliers’ details Ledger list showing the amount spent excl. Vat – in Excel format
List confirming imports (If applicable)
Letter for a reason for imports (only applicable if there are imports)
Import tax certificate (only applicable if there are imports)
VATSA (VAT Statement of account)
VAT201’s for the measuring period
B-BBEE Certificates / Affidavits
SUPPLIER DEVELOPMENT:
Supplier Development Agreement
Supplier Development Tax invoice & Proof of payment
Supplier Development Thank you letter
Supplier Company Registration document (CIPC – not older than 90 days of current date)
Supplier Company Profile
Supplier B-BBEE Certificate / Affidavit
ENTERPRISE DEVELOPMENT:
Enterprise Development Agreement
Enterprise Development Tax invoice & Proof of payment
Enterprise Development Thank you letter
Enterprise Company Registration document (CIPC – not older than 90 days of current date)
Enterprise Company Profile
Enterprise B-BBEE Certificate / Affidavit
SOCIO-ECONOMIC DEVELOPMENT:
Socio-Economic Development Tax Invoice & Proof of Payment
Socio-Economic Development Thank you letter
NPC/NGO Registration Document
NPC/NGO Organization Profile
NPC/NGO B-BBEE Certificate / Affidavit OR Independent Persons Report
Every Verification agency differs and might require additional documentation as well. a Verification agency has a management system to gather data and documentation to comply with their guidelines.
A verification agency also goes through a formal yearly SANAS audit, ensuring their legal compliance with SANAS requirements. If they don’t comply after being audited, they could either be temporally or permanently suspended.
The agency which you use must be SANAS accredited. The SANAS logo and BV Number [Their Accreditation Number] should appear on the B-BBEE Certificate.
The above listed are the most general documentation required by most Verification agencies.
Some sound advice: Appointing a Consulting Agency to assist with your B-BBEE Verification will avoid frustration and guarantee a smooth and effortless verification!!!