Premier Verification Is A SANAS Accredited Verification Agency

Q: What is the purpose of the Socio-Economic Development element on the DTIC Scorecard?

‘This element is to encourage the private sector to be part of the solution that facilitates sustainable accessibility to the economy. The focus is on the marginalised communities which, in its majority relate to previously disadvantaged groups. This will then benefit beneficiaries who are black South African citizens in a broader and more meaningful way. Contributions consist of both monetary and non-monetary initiatives’, says Bridget.

Q: What contributions qualify for the entity to claim as SED on the DTIC Scorecard?

‘An entity can contribute in various ways in support of those communities to claim the points under SED. These include grants, direct costs, overhead costs, environmental and training. The list is non-exhaustive, but you can claim as SED as long as these initiatives are able to provide access to the economy to the beneficiaries.’

Q: How is this measured when it comes time for verification?

‘The target is based on the 1% of NPAT. This is aligned to the latest Audited Financial Statements. For some sector scorecards, it could be  less than 1% of NPAT. Therefore, this means that contributions need to be made within the financial period being rated. Any contributions that fall outside the financial year being reviewed will not count.

The beneficiaries should be more than 75% black South Africans as defined in the B-BBEE legislation to achieve full points provided the target of 1% of NPAT is met. If the percentage is less than 75% of beneficiaries benefitting from the contributions, then the points are pro-rated based on that percentage.

Depending on the contributions, the Verification Agency, will require proof of the spend. An example of evidence could be in the form of an invoice with a matching proof of payment. Evidence is dependent on the nature of the contribution and also confirmation from the beneficiaries acknowledging receipt of the contribution, nature of contribution, date received, what the funds was/will be used for, the percentage of black beneficiaries supported and what value of those funds benefitted/will benefit those beneficiaries.

The claimed cost should be net of VAT. There is also a benefit factor matrix* which certain contributions are prorated based on the benefit factor percentage.’

See below extract:

*Annexure 700 (A) – Benefit Factor Matrix

Should you be interested in the services of Premier Verification, please visit their website www.premierverification.com or contact them on 010 591 0591 or bridget@p-v.co.za/info@p-v.co.za

The above information is based on the 2019 amended DTIC codes scorecard which might differ from the sector scorecards.

Please refer to an extract below for the Socio-Economic Development element** on the Generic ACOGP scorecard.

** Code Series 500 – Socio-Economic Development