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SARS Divisional Report Cards
2004 – 2005
Customs Report Card
Reason: Lack of specialised skills, technical capabilityTo do: Specialised training, implementation of non intrusive detection equipment, increased visibility & implement canine detection capability
90%To carry-out visible anti-smuggling actions (counterfeit, drugs etc)
100%To meet annual Revenue targets
Reason: Not all processes and policies are consistently applied, and EDI trading at land borders is limitedTo do: Roll out of Customs Operating System and BLNS EDI clearing capability
90%To effectively manage and administer the customs processes in order to facilitate trade
Reason: Lack of specialised skills, technical capability, and infrastructure at some bordersTo do: Enhanced border security and trade administration initiatives
70%To ensure effective border control
100%To develop, implement and maintain a customs control and facilitation strategy
Comment:% Achieved
KPA:
Excise Report Card
Phase 1 recruitment of 55 staff completed, to start with phase 2 to be finalised by September 2005.
100%To build and maintain an effective and dedicated excise unit: Unit fully established by 30 September 2005
Excise operating system developed in order to ensure consistency an implementation across all branches by September 2005
60%To effectively manage and administer the excise processes
Variance is due to lack of skills and expertise. The recruitment process to be finalised in September 2005 is addressing the matter.
65%To ensure timely and accurate service
Strategy developed, implemented however not all key areas have been covered, ie information systems and simplification of Excise accounts. The plan is in place to make sure that changes to existing information systems are rolled out by June 2005. Excise accounts ie one page account for Wine industry to be implemented by June 2005
75%To develop, implement and maintain an excise strategy
Phase 1 recruitment of 55 staff completed, to start with phase 2 to be finalised by September 2005.
100%To build and maintain an effective and dedicated excise unit: Unit fully established by 30 September 2005
Comment:% Achieved
KPA:
Excise Report Card
Interventions programme implemented, however achievement of programme limited due to lack of skills and resources.
65%To implement an audit programme
Successful campaigns have been carried out in the Spirits, tobacco and Fuel industries. Plan to extend campaigns to other industries on ongoing basis.
70%To carry-out visible compliance actions
102%To meet annual Revenue targets
Excise controls have been enhanced in targeted industries, being Spirits and Fuel. The plan is to enhance controls in other industries in particular Beer and Tobacco by September 2005
70%To conduct effective excise control actions
Interventions programme implemented, however achievement of programme limited due to lack of skills and resources.
65%To implement an audit programme
Comment:% Achieved
KPA:
Enforcement Report Card
Big E shifting – NEU- SCU- Enforcement split into 60/40
100%To develop a strategy to enforce the law amongst those that are actively non-compliant
Completed and implemented 100%To develop a strategy for control and deterrence
Completed 100%To develop a comprehensive Risk analysis
16% increase from the previous year’s tax base coverage.
100%To develop and publish a Compliance Plan for 2005/06
Exceeded the annual targets in prosecutions100%To conduct Criminal investigation:
Rolling out new debt management process
50%To effectively manage Debt
Comment:% Achieved
KPA:
Enforcement Report Card
Exceeded previous year collections by R 4.1 billion
130%To ensure enforcement Revenue collection
A National Audit programme has been introduced,
100%To implement an audit programme
6,000 individuals selected for audit on the travel allowance claims.(18% non-compliance rate)
Numerous accountants have been identified that colluded
To carry-out visible compliance actions
Comment:% Achieved
KPA:
LBC Report Card
100%To finalise a compliance and service strategy for large business organisations
7 out of 8 segments have been activated as planned
100%Implement industry segments
This is part of the LBC value proposition. Currently developing risk model to facilitate the audit risk strategy document
Planned for 2005/6
Develop and implement audit strategy for corporates
Feedback received from tax payers is reasonable
80%Improvement in service to corporates
100%Revenue collection
Most payments are done via EFTManage payment process efficiently
Comment:% Achieved
KPA:
Service Report Card
100%To create and maintain a clear SARS CRM strategy
Customer insight- Only done for SMMEsSegment management- Done by enforcementOfferings management- OngoingChannel management- Call centres and e-channelsInteraction management- Ongoingcampaign management- OngoingBrand management- done by communications
60%To implement SARS CRM strategy
OngoingTo ensure effective Taxpayer education
Draft taxpayer is in place and published, needs to be marketed and be in a final form as a public document
90%To create and maintain a Taxpayer charter to meet citizen's needs to ensure effective service complaints and queries process
To ensure effective compliance with the Dispute Resolution process
Only research work has been done thus far5%To simplify administrative requirements for small business
Comment:% Achieved
KPA:
Service Report Card
Completed
Completed
Completed
Completed
Completed
100% New / expanded Branch OfficesGauteng (2004)
Pretoria East : revenue office (March, 2004) Johannesburg, in Carlton Centre. Revenue and Customs Branch Office (April 2004 June 2004)Enforcement Centre in Megawatt Park (August 2004 onwards)Randburg : Revenue branch office (August 2004)Soweto : expanded Revenue office . (August 2004)
Comment:% Achieved
KPA:
Service Report Card
Completed
cash hall only
100%
Work in progressWork in progress
Partially complete
Work in progressWork in progress
New / expanded Branch OfficesWestern Cape (2004)
Stellenbosch Revenue and Excise Branch OfficeCape Flats Revenue Branch Office
Cape Town International Airport Customs Branch Office Upington Revenue and Customs Branch Office
Vredendal Revenue and Excise Branch Office Saldanha Customs Branch Office
Comment:% Achieved
KPA:
Assessment and Service Report Card
Assessments raised to the nett value of R8,686 billion rand in contribution of the targetPiloting an improved assessment process that would increase cycle time and reduce handovers by PIMS.Effectively manage debt equalisation of 680 031cases (R1.58 billion).
103%Target achieved at R345 billion
Target adjusted upwards
Comment:% Achieved
KPA:Revenue
Assessment and Service Report Card
Mainly due to the successful filing campaignGrowth in economy and visual presence of SARS
9%
7%9%
PRODUCT TARGETIT 6%
VAT 4%PAYE 3%
Comment:% AchievedKPA:Increased registration
Assessment and Service Report Card
265 000 registrations 650 747 returnsR20.7 billion (Nett value)
Registrations 41%Returns 227%Payments 310%
Actively marketed E-Filing and increased subscription
10767 finalized payments415 un-finalised payments
Dealt with refer to drawer cheques in the process
2,596 million payments
Processed payments in the form of cash and cheques
Comment:AchievedKPA:Actively manage payments
Assessment and Service Report Card
Non achievement can be attributed to taxpayer and practitioner as well as SARS errors.IT includes additional assessments raised by auditors.
IT 7,7% VAT 3,6%PAYE 5,9%
Reduce revised assessments to 5% of assessments raised.
Matching complexity of assessments with higher skillsImproved cycle time during non peak periodCycle time not achieved during peak period
Applied streaming principle in all assessment areas
Comment:AchievedKPA:Improve quality of assessments
Assessment and Service Report Card
R17,037,793.06 interest paid on 1232 casesThere is currently a specific focus to remain within the 21 day turn around time. Refocus on risk rather than refund itself in 2005/6Improved case selection methodology
89.5%Interest paid on delayed VAT refunds:Target to complete 90% of refunds within the time limit of 21 days
Comment:AchievedKPA:Adequate refund management
Assessment and Service Report Card
Reduction of 24,354 (32%) compared to previous years
96% of all objections received
2004/5 Received 50,563
Comment:AchievedKPA:Effective management of objections
Assessment and Service Report Card
Reduction in the number of handovers of documents between front and back office
Evaluation completedSiebel licenses procuredFront office functionalities redefinedImplemented in KZN and WC
Project to align front and back office to ensure first time resolution
Excludes internally generated documents all of which had to be filed into foldersMailrooms are cleared daily, except in peak periods where a 24 hour turn around time is required.
15.6 mil documentsDocuments processed via mailrooms
Comment:AchievedKPA:Effective document management
Risk Management Report Card
In 2005/2006 the focus will be on the development and capacity building in respect of the Ethics Office (the latter comprises Internal Corruption Investigations and Integrity)
100%To establish the ethics office to promote high levels of employee integrity
20% of all SARS offices were audited (security) and, iro safety, 100% people compliance was achieved. The structure of the Division did not support the vision or the KPA. The structure was changed to address SARS’ unique security and safety needs.
60%To ensure the physical safety and security of all SARS people and assets
Comment:% Achieved
KPA:
Risk Management Report Card
The technology partner has been chosen The request for information for the business partner has been evaluated. (This is a three year project)
10%Develop Risk Assessment Model
The sectoral framework still needs to be developed. This is hampered by the skills level that still need to be developed within this area.
20%Categorising & prioritizing sectors and segments
This is an ongoing process as per business requirements.
80%Contribute to revenue collection through identifying high risk cases for investigation
The model has been developed, but still needs to be operationalised.
60%Develop Macro economic model
This is an ongoing process as per business requirements.
90%Conduct client profiles within specific industries /sectors
This is an ongoing process as per business requirements.
80%Develop data mining capability and risk profiling tools
Comment:% Achieved
KPA:
Internal Audit Report Card
N/A100%Follow a risk-based audit planning process that considers the entire Internal Audit scope
Automation of audit working papers implemented January 2005.
70%Achieve operational efficiency
Fully developed and in process of implementation.
75%Develop and implement reporting discipline and quality control processes
Large number of resignations; management team appointed November 2004. Improved monitoring of projects in new year with specific focus on quality.
65%Successfully execute the annual audit plan
Continuous focus in new year.90%Facilitate a positive relationship between Internal Audit and Commissioner, the Audit Committee and the core divisions in
SARSSARS management and the Auditor General
New management team appointed November 2004; subsequent resignations. Continuous change management process.
70%Restore leadership and staff morale
Comment:% Achieved
KPA:
Communications Report Card
100%
To position SARS as an agency that provides efficient service and effective enforcementProactively convey the SARS policies, programmes, events and campaigns to the public through various media.
100%100%100%
To interact with and participate in government communications initiatives.Level of interaction with GCISLevel of participation on GCIS intiativesLevel of participation on National Treasury initiatives
Communications strategy to be signed off
95%
To develop and maintain an aligned Corporate Communications strategy and campaign strategies for key internal and external marketing campaigns.Develop Communications and specific campaign strategies
Comment:% Achieved
KPA:
Communications Report Card
Measurement of internal customer perceptions still to be done
90%To ensure best value from Communications staff, channels and suppliers.Policies and measures in place to manage effective use of internal and external communications channels
100%
100%
To be measured
To monitor and address quality of media coverageMeasure and monitor quantity and quality of coverageProactively influence quality of media coverageAddress inaccurate reporting and unfairly negative representation of SARS work
Comment:% Achieved
KPA:
Human Resource Report Card
Active steps are being taken to continue to pursue HR strategy in 05-06 plan
80%To develop, implement and maintain an integrated, progressive, innovative Human Resources strategy
Enhancement and further roll-out of EE strategy, Performance Management and Skills Development to take place in 05-06 plan
80%To build and maintain a high performance, diverse, learning organization
Continue to refine policies and practices to ensure full compliance
90%To ensure compliance with spirit and letter of labour legislation
The new HR structure positioned to improve efficiency of HR delivery. HR management information systems to be enhanced and HR processes to be streamlined to improve turn-around times
70%To increase efficiency of HR function to provide a high quality service to all areas of business and to all staff
Strengthening of Wellness Programme.Dedicated resources to manage employee campaigns wrt gender, diversity, EE, etc.
90%To build productive relationships with and show caring for employees
Intensification of activities to further enhance relationships
80%To ensure high quality relationships with ALL stakeholders – unions, staff and management
Comment:% Achieved
KPA:
Law Administration Report Card
Reportable arrangements legislation came into effect on 1 March 2005 and measures to counteract abuse in the area of hybrid financial instruments were included in RLAB
100%To undertake analysis and research to counteract tax avoidance
Litigation – Taxes, 140 cases finalised- Customs, 208 cases finalised
ADR – 200 cases processed
100%Provide taxpayers and business with a fair and efficient dispute resolution process
Guides, brochures, interpretation and practice notes.Rulings finalised within timeframes set
100%To ensure uniform and correct interpretation of the tax laws
DTAs negotiated – 6VAT Agreements negotiated – 2Customs Agreements negotiated - 4
100%Maintain and develop a tax and customs treaty framework
Legislation as highlighted on previous slide100%To draft clear and precise tax and customs legislation
Includes Budget Proposals, projects underway (i.e. Customs Rewrite) and research relating to the SARS Administration Model
100%To conduct research and advise on tax and customs policy
Comment:% Achieved
KPA:
TPD Report Card
The implementation of the systems to deliver on this strategy is underway
100%To develop, implement and maintain a technology strategy
Tools procured. Architecture developed. People in place.
100%To develop, implement and maintain a process strategy
Siebel and ODSARS still need to be stabilised. Other systems are very stable
OngoingTo deliver stable Information Communication Technology services
OngoingTo design and monitor the SARS Business Processes
The EPMO is in place, and has been handed over to the Transformation Division
100%To set-up an enterprise wide Project Management Office ensuring effective delivery of ALL projects
Examples of such Innovation are: Debt Management, the IT return process, Executive Mobility and the additional e-Filing services
OngoingTo develop Innovative Business solutions across both ICT and Process Engineering to improve ALL areas of Business operations
Comment:% Achieved
KPA:
Corporate Relations Report Card
Strategy has been finalised100%To develop and maintain a CR strategy
One post to be filled95% of positions filled
To set-up the CR Unit
2005/6 planning process complete100%Develop a programme to implement the strategy
Comment:% Achieved
KPA:
Finance Report Card
awaiting National Bargaining Forum final acknowledgement
on track
on track
100%
100%
100%
on track
100%95%
To develop implement and maintain Financial management / governance according to best practice
Develop:Progressive development of analytical reporting enhancements to the management accounts Progressive decentralisation of transaction processing for own accounts Implement process of continuous improvement within Own AccountsDevelopment of Revenue Forecasting and Analysis proof of conceptObtained SAICA accreditation as an Approved Training Partner for TOPPGRAP Migration capability ( analysis of core tax applications and development of design principles) Complete rewrite of Own Accounting (all) and Administered Accounting (Payment administration) policies and proceduresSAP Roles aligned to responsibilities
Comment:% AchievedKPA:
Finance Report Card
6% over YTD target of 81% within Own Accounting
100%
100%
100%
100%
100%
100%
on track
100%100%
on track
To develop implement and maintain Financial management / governance according to best practice
Implement:SAP financial accounting in April 2004 – own accountsSAP budgeting/forecasting in June 2004 – own accounts, with improved forecasting capability.Real-time cash analysis tool for Business for Year-End collections reportingTraining of end users on SAP, financial policies & procedures, and customs accountingUnqualified audit opinions in respect of both own accounts and administered revenue @ 31 March 2004All statutory reporting requirements and deadlines were metImplementation of a fixed assets management plan
Maintain:Stable system support environment established in terms of best practice (Gartner norms)- 100%Ongoing financial governance compliance – 100%Business benefits realisation for process efficiencies with SAP
Comment:% AchievedKPA:
Finance Report Card
awaiting governance authorisationimplementation manual finalisation dependant on policy approval
100%
90%
90%
100%
Developing and maintaining of a sound Procurement management strategy and systemElectronic procurement ( SAP) implemented in April 2004.Policies and procedures have been updated for supply chain management principles and await finalisation.Strategic sourcing is being implemented.Updated BEE policy implemented in May 2004 (42.7% BEE spend @ Feb 2005).
on trackDevelop a cost-saving and “value-for-money”plan
War on waste project established in September 2004Focus on quick winsEliminate inefficienciesDevelop analytical models
Comment:% AchievedKPA:
30
SIYAKHA TRANSFORMATION PROGRAM – REPORT CARD
SIYAKHA
In evaluating the details of what has been done to date, the various transformational elements are evaluated in line with the structure below.
Siyakha 1 –What has been done?
People•People placement•Training
Technology
Infrastructure
Enablers•Change and communications•Business preparation
Process•Process design•Content management•Training material development
Each of the elements indicated will be discussed in more detail in the slides to follow.
Process implementation
Siyakha 1 –What has been done?
People•People placement•Training
Technology
Infrastructure
Enablers•Change and communications•Business preparation
Process•Process design•Content management•Training material development
KZN AND WC PROCESS IMPLEMENTATION
The Siyakha programme in its efforts to move SARS towards being a process driven organisation was able to map and introduce 26 new FMO processes for the KZN implementation on 1 October 2001.
The Siyakha WC Implementation programme saw the Siyakha team implement 405 new and updated processes for the 19 KZN business areas in an effort to address the lesson learnt during the KZN implementation. The adjusted process thinking saw the business process team move the Siyakha process thinking towards including new concepts such as the empowered branch office, new call centre processes and a greater degree of process integration between front and back offices.
The defining hallmark of the WC process implementation was the quantum leap in process implementation maturity which was evident through the introduction of the Rational Unified Process tool set and the application of the UML modelling language. A greater degree of process version control, standardisation and ultimately compliance was achieved as a result.
KNOWLEDGE MANAGEMENT AND TRAINING
The Siyakha team currently has 3 dedicated staff members in the Knowledge Management team.
The knowledge management team has also been able to develop 405 policies and procedures for the 19 SARS FMO business areas. These policies and procedures are currently published on the SARS FMO blueprint site and are available to all SARS employees.
In the last 6 months, the process, content and training teams have been engaged in merging the policies and procedures, processes and training manuals into a user friendly guide for SARS staff members.
Since September 2001, the Siyakha team has within the context of its training methodology been able to train 2463 staff member from the KZN, WC and Gauteng regions.
The Siyakha programme created the SARS knowledge management capability as it exists today. Some of the key Siyakha specific activities have been as follows.
PEOPLE PLACEMENT
Siyakha 1 –What has been done?
People•People placement•Training
Technology
Infrastructure
Enablers•Change and communications•Business preparation
Process•Process design•Content management•Training material development
SIYAKHA PEOPLE PLACEMENTS
The Siyakha People’s team has been able to place 3117 staff members in terms of Type 1 appointments and Type 2 Absorptions as outlined in the Siyakha protocol.
Of the total Siyakha placements, 1134 have been placed in the KZN region, while 1290 have been placed in the WC region and another 693 have already been placed in the Gauteng region.
Based on information sourced from the People Soft systems, the Siyakha still has to place another 5875 staff members.
Of the total Siyakha placements outstanding, 837 are from the EC, 610 are from the FS and 4428 are still outstanding for the remainder of the Gauteng region.
Siyakha has managed to improve the demographic representation in terms of the Siyakha protocol for the WC, Customs and KZN regions. Work is in progress in the Gauteng, FS and EC regions.
Technology implementation
Siyakha 1 –What has been done?
People•People placement•Training
Technology
Infrastructure
Enablers•Change and communications•Business preparation
Process•Process design•Content management•Training material development
Technology Implementation
First generation Core System User Profiles were developed for KZN in line with the FMO model in use at the time.Second generation Core System User Profiles were developed for WC taking into account the KZN lessons learnt and concept of an empowered service area.User profiles were rolled out to the Pretoria East BO, Pretoria CBD BO and JHB CBD BO.
The Siyakha technology work stream has been instrumental in achieving the following.
Infrastructure implementation
Siyakha 1 –What has been done?
People•People placement•Training
Technology
Infrastructure
Enablers•Change and communications•Business preparation
Process•Process design•Content management•Training material development
INFRASTRUCTURE ROLLOUT The Siyakha programme’s infrastructure work stream has been able to rollout 30 infrastructure projects over the last 4 years, with 4 projects currently in progress in conjunction with the Facilities Management Division.
1. KZN AC
2. KZN EC
4. Durban BO
7. Mt. Edgecombe BO
6. Pinetown BO
5. PMB BO
3. Durban Customs BO
1. WC AC
2. WC EC
5. Bellville BO
11. PSU BO (Plein street)
7. CIA Terminal building BO
4. CPT Customs BO
6. Interim CTN BO
8. New CPT BO (17 LL Street)
9. Beaufort West BO
10. George BO
12. Paarl BO (incl. Excise)
13. Worcester BO (incl. Excise)
3. WC Call Centre
1. PTA East BO (Ashlea Gardens)
4. JHB Customs BO (Carlton Centre)
7. JHB Revenue BO (Carlton Centre)
2. PTA CBD BO (Schoeman Str)
3. PTA IMO (Mail Centre,IH and CU)
6. JHB Revenue BO (Rissik Str.)
8. Megawatt Park Infrastructure
5. JHB IMO
KZN (9 completed projects)
Western Cape (13 completed projects)
Gauteng (8 completed projects)(4 Pending projects)
8. Space planning assistance has been provided on Albany House
9. KZN Internal helpline
9. Gauteng North Campus10. Gauteng South campus11. Soweto BO12. Witbank BO13. Randburg BO
Pending projects
Implementation Enablers
Siyakha 1 –What has been done?
People•People placement•Training
Technology
Infrastructure
Enablers•Change and communications•Business preparation
Process•Process design•Content management•Training material development
CHANGE AND COMMUNICATIONS ACTIVITIES
The Change capability much like many other capabilities within the Siyakha team was also relatively obscure at the onset of the Siyakha programme and has grown to the point that it is now starting to develop into a mature capability offering services not only to Siyakha, but also many other divisions and projects.
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