Interfront Annual Report 2022

PART A: GENERAL INFORMATION 12 3.OVERVIEW BY THE MANAGING DIRECTOR ” “ Our performance report demonstrates our staff’s ability to remain resilient in the face of these significant challenges, and our strategic outcome-orientated goals that encompass our commitment to our customers were met despite adverse conditions. In a year that continued to be affected by the global pandemic and strict lockdown limitations, Interfront was faced with the associated challenge of increased staff losses as a result of the increased demand for Information Technology (IT) human resources worldwide. At the same time, the limitations on global work opportunities decreased as remote working has become the norm for many companies around the world. Our performance report demonstrates our staff’s ability to remain resilient in the face of these significant challenges, and our strategic outcome-orientated goals that encompass our commitment to our customers were met despite adverse conditions.  Operationally, Interfront continued to enhance and support its Interfront Customs and Border Management Solutions (iCBS) at both of our customers. The Registration, Licensing and Accreditation (RLA) project, in which Interfront played an integral role, received special recognition at the South African Revenue Service (SARS) internal awards ceremony. 3.1 Financial Overview Interfront ended the financial year within our approved budget and in line with the amended break-even model that became effective in April 2020. The revised model complies with the inherent principles of a Schedule 3A public entity and is intended to enable the entity to maintain a cash break-even position. The accounting deficit is due to non-cash-related items, such as the amortisation of intellectual property (IP) invested when the company was founded. Interfront remains committed to the cost containment measures introduced by National Treasury and the increases in administrative expenditure, excluding IT expenses, have been capped below inflation over the last few years. Details on the year-on-year variances can be found in Part E: Financial Information . 3.2 New or Proposed Key Activities Through its shareholder SARS, Interfront was presented with an opportunity to acquire personnel with the skills and capabilities of the company responsible for providing support, maintenance, and enhancements to the front- end of the SARS eFiling and MobiApp solutions. This opportunity arose towards the end of the 2021/2022 financial year. By acquiring the new personnel, Interfront strengthened its skills and capabilities, enabling it to support SARS in realising its Vision 2024. With the acquisition of the Tax domain, Interfront gained expertise and competencies regarding the development, maintenance, and support of SARS’ critical eFiling and MobiApp systems, thereby enhancing Interfront’s value proposition and enabling it to expand its scope from a purely customs solution focus to include the additional strategic platform of taxation. . RVIEW BY THE MAN GING DIRECTOR