Interfront Annual Report 2022

PART A: GENERAL INFORMATION 13 The insourcing of these personnel, now known as the Interfront Tax team, secured the retention of these vital skills for SARS for the foreseeable future, without the risk normally associated with Master Services Agreements (MSAs), term appointments or public sphere supply chain management uncertainties due to National Treasury regulatory framework limitations. The goal was to ensure the stability of the eFiling and MobiApp platforms, operational continuity, and the ownership of this valuable intellectual capital. The Tax team was incorporated into Interfront on 1 April 2022. To align with Interfront’s new offerings from the 2022/2023 financial year, the incorporation of the Tax team necessitated a review of its Vision, Mission and Values. Further details can be obtained in the strategic overview from page 15. 3.3 Supply Chain Management Interfront adheres to the principles of cost containment prescribed by National Treasury and strives to be a responsible custodian of the resources under its control. To maintain our commitment to ethical behaviour and sound governance, Interfront has established a control environment that ensures supply chain management practices comply with laws and regulations, as well as being of the highest ethical standards. Trust, integrity and excellence are fundamental to our company culture, and our employees adhere to these norms. Consequently, there have been no audit findings in this environment and no unauthorised, irregular, fruitless and wasteful expenditures. Interfront does not use the unsolicited bid process.  3.4 Audit Report Matters There have been no material audit matters reported in the previous or current financial year that require attention. 3.5 Challenges In the year under review, the main challenge was the high staff losses. Staff retention remains a challenge due to the highly skilled environment we operate in and the lack of IT skills in the market. This situation was further aggravated by the worldwide increase in demand for IT services, following the onset of the pandemic, as well as budget restrictions due to the pressure on the fiscus. As a result of actions taken during the year to mitigate the risk, there was a downward trend in the staff turnover rate towards the end of the financial year. However, it is essential to monitor the effectiveness of mitigation measures over time and continue to manage the risk and find effective ways to cultivate long-term staff retention. The second challenge was the continuation of the implementation of the amended financial and operating model. This model is still in its infancy, so growing pains are inevitable. The most significant challenge in this regard for the period under review was the treatment of hours related to pre-sales and value-added services previously recouped from profits. A course of action has been identified and the working methods have been adjusted for the upcoming financial period. In the coming year, the impact and outcome will be monitored to ensure that the identified gaps have been addressed.  3.6 Events after the Reporting Period There have been no events after the reporting period that necessitated adjustments to the financial statements. The incorporation of the Tax team on 1 April 2022 is a non-adjusting event and the accounting transactions will be applicable to the new financial year. 3.7 Appreciation Please receive my sincere appreciation for the continued guidance and support provided by the Chairman of the Board and the members of the Board Committees, as well as for the support and assistance provided by the Interfront management team. Finally, I would like to express my gratitude to all of our employees who have persevered throughout the past year despite challenging circumstances.  Leilanie Janse van Rensburg Date: 31 July 2022 3. OVERVIEW BY THE MANAGING DIRECTOR (CONT.)