Interfront Annual Report 2022

PART B: PERFORMANCE REPORT 25 1. REPORT OF THE AGSA: PREDETERMINED OBJECTIVES The AGSA performs the necessary audit procedures on the performance information to provide reasonable assurance in the form of an audit conclusion. The audit conclusion on the performance against predetermined objectives is included in the Report to Management. Material findings are reported under the Predetermined Objectives heading in the Report on other legal and regulatory requirements section of the auditor’s report. The Report of the AGSA is included in Part E: Financial Information . 2. OVERVIEW Interfront was established in 2010 with a focus on being a development partner for SARS, in the pursuit of modernising its customs systems. The strategic drivers for the 2021/2022 financial year remained unchanged from the previous reporting periods and focused on Interfront’s delivery to SARS, the support and maintenance of its systems in operation in both SARS and ADA, the human capital targets, and effective resource management under the objective of Maintaining a Software Development Centre of Excellence. However, Interfront’s offering to SARS was expanded at the beginning of the 2022/2023 financial year, with the incorporation of the Tax team responsible for the support, maintenance and enhancement of the SARS eFiling and MobiApp solutions. The incorporation necessitated the review and addendum to the SARS/Interfront MSA to provide for these additional services. 3. SITUATIONAL ANALYSIS Interfront concentrated its operational efforts during the year under review on Customs Work Orders (WO), and supporting both the SARS and ADA systems. Due to the scarcity of IT resources in the global market, the human capital targets remained a challenge, resulting in Interfront only partially achieving two of its three human capital targets. 3.1 Service Delivery Environment For the 2021/2022 financial year, both operational targets were achieved, namely, the development of an iCBS to support SARS projects, and providing effective software support services to SARS and ADA. Interfront has provided SARS with first- and second-line support outside of its contractual scope as a value-added initiative. However, as reliance on this service has increased, Interfront collaborated with SARS on including these services as part of the support scope. The slow finalisation of Business Requirement Specifications proved to be a challenge for planning and the timely delivery of projects. Even though the SARS/ Interfront break-even operating model and associated MSA is in its second year of operation, some growing pains remain in its implementation that required adaptation in ways of working. Particularly relevant was the question of how to treat pre-sales, value-added services, general support, and consulting efforts. A proposal was made calling for the creation of SARS Work Orders for some of