The National Revenue Authority’s 2014 PTT FIRST HALF UPDATES

By

Dr. Philip KargboMRP, NRA

Presentation Outline

• Progress Report on the PTT• Progress Report on the Managerial Matrix• Progress Report on the Project Tracker

Improved Tax Compliance and Trade Facilitation Outcome Target for

2014 Q1 Target Q1 Actual Q2

TargetQ2 Actual

Large taxpayers filing tax returns/paying on time

90% 87% 91.0% 88% 63.1%

Medium taxpayers filing tax returns/paying on time

75% 73% 64.2% 73% 43.0%

Additional 33% of Large taxpayers to be audited in 2013

33% 36% 38% 44% 42%

Improved Tax Compliance and Trade Facilitation Outcome Target for

2014 Q1 Target Q1 Actual Q2 Target Q2 Actual

Reduce stock of arrears (excluding parastatals)

Reduced by 90% Ascertained stock of arrears for 2013

Total 2013 arrears to the tune of Le10.2 billion established

Reduced arrears Established arrears reduced by Le3.2 billion in Q2

Average clearance time and technical controls for low-risk importers

One day Reduced to an average of one (1) day.

Reduce to within one day. Reduced to one (1) day.

Reduced to less than a day.

Number of declarations cleared through the green lane

31% Live implementation of the Gold Card Scheme

Pilot phase has ended. The CED has in Q1 achieved as high 43.25% of declarations going through the green lane.

30% Full Implementation of the Gold Card Scheme has been put on hold due to the need to develop the criteria better as has been advised by our risk management and Customs experts. However, the CED has achieved 43.94% of declarations going through the green lane

Number of audits on imports conducted.

180 45 34 audits were completed before the Joint audit between CED and DTD.

9025 joint audits ongoing, but none completed.

Revenue Measures to Support Agenda for ProsperityOutcome Target for

2014 Q1 Target Q1 Actual Q2 Target Q2 Actual

Securitised GST receipt implemented

Full implementation of GST securitised receipt books commenced.

Introduction of GST securitised receipt books commenced.

Implementation ongoing. Receipts are now being used by taxpayers

Full implementation of GST securitised receipt books commenced.

Implementation is on-going. As at end of Q2, …taxpayers are using the books

Small and Micro Enterprises (SME) taxation implemented (taxing the informal sector); at least 500 of such taxpayers in Freetown assessed

500 taxpayers assessed

Standard assessment data base established and implementation commenced with assessing 100 taxpayers

Have done 413 assessments

250 taxpayers assessed

575 SMEs were assessed in Q2

Extractive Industry Revenue Unit established`

Extractive Industry Revenue Unit (EIRU) in full operation

Administrative process completed

Office space has been completed with temporal internal staff. Recently recruited one manager.

Training and capacity building commenced

Also conducted Interviews for Interim head of the EIRU and an Audit Manager. Long Term Expert will soon be recruited to help advise on setting up the Unit. The AfDB have already signed the funding agreement with MoFED. Disbursement is pending in Q3.

Improved Public Confidence and Trust in the Authority

Outcome Target for 2014

Q1 Target Q1 Actual Q2 Target Q2 Actual

Implement a customer service charter

Charter implemented

Final draft endorsed by the Board. Sensitization commenced.

Management has endorsed it and State House has already printed some copies

Service Charter displayed at various NRA collection points country wide.

 

Taxpayers call centres established

Fully operational Call centre equipment installed

ICT to send list of equipment to CG for approval of budget; following redrafting of the proposal with inputs from ICT Adviser.

Staff trained and capacitated

The management arrangements are agreed; and the technical and functional requirements developed.

Collaboration and information sharing with key stakeholders improved

Outcome Target for 2014

Q1 Target Q1 Actual Q2 Target Q2 Actual

Additional MOU signed with Key stakeholders

Four MOUs with key stakeholders signed

At least one key stakeholder identified and signed

Engaged in the process of identifying stakeholders worthy of collaboration and with whom we can sign MOUs. These stakeholders were identified.

At least one key stakeholder identified and signed

The NRA has drafted four (4) MOUs with the ACC, SLP, ABC Secretariat and FBC.

Weekly cash management meeting with MoFED and other stakeholders strengthened

Weekly update of revenues collected

Staff prepare weekly update of revenue collection.

Prepared and disseminated to Cash Management Committee (CMC) stakeholders.

Effective engagement of stakeholders on revenue forcasting

We have engaged the tax Policy Unit of MoFED and other stakeholder such as PU and NMA with regards to revenue forecasting and revenue modeling.

Bi-annual revenue performance report to parliament submitted

submit half yearly revenue report of 2014 to Parliament

Submit 2nd half of 2013 revenue performance report

Submitted    

Curriculum in taxation developed in academic institutions

Develop a taxation curriculum for the Universities

Signed MOU with universities and the Ministry of Education. Identify tax expert for the development of a tax curriculum

Contact has been established at FBC, IPAM and NU

Draft curriculum developed.

A curriculum has already been developed but awaits approval from the University Curriculum Committee which usually meets prior to the start of the academic year.

Automation and integration of tax administration systems enhanced

Outcome Target for 2014

Q1 Target Q1 Actual Q2 Target Q2 Actual

Framework for electronic record management system for domestic taxes established.

Full operation of the system commenced

Identify electronic record management requirements for efficiency and procurement commenced

ICT Adviser currently putting together a document to define the framework. Focus will be on internal digital archiving and document management.

Installed soft and hardwares for electronic record management

The framework and system requirement for the record management system have been established.

ICT Security and Standards Policies implemented to achieve ISO standards

ICT Security and standard Policy evaluated against ISO standards

Submission of policy to NRA Board for approval

Has been approved by management but it is yet to be approved by the board

Training and implementation commenced

ICT department to present the policy at the next Board Meeting

NTR processes and procedures automated

Full implementation at NTR head office

NTR business process requirement established

Currently on the process of signing the agreement with GIZ for the automation of NTR mines revenue (mining secctor)

Software aquisition

Contract signed, work plan developed and software procured.

Highly skilled, competent and motivated workforce achieved

Outcome Target for 2014

Q1 Target Q1 Actual Q2 Target

Q2 Actual

Regular training of all staff based on skill needs identified

Commencement of training s based on skills audit exercise.

Undertake skills audit to ascertain skills gap

MRP and AHRM Currently doing a concept paper to undertake the task. However, departmental training needs list has been compiled and being currently followed.

Develop training needs analysis

Data is being collated for analysis.

Resource training unit strengthened

Complete a needs assessment, procurement and deployment of the resources

Identify additional resource requirement

Draft has been done but awaiting budgetary allocation

Procurement processs commenced

The requirements are already in the approved Annual Procurement Plan; and a requisition has been put to the procurement unit.

Specialized training on EITI in line with the proposed EIRA

Conduct training based on a relevant training assessment and resource persons

Identify training modules, staff and the resource persons

MoFED together with RDF currently doing training on Online Mining sector Repository. Detailed training contingent on commencement of AFDB Funded Project on EIRU.

Training commenced

The NRA is meeting the donor partner on the EIRU (AfDB) to facilitate the release of the first tranche of funding to provide training for the Unit. Also, we have engaged a Senior Lecturer at FBC to identify training needs for staff in the Unit.

Policy Reform Measures ImprovedOutcome Target for

2014 Q1 Target Q1 Actual Q2 Target Q2 Actual

Revenue Administration Act finalised

Finalise the RAB and submit to MoFED

Finalise Act Final Bill has been submitted to the Ministry of Finance

Submit to MoFED Submitted

Re-write the Income Tax Act 2000, GST Act and Customs Act in line with the Revenue Administration Act.

Draft re-written Income Tax , GST and Customs Acts done.

Commence review Put on hold subject to parliamentary ratification of RAA. However, IMF has been engaged, and have asked for a formal request from the Authority.

First draft developed Put on hold subject to parliamentary ratification of RAA. However, IMF has been engaged, and have asked for a formal request from the Authority.

National Revenue Authority Act reviewed

Review and do an initial draft of the NRA Act 2002.

Identify the consultant. CG has approached an adviser at State House to help in this.

Secure funding and procure the service

Awaiting adviser's response or comments from State House

Our Management Strategies in meeting our Outcomes (Managerial Performance Matrix)

Finance and StewardshipService DeliveryNon-FinanceDynamic and Quality/Cross CuttingCorruption Eradication

Finance and StewardshipPerformance Criteria

Current Year Status 2013 2014 Target Progress to date

Revenue Generation NRA Indicative collection in 2013 to be Le2.103 trillion.

Le2.468 trillion to be collected in 2014

Le1,084 trillion collected onto June, 2014 and subject to reconciliation

with AGD (reconciliation still pending for June)

Compliance with set Budgetary levels

70% 99.6% 49%

Cost reduction/Savings Le1.8 billion Le2 billion Le229 million

Finance and StewardshipPerformance Criteria

Current Year Status 2013 2014 Target Progress to date

Appropriation in Aid Le4.4 billion Le9.8 billion € 149,155

Utilization of allocated funds (projects)

90.2% 98% 68%

Development Index (DExp/RE)

54% 36.2% 4%

Service DeliveryPerformance Criteria

Current Year Status 2013

2014 Target Progress to date

Development and implementation of Service Delivery Charter

60% 80% 40%

Citizen/Customer Satisfaction 55% 75% 50%

Service DeliveryPerformance Criteria

Current Year Status 2013

2014 Target Progress to date

Service Delivery Innovations

5 6 2

Resolution of public complaints

68% 75% 30%

Non-Finance

Performance Criteria Current Year Status 2013

Target 2014 Progress to date

Development and compliance with strategic plan

70% 80% 50%

Disposal of idle assets 60% 70% 40%

Non-FinancePerformance Criteria

Current Year Status 2013

Target 2014 Progress to date

Statutory obligations 72% 75% 38%

Automation (ICT) 70% 75% 60%

Competency Development 60% 65% 45%

Dynamic and Quality/Cross CuttingPerformance Criteria

Current Year Status 2013 2014 Target Progress to date

Work Environment 62% 70% 40%

Employee Satisfaction 50% 60% 45%

Repairs 35% 40% 20%

Dynamic and Quality/Cross CuttingPerformance Criteria

Current Year Status 2013

2014 Target Progress to date

Maintenance 38% 55% 30%

Safety Measures 35% 40% 20%

Sexual Harassment 0% 0% 0%

Research and Development 68% 70% 45%

Corruption EradicationPerformance Criteria Current Year

Status 20132014 Target Progress to date

Corruption Eradication 48% 60% 30%

Project Trackers

• We are targeting 9 projects to be implemented before the end of 2014.

• Some projects not implemented in 2013 have been brought in 2014

• Most of these projects will be entirely funded by the NRA; with the exception of only two to be funded by donors including DFID and GIZ

Project TrackerProject Description Programme Status Ratings(In

Percentages)

Good Governance Workshop Consultant already informed and is ready for facilitation of this workshop. He has confirmed his availability after October

70%

Construction of Border Posts Funds committed in the 2014 budget. Designs, drawings, and bill of quantities have been done.

35%

Establishment of Debt Management Unit

Will be considered under the new DFID Phase 3 funding

Project TrackerProject Description Programme Status Ratings(In Percentages)

Rehabilitation of the acquired Koidu Building and fencing

The Bill Of Quantities (BOQ) has been prepared by the consultant.

35%

Construction of Platform for Mobile Scanner at Gbalamuya

Contact with the Chinese had been made to advise and assist with the construction of the platform. The drawings are already done and the site identified

30%

Construction of one Market Toilet We have contacted the Mayor of Freetown but there has been a delay in response. This had already been part of the Authority's approved 2014 Budget

10%

Project TrackerProject Description Programme Status Ratings(In

Percentages)

Village Adoption We have identified the village for adoption. We have further visited the village and done needs assessment. The NRA has already donated some learning materials to the village

30%

Preparation and fencing of Land for Revenue House

Procurement process for demolition of existing structures is almost complete. Now at the stage of awarding the contract. The bill of quantity for fencing process is also done.

30%

Non-Tax revenue payment system for the Extractive sector

The contract has been signed, framework developed, the funds disbursed and software procured.

50%

Conclusion• In conclusion, the NRA continues to be ambitious in our targets.

• Whilst being impressive in 2013 despite the many challenges, 2014 represents a more challenging period with respect to our performance trackers.

• In 2014, with the help of our supervisory body and monitoring institutions (including the ACC, Audit services, civil society and the media), we remain determined to eradicate corruption in the way we conduct our business, promote public confidence and trust in the NRA and perform even better than we did in 2013 with respect to our mandate and performance contract with HE the President.

Thanks!!!