The National Revenue Authoritys

2014 PTT FIRST HALF UPDATES

By

Dr. Philip Kargbo
MRP, 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
Target
Q2
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.
90 25 joint audits
ongoing, but none
completed.
Revenue Measures to Support Agenda for Prosperity
Outcome 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 Improved


Outcome 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 Stewardship
Service Delivery
Non-Finance
Dynamic and Quality/Cross Cutting
Corruption Eradication


Finance and Stewardship
Performance
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 Stewardship
Performance
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 Delivery
Performance
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 Delivery
Performance
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-Finance
Performance
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 Cutting
Performance
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 Cutting
Performance
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 Eradication
Performance Criteria Current Year
Status 2013
2014 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 Tracker
Project 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 Tracker
Project 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 Tracker
Project 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!!!