SIX MONTHS REPORT 2013 - Fiji Revenue & Customs Service · Internal Process 13 Employee...

SIX MONTHS REPORT 2013

FIJI ISLANDS REVENUE & CUSTOMS AUTHORITY

ContentsChief Executive Officer’s Statement 3

Organization Structure 4

Management Team 5

Purpose of the Report 4

Executive Summary 4

Key Result Areas & Objectives 4

Financial 7

Customer 10

Environment & Community 12

Internal Process 13

Employee Satisfaction 18

Innovation and Learning 20

Financial Highlights 21

The Year Ahead 2013 26

Our Vision

Our Values

To be the premier revenue collection, border management

and trade facilitation agency in the region.

LeadershipResults FocusContinuous Improvement and LearningDesign Quality and PreventionPartnership DevelopmentValuing EmployeesOne Organisation

Our MissionTo be recognized as a leading contributor to Fiji’s economic,

security and social programmes, through effectively

collecting the majority of Government revenues, carefully

protecting its border, facilitation of trade and providing

quality advice to key stakeholders.

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ORGANIZATION STRUCTURE

BOARD OF DIRECTORS

CHIEF EXECUTIVE OFFICER

GENERAL MANAGER

CUSTOMS

GENERAL MANAGER

TAXATION

NATIONAL MANAGER

REVENUE COLLECTION

GENERAL MANAGER

CORPORATE SERVICES

NATIONAL MANAGER

FINANCE

NATIONAL MANAGER

HUMAN RESOURCES

NATIONAL MANAGER POLICY, ECONOMIC

ANALYSIS & RESEARCH

NATIONAL MANAGER INFORMATION TECHNOLOGY

NATIONAL MANAGER

LEGAL SERVICES

NATIONAL MANAGER

INTERNAL ASSURANCE

NATIONAL MANAGER

BORDER CONTROL

NATIONAL MANAGER

CUSTOMS REVENUE

NATIONAL MANAGER

CUSTOMS COMPLIANCE

NATIONAL MANAGER

AUDIT & COMPLIANCE

NATIONAL MANAGER DEBT MANAGEMENT

SERVICES

BOARD SECRETARY

4 FRCA SIX MONTHS REPORT 2013

PURPOSE OF THE REPORT

The 2013 FRCA Half Year report is being prepared in compliance with Section 43 of the FRCA Act, which requires FRCA to submita report on its activities for the first half of each financial year – Half-Yearly Report. The report is to be submitted by the endof August, and shall include the information required by the Authority’s Statement of Corporate Intent to be given in the report.

EXECUTIVE SUMMARY

This report contains a summary of achievements made in relation to the broad organizational goals and objectives, linking tothe Key Result Areas and performance targets set out in the 2013-2018 Corporate Plan. It also provides brief reports on thevarious activities undertaken by the Authority. This report is aligned to the Critical Success Factors under the Balance Scorecard.FRCA’s performance targets and assessment are now based on the Balanced Scorecard which is a measurement-based strategicmanagement system which provides a method of aligning business activities to the strategy, and monitoring performance ofstrategic goals over time.

For the first six months of 2013, revenue collection stood at $829.1 million. This was above the forecast by $31.8 million or 4percent. The major components of revenue were Income Tax, Value Added Tax (VAT) and Customs collections. The total revenuecollected as at 30 June 2013 was 12% higher than that collected in the same period last year. A separate analysis on the revenue collected is provided under Critical Success Area: FInancial of the Report.

KEY RESULT AREAS & OBJECTIVES

The 2013-2018 Corporate Plan identified six Key Result Areas (KRA) for the Authority and associated organizational objectives,which are being implemented by the Authority in the respective divisional and sectional plans. They are as follows:

KRA 1: Develop a compliance risk management framework inorder to identify and treat the risks to voluntary compliance• Identification of Risk to Voluntary Compliance by:• Bench marking similar Jurisdictions (NZ / Australia)• Engaging with stakeholder Forums to maximise on

industry knowledge• Internal business process audits• Timely Treatment of the Risk identified• Develop interventions to treat the Risk• Improve awareness and information services to the• public• Develop a framework to treat risks

KRA 2: Optimise FRCA processes, systems, structures, legislation and policies to ensure they are modern and reflect best practice to support the aims of FRCAAims are to: (a) minimise FRCA costs through maximising the use of technologies; (b) support the identification andtargeting of risk; (c) minimise the cost of compliance to business; (d) minimise the opportunity for internal fraud; and (e) implement the IMF and WCO recommendations:• Modernize processes and systems and minimize cost

through technology• Integration of communication systems between

FRCA offices• Implement video conferencing• Implement a Valuation database

• Implement Data Warehousing & Data Mining• Sustainable IT Systems (Review/replacement of FITS)• Implement a unified FNPF/ID national ID Card -

Procure risk management software• Implement E-Lodgment through Tax Portal Upgrades• Implement a data warehouse• E-Processes. Through technology, taxpayers,

importers and intermediaries will interact with FRCA in areas of obtaining filing, corresponding and paying

• Queuing Machine and Manual recording system to be reviewed to capture common queries and feedback

• Introduce an Electronic Document Management System

• Identification of New Off-site and Archival Storage Area

• Automation of the Tourist VAT Refund Scheme and other initiatives

• Single Window/Customs System Upgrade. Review and assess feasibility of establishing a single window concept

• Support risk identification/ targeting• Regular updating of Risk Profile Matrix on Industries

with Issues identified• Integration of risk profiling between Taxation and

Customs

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• Risk & Disaster Management; Complete Disaster Recovery Project and Business Continuity Plan

• Minimize compliance cost• Implement PAYE As Final Tax• Implement Self-Assessment to tax processes• Improve awareness of the Customs Risk Management

Framework• Review & Update of Compliance Standard Operating

Procedures (SOP) for Tax & Customs• Minimize internal fraud

• Develop a Fraud Charter• Maximize synergies in intelligence gathering• Conduct Staff Tax Audits

• Implement IMF & WCO recommendations• Review Customs processes & structure• Maximize the synergies within FRCA• Establish quality control process to improve audit

assessments• Review of the Customs Act and SOPs• Implement a Centralized Customs inspection yard• Purchase of an x-ray machine• Implement an Authorized Economic Operator

Programme• Establish a Canine Unit• Implement SAFE Donor meeting

• Implement Quality Econometric Techniques

KRA 3: FRCA will tailor its services and assistance programmes to the changing needs and expectations of all stakeholders• Effective and enduring relationships are developed with

key stakeholders• Improve external communication program• Keeping pace with stakeholder needs and advancement

in technology• Introduce Priority Services to Encourage Compliance

• Establish Memorandum of Understanding (MOU) with Other Govt. Agencies

• Expand the scope or benefit of priority services• Customer Service Centre to Operate as a One-Stop-Shop• Improve Access to Services

• 24 hour Operation at the Wharf (Evaluate readiness to expand to all ports)

• Refurbishment and Expansion of FRCA Nadi Offices• Provide Dedicated Assistance for Targeted Stakeholders

• Establish a PAYE Dedicated Team• Review and Modernise Standard Operating Procedures• Improve Access to Information through Education &

Awareness Programs• Develop a Customer Service Charter & Taxpayer

Charter• Conduct Awareness & Training for amended and new

legislation and policies – Internal & External• Review of Public Relations techniques and materials• Expand Partnership Arrangements to Facilitate Trade,

Collection, Security• Expand Bilateral & Regional Partnership

Arrangements through MOUs and Double Tax Agreements

KRA 4: Border and community security will be continually improved• Strengthening of all Border Control functions

• Establish a Cargo Non-Intrusive System Unit• Establish central networking system with other

border agencies• Fully Implement inbound Hold Baggage Scanning

System (HBSS) for compulsory imagery of all inbound passengers and crew baggage, commencing with

Nadi International Airport• Implement SAFE Framework of Standards• Regional Integration with other customs

administrations• Implement a Process driven structure for Customs• Benefits for compliant traders to be developed• Re-write and Modernization of Customs legislation

KRA 5: FRCA’s human capabilities will meet the changing needs of the business and employee contribution and innovation will be recognized• Staff will meet the needs of the reforms including self-

assessment and RKC/Safe• Strengthen the Training framework• Enhancement of the Regional Training Centre

• Specialized technical and legal competencies will be developed for FRCA to remain abreast of the increasing complexities of the global trading of international firms who trade within Fiji

• Conduct a 360 Degree Staff Appraisal• Maximize use of e-learning for Tax and Customs• Implement a Staff Climate Survey and Survey Results• Implement Rewards & Recognition Programmes

• Formalize Policy and Programmes for Staff Recognition and Rewards.

• Work Life Balance Programmes• Implement Health & Fitness Programmes• Prepare a Gym Set Up and Implementation Plan• Implement Community Assistance Programmes

• Service Excellence Award• Map out plans to win the Prime Minister’s Award

• Improve Literacy Programmes• Build up FRCA Library Stock by June 2013• Work towards 100% membership from FRCA Nasese

Complex• Core HR policies will continue to be reviewed and

modernized to fit the changing needs of the core business - Job design and structures; industrial relations; reward and recognition; terms and conditions; performance management; hours of work; training and career development

• The structure of FRCA will separately identify FRCA Headquarters activity and branch activity with a core business “design” function included in the Headquarters function

KRA 6: FRCA will be accountable for the effective use of its resources• A performance budgeting process and measures will be

in place to measure and report on the effectiveness of each part of each core business process• Introduce timely monitoring of budget vs target• Submit Capital Expenditure Plan to the Board within

specified timeline


Balance Scorecard (BSC)

FRCA’s performance targets are based on the Balance Scorecard which is a measurement-based strategic management system that aligns business activities to Key Performance Indicators. The Scorecard concept was developed by Dr. Robert Kaplan (Harvard Business School) and David Norton and enhances conventional financialmeasuresbysettingtargetsofperformancein3keynonfinancialareasi.e.(i)ourrelationshipwithourcustomers, (ii) our internal processes and (iii) our learning and growth. Consequently, it relies on: translating our Vision so our targets are realistic; communicating and linking the Scorecard to all staff so everyone understands how their performance supports the overall strategy; planning our business so our budget supports our goals and feedback and learning.

A Working Group was established to identify FRCA’s 6 Critical Success Factors which are broad areas that the organisation must focus on to achieve its vision. Another 2 tiers below the CEO’s Scorecard are the Division and Individual Scorecards. To assess the bonus payments all staff are then evaluated on the: CEO’s Scorecard (1/3); Division Scorecard (1/3) and Individual Scorecard (1/3). The total score for each Scorecard will then be averaged toderivethefinalperformancescore.TheScorecardwasimplemented in the Authority in 2012.

This Report is aligned to the 6 Critical Success Factors under the Balance Scorecard.

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Critical Success Factor: Financial• Fiscallyresponsiblemanagement.• Strengthenriskmanagement.

FRCA has recorded solid revenue collections as at June 2013 with a massive positive variance over the forecast and 2012 actual. The $829.1m collection as at 30 June, 2013 has exceeded the:• Forecast by $31.8m (or 4.0% over the forecast); and• Actual collection by $88.6m (or 12.0% over last year same

period).

The variance over the forecast of over $31.8m has been phenomenal as such resounding performance has rarely been recorded in FRCA’s history. Cumulative collections to June in the past have never recorded a variance of such magnitude. Between 2004 and 2012, FRCA’s January to June collection has exceeded the forecast by an average of $1.9m; hence the 2013 performance was 16 times better than the average. Refer to Table 1.

The current revenue trend is following the same pattern as that of the previous years as shown in the Chart 1. Despite the tax cuts of the 2012 Budget, the revenue collections in 2012 and 2013 have remained higher than that of the 2011 levels. This is evident through the steepness of the curves, with the 2012 revenue line having the steepest slope compared to the last two years.

The revenue buoyancy as measured by relative change in economic growth and tax growth shows that for a percentage of economic growth in 2013, collections is multiplying faster than that recorded in 2012 (refer Table 2). For a 1% growth in GDP in 2013, the revenue is growing by over 4.4 percent. This rate is seen to be high as the normal expectation is that a 1.0% growth in GDP should lead to about 1.5% growth in tax. It can also be noted that consistent with the 2013 Budget Fiscal Framework, the tax revenue as a percentage of GDP is estimated to be 23.9% of GDP. The Tax to GDP ratio as at June is 10.7%.

Another important feature of the collections is the changing revenue mix. As expected, a pattern is being established where the income tax revenue will decline as a percentage of overall tax collections and this decline will be picked up in the Value Added Tax (VAT) collections. The VAT dominance as the source of most revenue continued in 2013 and it has accounted for about 40% of total tax take relative to 38% last year. This 2% is equivalent to $51.4m. This shift in collections from Income Tax to VAT has been expected owing to reduction in the income tax rate which has increased VAT revenue through increased consumption. Refer to Chart 2.

It is also noticed that there is a significant shift in thecomposition of revenue in terms of the factors of production followingthesignificanttaxpolicyreformsin2012involvingreductions in personal and corporate tax rates. It is clear that taxes on labour income today accounts for 7% as opposed to 12.8% in 2011. The shift toward consumption as earlier commented on, has also been dramatic with an increase from 32.3% to 36.2% in 2013. This also includes the imposition of other user-pay levies. It is also noted that the revenue collection from trade has also increased from 38.1% to 40.2% in 2013 signifying large imports to support greater economic

Tax Type Jan – Jun 2013 ($m)

Actuals

Jan – Jun 2013 ($m) Forecast

Variance ($m)

Jan – June 2012 ($m)

Income Tax 181.2 186.0 (4.8) 204.8

VAT 330.5 308.0 22.5 279.1

I m p o r t Duties

199.5 191.4 8.1 161.4

Others 117.9 111.8 6.0 95.1

TOTAL 829.1 797.3 31.8 740.5

Table 1: Revenue Collections (January to June 2013)

Chart 1: Cumulative Revenue Trend

2012 2013

GDP Growth 2.5 2.7

Tax Growth 9.4 12.0

Elasticity 3.8 4.4

Table 2: Revenue Elasticity

Chart 2: Comparative Tax Mix Jan-June

activity following tax cuts. Refer to Chart 3.

January to June 2013 January to June 2013

VAT, 40%

Import Duties, 24%

Income Tax, 22%

Others, 14%

VAT, 38%

Import Duties, 22%

Income Tax, 27%

Others, 13%


Drivers of Current Revenue GrowthThe current revenue growth is caused by several factors such as economic activity, sound revenue policies, compliance and the various FRCA reforms. The 2013 revenue forecast was based on:• a GDP Growth rate of 2.7 percent;• compliance collection of $70.0m• debt collection of $50.0m• 2013 revenue policy impact of $34.1m (PAYE allowances• removal gain of $11.2m, Fiscal Duty changes of $6m,

Excise Duty on Cigarettes of $7.5m, Stamp Duty changes gain of $9.4m)

The 2012 tax cuts had a wider impact on revenue collections due to its effect on consumption being felt in 2013 and perhaps to be felt in some parts of 2014 until a stabilization point is reached where a normal revenue growth rate will be seen. The current revenue growth is mainly driven by high consumption arising from the 2012 revenue policy to cut taxes. It is clear that the multiplier effect of tax cuts is boosting current revenue growth.

High ConsumptionTheexpansionaryfiscalpolicyof2012intheformoftaxcutsof up to $53.1m has led to an injection of the same amount in the household sector as increased disposable income. FRCA has estimated that the tax cut will over time lead to an economic expansion of $212.0m and the aggregate spending in the economy will increase by about $265.0m. This translates into extra VAT revenue of about $35.0m and other revenues of about the same amount. The overall tax revenues created will be about $70.0m, which will be collected over a period of time depending on consumers’ spending patterns. Currently, increaseddomesticVATandFiscaldutyhasreflectedsomeofthe multiplier effect revenue.

Improved Compliance and Debt CollectionFRCA’s overall compliance has shown signs of improvement. The level of tax arrears are decreasing year by year over the last 3 years and based on the current trend it is expected that the tax arrears will be the lowest this year when compared to last 10 years.

Improved Revenue through FRCA ReformsIt can also be highlighted that FRCA is currently going through various reforms,which has lead the operational efficienciesleading to improved collections. The current PAYE as a Final Tax system for example has led to deployment of staff towards revenue collection works which has assisted in revenue collections.

Tax on IncomeThe PAYE and Corporate taxes are the major source of the income tax revenue. Cumulative to June, it is noted that the Corporate Tax collections exceeded the forecast by $2.6m. From 2012 a new system was introduced for Corporate Tax collections to ensure 90% of taxes are accounted for in the same income year. In 2013, this rule was changed to 100%. FRCA has also noted improved compliance in the administration of new system due to high penalty regime. The PAYE revenue grew by over 1.6% than that recorded last year. The growth in PAYEreflectstherevenuegainfromtheremovalofpersonalallowances and new taxpayers being registered due to growth in the economy. On average, monthly collections have increased by $1.1mwhen compared to 2012 figures. If thistrend in collections continues then at the end of the year, we would expect PAYE to be higher than that recorded in 2012. The Capital Gains tax was over the forecast by $1.7m and is consistent with economic growth in the real estate sector. The

Social Responsibility Tax collected, as at June was $5.2m as compared to $4.7m last year.

Stamp DutyConsistent with the claims of increased consumption, stamp dutypaymentsalsoreflectgrowingactivityintherealestatesector. Property related transactions accounted for 45.4% of stamp duty collection in the month of June. This trend has been een from earlier months and correlates to the accelerated growth on commercial bank lending. Consumers are currently enjoying the attractive and low interest rates offered by banks on home loans. In addition to this, motor vehicle loan rates havealsobeenslashedwith increaseddemandreflective inbill of sale transactions. Following the review and gazettal of new rates, the Stamp Duty revenue has increased by 97.9% from $9.0m to $17.8m.

Fringe Benefit TaxOwing to improved compliance, the number of taxpayers/ employers making a FBT return has increased leading to 186.4% increase in FBT collections from $2.9m to $8.2m between2012and2013forthefirst6monthsperiod.

Tax on ConsumptionVAT, Service Turnover Tax (STT) and new levies are essentially the main consumption taxes in Fiji. VAT collections are very buoyant as explained earlier with growth close to 20.0%. The STT collected as at June was $20.9m, which was about $2.0m higher than that recorded in the same period last year. The Departure Tax revenue has exceeded the forecast by $8.0m with a collection of $43.1m as at June 2013.

Trade TaxesThe continuous rise in the consumption level has also prompted an increase in demand for imports leading to more trade tax collections. The fiscal duty collection of $138.1mhas exceeded the forecast by $8.8m and has been 20.5% over than that of 2012 for the first 6 months period. It is clearthat the demand for both the investment and consumption goods has increased. Notably, the imports of motor vehicles have been more than double the amount seen last year with a growth of 60.9%, leading to a revenue collection of $13.3m. Although appreciation of the Fiji dollar against the Japanese Yen over the last few months must have enticed more imports, it can be highlighted that such demand has been driven by increased demand for motor vehicles following easier credit termsofferedbyfinancialinstitutions.Intermsofinvestmentgoods, the importations of capital plant and machinery has increased and these have also been due to low tariff and the incentive regime offered to the manufacturing sector such as accelerateddeprecationprovisionsandzerofiscalduty.

Duty ForegoneThe total duty foregone as at 30 June totaled $154.7m, recording a decline of $68.1m or 85.9% compared to June 2012. Concessions given under Code 232 of the Customs Tariff Act consists of the current standing list of section 10 which is announced in the budget every year, concessions given for tax free region projects, trade agreements and ad-hoc requests. As of June 2013 the revenue foregone from ad-hoc concessions was $3.3m, a growth of 70.8% compared to the same period last year. Most of the goods that were granted approval for ad-hoc concessions were for machinery and mechanical appliances.

Fiscal Duty by Duty BandsCumulative to June 2013, all duty bands, recorded a growth in erms of imported value compared to the same period in 2012. The following are the observations on Fiscal duty collections:

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• The VFD on which duties were applied to grew at a rate of 23.5%; however the growth on duty collected was only2.4%.This reflects a large chunkof imports beingimported under the zero band categories.

• Duty collections from the 5%, 15% and specific bandsdeclined between 2012 and 2013.

Tax on Domestic ProductionThe excise duty on the production of cigarettes, beers, sprits and alcohols is one of the main taxes imposed on domestic production. Following the increased in the excise duties by 10%, the excise duty revenue has increased from $34.8m in 2012to$38.8min2013forthefirst6monthsperiod.

Tax on Natural ResourcesThe Water Resource Tax is one of the taxes imposed on the extraction on the underground water. The revenue collected from this tax as at June 2013 was $13.5m against $13.1m collectedlastyear.AccumulatedfishlevycollectionasatJunewas $0.2m, lower by 78.1% over last year’s level and is below the cumulative forecast by $0.4m.

Visitor Arrivals and Tourist VAT Refund Scheme (TVRS)Visitor arrivals cumulative to June increased by 1.4% against the same period last year while departures had increased by 27.0%. Cumulative to June, Departure tax collections amounted to $43.1m, higher by 17.3% than that recorded last year and were above the cumulative forecast by $0.2m. Cumulative to 30 June, total TVRS refunds processed amounted to $2.0m, higher by 33.1% than that processed in the same period last year.

Tax Arrears and CollectionTax arrears as at June 2013 totaled $89.4m, lower by 12.4% compared to that recorded in the previous month. Accumulated tax arrears as at 30 June 2013 was also lower by 29.4% compared to the comparable period last year. Cumulative tax arrears collected as at June 2013 totaled $34.0m, higher by 72.1% than that collected in the same period last year and exceeded the targeted level by $9.0m. A new initiative introduced in Debt Management in 2013 is the Current Debt Call Center, whereby two to three telephone call reminders are made to debtors before due dates, reminding them for full settlement of tax debt or engaging into time-to-pay arrangements to effectively settle their liabilities. This conceptisprovingbeneficialforFRCAinitsefforttoprevent

debt turning arrears and minimising the possibility of these debts falling into the aged debt category. This new initiative has resulted in cash collection of $11,856,066.55 from current debts which are debts not yet due falling between one to thirty days.

Outstanding VAT RefundsThe total outstanding VAT refunds as at 30 June 2013 was $58.6m. Of this balance, 13.2% is for those in the periods 1994-2009; 24.0% for 2010 to 2012; and 62.8% for 2013. Total outstanding VAT refunds at the end of June 2013 increased by 15.0% compared to that recorded in the month of May and increased by 169.6% when compared against the same period last year.

Staff CostsThe Base salary cost for 810 staff was around $19.6 million or $21.4 million including 8% FNPF and 1% FNU Levy. The majority 81.3% is paid for operations (Tax (44.1%) and Customs (37.2%) while 18.7% is for administration Corporate support functions. Unutilized annual leave liability was around 55.9% ($1.0m) out of the $1.8m liability for the year. Leave Schedules and contractual conditions for maximum 6 days carried forward annual leave will ensure a minimal carry forward liability into the following year.

Housing Bond RecoveryWith the change in the housing allowance to a cash-up arrangement in 2012, outstanding housing loan bonds with Landlords are being pursued through the Small Claims Tribunal. A total of 70 cases for recovery of $32,660 were lodged and 38 cases closed with a recovery of $16,438 .

Training Costs (Overseas and Local)Overall cost of training remained low at $31,663 as the majority of staff training are partially or fully funded and sponsored training.

The Customer Service Centre at Nasese, Suva.


Critical Success Factor: Customer• Seekexcellenceineveryaspectofourinteraction

Sigatoka and Rakiraki Offices begin OperationsThesetwoofficeswereofficiallyopenedbythePrimeMinisterand Minister for Finance, Commodore J.V. Bainimarama on the 25th of January. Stakeholders at both towns were invited to join in the celebration.

It isnotedthat thetwoofficeshadstartedoperating in thelast quarter of 2012. Now the offices have the full staffcomplement required to serve customers at these areas.

Automation of Tourist VAT Refund SchemeThe Tourist VAT Refund Scheme (TVRS) was announced by the Prime Minister and Minister for Finance as part of the 2010 Budget Policies. The scheme came into effect on 1 February, 2010 and allows tourists to claim a refund (subject to certain conditions) of VAT paid on goods purchased in Fiji and taken out of the Nadi International Airport and Suva Wharf. From July 2013, automatic payments will be made for VAT refunds to tourists under the Tourist Vat Refund Scheme. When they leave the country, the money would be deposited into their bank Accounts. This will eliminate the need to queue at the ANZ BAnk counter at the Nadi International Airport and Suva Wharf. This will also enable easier reconciliation for FRCA and will also reduce fraud cases.

For ease of administration and easier access and closer working relationships with retailers, the Customs Revenue Collection section has taken over the administration of the Tourist VAT Refund Scheme from the Research Policy & Planning Development Unit (RPPD), with effect from Friday 1st March 2013.

Learning from the Best in the WorldThe Board Chairman, Mr. Ajith Kodagoda and Chief Executive Officer,Mr. JitokoTikolevu,visited theSingaporeCustoms inFebruary 2013. They met Mr. Fong Kian, Director-General of Customs, and other senior Customs Executives. The purpose of the visit was to extensively discuss the learning’s from Singapore on how to improve the services to business houses and visitors to the country. It is a well known fact thatSingaporehasoneofthemostifnotthemostefficientCustoms Authorities in the world. The turnaround time of Customs entries and documentation relating to import and exports, is only a maximum of 10 minutes in comparison to a minimum of 48 hours in Fiji.

FRCA is looking at the possibility of introducing similar incentives to assist Business houses who use Fiji as an export hub to the region. Subject to certain guidelines, this would entitle genuine businesses to import any goods to Fiji and then use approved warehouses for transit and then re-export, without having to pay any VAT, thus encouraging the export hubconcept,andassistingwithcashflowasnofundswouldbe tied up in VAT payments. The Singapore Customs reiterated their commitment to assist us in any way possible in the reform process.

New Customs Valuation Guideline launchedTo make assessments and valuation easier, provide more efficientservicetotradersandpromotecompliance,aCustomsa valuation guideline was developed and launched by the ChiefExecutiveOfficer,Mr.JitokoTikolevuinFebruary2013.The objective of the guideline is to equip CustomsOfficerswith the knowledge and tool of analysis and assessment of Valuation risk. The guideline aims to identify and assess the risk indicators, which are those factors that can increase or lower the risk level to revenue and border protection. The guideline can also be used to highlights ‘Import trends’ which assistsineffectiveprofilingoftraders.

FRCA and Land Transport Authority (LTA) work hand in handFRCA and the LTA have strengthened their partnership by working hand in hand in providing superior services to members of the public.

This was after a workshop attended by both parties in March 2013.TheFRCACustomsofficersandLTAofficersparticipatedin this one day workshop aimed at working in collaboration to facilitate trade in the country. The workshop discussed the needforbothbodiestocollaborateinordertofulfilldemandsand come up with mitigating factors and also the fact that both Authorities have a social responsibility to the public in ensuring that imported vehicles meet the required standards.

Taxation RoadshowThe Taxation Division with the assistance of the Commissioner conducted an overall Taxation Awareness on the Draft Income Tax Decree (ITD) 2013. The presentations delivered also included discussion on the PAYE as Final Tax and the New Tax Incentives for 2013. The Taxation Awareness program began in the Western Division followed by the Central and Northern Division.

Taxation Revenue (Customer Service Centre)The Revenue Collection Section has various functions to ensure its targets are met. These include: daily deposits of all taxation receipts into the Government Consolidated funds; uploading of all Tax information in the FRCA website and conduction of taxpayer education and awareness programs. In addition, the Section also ensures that Gold Card services are delivered to Gold Class taxpayers, annual budgetary revenue measures are legislated and Standard Operating Procedures (SOP)andprocessestestedinthefirstquarterofeveryyear.Intheir attempt to enhance customer service and ensure accurate and timelyprocessingofall typesof tax returns in thefirsthalf of 2013, the Customer Service Centres processed 5117 applications for tax clearance, 19277 for TIN registrations and 44348 for lodgment.

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FRCA and Fiji National Provident Fund (FNPF) Joint Identity Card (JID)FRCA and the FNPF began issuing joint identity cards from July, 2013. The joint ID card has been primarily designed for conveniencetobenefittaxpayersandFNPFmembers.Thecardwilleasecurrentrequirementsneededformostfinancialandlegal transactions that include the demand for TIN letters and FNPF Membership cards. From July, all you need to produce is this card. An added major advantage is that the card can be issued by both organisations. The Fiji public can obtain this card from either FNPF or FRCA, instead of the current practice where we have to visit both FNPF and FRCA. FRCA will also phase out the issuing of TIN letters. FNPF will also eventually phase out its current cards and it will soon issue this card for new members.

FRCA and FNPF will have a joint database, which will only contain the information required by both parties for the issue of the identity card. FNPF has already identified 200,000memberswhoalsohavetaxidentificationnumbers.FRCAhasover 700,000 taxpayers in its database.

Simplified Export ProcessesIn order to improve our service to exporters and facilitate the timely processing of export entries, FRCA has introdcued a simplifiedexportprocedure.

From 1st of July 2013, all export entries with a total export value of FOB F$20,000 and above will no longer be required to submit an Export Licence.

Customs officers receive Fijian Host awardsFijians and international visitors travelling through Nadi International Airport experience firsthand the “Fijian Hosts”program. Supported by the eight organizations that are responsible for processing travelers at the airport, the Ministry of Tourism launched the Fijian Hosts program in September last year to award top-performing front-line staff at Nadi International Airport. Winners are selected on the basis of commentcardsfilledoutbyinternationalvisitors,andplacedin Fijian Hosts kiosks located in the airport’s secured areas.

InJuly,twohardworkingFRCACustomsofficersatNadiAirportwere awarded Fijian Hosts of the Month for their excellent customer service to arriving and departing passengers.

Rakesh Mudaliar and Mereani Naiveli were given their awards for Fijian Hosts of the Month for March and April respectively by the Permanent Secretary for Tourism, Ms Elizabeth Powell, at a presentation ceremony at Nadi International Airport.

The Fijian Hosts program is designed to raise public awareness of the importance of the role of the teams who greet and farewell our visitors at Nadi International Airport, Fiji’sgateway,andtheirsignificantcontributiontothetourismindustry.

The Prime Minister of Fiji and the CEO of FRCA cuttingthecakeontheoccassionoftheofficialopeningofthenewFRCASigatokaoffice.


Critical Success Factor: Environment and Community• Goodworkingrelationshipwithkeystakeholders

Government officials ensure National SecurityFRCAteamedupwithSeniorGovernmentofficialsandsigneda Memorandum of Understanding for the National Combined Law and Security Agencies group (NCLASA) with the ultimate objective of ensuring that all Fijians are safe and secure. The signing of the MOU will commit relevant government ministries and agencies to coordinate closely with each other to strengthen the various frameworks that looks after Fiji’s security and defence. This includes food security, border security, cyber security etc. The NCLASA MOU signed today will provide the necessary framework which will underpin sharing of information across organisational boundaries for national purposes. It will provide a paradigm shift in security circles from a “NEED TO KNOW to “NEED TO SHARE” basis.

Intelligience Awareness in the Western DivisionThe Lautoka Customs Intelligence Unit (LCIU) has organised a community awareness program in the Western Division in May 2013. The community outreach is aimed at raising awareness and educating the public on the roles of the FRCA. The program is targetted at building better relationships with our stakeholders who will in turn assist us in carrying out our duties. It is also aimed at hearing people’s views and concerns, and improve our processes if we need to. On the other hand, if members of the public understood our roles better, they can also assist FRCA curb corruption by reporting such activities.

New Zealand Customs Boosts Drug AwarenessThe abuse of illicit drugs is a global phenomenon and affects almost every country, although its characteristics and extent may differ from region to region.

A drug awareness seminar was organised by New Zealand Customs in Suva in June. The seminar was organised to improve the knowledge and skills of customs officers indetectingillegalharmfuldrugsandfulfilFRCA’sroletoprotectthecommunity.TheenvironmentinthePacificIslandcountriesis conducive to the activities of high threat transnational crime groups that are present in this region. The region is being used as a transit route between Asia and Central and South America due to the expansion of transportation links thus providing a richer schedule of transport options for drug running operations. Like most countries in the region, capacity building was a great need for FRCA and we are thankful to the assistance provided by NZ Customs. New Zealand Customs also donated drug detection kits to FRCA and the Fiji Police Force.

Green Initiatives and Paperless EnvironmentQuick wins and cost savings include use of emails to avoid hard copy paper printing for HR correspondence includes savings on postage, using the stairs instead of lifts, turning of lights when not in use and compulsory during lunch hour and process re-design to avoid re-work.

FRCACorporateOfficerMr.NacaniDreuspeakstoMalakeislanders about being vigilant in protecting the border and their children to safeguard them from illegal activities.

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Critical Success Factor: Internal Process• Completeprojectsontimeandtobudget.Wefinishwhatwestart.• Promoteacultureofgettingthingsright,thefirsttime,ontimeallthetime.

PSC Service Excellence Awards (SEA)As the sole revenue collector in the country, the Authority has no one to measure its performance against. It is therefore important that we participate in competitions such as the Service Excellence Awards organised by the Public Service Commission. Participating in the SEA assists the Authority in its effort to improve its processes and services. This year is the third year FRCA participated in the awards. The Authority is applying for a Prize level award this year.

In 2013, a Service Excellence Committee was formed, chaired by the General Manager Corporate Services and supported by the FRCA SEA champion and change champions from the three divisions. This committee is tasked with implementing and administering the Service Excellence framework in FRCA. This involves carrying out awareness and training, drafting and finalising the FRCA submission, and generally advocatefor service excellence and its principles within the authority.Employees of the organisation also attended the training for champions and evaluators.

Administration of Tourist VAT Refund SchemeFor ease of administration and easier access and closer working relationships with retailers, the Customs Revenue Collection section has taken over the administration of the Tourist VAT Refund Scheme from the Research Policy & Planning Development Unit (RPPD), with effect from Friday 01st March 2013.

FRCA Executives Relook at Future PlansTheFijiRevenueandCustomsAuthorityneedstobeefficientand consistent in its application of rules and laws. The Attorney General, Mr Aiyaz Sayed-Khaiyum who was a keynote speaker at a two day workshop for FRCA Board and Management reminded the workshop participants of the key role the authority played in the growth of Fiji’s economy. Mr Sayed-Khaiyum said it was therefore vital that FRCA employees of FRCA were aware of how businesses were run as well as have an understanding of the commercial world. The minister also emphasized the need to have quicker turnaround times in business processes giving Singapore as an example.

The workshop was aimed at reviewing strategies of the organization for the next three years. It was an opportunity for the authority to relook at its strategies, identify areas of improvement and map out strategies for today, tomorrow and the future. The workshop included addresses from the Permanent Secretary of Finance, Mr Filimone Waqabaca, Reserve Bank of Fiji Governor, Mr Barry Whiteside and Pradeep Lal of G.Lal Company. The workshop also featured a presentation from the Public Service Commission on the Service Excellence Awards.

Internal Assurance organises Risk Management workshopThe Internal Assurance team organized a Risk Management workshop in March 2013. The objective of the risk management workshop was to equip participants with practical tools to establish enterprise wide risk management framework based on acceptable standards and best practices. The

training employed hands on interactive case studies that will empower participants to develop, implement and monitor risk management frameworks for a simulated real life business environment.

FRCA chairs MSG Customs and Quarantine Sub-committee meetingProgress towards improving the implementation of the Melanesian Spearhead Group (MSG) Trade Agreement on tariffs and customs related areas was the objective the of the MSG Customs and Quarantine Sub-committee meeting held from 18th- 20th March, 2013 in Port Vila, Vanuatu.

The meeting was chaired by FRCA Chief Executive OfficerMr Jitoko Tikolevu and National Manager Customs Revenue Mr Kumar Sami Goundar. Senior Customs and Quarantine/BiosecurityOfficialsfromPapuaNewGuinea(PNG),SolomonIslands, Vanuatu and Fiji were also present at the meeting. Representatives from Secretariat of the Pacific Community(SPC) and the Pacific Horticulture and Agriculture MarketAccess (PHAMA) project attended the meeting by invitation.

Tighter Border Security ControlSecurity at the Nadi International Airport and all other entry or departure points in the country has been increased with the implementation of the Integrated Border Management System (IBMS).

Operated by the Immigration Department, the new system will see efficient movement of passengers into and out ofthe country, increased monitoring of wanted persons and the systematic adoption of documentation into one system. As the organisation responsible for the Primary Line function at ports of entry, FRCA has assisted the Department of Immigration with the implementation of the new system. FRCA primary line officershavealsoundergonetraininginusingthenewsystem.

Double Taxation Agreement with QatarFIJI now has a Double Taxation Agreement (DTA) with the Government of Qatar. The agreement was signed by the head of the Fiji Government delegation, the Permanent Secretary for Finance, Mr Filimone Waqabaca and the Qatar Director of Public Revenue and Tax Department, Mr Moftah Jassim Al-Moftah. Fiji’s Ambassador to the United Arab Emirates, Mr Ravindran Robin Nair and the Fiji Revenue and Customs Authority Chief Executive, Mr Jitoko Tikolevu were also part of the Fiji delegation. Qatar is one of the richest countries in the world and the agreement will provide an opportunity for both countries to trade.

Combating Tax EvasionFiji has further strengthened its efforts to combat organised crimes and tax evasion with the introduction of the Proceeds of Crime (Amendment) Decree (No. 61 of 2012) in September 2012. The Director of the Financial Intelligence Unit, Mr RazimBuksh said that the new “unexplained wealth” provisions enables theCourt toconfiscateanypropertyorbenefit thatis owned or controlled by a person that cannot be reasonably explained in relation to the lawful income of that person. A


person has “unexplained wealth” if the value of the person’s total wealth is greater than the value of the person’s lawfully acquired wealth. The value of the person’s total wealth is the total value of properties, including services, advantages and benefitsthattogetherconstitutetheperson’swealth.

FRCA and relevant authorities now have additional powers to forfeit any undeclared income as “unexplained wealth”. The new “unexplained wealth” provisions are now in effect and law enforcement agencies are considering a number of cases that will be investigated. The mechanism is now in place for members of the public and businesses to report suspected cases of unexplained wealth to the FIU, FRCA or the Police. Informants will be subject to anonymity and strict confidentialityofinformationwillbealsomaintained.

Lodgment Enforcement, Data Cleansing and Amendments andCorrespondence ControlThe Lodgment Enforcement Unit [LEU] follows up on the lodgment of outstanding returns for VAT, PAYE, Income Tax, and the like. As at 30 June 2013, LEU issued 30,469 demand notices which records a 93% increase compared to the same period in 2012. On the revenue impact, this has resulted in tax revenue of $25,781,512.73 representing a 215% increase in comparison to the revenue result of $8,176,368.79 achieved for the same period last year.

This is a remarkable achievement and improvement from the Lodgment Enforcement Unit given the same level of resource allocation as in 2012.

Data Cleansing UnitThe Data Cleansing Unit is tasked to enhance data integrity by constant updating of taxpayer records to most current taxpayer information. A major project undertaken by the team in the second quarter was data cleansing for FRCA/FNPF ID Card. It took3weeks for6dedicatedTaxOfficers toupdate250,000 taxpayer records in preparation for timely launching of the Joint ID Card by July 8th.

Amendments and Correspondence Control UnitThe Amendments and Correspondence Control Unit [ACCU]

is tasked with timely resolution of amendment requests and objections to notices of assessment when substantiated with necessary documentary evidences. As at end of June 2013 a total of 2,569 amendments and objections requests with assessment value of $4,617,998.00 have been processed.

FRCA Balanced Scorecard 2013The FRCA Board has approved the CEO Balance Score Card for 2013. General Managers and National Managers are now tasked to ensure that all line staff are fully aware of the 2013 CEO Balance Score Card, together with the respective General Manager and Unit Score Cards and the operational framework for these.

The CEO has encouraged all staff to have a “Can Do Attitude” which will ultimately drive and mould a “winning” Team FRCA that will deliver our Vision.

Internal AssuranceInternal AuditInternal Audit supports the Authority by focusing its efforts on audits with a business improvement, consulting or strategic focus, to ensure the alignment of business activities with the department’s strategic direction The routine audit coverage is slightly behind however the Internal Audit unti aims to update its required routine audit by the end of 2013. Internal auditors redeployed resources for the setup of the newly established Staff Tax Audit Unit.

In addition to the routine audit the Internal Audit Unit has been assigned to attend to a number of committees e.g FRCA Tender committee e.t.c. This is to provide independence and good governance advice to the FRCA Tender process.

Within the past 6 months the Chief Internal Auditor had attended one overseas workshop on Fraud Risk Management.

Progress on FRCA Routine Internal Audit 2013:

A taxpayer completes registration forms for TIN.

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Description Remarks

Quarter 1 2012Corporate Division

Field audit completed and the report has been presented to the Audit Board meeting

Quarter 2 2010 & 2011Taxation Division

Field audit completed and the report has been presented to the Audit Board meeting

Quarter 3 2011 & 2012West Audit

Field audit completed and the report has been forwarded to Executives for Management Comments.

Quarter 4 2011 & 2012Customs Division

Field audit completed and the report duetobefinalizedandthiswillbepresented in the next Audit Board meeting.

Audit Management Committee

Internal Audit continuously conduct follow up on material audit issues and when required provide consultant advice for Executive Management’s consideration

OfficeoftheAuditGeneral Report

Facilitate OAG personnel during their fieldauditandconsolidateAuthority’scomments on audit issues raised.

Special Audit Request

UponspecificrequestofCEO’sofficeInternal Audit Unit also assist ESU in conducting preliminary investigation.

Additionally the Internal Audit is also working with Stamp Duty in the setup of untapped revenue streams.

Staff Tax Audit UpdateThe staff Tax Audit is a sanctioned special task required by the FRCA Board with the objective of ensuring voluntary tax compliance of all FRCA Staff.

There are two senior Internal Auditors within the existing team redeployed to conduct the required staff tax Audit. Staff Tax Audit Policy was developed and endorsed by the Audit Board Committee. The Policy provide administrative guideline and delegations of authority under the Income Tax Act for the conduct of Tax Audit by IAS staff. FRCA staff in the conduct of Staff Tax audit are treated similarly to a normal Taxpayer and therefore have the same rights under the Income Tax Act.

The team has conducted third party searches necessary for staff Tax audit and challenged to complete tax audit of all executives before end of the year.

The vacant positions for Senior Internal Auditors are currently beingfilled.ThenewSeniorInternalAuditorsareexpectedtoaddsignificantvaluetotheAuthorityinconsiderationoftheirknowledge and experience.

Ethical Standards Unit (ESU) The Ethical Standards Unit performs the following functions for the Authority:• Develops and implements an ethical code of conduct

in compliance with the FRCA Conduct & Discipline Regulations 2002.

• Identify and investigate corrupt activities within theAuthority.

• Respondtocomplaintsregisteredagainstemployeesfornon-compliance with the Code of Conduct.

• Conduct special investigations required by the office ofCEO and the Board.

• UnitalsocarriedoutotherdutiesasassignedbytheCEO

such as working closely with Fiji Police Force, FICAC to assist them in investigation, Money laundering cases, criminal cases and other fraudulent and illegal activity.

By June 2013 a total of 60 new cases were opened and 5 pending cases from 2012 were investigated for offences related to breach of FRCA Conduct and Discipline regulations andothermattersreferredfromCEO’soffice.

A total of 24 more cases were registered and investigated in the period January to June in 2013 compared to same period in 2012. Of the total of 60 cases, 2 cases were handled by Fiji Police Force after internal investigations, 4 cases were referred toTax audit and one file to Customs investigationBranch.Atotalof16casefileswereclosedafterinvestigationwascompleted.Atotalof6officerswereterminatedfromtheserviceinthefirsthalfofthisyear.

The ESU unit also assists other Divisions in FRCA via value adding and capacity building for Customs & Tax related investigationsmatters.ESUalsofinalizedsomeoftherevenueleakages cases from 2012 in the first half of the year andcollected penalty sum of $126,000.00 and amendment fee amounting to $32385.90.

Risk ManagementThe Risk Management Unit facilitates the administration of risk management activities in the authority. The unit assists various sections in identifying new risk and continuously monitors the progress of the implementation of approved risk treatments. This is done through the half yearly review for Suvaofficeandannualreviewforouterports.Additionally,theunit is actively involved in other value adding activities such as the Business Continuity Plan project and Service Excellence Award Evaluation. Tabulated below are summaries of work covered by Risk Management Unit:

Description Remarks

Risk Register Review

Review for Suva Customs and Taxation is completed. Divisional meetings with relevant executive management are yet to be organized to discuss risk treatments. Currently reviewing corporate risk register.

Risk Management Steering Committee Meeting

2 meetings convened so far to update FRCA Executive management on the Risk management Progress and way forward.

Risk Training The Risk Management unit together with training section organized Enterprise Risk Management training for FRCA staff. This training was conducted by Mr. Rusco Bavon from FNU in February 2013.

Business Continuity Plan – Project

SeniorRiskOfficeristhesecretariatfortheBCP committee. A draft BCP document has been compiled by NMIA and circulated to the BCP committee members for comments. BCP document to befinalizedbyendofAugust2013.


Description Remarks

Nasese Foreshore Joint Tsunami Evacuation Plan

RiskOfficerispartoftheNaseseForeshoreJoint Tsunami Evacuation Plan Committee. The committee has agreed for FRCA to develop an evacuation route from the back of the FRCA Nasese Complex into the Police Academy compound for our staff to proceed to the evacuation point as this is a shorter route.

New Risk Identification – Various sections are to identify emerging risks and register it with Internal Assurance Section. This can be done during the reviews or at any point in time. It has been noted that sections hardly identify new risks. Most oftheemergingrisksareidentifiedbytheInternalAssuranceSection either through ESU investigations or Internal Audit.

FRCA Extreme & High Risk SummaryThere are 8 (5 extreme and 3 high) risks that was pending from the 2012 Extreme & High Risk List.

Records ManagementWorkonclearingbacklogfilingand rearrangementoffilingarea has seen marked improvement in both on and off site storage. Archiving of records also continued

Recruitment & SelectionThere were 35 staff appointed through the recruitment process with 26 new recruits (Customs(2), Corporate(3), Tax (21)) and 9 internal promotions Taxation(8), Corporate (1).

Termination of EmploymentFour staff resigned with 3 Taxation staff migrating while 1 Corporate staff joined a local training institution to facilitate hisstudies.Twosupportofficersweredeemedtohaveresignedfor absence without approval for periods of 7 days or more and breaching the Leave Policy & Procedures. Five staff were summarily dismissed on ethical grounds in line with the Zero Tolerance Policy by the Board.

Legislation The Legal Services section has the responsibility of drafting FRCA laws. The Legislation Unit liaised with relevant stakeholders within and outside of FRCA to achieve this purpose. Expert external consultant such as Professor Lee Burns were used by the Division to assist in the drafting process.

The Legislation Unit, in 2013 focused on the consultation, drafting of laws in relation to Income Tax Decree; Revenue Measures for 2013; Stamp Duty, Customs Act & Regulations, Capital Gains Tax Decree, and Airport Departure Tax.

The Draft IncomeTax Decree is nowwith the office of theAttorney General for vetting and approval.

LitigationIn terms of litigation, we conducted several hearings in the Tax Tribunal and High Court. we have conducted have 4 hearings before the Tax Court. These were all appeals from the Tax Tribunal where the Tax Tribunal ruled in favour of the Authority. Out of the 6 matters, 4 appeals have been dismissed and 2 awaiting judgments.

TheDivisionopenedthefollowingfilesfrom1January–31July 2013:

ESU Files Legal Drafting

Customs IRS Opinion

8 13 5 28 39

Wehaveclosedthefollowingfiles

DMU LEU Customs ESU Tax Tribunal

Legal Drafting

815 2 2 4 26 5

Economic Modeling & AnalysisThe Economic Modeling & Analysis Unit, which is part of the Policy Section, in the first half of the year continues todeliver its core functions in termsoffinalizing themonthlyforecasts in the beginning of the year, while also providing revenue analysis to the board in terms of the monthly Revenue Board papers. In doing so, the team continues to improve the standard of its revenue analysis, going in depth in providing economic explanations to the CEO and the FRA Board on the reasons for revenue performance in each tax category.

The unit continues to facilitate data request received from stakeholders daily, and the demand for such data has grown significantlycomparedtopreviousyears,sincethedemandfortax data has grown from our stakeholders. While it continues to provide weekly revenue reports, while it also works on having daily forecasts ready. It continues to represent the authority in the Macro-technical Committee, and in doing so provides the necessary data needed for the revision of the country’s Gross Domestic product. As year progresses on, the unit is also anticipating the challenge of the 2014 National Budget Works preparation, which is also a core function for the team.

Research Planning and Policy Development An important function of the Unit is to ensure that FRCA meets all its statutory requirements as per the FRCA Act. This involves thedraftingandfinalizationof theCorporatePlan,Annual Reports and Half Yearly Reports. The RPPD Unit has completed all the works on the Annual Report within the required statutory timelines. The draft Annual Report was submitted to the Minister for Finance on 30th April 2012 with unaudited accounts. The Unit is also part of various initiatives such as the Balance Scorecard and Performance Assessment, and the Service Excellence Awards.

Taxation Revenue ServicesSimilarly, there were 1577 cases for Capital Gains Tax received of which 1419 were processed from January to June this year. Of the number processed, 295 cases were payable. The Authority collected $5.2m in Capital Gains Tax which was over the forecast by $1.7m and is consistent with economic growth in the real estate sector. Stamp Duty payments also reflectthis.Propertyrelatedtransactionsaccountedfor45.4%of stamp duty collection in the month of June. Additionally, motor vehicle loan rates were decreased dramatically with increased demand indicative in the bill of sale transactions. StampDutyreceivedatotalof112,297documentsforthefirstsix months of this year and collected $17.8m worth of tax. This was a growth of 97.9% for the same period last year.

Customs Risk & Compliance ThemainfocusofCustomsRisk&Compliancewhilstfulfillingits responsibilities of audit, investigation and gathering intelligence, is to solicit voluntary compliance through a partnership arrangement with stakeholders. However, in the event that dues cannot be collected for a certain period of time, Customs legislations are enforced to recover these dues. This function falls under the role of Desk Audit which is now

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risk based thus modifying the approach from volume based to blue lane profiling.To ensure that theAudit Complianceperspective is consistent and that targets are met, the role offieldauditwas furtherdivided into threestreams i.e.: (1)Concession, Recovery & Environment Compliance; (2) Trade Compliance (TFF, DSS, SPARTECA, PACER etc); and (3) Valuation, Warehouse, Gold Card & Company Audit.

As a result of the above, in the first half of 2013 CustomsRisk & Compliance collected $15.7m in revenue, $13.5m more than the same period last year. The Recovery Unit collected 82% of the total amount of revenue collected in 2013 which is an overwhelmingly positive indication of the shift in approach that has taken place. However, the above change was implemented only in the Headquarters in Suva in the second half of 2012. It is hoped that a similar model will be implemented throughout the Authority by the end of 2013, provided that necessary resources are allocated. Of the $15.7mcollectedinthefirsthalfofthisyear,AuditCompliancecollected $14.3m and Investigation collected $1.32m.

Taxation Audit & ComplianceIn 2013 the Audit Compliance Section was challenged with the target that has been set at $86m for the year. This was a 64% increase from the 2012 audit compliance target which was at $52.4m.

Audit Framework• Industry Matrix - The industry matrix strategy was agreed

to run the audit and compliance unit based on industries while not conforming to the accepted FSIC code. The reclassification was based according to historical auditexperience of such industries.

• Demarcation of threshold - The threshold demarcation wasfixedas$50mVATthresholdforSmallandMediumand Large and International. The Transfer Pricing, Fraud and VAT teams do not follow into this category.

Audit ResultsAs of end of June 2013 the section achieved the following results:Team Cases

completedValue of

Assessments raised ($)

Cash collected ($)

VAT 174 7,804,180.64 4,052,725.43

Small & Medium

269 12,156,597.73 6,389,648.66

Large & International

103 8,883,725.48 2,908,185.08

Transfer pricing

6 921,222.04 6,648,057.91

Fraud and Evasion

40 2,798,642.09 1,037,651.71

Total 592 32,564,367.97 21,036,268.79

Staff in group discussions at a Compliance Workshop


Critical Success Factor: Employee Satisfaction• Recruittherightpeople,retainandengagestaff.• PromoteaculturethatalignswiththeVision,MissionandValuesofFRCA.

Implementation of the Job Evaluation StudyArising from the approval of the recommendations arising form the Job Evaluation Study conducted in 2012 by Price Waterhouse Coopers, salary changes were implemented in early 2013. Adjustments were made to staff whose salaries are below the 80 percent PIR (Position in Range) within their new Job Evaluation Band and were effected on 01/01/2013 and backdated to 01/01/2012; those whose salaries were within the 80 – 120 percent PIR retained their current salaries.

New recruitments and appointments in 2013 are being made in accordance with the 2012/2013 Salary Structure.

Customs Officers receive Merit certificateAs part of International Customs Day celebrations in 2013, a total of 20 customs officers received World CustomsOrganization(WCO)meritcertificates.Certificatesweregivento these chosen ones for their immense contribution in the Customs Division in terms of Innovative ideas for customs organisations, liasing with Chinese passengers in Mandarin, developing customs database, 24 hour clearance service and modernisation initiatives.

The theme for 2013 International Customs Day “Innovation for customs progress” is a reminder to all customs stakeholders of the challenges faced in our borders and how we can progress towards overcoming these obstacles through the use of innovative ideas and developments. This was the message conveyedbyFRCAchiefexecutiveofficerMrJitokoTikolevuatthis year’s International Customs day celebration.

FRCA Executives tour branchesThe Executive management team toured all branches in the country meeting staff. The CEO, the General Manager Customs & Excise Jone Louie, General Manager Taxation Moala Nata and General Manager Corporate Services, Arieta Dimuri each addressed the staff members in branches across the country. The week-long “CEO Roadshow” in January started in the north with one day visits to both the Labasa and Savusavu branches. Next was Sigatoka, Nadi, Lautoka and Rakiraki. The last stop was in the old capital of Levuka.

The CEO highlighted a number of issues, which include:• 2012 Performance and Results: staff were thanked for

last year’s performance and results, and were informed of the 2013 revenue target of $1.9 billion. Staff were encouraged to work together and focus on improvements from the 2012 results.

• ‘One FRCA, one organisation’: staff were reminded of the need to work as a team, and to improve their knowledge of the organisation, especially to have some basic knowledge of developments in their areas and those outside of their normal operational area.

• Integrity and Honesty: the importance of maintaining integrity and honesty whilst performing duties was stressed to staff, as well as showing professionalism and respect for each other and to customers.

• Customer Services: staff were informed that there has been a general reduction in complaints but staff were

encouraged to continue to lift standards when it comes to customer services.

• Medical Insurance: staff were briefed of the change in policywithregardstothebenefitformedicalinsurance.

• Family: staff were reminded of the importance of having quality time with families, as this would contribute to good performance and high productivity at the work place. Staff were also informed of FRCA’s zero tolerance policy on extra marital affairs.

• 2013 Family Fun Day: staff were informed of the Sports Day that will be convened in Levuka in August this year, and that they should make an effort to attend.

• Bainimarama Tournament: staff were requested to begin preparations for the 2013 Bainimarama Tournament so that FRCA can achieve better results this year.

• Awards Night – staff were informed that this will be conducted this year to reward staff who have performed exceptionally well.

360 Degrees AppraisalIn April, the 360 Degree Appraisal began for 72 staff at Executive, Management and Port Supervisor level. They were assessed by their reporting line staff as well as their subordinates and other staff they work with. In order to ensure the exercise is carried out in a professional manner, FRCA engaged A.M Consultant Limited to undertake the training of FRCA staff.

The Human Resources team together with Mr Abraham Simpson conducted the training at the FRCA complex training room for all staff. The assessment was carried out via an online form with full protection of each staffs confidentialreport. After the assessment’s were al completed, an analysis reportwaspresented toeachofficer thatwasassessedandplans discussed for improvement.

2013 Bainimarama Tournament launchedFRCA together with other financial institutions hostedthe launching of the 2013 Bainimarama Tournament. The institutions include 2013 hosts FRCA, Fiji National Provident Fund (FNPF), Reserve Bank of Fiji, Fiji Development Bank, MinistryofFinanceandOfficeofAuditor-General.

The theme of this year’s competition is ‘Unity and Teamwork’ and FRCA chief executive officer Jitoko Tikolevu remindedthe participants that the theme relates to the competition enhance the healthy relationship within the financialinstitutions.

Job Rotation ProgramThe implementation of a job rotation program for executive ecretariesbeganinApril2013,withthefirstphasetobeingthis year and the second phase in 2014.

The job rotation program will allow personal and career development for the secretaries, assist to broaden knowledge and understanding of the different divisional funtions towards succession planning into higher roles and facilitate an ease in secretarial assistance and support services across FRCA’s three divisions.

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Human Resources Review WorkshopIn June 2013, the Human Resources unit, under the theme “Building Partnership and HR Relations” organized a workshop to review HR processes and services and plan activities for the year. Prior to the workshop, a questionnaire was sent to all FRCA staff and received a relatively good response from 90 staff. The responses from the Questionnaire were tabulated and formed the basis of our workshop deliberations and SWOT Analysis.

Staff BenefitsConversionoftheStaffMedicalInsuranceBenefitto“CashUp”into staff salaries at $1,200 per annum. Around 175 staff are being paid housing allowance totalling $0.6 million with the highest being paid to Customs operations at $0.4 million.

Staff RecognitionIn-House Essay Competition “Innovation for Customs Progress” theme for 2013 International Customs Day and prizes sponsored by Oceania Customs Organisation. 3 staff were presented with Certificates of Achievement and cash prizemoney.

Health & Safety• TheAuthority hosted the Official Opening of the 2013

Bainimarama Tournament on 12 April 2013• Replenishment of First Aid Kits, Safety Wear and protective

equipmentforPortOfficerswascarriedout;• OHS Water Supply for Suva Wharf was arranged;• Free Medical Health Checks and presentations on

Workplace and Non Communicable Diseases, Stress in the

Workplace and Tuberculosis were arranged for staff via the Ministry of Health.

• Cervical cancer tests was also coordinated via the Ministry of Health for female staff at Suva Port.

• Five staff were referred to a medical board to determine their health status and employment options after exhausting their 21 sick leave days entitltments,

• The Fitness Wednesday health initiative continued with staff given time off work from 3.45pm to participate in health walks or Team activities as a proactive measure to health care.

• The Biggest Loser Weight Loss Competition was held within the HR Team for 3 months to July, 2013.

Staff RetirementFour staff (60 years of age (3), medical grounds (1)) were accorded a formal retirement farewell hosted by the Chief ExecutiveOfficer.

A Senior Customs Officer receives a World CustomsOrganizationMeritCertificatefromtheFRCACEO.


Critical Success Factor: Innovation and Learning• Createanenvironmentwhereourpeopleareencouragedtomeettheirfull

potential and innovation is a daily activity.

Capacity Building• The Fiji National University completed an Audit from 04-

06/06/2013 on FRCA performance in the delivery of our 2012 Training Prospectus Method “A” Grants Claim

• The 2013 Staff Training Prospectus was submitted to FNU • A Secretarial Job Rotation programme was implemented

involving themovement of five secretarial positions toassist broaden knowledge and understanding of different Divisional functions towards succession planning into higher level roles.

• Staff job rotations were also implemented in HR and Records Management Unit to allow upskilling and overall work area knowledge.

• 80 Managerial and Line Supervisory staff were assessed by around 380 staff under the 360 Degrees Appraisal by A.M. Consultants.

• Induction Training was completed for 58 new recruits.• In-houseTrainingprovidedbyFRCAHRTrainingOfficers

was facilitated for Excel Intermediate Skills, Stress Management, Emotional Intelligence and Employee Motivation and Teamwork Training. The Feedback Survey overall ratings for the training remained at an excellent level.

• In-house Specialised Training was also completed by Operation Technical Staff on Asset Betterment Statement, Joint FNPF/FRCA

• Two Regional Trainings were conducted for Customs and Taxation staff– Pacific Development ManagementProgramme facilitated by the Papua New Guinea Tax Authority and funded by the Australian Government with 27 regional participants and World Customs Organisation Sub-Regional Workshop on Valuation Control via Post Clearance Audit (PCA) with 15 regional participants to completethefinaldraftonPCAGuidelines.

• Specialised trainings were held including Primary Line Training by Immigration Department, Nadi, ASYCUDA Awareness Training, Savusavu, FICAC Corruption Prevention & Risk Management Workshop, Tax Policy analysis, Transfer Pricing Forum and Tax Treaties Special Issue and Network Training & Integration and Support

• A special Customs historical display of artefacts, seized goods, uniforms, manuals, log books and publications was organised for International Customs Day.

• Two staff were granted approval for full time studies on fullpaytocompleteafirstdegree

Human Resources WorkshopThe HR Team held a 1-day workshop to map out work strategies and improvements arising from a staff feedback survey.

FRCA Hosts the 2013 Pacific Management DevelopmentProgramThe Fiji Revenue and Customs Authority with the Papua New Guinea Internal Revenue Commission hosted a two week workshop aimed at improving managerial skills of tax administrators in the region.

From March 4 to 15, FRCA hosted representatives from Papua New Guinea, Tonga, Samoa, Kiribati, Solomon Islands and VanuatuattheNaseseComplexfortheworkshop.ThePacificManagement Development Program is aimed at enhancing general management and project management skills of employees. The two weeks training is designed to coach them to effectively manage people, processes and systems of their respective revenue agencies. The training also aims to provide direct benefits to participating revenue agenciesby having participants complete a small project within their organizations, which will consolidate program learning. The program was also an opportunity for new Managers participating to enhance and gain the required skills to manage a team.

Upon the completion of this program, the participants are expected to take on projects in their respective workplace and in the long run improve the procedures and processes which are currently in use. A total of twenty seven (27) middle managersfromPacificIslandsTaxAdministratorsAssociation(PITAA) member countries participated in this program.

WCO Sub-regional workshop- a successThe Fiji Revenue and Customs Authority in conjunction with World Customs Organisation (WCO) and Oceania Customs Organisation (OCO) hosted a sub-regional WCO Workshop on Valuation Control via Post Clearance Audit (PCA). The workshop was attended by fifteen Customs Officer from ten membercountries; Fiji, Kiribati, Palau, Tonga, PNG, Samoa, Solomon Islands, Timor Leste, Tuvalu and Vanuatu. The structure and content of the Workshop was based on a new programme being developed collaboratively by the WCO and participants who attended a WCO expert-accreditation event which took place in Japan last December. This programme was designed to assist Customs administrations in strengthening Customs valuation controls conducted after importation, primarily through PCA – acknowledged as the most effective means to control Customs valuation, as well as being an enabler of trade facilitation.

The programme covers the principles of the WTO Valuation Agreement, recent instruments of the WCO Technical Committee on Customs Valuation, strategic planning for PCA and the operational conduct of PCA, including case studies.

21

Financial HighlightsFOR THE FIRST SIX MONTHS OF 2013

The operating grant was higher by 6.77% in the first half of the

year compared to the same period in

2012.

FRCA has lowered Other Operating Costs by 48.56%

in the first six months compared

to 2012


The Finance Section is responsible for managing the financial affairs of the Authority.

OPERATING RESULTSThe Authority experienced a net surplus of $2.75million for the six-month period ending 30 June 2013 compared to a net surplus of $2.84million for the same period last year. The slight decrease in the surplus amount is due to the following:

1. Increased employee cost by 14.52 %;2. Increased property expense by 10.67%;3. Decrease in other operating costs by 48.56%; and4. Increase on operating grant income by 6.77%.

Due to all the above factors the net surplus decrease by 3.17% compared to the same period in 2012.

CAPITAL EXPENDITUREAdditions to Property, plant and equipment has decreased by $403,203 excluding the Work In Progress (WIP) or by 65.97% compared to the same period in 2012.

A number of capital projects are reflected as Work In Progress ($9.3m). These projects will be closed off as and when each project is completed. There was a increase in WIP by $220,672.

NET ASSETSNet assets as at 30 June 2013 amounted to $40.28million, an increase of 16.32% compared to the same period last year.

STATEMENT OF FINANCIAL PERFORMANCE FOR THE SIX-MONTH PERIOD ENDING 30 JUNE 2013

June 30, 2013($ 000’s)

June 30, 2012($ 000’s)

REVENUE

Grants from government 17,173,913 16,086,957

Fees and charges 3,580,460 3,601,253

Rental Income 196,590 161,621

Other income 672,282 734,826

TOTAL REVENUE 21,623,245 20,584,657

EXPENSES

Employee costs 14,263,464 12,183,801

Administrative 931,356 1,202,941

Other operating 768,401 1,493,708

Property 2,076,395 1,876,174

Depreciation 832,830 986,782

TOTAL EXPENSES 18,872,446 17,743,406

NET SURPLUS 2,750,799 2,841,251

23

STATEMENT OF FINANCIAL POSITION AS AT 30 JUNE 2013

June 30, 2013($ 000’s)

June 30, 2012($ 000’s)

ACCUMULATED FUNDS

Opening balance 32,424 26,677

Correction of Fundamental Errors

NetSurplus/(Deficit) 2,750 2,841

Asset Revaluation Reserve 5,108 5,108

TOTAL ACCUMULATED FUNDS 40,282 34,626

CURRENT ASSETS

Cash at Bank 13,366 12,519

Short term investments 29,311 23,725

Receivables 2,014 3,772

Prepayments 482 405

TOTAL CURRENT ASSETS 45,173 40,421

NON-CURRENT ASSETS

Asset held as Investment 3,815 3,874

Property, plant and equipment-net 15,470 13,960

TOTAL ASSETS 64,458 58,255

CURRENT LIABILITIES

Creditors and accruals 2,411 2,552

Provision 998 1,734

TOTAL CURRENT LIABILITIES 3,409 4,286

NON-CURRENT LIABILIITIES

Grant received in advance 19,531 17,798

Deferred grant income 1,236 1,545

TOTAL NON-CURRENT LIABILITIES 20,767 19,343

TOTAL LIABILITIES 24,176 23,629


OUR FRCA BALANCE

SCORECARD 2013

A) VISION, MISSION AND VALUES & BOARD KPIS

Our Vision: To be the premier revenue collection, border management and trade facilitation agency in the region.

Our Mission: To be recognized as a leading contributor to Fiji’s economic, security and social programmes, through effectively collecting the majority of Government revenues, carefully protecting its border, facilitation of trade and providing quality advice to key stakeholders.

Our Values: Leadership, Results Focus, Continuous Improvement and Learning, Design Quality and Prevention, Partnership Development, Valuing Employees, One Organization.

B) Critical Success Factors

FINANCIAL CUSTOMER ENVIRONMENT & COMMUNITY

Strength risk management, by all Managers.

Fiscally responsible management, by all Managers

Seek excellence in every aspect of our interaction. Good working relationship with key stakeholders

INTERNAL PROCESS EMPLOYEE SATISFACTION INNOVATION AND LEARNING

Complete projects on time and to budget. We finish what we start.

Recruit the right people, retain and engage staff.

Create an environment where our people are encouraged to meet their full potential and innovation is a daily activity

Promote a culture of getting things right the first time, on time, all the

time.

Promote a culture that aligns with the Vision, Mission and Values of

FRCA.

Go and see for yourself to thoroughly understand the situation. Understand what is happening on the ground

D) SCORECARD RATING GUIDELINES

100% Target met and EXCEEDED with Superior Results (Outperformance Target Achieved)

75% Target met with Satisfactory Results (Performance Target Achieved)

50% Target not met due to external constraints beyond FRCA control. Critical area of consideration.

25% Below 50% Performance Result. Target not met. Unsatisfactory performance. Critical area for consideration.

0% Below 25% Performance Result. Target not met. Critical area for consideration.

KPI No.

Key Performance Indicator (KPI)

Measure Target 2013 Out Perform Weighting %

BL

OC

K 1

: FIN

AN

CIA

L (

20%

)

1 Collect Tax and Customs Revenue for Government:

Meet/Exceed forecasted revenue for all revenue types

$1.852 billion for 2013 (6.7% more than 2012)

$1.889 billion (2% above performance target)

5.0%

2Debt Management Total Tax arrears (excluding

Government debtors) as at 31 December, 2013

Not exceeding $100m at Dec 2013. Not exceeding $80m at Dec 2013 2.0%

3 Reduction in Debt Cash Collection of Tax arrears Minimum of $50m (from $45m in 2012)

Minimum of $55 m (from $46.5m in 2012)

1.0%

4 VAT Refunds Reduction in VAT Refunds Below $16m by Dec 2013 Below $15.5m by Dec 2013 2.0%

5 Ratio of Debt to Revenue for Customs and Tax

Ratio of collectable debt level to net revenue

less than 10% less than 9% 1.0%

6Revenue from Compliance Audits

Collect revenue from tax and customs audit cases

Minimum of $102 million (from $52.4m in 2012) (Tax $86.0million; Customs $16 million)

Minimum of $104.04 million (from $52.4m in 2012) (Tax $87.7million; Customs $16.3 million)

2.0%

7Reducing operational costs Implement measures to reduce

operational costs4 measures implemented by 31/12/2013. (Increase by 100% over 2012 Target)

6 measures implemented by 31/12/2013. (Increase by 100% over 2012 Target)

1.0%

8 Zero Fraud Ensure Zero Fraud (Internal) maximum 3 cases (reduce from 2012 target of 5)

maximum 1 case (reduce from 2012 target of 3)

2.0%

9Cost of Collection Maintain reasonable levels of Cost of

CollectionAv 2.1 cents for every $1 collected (2012 - Average of 2.8 cents for every $1 collected)

Av 2 cents for every $1 collected (2012 - Average of 2.7 cents for every $1 collected)

1.0%

10Strategic Budget Planning Realistic and cost effective budge

plans Spending within 2013 Budget Plans and 2014 Budget Plans set by Aug 2013

Spending within 2013 Budget Plans and 2014 Budget Plans set by July 2013

2.0%

11

Manage Risks at an acceptable level

Prioritize treatment of risks in Risk Register

A joint approach in assessing and addressing internal control risks

- Reduce all risks (Extreme, High, Medium, Low) by one level for 50% (From 20% in 2012) of risks identified in the risk register - Implement endorsed audit recommendations within the approved timeline (same as 2012)


1.0%

Blo

ck 2

: CU

STO

ME

R (

10 %

)

12

Customer Service Performance

Carry out comprehensive and independent customer survey in 2013 and implement improvements

Survey completed July 2013 (From April 2012 Target) Follow up survey to gauge improvement in November 2013; 5% improvement over June 2013 rating (same as 2012)

Survey completed June 2013 (From April 2012 Target) Follow up survey to gauge improvement in November 2013; 50% improvement over June 2013 rating (from 10% in 2012)

3.0%

13Improve Telephone Service performance

Reduction in Customer Complaints - Only Compliments on Standards and Service

Customer survey results - 80% addressed and ratified (NEW)


2.0%

14

Public Relations & Awareness

Website Usage Website is uptodate with Divisional posting uploaded within 1 working day of release. Increase in the No. of hits against the older website version

Website is uptodate with Divisional posting uploaded within 12 hours of receipt. 50% Increase in the No. of hits against the older website version

2.0%

15

Make presentations and media releases on FRCA's operations & relevant matters.

Minimum 50 media releases per year (From 8 in 2012) Minimum 20 presentations in a year (From 8 in 2012)


4.0%

16Customer Service Standards and Charter

Customer Service Standards drafted 100% Compliance to service standards

May 2013 (From June 2012 target) Sep 2013 (Same as 2012)

April 2013 (From April 2012 target) July 2013 (From June 2012 target)

2.0%

17 Customer Service Awards Implement a system for recognizing exceptional customer service by staff

System in place by June 2013 (From June 2012 target)

System in place by May 2013 (From May 2012 target)

2.0%

18Whistle Blowing Policy No of complaints and timeliness in

resolving complaints80% of complaints addressed satifsfactorily within an average of2 days of receipt

80% of complaints addressed satifsfactorily within an average of 1 day of receipt

1.0%

Blo

ck 3

: EN

VIR

ON

ME

NT

A

ND

CO

MM

UN

ITY

(7

%) 19

Public education and awareness

Attend provincial/district meetings; Carry out Schools and Community awareness

All provincial meetings invited to; Min 10 school awareness (From 5 in 2012)


1.0%

20Good working relationships with stakeholders

Compliance with MOU requirements Initiate innovative programs with key stakeholder groups

100% (same as 2012) 3 per year (same as 2012)


2.0%

21 Environmentally friendly operations

Support Green Initiatives 5 initiatives (same as 2012) 8 initiatives (same as 2012) 2.0%

22Community Assistance programmes

Intiate and drive community assistance programs

1 Corporate; one each from each of the 3 divisions for the year (same as 2012)1

2 Corporate (From 1 in 2012); two each from each of the 3 divisions for the year (same as 2012)

2.0%

Blo

ck 4

: IN

TE

RN

AL

P

RO

CE

SS

(43

%)

23

Fully comply with statutory requirements

Submit statutory reports by due dates 1) Corporate Plan - 2013 to 2018 and Statement of Corporate Intent (SCI) by 30 September, 2011; 2) Half Year Report for 2012 by 31 August, 2011; 3) Draft Annual Report & Un-Audited Financial Accounts for 2011 by 30 April, 2012, 4) The Annual Report and Audited Financial Accounts for 2011 by 31 June, 2012. (same as 2012)

1) Corporate Plan - 2013 to 2018 and Statement of Corporate Intent (SCI) by 15 Sept, 2011; 2) Half Year Report for 2012 by 15 August, 2011; 3) Draft Annual Report & Un-Audited Financial Accounts for 2011 by 15 April, 2012, 4) The Annual Report and Audited Financial Accounts for 2011 by 15 June, 2012. (same as 2012)

1.0%

24 Management of Staff Leave Implement planned approach to staff leave

Maximum 6 days carried forward to next year per officer (same as 2012)


1.0%

C) ORGANIZATION BALANCE SCORECARD 2013

KPI No.



Blo

ck 4

: IN

TE

RN

AL

PR

OC

ES

S (

43 %

) c

ont’d

25

Efficiency of Information Technology Systems

ASYCUDA World Project - bridging the gap between stakeholders (traders) to invest in the upgrade for compatibility

All stakeholders on board by Sept 2013

All stakeholders on board by July 2014

1.0%

26 Tax Portal Resolve Issues and Upgrade By Dec 2013

Resolve Issues and Upgrade By Sept 2013

1.0%

27 FITS Replacement Resolve Issues and set project scope by Qtr 4

Resolve Issues and set project scope by Qtr 3

1.0%

28

Efficiency of Information Technology Systems (cont’d)

DRP Offsite Plan finalised by Sept 2013 Plan finalised by Dec 2014 1.0%

29 E-payment for Customs Implemented by Sept, Awareness Conducted

Implemented by June, Awareness Conducted

1.0%

30 FNPF/FRCA ID Card Jun-13 May-13 2.0%

31Service Excellence Awards Implementation of feasible

recommendations; Form Service Excellence committee

Achieve One level over 2012 award Achieve Two levels over 2012 award

2.0%

32

Implement Budget Policies Decentralization of FRCA Offices. Customer satisfaction survey 90% service satisfaction. Referrals to other centres (personal visits/correspondences/telephones) minimised

100% Completed. Zero Referrals to other centres (personal visits/correspondences/telephones) minimised

1.0%

33 Tax Portal No of hits by Tax Agents. No. of Tax Agents that use the Portal

No of hits by Tax Agents. No. of Tax Agents that use the Portal

1.0%

34

Moving VAT back into a self-assessment operating environment

Second Phase 90% completed by Dec 2013 1st and second phase 90% implemented (2012 target)

Second Phase 100% completed Dec 2013 Second phase 90% implemented (2012 target)

1.0%

35 New Income Tax Decree 100% completed by June 2013 100% completed by April 2013 1.0%

36

2011 Budget Policies - Implement in 2013

PAYE as Final Tax SOP, Practice Statement, Guide & IT system in place. Consultations done.(Dec 2013) (From Dec 2012 target)

SOP, Practice Statement, Guide & IT system in place. Consultations done.(Nov 2013) (From Dec 2012 target)

1.0%

37Introducing self –assessment to Income Tax

SOP, Practice Statement, Guide & IT system in place. Consultations done.(Dec 2012/2013)

SOP, Practice Statement, Guide & IT system in place. Consultations done.(Nov 2012/2013)

1.0%

38 Implement Reforms in Customs

Implement Findings of Time Release Study

Implement 80% Findings Identified Implement 90% Findings Identified

1.0%

39 Review of the ASYCUDA plan against Single Window concept

Implement planned activities by 80%


1.0%

40 Implementation of the SAFE framework of Standards

at least 25% at least 30% 1.0%

41 Customs Legislation Review Phase 1 and 2 completed Progress into Phase 3 1.0%

42 Border Control and Trade Facilitation

Reduce intervention levels and increase facilitation rate

Reduce to at least 50% Reduce to at least 40% 1.0%

43 Centralized inspection yard for Customs

Consultancy done by Septemebr 2013.

Consultancy done by August 2013. 1.0%

44 Full implementation and utilisation of Ionscan machines

Apr-13 Mar-13 0.5%

45 Implement and fully utilise CCTV to facilitate security and monitoring

Dec-13 Oct-13 0.5%

46Implement Canine Unit Establishment of the Unit (staffing

and training) by Jan 2014 Establishment of the Unit (staffing and training) by Dec 2013 (100% completed)

1.0%

47Review and Standardize SOP's

Ensure SOPs are in place and are current; Review Ciritical processes (Risk Profiling and Ruling System)

50% (From 90% in 2012) 70% (From 100% in 2012) 1.0%

48Records Management Unit Finalise approval for Secondary

Offsite Storage Complete movement to new site

June 2013 Sept 2013

May 2013 Oct 2013

1.0%

49 Ensure effectiveness of Legal advisory services

Success rate for legal cases 90% (from 85% in 2012) 92% (From 90% in 2012) 1.0%

50 Office Refurbishment Nadi Office Completed By Dec 2013 By Nov 2013 1.0%

51 Suva Wharf 60% Completed By Dec 2013 70% By Nov 2013 1.0%

52 Audits Timely implementation of Internal Audit and Resolution of audit issues

90% Completed By dates as per dates committed to in the Reports


0.5%

53

Timely implementation of External Audit (Previous financial year) and Resolution of audit issues

Management comments to be submitted by the dates outlined in the Report and 80% resolution completed as per dates commited to in the Reports.

Management comments to be submitted by the dates outlined in the Report and 100% resolution completed as per dates committed to in the Reports.

0.5%

Blo

ck 6

: IN

NO

VAT

ION

AN

D L

EA

RN

ING

(10

%)

63 Quality ManagementSetup Operational Guidelines and Implement Quality Teams to drive process mapping

Jun-13 May-13 0.5%

64

Capacity Building

Transfer evaluation and learning

"Back to office reports submitted within 7 days after training

Reaction evaluation 6 months after training and 100% measured and all recommendations evaluated for

implementation"



implementation"

1.0%

65 Training Prospectus and Grant Claim80% TNA completed and 80% of the 2013 Prospectus implemented;

At least 60% levy returned

95% TNA completed and 100% of the 2013 Prospectus implemented;

At least 80% levy returned1.0%

66 FRCA Library usage 20% Increase in Staff usage and Library Implement 1 activity

30% Increase in Staff usage and Library Implement 2 activites 0.5%

67 Data ManagementStrengthen Data Management and Reporting Implement dashboards

Jun-13Positive user feedback on quality and reliability of information from

the board1.0%

68E-learning

Full Implementation and usage of e-learning tools

At least 40% of Customs staff complete the four core modules and

are certified


are certified1.0%

69 Secure E-learning module for Tax and implement by Sept 2013

Secure E-learning module for Tax and implement by June 2013 1.0%

70Regional Training Centre (completed)

Maximise usage of RTC facility and maintain standards at a high level

At least 2 regional training in a year

At least 4 regional training in a year 2.0%

71 Pool of expertsAt least 2 WCO Regional Experts; Increase inhouse trained experts to

15 from all three divisions

At least 2 WCO Regional Experts; Increase inhouse trained experts to

20 from all three divisions1.0%

VALUES ASSESSMENT (70 points) Max Score

1 Leadership: We will set directions and create a customer orientation, clear and visible values and high expectations, and ensure the creation of strategies, systems and methods of achieving excellence and building knowledge and capabilities

10

2 Result Focus: We will focus on results that are guided and balanced by the interest of all stakeholders, using a balanced set of performance measures that offers an effective means to monitor actual performance, and to marshal support for improving results.

10

3 Continuous Improvement & Learning: We aim to achieve the highest level of performance by adopting a well executed approach to continuous learning and improvement by incremental and breakthrough improvement and adaptation to change that leads to new goals and /or approaches.

10

4 Design Quality & Prevention: We emphasize on design quality, hence anticipating problems and waste prevention at the design stage. 10

5 Partnership Development: We will build internal and external partnerships to better accomplish its goals. 10

6 Valuing Employees: We will continue to invest in the development of its workforce through education, training and opportunities for continued growth. In return FRCA has the right to expect high levels of productivity and integrity. 10

7 One Organization: Managers and staff will work as one towards the goals of FRCA 10

BEHAVIORAL ASSESSMENT (30 Points)

8 Teamwork: An outstanding team player contributes and ensures the effectiveness of the team/FRCA 10

9 Punctuality and Attendance: Is a role model for punctuality and attendance to work and official engagements. 10

10 Professionalism and Respect: Is a role model for professionalism and respect for all levels irrespective of staff positions. 10

TOTAL 100

Individual Assessment Guideline TOTAL

A OUTSTANDING REPORTS, EXCEPTIONAL PERFORMER 9 - 10 90 - 100

B FAVORABLE REPORTS, VERY GOOD PERFORMER 7 - 8 70 - 89

C AVERAGE WORKER, GOOD PERFORMER 6 - 7 60 - 69

D UNSATISFACTORY WORKER, POOR PERFORMER (staff counseling is absolutely necessary 1 - 5 10 to 59

ORGANIZATION BALANCE SCORECARD 2013 (cont’d)

1. Meet government's expectations that FRCA's performance will steadily improve. Fully implement CAPEX Plan.

2. Fully comply with all statutory reporting requirements.3. Maintain current levels of employee costs and FRCA's human

capabilities will meet the changing needs of the business4. FRCA to operate more at the convenience, changing needs and

expectations of stakeholders5. FRCA to be accountable for the effective use of its resources

6. Effective Implementation of FRCA Reforms7. FRCA to conform to international standards in all areas of operation8. FRCA to maintain a competitive edge in areas of policy development,

technical and legal specialities when dealing with domestic and international complexities

9. FRCA to continue to uphold high levels of good governance and integrity

E) INDIVIDUAL ASSESSMENT

BOARD KPIS 2013

KPI No.



Blo

ck 5

: EM

PL

OY

EE

SAT

ISFA

CT

ION

(10

%)

54 HR Development Plan Review of Division Structures Jul-13 Jun-13 2.0%

55 Job Evaluation Study (Completed)

Implement Job Evaluation Study and Revised Salary Structure

Full Implementation Feb 2013 Full Implementation Feb 2013 2.0%

56 Staff Climate Survey Conduct survey and implement strategies towards improvement

Sept 2013 Survey Completed. July 2013 Survey Completed. 2.0%

57 Implement Balanced Scorecard

2013 scorecard developed and approved

Mar-13 Feb-13 2.0%

58360 Degree Management Survey June 2013 results and report

receivedPerformance Improvement Plans tracked and improvements reflected by Nov

2.0%

59 Staff Recognition Staff 2012 Bonus Payment by June 2013 Payment by May 2013 2.0%

60

Implement Staff Recognition System and awards night

System designed by June 2013; Implemented by Dec 2013 One formal recognition initiative from each Division


2.0%

61

Health and Safety a Fit and Healthy workforce - Family Fun Day and Awards Night - Bainimarama Tournament - Proactive Health measures

2 out of 3 3 out of 3 2.0%

62 OHS Compliance against legislation 70% (From 60% in 2012) 80% (From 70% in 2012) 1.0%

"Success is a journey, not a destination.”

25

OUR FRCA BALANCE

SCORECARD 2013

A) VISION, MISSION AND VALUES & BOARD KPIS

Our Vision: To be the premier revenue collection, border management and trade facilitation agency in the region.

Our Mission: To be recognized as a leading contributor to Fiji’s economic, security and social programmes, through effectively collecting the majority of Government revenues, carefully protecting its border, facilitation of trade and providing quality advice to key stakeholders.

Our Values: Leadership, Results Focus, Continuous Improvement and Learning, Design Quality and Prevention, Partnership Development, Valuing Employees, One Organization.

B) Critical Success Factors

FINANCIAL CUSTOMER ENVIRONMENT & COMMUNITY

Strength risk management, by all Managers.

Fiscally responsible management, by all Managers

Seek excellence in every aspect of our interaction. Good working relationship with key stakeholders

INTERNAL PROCESS EMPLOYEE SATISFACTION INNOVATION AND LEARNING

Complete projects on time and to budget. We finish what we start.

Recruit the right people, retain and engage staff.

Create an environment where our people are encouraged to meet their full potential and innovation is a daily activity

Promote a culture of getting things right the first time, on time, all the

time.

Promote a culture that aligns with the Vision, Mission and Values of

FRCA.

Go and see for yourself to thoroughly understand the situation. Understand what is happening on the ground

D) SCORECARD RATING GUIDELINES

100% Target met and EXCEEDED with Superior Results (Outperformance Target Achieved)

75% Target met with Satisfactory Results (Performance Target Achieved)

50% Target not met due to external constraints beyond FRCA control. Critical area of consideration.

25% Below 50% Performance Result. Target not met. Unsatisfactory performance. Critical area for consideration.

0% Below 25% Performance Result. Target not met. Critical area for consideration.

KPI No.



BL

OC

K 1

: FIN

AN

CIA

L (

20%

)

1 Collect Tax and Customs Revenue for Government:

Meet/Exceed forecasted revenue for all revenue types

$1.852 billion for 2013 (6.7% more than 2012)

$1.889 billion (2% above performance target)

5.0%

2Debt Management Total Tax arrears (excluding

Government debtors) as at 31 December, 2013

Not exceeding $100m at Dec 2013. Not exceeding $80m at Dec 2013 2.0%

3 Reduction in Debt Cash Collection of Tax arrears Minimum of $50m (from $45m in 2012)

Minimum of $55 m (from $46.5m in 2012)

1.0%

4 VAT Refunds Reduction in VAT Refunds Below $16m by Dec 2013 Below $15.5m by Dec 2013 2.0%

5 Ratio of Debt to Revenue for Customs and Tax

Ratio of collectable debt level to net revenue

less than 10% less than 9% 1.0%

6Revenue from Compliance Audits

Collect revenue from tax and customs audit cases

Minimum of $102 million (from $52.4m in 2012) (Tax $86.0million; Customs $16 million)

Minimum of $104.04 million (from $52.4m in 2012) (Tax $87.7million; Customs $16.3 million)

2.0%

7Reducing operational costs Implement measures to reduce

operational costs4 measures implemented by 31/12/2013. (Increase by 100% over 2012 Target)

6 measures implemented by 31/12/2013. (Increase by 100% over 2012 Target)

1.0%

8 Zero Fraud Ensure Zero Fraud (Internal) maximum 3 cases (reduce from 2012 target of 5)

maximum 1 case (reduce from 2012 target of 3)

2.0%

9Cost of Collection Maintain reasonable levels of Cost of

CollectionAv 2.1 cents for every $1 collected (2012 - Average of 2.8 cents for every $1 collected)

Av 2 cents for every $1 collected (2012 - Average of 2.7 cents for every $1 collected)

1.0%

10Strategic Budget Planning Realistic and cost effective budge

plans Spending within 2013 Budget Plans and 2014 Budget Plans set by Aug 2013

Spending within 2013 Budget Plans and 2014 Budget Plans set by July 2013

2.0%

11

Manage Risks at an acceptable level

Prioritize treatment of risks in Risk Register

A joint approach in assessing and addressing internal control risks



1.0%

Blo

ck 2

: CU

STO

ME

R (

10 %

)

12

Customer Service Performance

Carry out comprehensive and independent customer survey in 2013 and implement improvements

Survey completed July 2013 (From April 2012 Target) Follow up survey to gauge improvement in November 2013; 5% improvement over June 2013 rating (same as 2012)

Survey completed June 2013 (From April 2012 Target) Follow up survey to gauge improvement in November 2013; 50% improvement over June 2013 rating (from 10% in 2012)

3.0%

13Improve Telephone Service performance

Reduction in Customer Complaints - Only Compliments on Standards and Service



2.0%

14

Public Relations & Awareness

Website Usage Website is uptodate with Divisional posting uploaded within 1 working day of release. Increase in the No. of hits against the older website version

Website is uptodate with Divisional posting uploaded within 12 hours of receipt. 50% Increase in the No. of hits against the older website version

2.0%

15

Make presentations and media releases on FRCA's operations & relevant matters.



4.0%

16Customer Service Standards and Charter

Customer Service Standards drafted 100% Compliance to service standards

May 2013 (From June 2012 target) Sep 2013 (Same as 2012)

April 2013 (From April 2012 target) July 2013 (From June 2012 target)

2.0%

17 Customer Service Awards Implement a system for recognizing exceptional customer service by staff

System in place by June 2013 (From June 2012 target)

System in place by May 2013 (From May 2012 target)

2.0%

18Whistle Blowing Policy No of complaints and timeliness in

resolving complaints80% of complaints addressed satifsfactorily within an average of2 days of receipt

80% of complaints addressed satifsfactorily within an average of 1 day of receipt

1.0%

Blo

ck 3

: EN

VIR

ON

ME

NT

A

ND

CO

MM

UN

ITY

(7

%) 19

Public education and awareness

Attend provincial/district meetings; Carry out Schools and Community awareness



1.0%

20Good working relationships with stakeholders

Compliance with MOU requirements Initiate innovative programs with key stakeholder groups



2.0%

21 Environmentally friendly operations

Support Green Initiatives 5 initiatives (same as 2012) 8 initiatives (same as 2012) 2.0%

22Community Assistance programmes

Intiate and drive community assistance programs

1 Corporate; one each from each of the 3 divisions for the year (same as 2012)1

2 Corporate (From 1 in 2012); two each from each of the 3 divisions for the year (same as 2012)

2.0%

Blo

ck 4

: IN

TE

RN

AL

P

RO

CE

SS

(43

%)

23

Fully comply with statutory requirements

Submit statutory reports by due dates 1) Corporate Plan - 2013 to 2018 and Statement of Corporate Intent (SCI) by 30 September, 2011; 2) Half Year Report for 2012 by 31 August, 2011; 3) Draft Annual Report & Un-Audited Financial Accounts for 2011 by 30 April, 2012, 4) The Annual Report and Audited Financial Accounts for 2011 by 31 June, 2012. (same as 2012)

1) Corporate Plan - 2013 to 2018 and Statement of Corporate Intent (SCI) by 15 Sept, 2011; 2) Half Year Report for 2012 by 15 August, 2011; 3) Draft Annual Report & Un-Audited Financial Accounts for 2011 by 15 April, 2012, 4) The Annual Report and Audited Financial Accounts for 2011 by 15 June, 2012. (same as 2012)

1.0%

24 Management of Staff Leave Implement planned approach to staff leave



1.0%

C) ORGANIZATION BALANCE SCORECARD 2013

KPI No.



Blo

ck 4

: IN

TE

RN

AL

PR

OC

ES

S (

43 %

) c

ont’d

25

Efficiency of Information Technology Systems

ASYCUDA World Project - bridging the gap between stakeholders (traders) to invest in the upgrade for compatibility

All stakeholders on board by Sept 2013

All stakeholders on board by July 2014

1.0%

26 Tax Portal Resolve Issues and Upgrade By Dec 2013

Resolve Issues and Upgrade By Sept 2013

1.0%

27 FITS Replacement Resolve Issues and set project scope by Qtr 4

Resolve Issues and set project scope by Qtr 3

1.0%

28

Efficiency of Information Technology Systems (cont’d)

DRP Offsite Plan finalised by Sept 2013 Plan finalised by Dec 2014 1.0%

29 E-payment for Customs Implemented by Sept, Awareness Conducted

Implemented by June, Awareness Conducted

1.0%

30 FNPF/FRCA ID Card Jun-13 May-13 2.0%

31Service Excellence Awards Implementation of feasible

recommendations; Form Service Excellence committee

Achieve One level over 2012 award Achieve Two levels over 2012 award

2.0%

32

Implement Budget Policies Decentralization of FRCA Offices. Customer satisfaction survey 90% service satisfaction. Referrals to other centres (personal visits/correspondences/telephones) minimised

100% Completed. Zero Referrals to other centres (personal visits/correspondences/telephones) minimised

1.0%

33 Tax Portal No of hits by Tax Agents. No. of Tax Agents that use the Portal

No of hits by Tax Agents. No. of Tax Agents that use the Portal

1.0%

34

Moving VAT back into a self-assessment operating environment

Second Phase 90% completed by Dec 2013 1st and second phase 90% implemented (2012 target)

Second Phase 100% completed Dec 2013 Second phase 90% implemented (2012 target)

1.0%

35 New Income Tax Decree 100% completed by June 2013 100% completed by April 2013 1.0%

36

2011 Budget Policies - Implement in 2013

PAYE as Final Tax SOP, Practice Statement, Guide & IT system in place. Consultations done.(Dec 2013) (From Dec 2012 target)

SOP, Practice Statement, Guide & IT system in place. Consultations done.(Nov 2013) (From Dec 2012 target)

1.0%

37Introducing self –assessment to Income Tax

SOP, Practice Statement, Guide & IT system in place. Consultations done.(Dec 2012/2013)

SOP, Practice Statement, Guide & IT system in place. Consultations done.(Nov 2012/2013)

1.0%

38 Implement Reforms in Customs

Implement Findings of Time Release Study

Implement 80% Findings Identified Implement 90% Findings Identified

1.0%

39 Review of the ASYCUDA plan against Single Window concept



1.0%

40 Implementation of the SAFE framework of Standards

at least 25% at least 30% 1.0%

41 Customs Legislation Review Phase 1 and 2 completed Progress into Phase 3 1.0%

42 Border Control and Trade Facilitation

Reduce intervention levels and increase facilitation rate

Reduce to at least 50% Reduce to at least 40% 1.0%

43 Centralized inspection yard for Customs

Consultancy done by Septemebr 2013.

Consultancy done by August 2013. 1.0%

44 Full implementation and utilisation of Ionscan machines

Apr-13 Mar-13 0.5%

45 Implement and fully utilise CCTV to facilitate security and monitoring

Dec-13 Oct-13 0.5%

46Implement Canine Unit Establishment of the Unit (staffing

and training) by Jan 2014 Establishment of the Unit (staffing and training) by Dec 2013 (100% completed)

1.0%

47Review and Standardize SOP's

Ensure SOPs are in place and are current; Review Ciritical processes (Risk Profiling and Ruling System)

50% (From 90% in 2012) 70% (From 100% in 2012) 1.0%

48Records Management Unit Finalise approval for Secondary

Offsite Storage Complete movement to new site

June 2013 Sept 2013

May 2013 Oct 2013

1.0%

49 Ensure effectiveness of Legal advisory services

Success rate for legal cases 90% (from 85% in 2012) 92% (From 90% in 2012) 1.0%

50 Office Refurbishment Nadi Office Completed By Dec 2013 By Nov 2013 1.0%

51 Suva Wharf 60% Completed By Dec 2013 70% By Nov 2013 1.0%

52 Audits Timely implementation of Internal Audit and Resolution of audit issues



0.5%

53

Timely implementation of External Audit (Previous financial year) and Resolution of audit issues

Management comments to be submitted by the dates outlined in the Report and 80% resolution completed as per dates commited to in the Reports.

Management comments to be submitted by the dates outlined in the Report and 100% resolution completed as per dates committed to in the Reports.

0.5%

Blo

ck 6

: IN

NO

VAT

ION

AN

D L

EA

RN

ING

(10

%)

63 Quality ManagementSetup Operational Guidelines and Implement Quality Teams to drive process mapping

Jun-13 May-13 0.5%

64

Capacity Building

Transfer evaluation and learning



implementation"



implementation"

1.0%

65 Training Prospectus and Grant Claim80% TNA completed and 80% of the 2013 Prospectus implemented;

At least 60% levy returned

95% TNA completed and 100% of the 2013 Prospectus implemented;

At least 80% levy returned1.0%

66 FRCA Library usage 20% Increase in Staff usage and Library Implement 1 activity

30% Increase in Staff usage and Library Implement 2 activites 0.5%

67 Data ManagementStrengthen Data Management and Reporting Implement dashboards

Jun-13Positive user feedback on quality and reliability of information from

the board1.0%

68E-learning

Full Implementation and usage of e-learning tools


are certified


are certified1.0%

69 Secure E-learning module for Tax and implement by Sept 2013

Secure E-learning module for Tax and implement by June 2013 1.0%

70Regional Training Centre (completed)

Maximise usage of RTC facility and maintain standards at a high level

At least 2 regional training in a year

At least 4 regional training in a year 2.0%

71 Pool of expertsAt least 2 WCO Regional Experts; Increase inhouse trained experts to

15 from all three divisions

At least 2 WCO Regional Experts; Increase inhouse trained experts to

20 from all three divisions1.0%

VALUES ASSESSMENT (70 points) Max Score

1 Leadership: We will set directions and create a customer orientation, clear and visible values and high expectations, and ensure the creation of strategies, systems and methods of achieving excellence and building knowledge and capabilities

10

2 Result Focus: We will focus on results that are guided and balanced by the interest of all stakeholders, using a balanced set of performance measures that offers an effective means to monitor actual performance, and to marshal support for improving results.

10

3 Continuous Improvement & Learning: We aim to achieve the highest level of performance by adopting a well executed approach to continuous learning and improvement by incremental and breakthrough improvement and adaptation to change that leads to new goals and /or approaches.

10

4 Design Quality & Prevention: We emphasize on design quality, hence anticipating problems and waste prevention at the design stage. 10

5 Partnership Development: We will build internal and external partnerships to better accomplish its goals. 10

6 Valuing Employees: We will continue to invest in the development of its workforce through education, training and opportunities for continued growth. In return FRCA has the right to expect high levels of productivity and integrity. 10

7 One Organization: Managers and staff will work as one towards the goals of FRCA 10

BEHAVIORAL ASSESSMENT (30 Points)

8 Teamwork: An outstanding team player contributes and ensures the effectiveness of the team/FRCA 10

9 Punctuality and Attendance: Is a role model for punctuality and attendance to work and official engagements. 10

10 Professionalism and Respect: Is a role model for professionalism and respect for all levels irrespective of staff positions. 10

TOTAL 100

Individual Assessment Guideline TOTAL

A OUTSTANDING REPORTS, EXCEPTIONAL PERFORMER 9 - 10 90 - 100

B FAVORABLE REPORTS, VERY GOOD PERFORMER 7 - 8 70 - 89

C AVERAGE WORKER, GOOD PERFORMER 6 - 7 60 - 69

D UNSATISFACTORY WORKER, POOR PERFORMER (staff counseling is absolutely necessary 1 - 5 10 to 59

ORGANIZATION BALANCE SCORECARD 2013 (cont’d)

1. Meet government's expectations that FRCA's performance will steadily improve. Fully implement CAPEX Plan.

2. Fully comply with all statutory reporting requirements.3. Maintain current levels of employee costs and FRCA's human

capabilities will meet the changing needs of the business4. FRCA to operate more at the convenience, changing needs and

expectations of stakeholders5. FRCA to be accountable for the effective use of its resources

6. Effective Implementation of FRCA Reforms7. FRCA to conform to international standards in all areas of operation8. FRCA to maintain a competitive edge in areas of policy development,

technical and legal specialities when dealing with domestic and international complexities

9. FRCA to continue to uphold high levels of good governance and integrity

E) INDIVIDUAL ASSESSMENT

BOARD KPIS 2013

KPI No.



Blo

ck 5

: EM

PL

OY

EE

SAT

ISFA

CT

ION

(10

%)

54 HR Development Plan Review of Division Structures Jul-13 Jun-13 2.0%

55 Job Evaluation Study (Completed)

Implement Job Evaluation Study and Revised Salary Structure

Full Implementation Feb 2013 Full Implementation Feb 2013 2.0%

56 Staff Climate Survey Conduct survey and implement strategies towards improvement

Sept 2013 Survey Completed. July 2013 Survey Completed. 2.0%

57 Implement Balanced Scorecard

2013 scorecard developed and approved

Mar-13 Feb-13 2.0%

58360 Degree Management Survey June 2013 results and report

receivedPerformance Improvement Plans tracked and improvements reflected by Nov

2.0%

59 Staff Recognition Staff 2012 Bonus Payment by June 2013 Payment by May 2013 2.0%

60

Implement Staff Recognition System and awards night



2.0%

61

Health and Safety a Fit and Healthy workforce - Family Fun Day and Awards Night - Bainimarama Tournament - Proactive Health measures

2 out of 3 3 out of 3 2.0%

62 OHS Compliance against legislation 70% (From 60% in 2012) 80% (From 70% in 2012) 1.0%

"Success is a journey, not a destination.”


THE YEAR AHEAD 2013: BALANCE SCORECARD KEY TARGETS

• Revenue Forecast is a total of $1.85 billion.• Cash Collection of Tax arrears targeted to be

$50m.• Targeted collection from tax and customs audit

cases of $102m• Implement measures to reduce operational costs.• Ensure Zero Fraud.• Maintain reasonable levels of Cost of Collection.• Work within government approved budget.• Prioritize treatment of risks in Risk Register.• Offically open new Offices in Sigatoka and

Rakiraki.• Carry out a comprehensive customer survey.• Maximise usage of the new website.• Implement a FRCA-wide Customer Services

Charter.• Initiate and drive Green Initiatives and

Community Assistance Programs.• Fully implement the FRCA/FNPF Joint I.D. Card.• Progress in Service Excellence Award level.• Implement changes and new policies announced

in the 2013 National Budget.• Commence a review of Customs Legistation.• Finalize the Disaster Recovery Plan and Secondary

Offsite Storage.• Commence refurbishment projects for the Nadi

AirportandSuvaWharfOffices.• Carry out the 360 Degree and Staff Climate

surveys.• Pay out performance bonus to staff and

executives.• Organize a FRCA Family Fun Day and participate

in the Bainimarama Tournament.• Carry out the launch of the Bainimarama

Tournament from the FRCA premises.• Secure an E-learning module for Tax.• Maximise usage of the Regional Training Centre

and maintain standards at a high level.• Pool of experts for RTC. Have at least 2 WCO

Regional Experts; increase inhouse trained experts to 15 from all three divisions.

27

Fiji Revenue & Customs Authority

Head Quarters: Revenue & Customs Services ComplexPrivate Mail Bag, Suva

Phone: (679) 324 3000Fax: (679) 331 5537

Email: [email protected]

www.frca.org.fj

SIX MONTHS REPORT 2013 - Fiji Revenue & Customs Service · Internal Process 13 Employee...

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