STRATEGIC PLAN 2019/20 - 2023/242019/20 to 2023/24. Mr Ron Josias Chief Executive O˜cer 31 January...

STRATEGIC PLAN2019/20 - 2023/24

OVERVIEW BY THE CHAIRPERSON

SANAS STRATEGIC PLAN 2019/20 – 2023/24

Appointment of SANAS Board Chairperson is still awaiting approvalfrom the dti

01

IT IS HEREBY CERTIFIED THAT THIS STRATEGIC PLAN:

1. Was developed by the management of the South African National Accreditation System (SANAS) under the guidance of the SANAS Board of Directors;

2. Takes into account all relevant policies, legislation and other mandates for which SANAS is responsible; and

3. Accurately reflects the strategic outcomes and objectives which SANAS will endeavour to achieve over the period 2019/20 to 2023/24.

Mr Ron Josias Chief Executive O�cer 31 January 2019

Recommended for Approval by: Approved by Accounting Authority:

Appointment of SANAS Board Chairperson is still awaiting approval from the dti

02SANAS STRATEGIC PLAN 2019/20 – 2023/24

OFFICIAL SIGN-OFF

1. Overview by the Chairperson 12. Official Sign-off 23. Acronyms and Abbreviations 4

PART A: STRATEGIC OVERVIEW 51. Vision 62. Mission 63. Values 64. Legislative Mandate and Functions 7 4.1 Legislative Mandate 7 4.2 Relevant Court Rulings 7 5. Situational Analysis 7 5.1 Background 7 5.2 Locking in Exports from Markets 8 5.3 Industrial Sector Support 9 5.4 South African Trade Facilitation 12 5.5 Protection of Health, Safety and the Environment 13 5.6 Regional Integration and Inter-/Intra-regional Trade Support 13 5.7 Administration and Co-ordination 14 5.7.1 Improving Organisational and Individual Performance 14 5.7.2 Attraction and Retention of Relevant Skills 14 5.7.3 Financial Forecast 15 5.8 Organisational Environment 15 5.8.1 SANAS Organisational Structure 156. Strategic Outcome-oriented Goals 17

PART B: STRATEGIC OBJECTIVES 187. Service Provided by SANAS 19 7.1 SANAS’ Key Intervention Areas 19 7.2 Alignment Between the SANAS Strategic Outcome-Oriented Goals, other Government Department Outcomes and Industry Demand 19 7.3 Strategic Risk Register 22

PART C: LINKAGE TO OTHER PLANS 248. Strategic Alignment 25 8.1 SANAS Strategic Risk Management 25 8.2 Fraud Prevention 25 8.3 Maintaining the International Recognition of SANAS 25 8.4 Information Technology Plan 25 8.4.1 ICT Capacity and Performance Enhancement 25 8.4.2 ICT Governance 259. Financial Plan 26 9.1 Projections of Revenue Expenditure and Borrowings 26 9.2 Cash Flow Projections 2810. Fraud Prevention and Fraud Prevention Plan 28

TABLE OF CONTENTS

03 SANAS STRATEGIC PLAN 2019/20 – 2023/24


AFRAC African Accreditation CooperationAU African UnionB-BBEE Broad-based Black Economic EmpowermentBRC British Retail ConsortiumCEM Customer Experience MeasureCEO Chief Executive OfficerCFO Chief Financial OfficerCOMESA Common Market for Eastern and Southern AfricaDCLF Electrical Direct Current Low FrequencyEA European Accreditation CooperationEAC Eastern African CommunityEMS Environmental Management System ETQA Education and Training Quality Assurance FSMS Food Safety Management SystemGCP Good Clinical PracticeGCPV Good Clinical Practice VeterinaryGFSI Global Food Safety InitiativeGHG Greenhouse GasesGLP Good Laboratory PracticeHACCP Hazard Analysis and Critical Control PointIAF International Accreditation ForumICT Information and Communication TechnologyILAC International Laboratory Accreditation CooperationIPAP Industrial Policy Action PlanISO International Standards OrganisationKing IV King Report on Corporate Governance in South AfricaMAD Mutual Acceptance of Data MAURITAS Mauritius Accreditation Service MLRA Multilateral Recognition ArrangementMoU Memorandum of UnderstandingMRA Mutual Recognition AgreementMTEF Medium-Term Expenditure FrameworkNDT National Department of TourismNNR National Nuclear RegulatorOECD Organisation for Economic Cooperation and DevelopmentPAQI Pan-African Quality InfrastructurePDI Previously Disadvantaged IndividualPEFC Programme for the Endorsement of Forest CertificationPFMA Public Finance Management ActQMS Quality Management SystemRF Radio FrequencySABS South African Bureau of StandardsSADC Southern African Development CommunitySADCA Southern African Development Community Cooperation in Accreditation SADCAS Southern African Development Community Accreditation Services SANAS South African National Accreditation SystemSANS South African National StandardSETA Sector Education and Training AuthoritySQAM Standards, Quality Assurance, Accreditation and MetrologyTBT Technical Barriers to Tradethe dti The Department of Trade and IndustryWTO World Trade Organization

ACRONYMS AND ABBREVIATIONS

� � � � �� STRATEGIC OVERVIEW

Dedication

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Social ��

Excellence

Integrity

Innovation

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1. VISIONTo pioneer and lead the future of accreditation in Africa and deliver services with a spirit of excellence.

2. MISSIONTo create an impartial and transparent mechanism for organisations to independently demonstrate their competence, facilitate the beneficial exchange of goods, services and knowledge and provide a service that is recognised as equatable to best international practice while reflecting the demographics of South Africa in all that we do.

3. VALUESFive values guide everything we do. They are integral to our role as an accreditation body that instils global trust in goods and services produced in South Africa.

Table: 3.1: Values


4. LEGISLATIVE MANDATE AND FUNCTIONS

4.1 Legislative Mandate SANAS is classified as a Schedule 3A public entity in terms of the Public Finance Management Act (PFMA). It is established under the Accreditation for Conformity Assessment, Calibration and Good Laboratory Practice Act, 2006 (Act No. 19 of 2006). SANAS’ legislative mandate and functions are depicted in Table 4.1 below.

Table: 4.1: Legislative and functional mandate

4.2 Relevant Court Rulings

There are currently no court rulings that have a significant, on-going impact on the operations and service deliveryof SANAS.

5.1 BackgroundSouth Africa’s economy remains vulnerable to the effects of the global economic downturn. With a widening trade deficit, high unemployment, an inflation rate that is threatening to climb above the inflation target, as well as a mushrooming in trade remedies introduced by trading partners to protect local industries, the challenge for South Africa remains to steer through these difficult times. The global response has been to enforce protective measures by setting technical requirements at levels which are hard or uneconomical for South Africa, as mainly a commodity exporting country, to meet. The non-acceptance of conformity assessment data has now developed in to one of the major impediments to the free flow of goods and services across borders In addition to protective measures, South Africa has also experienced an increase in substandard and counterfeit goods entering the market, placing a huge burden on the already struggling local manufacturing and commercial sectors. These goods also impact on the health and safety of the country’s citizens, which in turn place a bigger burden on the South African health system and regulatory authorities.

With the focus of South Africa industrialization strategy shifting towards the Digital Industrial Revolution (DIR) also known as the 4th industrial revolution, the scale, scope and complexity of the DIR is expected to have a disruptive impact on our economy due to its rapid speed of technological advancement and innovation. With a broad youth base, a fast growing continental middle class access to global value chains as technology suppliers and the opportunity for SME to capitalize on the new technology, South Africa is well placed to advantage from the 4th Industrial revolution (the dti: 2017).

5. SITUATIONAL ANALYSIS


Enabling Act Mandate

Accreditation for Conformity Assessment, Calibration andGood Laboratory Practice Act, 2006 (Act No. 19 of 2006)

SANAS is the sole national accreditation body, established to provide an internationally recognised and effective accreditation and monitoring system for the Republic of South Africa by doing the following:• Accrediting or monitoring, for Good Laboratory Practice (GLP) compliance purposes, organisations falling within its scope of activity;• Promoting accreditation as the means of facilitating international trade, enhancing South Africa’s economic performance and transformation;• Promoting the competence and equivalence of accredited bodies; and• Promoting the competence and equivalence of GLP- Compliant facilities.

The South African Technical Infrastructure, more specifically, SANAS as the sole national accreditation body for the republic has a major role to play in South Africa’s DIR objectives and to facilitate the acceptance of South Africa’s conformity assessment results. Firstly, SANAS will facilitate South Africa’s DIR supporting South Africa’s efforts to participate in the global, regional and national value chains, and support regulators in the protection of consumer’s health, safety and the protection of the environment. This undertaking will be done through the accreditation of a pool of accredited conformity assessment services to avoid expensive re-testing, re-certification or re-inspection in the chose DIR sectors. This will ensure measurement accuracy, verify compliance with specifications, and grant access to the relevant Value chains. Time and cost will be allocated to regional integration efforts focusing on supporting the development of regional accreditation capabilities to harmonized conformity assessment procedures and thus the mutual acceptance of conformity assessment results, necessary for the free flow of goods and services across national borders. Secondly, SANAS will support IPAP sectors to comply with regulators’ health, safety and environment requirements such as workplace safety and occupational hygiene regulations. Thirdly, SANAS will continue to build national, regional and international relations to facilitate the acceptance of our conformity assessment results required for the acceptance of South African goods and services.

SANAS will continue to reprioritise its activities to support its National Development Plan (NDP) outcomes as articulated through the Department of Trade and Industry (the dti) outcomes and IPAP-assigned projects, while simultaneously contributing to the broader social wellbeing of all. This includes strengthening accreditation to more actively support South Africa’s DIR objectives by assisting firms in meeting the increasingly demanding conformity assessment requirements of advanced DIR requirements. Local trade enabling challenges such as our energy challenges through supporting the national energy strategy, especially focusing on providing SANAS-accredited conformity assessment services to South African organisations that manage and save energy, reduce their greenhouse gas (GHG) emissions and operate in an environmentally sustainable manner.

SANAS accredited conformity assessment bodies (CABs) are the vehicles through which SANAS achieves its objectives, the organisation services available to both CABs and other stakeholders must be of the highest standard as expected from an internationally recognised institution. Therefore, in its quest for service delivery excellence, SANAS will focus on the development complying to the international harmonised standard ISO/IEC 17011:2017, and will further technology to improve communication and self-care services.

5.2 Locking in Exports from MarketsIPAP recognises that the capacity in a country to assist manufacturers and exporters to comply with international standards, norms and technical regulations underpins the potential for economic and industrial growth. The strengthening of technical infrastructure capacity in African countries is a precondition of industrialisation efforts with respect to metrology, standards, accreditation and conformity assessment. The dumping of cheap, sub-standard manufactured goods in African markets has sometimes led to the collapse of local industries and has served as a major barrier to industrial development. Conformity assessment is therefore necessary to prevent the influx of sub-standard and injurious products into our markets and to improve the quality and potential access of local products to export markets.

The balance between global free trade and a strategy aimed at facilitating job creation through localisation needs to be maintained and carefully managed to mitigate the risk of retaliation by those affected. This requires South Africa to step up its conformity assessment capabilities (e.g. accredited testing, inspection, certification, validation and verification), as technical considerations will be one of the acceptable tools which can be defended and which can protect our markets from being flooded by inferior goods. In order to capitalise on this opportunity whilst being aware of the challenges, South Africa will have to work with other countries in the region to strengthen the co-ordination of accreditation and conformity assessment services, mindful of the fact that the development of such capacity has a long lead time and the scope of work is enormous and should be prioritised.


SECTORS ACCREDITATIONSCOPES IN PLACE

NEW ACCREDITATION PROGRAMMES/SCOPES

REQUIRED

FIELDS

During this Strategic Plan period, SANAS will continue to focus on accreditation support through the creation of accreditation programmes and the facilitation of laboratory expansion, certification bodies and inspection bodies required for the IPAP sectors, nationally, and in Africa such as in the tripartite East African Community (EAC), Common Market for Eastern and Southern Africa (COMESA), Southern African Development Community (SADC) grouping and the Continental Free Trade Area (AfrCTFA) including an arrangement and supporting infrastructure that will facilitate the acceptance of accredited certification, inspection and testing in many African markets based on the principle of “accredited once, accepted everywhere”.

5.3 Industrial Sector SupportThe IPAP identified certain sectors, including green industries, metal fabrication, capital and transport equipment and agro-processing, as well-placed for up-scaling through leveraging market growth and associated upgrading of supply capacity and capabilities. In Africa, it is agreed that agro-processing, mining beneficiation, pharmaceuticals and advanced manufacturing offer big opportunities for the economic growth of the continent.

In South Africa, green industry sector accreditation support focuses on the manufacturing of componentry inputs into the country’s 17.8 gigawatt renewable energy generation programme and other industrial opportunities arising from requirements for higher energy efficiency in the economy. The accreditation support of the metal fabrication sector focuses on leveraging large-scale public procurement in rail and electricity; providing associated upgrading support; and on taking advantage of domestic infrastructure development investment. Agro-processing sector support includes expediting regulatory and support mechanisms to establish a large-scale biofuels industry; and identifying and promoting the international acceptance of conformity assessment results to export markets and net food importing countries, aimed at reducing the cost of trade and eliminating technical barriers to trade.

In addition to the above sectors, IPAP also introduces cross-cutting technical infrastructure sector support initiatives, including nuclear electricity generation, energy efficiency, water efficiency and climate change. Accreditation support, namely to establish and maintain the necessary accreditation conformity assessment services and appropriate regulatory interventions for the above-mentioned sectors, has been identified as one of the key deliverables.

Table 5.1: Link between the IPAP sectors and SANAS contributions and interventions

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Testing and calibrationlaboratories,certification and inspection bodies

Testing and calibration laboratories, certification and inspection bodies

• Environmental management system (EMS)

• Energy efficiency measurement and verification

• Chemical analysis

• Metals and metal products, structures and containers, fluid technology

• Precious metals

• Steel structures

• Dimensional

• Force

• Demand-driven: current accredited facilities will be able to respond quickly should the demand for such services increase


� � � � � ��

� � � � ��

� � � � � � � �


Testing and calibration laboratories, certification and inspection bodies, good laboratory practice

Testing and calibrationlaboratories, certification and inspection bodies

• Emissions

• Electro-technical

• Occupational hygiene

• Dimensional

• Electrical direct current low frequency (DC/LF)

• Pressure

• Temperature

• Time and frequency

• Force

• Acoustics and vibration

• Gas metrology/chemical viscosity

• Environmental testing: gases and emissions, workplace environment and hazards, constituents of the environment, heat

• IEC laboratories: appliance energy-efficiency rating

• Temperature

• Force

• Flow

• Wind speed

• Hazard Analysis and Critical Control Point (HACCP)

• GlobalGap

• Food Safety Management System (FSMS)

• Programme for the Endorsement of Forest Certification (PEFC)

• Fish and food

• Canned foods

• Abattoirs

• Chemical and micro- testing: food and food products, residues in foods and agricultural materials, agricultural products and materials, water testing

• Temperature

• Pressure

• Flow

• Mass and volume

• Humidity

• Residue, toxicity, chemistry studies

• Develop a programme for industrial stack emissions testing

• Develop an accreditation programme for the energy performance certification of buildings

• Demand-driven: discussion will be initiated around the need for accredited certification bodies to support agricultural production

• Develop an accreditation programme for road transport management

Demand-driven: current accredited facilities will be able to respond quickly should the demand for such services and other transport equipment, as well as the sale, maintenance and repair of motor vehicles and motor cycles, increase


Table 5.1: Continued



REQUIRED

FIELDS

•


� � � � � � � � � � � � � � ��

� � � � � � � � � ��

Pharmaceutical and medical testing and calibration laboratories, certification and inspection bodies and GLP


• Textiles and clothing

• Leather and leather products

• Dimensional

• Pressure

• Temperature

• Force

• Flow

• Mass and volume

• Humidity

• Chemical and micro-testing: drugs and pharmaceuticals, water, solvents and detergents, paints

• Prohibited substances

• Biochemistry

• Pressure

• Temperature


• Force

• Flow

• Mass and volume

• Humidity

• Gas metrology/chemical viscosity

• Chemical, mechanical, materials

• Occupational hygiene

• Major hazard inspection

• Chemistry

• Chemical products and fibres

• Refined petroleum products

Demand-driven: current accredited facilities will be able to respond quickly should the demand for such services increase

Demand driven: current accredited facilities will be able to respond quickly should the demand for such services increase

� � � � � � � Testing and calibration laboratories, certification and inspection bodies

• Vessels under pressure

• Energy efficiency

• Nuclear fuel

• Environmental testing: gases and emissions, heat

• Electro-technical

• Dimensional

• Electrical (DC/LF)

• Pressure

• Temperature


• Electrical radio frequency (RF)

• Force

• Acoustics and vibration

• Mass and volume

• Viscosity

• Wind speed

Develop an accreditation programme for the nuclear industry




REQUIRED

FIELDS

•

•

•


� � � � � � � �

� � � � � � � � � ��



• Chemical and micro-testing: solvents and detergents, paints, paper and pulp

• Mechanical, materials

• Wood and wood products

• Pressure

• Temperature


• Force

• Flow

• Mass and volume

• Gases and emissions

• Workplace environment and hazards, acoustics and noise emissions

• Pressure

• Temperature

• Flow

• Mass and volume

• Gas metrology and/or chemical viscosity

• Vessels under pressure

• Chemical, mechanical and materials

• Energy efficiency



� � � None Develop an information security accreditation programme


5.4 South African Trade Facilitation

Exports and the linking of it into the regional and global value chains, are key to South Africa’s economic development. The competitiveness of South Africa’s goods and services hinges on the quality of these products and services, which is confirmed by conformity assessment bodies (CABs) such as laboratories, certification and inspection bodies. Non-acceptance of conformity assessments normally leads to rejection, costly retesting/re-inspection or recertifying of such exported goods and services, making these uncompetitive in the global market. The non-acceptance of conformity assessment results is mainly due to lack of confidence in the competence of the CABs producing the results. Accreditation provides confidence in the competence and integrity of conformity assessment activities and goes a long way towards unlocking the technical barriers to trade, both locally and internationally, and in affording companies the opportunity of having a competitive edge.



REQUIRED

FIELDS

•

•

•


5.5 Protection of Health, Safety and the Environment Accreditation has become ‘mandatory’ in many regulated areas as more and more governments and regulators appreciate the benefits that accreditation brings. Accreditation assists them to meet their responsibilities in safeguarding the South African public.

The mainstream acceptance of accreditation by regional bodies such as the European Union, Asia Pacific Economic Cooperation and domestic regulators within individual governments, also helps member governments of the World Trade Organization (WTO) to meet their responsibilities of the Technical Barriers to Trade (TBT) Agreement, and Sanitary and Phyto Sanitary (SPS) Agreement. The WTO increases recognition of accreditation in the conformity assessment requirements of the TBT Agreement and specific sector agreements, such as the agreements relating to telecommunication, automotive industry, etc., which are fast gaining acceptance.

Nationally, SANAS accreditation supports South Africa’s industrial policy aims of locking out unsafe and poor quality imports and locking in access to the demands of the export market, as envisioned through IPAP, as well as other programmes under various government departments and industry stakeholders.

In support of its national accreditation activities, SANAS will ensure that it remains a signatory to the multilateral arrangements of the African Accreditation Cooperation (AFRAC) the International Laboratory Accreditation Co-operation (ILAC) and International Accreditation Forum (IAF). These arrangements promote the regional and global acceptance of test and calibration data, as well as certificates and inspection reports issued by accredited CABs. In this regard, signatories to the AFRAC, ILAC and IAF arrangement are spread over 61 economies, represented by 71 accreditation bodies. For South African trade it implies the elimination or reduction of the need for retesting or recertification to an importing country that is a signatory to the arrangement.

5.6 Regional Integration and Inter/Intra-regional Trade Support

Africa’s economy continues to outgrow that of some developed countries. The African market provides an opportunity for South Africa to strengthen trade and investments relations. For trade and investment to flourish, a strong standard, metrology, accreditation and conformity assessment system is required to underpin the quality and acceptance of goods and services across borders.

In support of government’s Africa Strategy, and contributing to the establishment of internationally recognised accreditation infrastructure in Africa, SANAS will continue to play an important role in SADC by hosting the SADC Accreditation Secretariat and holding the Regional Coordinator position. In addition, SANAS will continue to assist the SADC Accreditation Services (SADCAS) by training assessors and partnering with that body.

SANAS has played a leading role in establishing the required accreditation infrastructure under the African Union (AU) through the African Accreditation Cooperation (AFRAC). SANAS will continue to provide chairmanship and secretarial services to AFRAC. Under the AU, through the Pan-African Quality Infrastructure (PAQI) co-operation of Africa’s technical infrastructure consisting of AFRAC, African Regional Standards Organisation (ARSO), African Metrology (AFRIMETS) and African Electro Technical Standardization Commission (AFSEC), SANAS will facilitate the alignment of their work at an African level in order to respond to the AU strategic priorities, including the efforts to industrialise the region.

Taking into consideration the forces that now shape the global environment, such as economic growth, or the lack thereof, increased customers awareness of their impact and demand on the environment and natural resources, as well as a renewed global emphasis on cleaner energy and environmental protection, we predict that the recognition of the role of accreditation will become indispensable. This is particularly true for the role accreditation plays in underpinning conformity assessment requirements in both the voluntary and regulatory domain, with special focus on economic growth through the facilitation of trade and contributing to government’s strategic objectives. Therefore, SANAS will focus on adding more value within these areas, whilst at the same time maintaining its current customer base.

SANAS will continue to develop existing and new accreditation programmes, provide training in South Africa and the region, and promote the use of accreditation as a tool for fostering international trade and the protection of health, safety and the environment.


5.7 Administration and Co-ordination

5.7.1 Improving Organisational and Individual Performance

Our value of Excellence is entrenched through a robust Performance Management Policy which is fully embedded using tools that enable critical conversations and use of a process driven system. To ensure continuous improvement we will focus on:

• Cascading overall organizational strategic objectives to all levels of employees • Rigorous implementation of discussed and agreed to individual performance contracts and divisional plans which are aligned to team and organisational strategic goals • Holding regular performance conversations to facilitate timeous corrective measures and real time coaching and mentoring • Implement targeted personal development plans to enable relevant competencies through training and bursary policies • Conduct annual analysis of customer service excellence and make corrections aligned with findings • Managing non-performers to expedite improvement through the Performance Improvement Process.

As the operation of SANAS complies with the international standard, ISO/IEC 17011, it will invest in a management system in line with the requirements of the ISO/IEC 27000 series of standards for its ICT security. In an effort to improve its service delivery, SANAS will adopt a service excellence model.

5.7.2 Attraction and Retention of Relevant Skills

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SANAS will also grow its full time resources by recruiting relevant staff with the main focus being on increasing technical accreditation capacity. It is against this background that SANAS will invest in a number of activities aimed at strengthening SANAS’s probability to attract relevant and competent skills in the market place.

Attraction activities that will be invested in include: • The use of SANAS brand and its contribution to the country as an opportune leverage communication point in Tertiary Institutions to attract relevant qualified skills. • Continuous review of employee offerings and rewards to ensure market related remuneration (financial and non-financial) • Rigorous performance management of Technical Interns to ensure that Interns who have shown impressive development, cultural fit and contribution are permanently absorbed where possible

SANAS will also focus on various Staff Retention activities with the aim of ensuring that relevant and business critical skill is not lost. During this period, Staff Retention activities will include: • The roll-out of Talent Management process which will enable internal employees to ensure best fit into roles and thus contribute to the retention of the relevant skills • Embedding our employee value proposition which focuses on creating a conducive working environment through Employee Wellness Programme, Employee Bursary Programme, overall training and development support, continuous employee engagement and benchmarked remuneration • Employee recognition and reward though pay progression, bonuses and employee appreciation awards • Extensive focus and investment in employee development and embedding learnings in the organisations with relevant teams and individuals.


5.7.3 Financial Forecast

The SANAS medium-term forecast is guided by National Treasury’s guidelines and takes into consideration the income generated by SANAS for the direct accreditation services provided on a user-pay principle, as well as the funding received from the dti in support of the activities of national interest and assigned projects.

The organisation’s income, which includes funding received from government and industry, will increase from a projected R113.7 million in 2019/20 to R144.2 million by 2023/24. Government’s contribution will amount to R31.69 million (27.8%) in 2019/20 and has evidenced a significant decrease in the reliance thereof from an average of 40% in the prior 3 years. The income from accreditation services and training accounts for an average of 71.9% of the budget. The budget is based on a 0% variance between income and expenditure.

5.8 Organisational Environment

The accredited facilities of SANAS grew from 1448 to 1634 (12, 84%) over the past five years. It is envisioned that this growth will continue albeit at a more moderate rate of between 5 and 7%, as new demand reaches saturation, coupled with the handing over of accredited CABs to National Accreditation Bodies in Africa, when they attain their international recognition. This continued growth, together with the increased expectations of government, regulators and industry and the DIR demand for high skilled employees, necessitated a review of the SANAS processes and structures aimed at positioning the organisation to effectively meet South Africa’s future accreditation demands. Over the period of this Strategic Plan, SANAS will perform a skills audit, and address the gaps identified.

The scarcity of such technical expertise in some specialised areas demands higher compensation and privileges, which exerts pressure on the desire for SANAS to provide cost-effective accreditation infrastructure. It is against this background that SANAS will continue to roll out its long-term strategy of investing in tertiary educational institutions by providing training on accreditation through internship and bursary programmes to address future skills shortages. SANAS will focus on growing its assessor and technical expert pool in order to maintain the technical integrity of the accreditation process. Other priorities identified include investment in ICT.

5.8.1 SANAS Organisational Structure

The Minster of Trade and Industry is the Executive Authority of SANAS. The organisation has a Board of Directors which is the Accounting Authority. The day-to-day operations fall under the leadership of the Chief Executive Officer, who is the Accounting Officer of the organisation. Diagram 5.1 below depicts the organisational structure of SANAS.


Diagram 5.1: SANAS Organisational Structure

EXECUTIVE AUTHORITY

Minister Trade and Industry

Dr Rob Davies

ACCOUNTING AUTHORITY

ADVISORY FORUM

Board of Directors Chairperson

Approval Committee

Executive: Accreditation

Mr Mpho Phaloane

• Inspector Bodies• Calibration Laboratories• Testing laboratories• Certification Bodies• Blood Transfusion• GLP, GCP• Forensic laboratories• Veterinary laboratories• B-BBEE Verification• Medical Laboratories• Verification Laboratories

• Human Resources• ICT• Marketing and Communication• Facility Management• Administration Co-ordination• Corporate Social Investment

• Quality Management• IT Security

• SADC Accreditation RegionalCoordinator• AFRAC and SADCA Secretariat

• Strategy Development• Knowledge Transfer (Training)

• Financial Management• Risk Management• Procurement and Supply Chain Management

Executive: Corporate ServicesMs Busi Radebe

Executive: Strategy and Development

Mr M Sithole (Acting)

Chief Financial Officer

Mr I Abdoola

COMMITEES OF THE BOARD

Audit Committee

Risk Committee

CEO Mr Ron Josias

Human Resources and Remuneration Committee

MEMBERS OF KEY MANAGEMENT

Company Secretary/ Legal Advisor

Mr D Petersen

6. STRATEGIC OUTCOME-ORIENTED GOALS

SANAS has identified key strategic outcome-oriented goals in support of government’s priorities and broader outcomes. These are detailed in Table 6.1 below.

Table 6.1: SANAS outcome alignment with that of government and the dti

the dti STRATEGIC OUTCOME-ORIENTED

GOALS

SANAS OUTCOMESGOVERNMENT OUTCOME

SANAS STRATEGIC OBJECTIVE

Decent employment through inclusive economic growth

Facilitate the transformation of the economy topromote industrial development, investment, competitiveness and employment creation

Provide accreditation support for industrial development and the protection of the health, safety and environment of the South African public

• Operationalise accreditation programmes in the areas as assigned to SANAS by the dti in IPAP

• Operationalise accreditation programmes in the areas as assigned by other government departments and stakeholders, e.g.Department of Labour, Department of Energy, etc.

• Provide accreditation programmes for conformity assessment bodies to service government priority sectors supporting the production of safe, good quality goods and services

Create a better South Africa, a better Africa and a better world

Build mutually beneficial regional and global relations to advance South Africa’s trade, industrial policy and economic development objectives

Promote the acceptance of SANAS-accredited results amongst global partnersto advance South Africa’s trade and economic development objectives

• Provide accreditation support to facilitate market access of South African goods and services supporting exports

• Manage South Africa’s interests in shaping regional and global policies in accreditation that advances the economic and development objectives of South Africa and Africa

An efficient, effective and development- oriented public service and empowered, fair and inclusive citizenship

Promote a professional, competitive and customer- focused working environment that ensures effective and efficient service delivery

Improve the operational efficiency of SANAS to deliver services with a spirit of excellence

• Improve SANAS operational efficiency by automating its accreditation processes

• Diversified assessor pool

• Increased awareness of SANAS

Support regional integration and relations to advance South Africa’s trade, industrial policy and economic developmentobjectives

• Promote integration and strengthen the links within Africa’s quality infrastructure to enable an environment for regional economic integration

• Provide accreditation support to facilitate the locking out of unsafe, poor quality goods and service


� � � � �� STRATEGIC OBJECTIVES

7. SERVICE PROVIDED BY SANASTo give effect to its vision, mission and objectives, SANAS undertakes various initiatives and interventions under the following key programmes:

1. Administration services: Financial Management, Legal Services, Company Secretary; 2. Corporate services: Quality Management, Human Resource Management, Information Communication Technology (ICT) and Marketing and Communications; 3. Accreditation services: accreditation assessments and good laboratory practice monitoring; and4. Strategy and development services: research and development of new accreditation programmes, knowledge transfer, and regional and international development

7.1 SANAS’ Key Intervention Areas

SANAS fulfils its function through enabling and continuous support to four key interventions at national, regional and international level. These key intervention areas as listed in Table 7.1 below.

Table 7.1: Key intervention areas

INTERVENTIONS

Industrial Sector Support IPAP-assigned sectors of the dti, i.e. green industries, metal fabrication, agro-processing, automotive, clothing and textiles, advanced manufacturing, plastics, ICT, pharmaceuticals and cosmetics and the nuclear energy industry

Health, Safety and Environmental Protection Support

Departments of Labour, Health, Energy, Agriculture, Fisheries and Forestry, Environmental Affairs, etc.

Regional Integration and Inter-regional Trade Support

AFRAC, SADC, Tripartite (EAC, SADC, COMESA)

South African Trade Facilitation ILAC, IAF, OECD

KEY FOCUS AREA

7.2 Alignment between the SANAS Strategic Outcome-Oriented Goals, other Government Department Outcomes and Industry Demand


Facilitate the transformation of the economy to promote industrial development, investment, competitiveness and employment creation

Provide accreditation support for industrial development and the protection of the health, safety and environment of the South African public

• Operationalise accreditation programmes in the areas as assigned to SANAS by the dti in IPAP• Operationalise accreditation programmes in the areas as assigned by other government departments and stakeholders, e.g. Department of Labour, Department of Energy, etc.

• Establish new transport management accreditation programmes for: • ICT • Organic agricultural production • Energy efficiency performance of buildings• Support the development of a South African nuclear energy industrial framework

Table 7.2: Strategic Outcome Alignment

GOVERNMENT OUTCOME

the dti OBJECTIVES

SANAS STRATEGICOBJECTIVE


KEY AREAS/ PROJECTS(2019/20–2023/24)


GOVERNMENT OUTCOME

the dti OBJECTIVES







• Promote integration and strengthen the links within Africa’s quality infrastructure to enable an environment for regional economic integration

• Lead the achievement of international recognition of the African Accreditation Cooperation and its recognition by the African Union


Promote the acceptance of SANAS-accredited results amongst global partners to advance South Africa’s tradeand economic development objectives

• Provide accreditation support to facilitate market access of South African goods and services supporting exports

• Manage South Africa’s interests in shaping regional and global policies in accreditation that advances the economic and development objectives of South Africa and the rest of Africa

• Maintain the signatory status of SANAS to the multilateral mutual recognition arrangement for laboratory, calibration, inspection and certification body accreditation

• Provide input into the international requirements concerning accreditation to facilitate a level playing field for the acceptance of South African goods and services

• Promote the expansion of the number of accredited organisations supporting the IPAP priority sectors

• Maintain membership and engage in the structures and Executive Committee of ILAC and IAF

• Influence the OECD requirements for good laboratory practice


Facilitate the transformation of the economy to promote industrial development, investment, competitiveness and employment creation

• Provide accreditation programmes for conformity assessment bodies to service government priority sectors supporting the production of safe, good quality goods and services

• Expand accreditation scopes in the fields of testing, inspection and certification bodies in support of IPAP priority sectors


An efficient, effective and development- oriented public service and empowered, fair and inclusive citizenship

Promote a professional, competitive and customer-focused working environment that ensures effective and efficient service delivery

Improve the operational efficiency of SANAS to deliver services with a spirit of excellence

• Improve SANAS operational efficiency by automating its accreditation processes

• Diversified assessor pool

• Increased awareness of SANAS

• Develop and implement the SANAS service excellence model

• Develop and implement Phase 3 of SANAS ICT Project Plan

• Qualify and register individuals of previously disadvantage groups

• Establish an internship programme and formal relationships with tertiary institution

• Roll out communication and marketing events

• Support the development and international recognition of a SADC multi-economy accreditation body

• Support the establishment of accreditation bodies on the continent and the development of a pool of accreditation evaluators and trainers in SADC

• Provide accreditation support to facilitate the locking out of unsafe, poor quality goods and services

GOVERNMENT OUTCOME

the dti OBJECTIVES





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pen

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se o

f log

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und

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f SA

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PS a

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trod

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al e

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use

of a

ccre

dita

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logo

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NA

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pre

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and

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with

ISO

sta

ndar

ds /

PFM

A /

TR

7

Resi

dual

Ri

skRe

sidu

al

Risk

� � � � �� LINKAGE TO OTHER PLANS

8.1 SANAS Strategic Risk Management

The risk management philosophy of SANAS regulates how activities are conducted and how the associated risks are being managed or mitigated. It facilitates employees’ ability to recognise and effectively manage risks and reflects the value sought from risk management and how risk management will be applied. The SANAS Board of Directors, together with management, updates the SANAS Risk Plan annually. To ensure that efficient and effective controls are in place the independent Internal Auditors review and report to the SANAS Audit and Risk Committee on the organisation’s performance in managing the risks identified.

8.2 Fraud Prevention

The SANAS Fraud Prevention Plan (FPP), FP04, was developed to comply with section 3.2.1 of the Treasury Regulations to the PFMA. The FPP is a dynamic strategy that continuously evolves as SANAS makes changes and improves on its drive to promote ethics and fight fraud, corruption, theft, maladministration and other acts of misconduct. SANAS has a zero tolerance approach to fraud and corruption.

8.3 Maintaining the International Recognition of SANAS

SANAS is committed to deliver on its mandate of providing South Africa with an internationally recognised accreditation infrastructure through maintaining its international recognition in the International Accreditation Cooperation (ILAC), the International Accreditation Forum (IAF) and the African Accreditation Cooperation (AFRAC). SANAS was established and operates in accordance with the international standard, ISO/IEC 17011. In addition, SANAS actively participates in the activities of these three organisations, SANAS is actively involved in the SADC Accreditation Cooperation (SADCA). SANAS is peer evaluated every four years to reconfirm an accreditation body’s signatory status to the AFRAC, ILAC an IAF multi-recognition arrangement.

8.4 Information Technology Plan

8.4.1 ICT Capacity and Performance Enhancement

SANAS is currently progressing with the development of our turnkey accreditation system which aligns with our strategic objective of service delivery excellence. With Green IT and Industry Revolution 4.0 in mind, we are analysing and introducing effective and automated processes within our environment, resulting in quick turnaround times, access to strategic reporting with on demand secured data for quick decision making as well as reducing our carbon footprint

As data is core to our business, we take data security very seriously, therefore, by continuously researching and scanning our environment both internally and externally, we constantly strive to mitigate against data loss due to technology failure, loss of device cyber-security etc., by improving and adopting new IT security technology, best practices and awareness.

8.4.2 ICT Governance

In order for SANAS to optimise its current resources, manage both strategic and operational risks as well as realise tangible benefits such as effective IT procurement, IT strategy formulation/ implementation and IT service delivery to name a few, SANAS has adopted and rolling out two governance frameworks, namely, COBIT 5 (Control Objectives for Information and Related Technology) and ITIL (Information Technology Infrastructure Library) in the next three years.

8. STRATEGIC ALIGNMENT


9. FINANCIAL PLANThe Financial Plan contains a number of aspects as discussed below.

9.1 Projections of Revenue Expenditure and Borrowings

2019/20 2020/21 2021/22 2022/23 2023/24

SUMMARY OF INCOME

SUMMARY OF EXPENDITURE

1. Accreditation Provision 71 659 124 76 675 263 82 042 531 87 375 295 93 054 690

2. Knowledge Transfer (Research and Development) 10 158 497 7 798 568 8 344 468 8 886 858 9 464 504

3. Transfer from the dti 31 669 000 33 399 000 35 237 000 38 845 358 41 370 307

4. Interest 150 000 158 400 167 112 177 974 189 543

5. Sundry income 130 000 137 280 144 830 154 244 164 270

TOTAL 113 766 621 118 168 510 125 935 456 135 439 731 144 243 313

1. Administration 40 984 198 43 573 062 46 970 711 51 342 277 54 679 525

2. Corporate services 9 983 976 9 454 042 9 973 905 10 622 208 11 312 652

3. Strategy and development 5 097 498 4 641 356 4 896 630 5 214 911 5 553 880

4. Accreditation Provision 57 700 949 60 500 050 64 094 211 68 260 334 72 697 256

TOTAL 113 766 621 118 168 510 125 935 456 135 439 731 144 243 313

SURPLUS/(DEFICIT) - - - - -

2019/20 2020/21 2021/22 2022/23 2023/24

Economic classi�cation 113 766 621 118 168 510 125 935 456 135 439 731 144 243 313

Compensation of Employees 59 008 013 62 700 796 67 466 015 73 169 777 77 925 812

Goods and services, of which: 54 758 608 55 467 714 58 469 441 62 269 954 66 317 501

Advertising and Marketing 2 197 000 2 320 032 2 447 634 2 606 730 2 776 167

Assets <R5000 40 000 42 240 44 563 47 460 50 545

Audit cost: External 300 000 316 800 334 224 355 949 379 085

Audit cost: Internal 500 000 528 000 557 040 593 248 631 809

Bad debts written o� 100 000 100 000 100 000 106 500 113 423

Bank charges 70 000 73 920 78 436 83 534 88 964

Board meeting expenses 300 000 316 800 334 224 355 949 379 085

Board member payments 445 917 470 888 496 787 529 079 563 469

Bursaries 400 000 422 400 445 632 474 598 505 447

Communication 318 200 333 984 343 509 365 837 389 617



2019/20 2020/21 2021/22 2022/23 2023/24

9.2 Cash Flow Projections

2019/20 2020/21 2021/22 2022/23 2023/24

Computer services 3 230 000 3 410 880 3 598 478 3 832 379 4 081 484

Consultants and professional service: Business/Advisory (HR) 170 000 179 520 189 394 201 704 214 815

Consultants and professional service: Legal costs 120 000 126 720 133 690 142 379 151 634

Consultants (Assessors) 15 090 227 15 935 279 16 811 720 17 904 481 19 068 273

Course expenses 2 401 438 1 794 316 1 893 004 2 016 049 2 147 092

Depreciation and amortisation 944 891 997 805 1 052 684 1 121 109 1 193 981

Entertainment 10 000 10 000 10 220 10 884 11 592

General accreditation operating expenditure 1 045 725 1 104 286 1 165 021 1 240 748 1 321 396

International and regional responsibilities 2 516 060 2 656 959 2 803 092 2 985 293 3 179 337

Operating expenditure 5 605 716 5 896 058 6 219 791 6 624 077 7 054 642

Projects 2 315 000 1 758 240 1 820 719 1 939 066 2 065 105

Stationery and Printing 430 000 454 080 479 054 510 193 543 355

Training and Sta� Development 1 989 000 1 202 784 1 268 937 1 351 418 1 439 260

Transfer payment: NLA 667 390 704 764 743 526 791 855 843 326

Travel and subsistence 13 552 044 14 310 959 15 098 061 16 079 435 17 124 599

Cash Flows from Operating Activities

Cash Receipts 113 766 621 118 168 510 125 935 456 135 439 731 144 243 313

Funds Received from the dti 31 669 000 33 399 000 35 237 000 38 845 358 41 370 307

Fee Income 81 817 621 84 473 830 90 386 998 96 262 152 102 519 192

Payments 113 766 621 118 168 510 125 935 456 135 439 731 144 243 313

Employee Costs 59 008 013 62 700 796 67 466 015 73 169 777 77 925 812

Suppliers 54 758 608 55 467 714 58 469 441 62 269 954 66 317 501

Finance Costs - - - - -

Net Cash Flows from Operating Activities - - - - -

Cash Flows from Investing Activities

Finance Lease Payments - - - - -


9.2 Cash Flow Projections (Continued)

Economic classi�cation 113 766 621 118 168 510 125 935 456 135 439 731 144 243 313

Compensation of Employees 59 008 013 62 700 796 67 466 015 73 169 777 77 925 812

Goods and services, of which: 54 758 608 55 467 714 58 469 441 62 269 954 66 317 501

Advertising and Marketing 2 197 000 2 320 032 2 447 634 2 606 730 2 776 167

Assets <R5000 40 000 42 240 44 563 47 460 50 545

Audit cost: External 300 000 316 800 334 224 355 949 379 085

Audit cost: Internal 500 000 528 000 557 040 593 248 631 809

Bad debts written o� 100 000 100 000 100 000 106 500 113 423

Bank charges 70 000 73 920 78 436 83 534 88 964

Board meeting expenses 300 000 316 800 334 224 355 949 379 085

Board member payments 445 917 470 888 496 787 529 079 563 469

Bursaries 400 000 422 400 445 632 474 598 505 447

Communication 318 200 333 984 343 509 365 837 389 617

2019/20 2020/21 2021/22 2022/23 2023/24

Net Cash Flows from Financing Activities - - - - -

Net Increase/(Decrease) in Cash and Cash Equivalents (6 880 000) (1 900 000) (900 000) (900 000) (950 000) Cash and Cash Equivalents at the Beginning of the Year 23 528 05 16 148 505 13 948 505 3 948 505 13 048 505

Cash and Cash Equivalents at the End of the Year 16 648 505 14 748 505 13 948 505 13 048 505 12 098 505

10. FRAUD PREVENTION AND FRAUD PREVENTION PLAN

SANAS’ fraud prevention strategy is focused on the following areas:

1) Formalisation and implementation of a zero tolerance culture to fraud and corruption within SANAS; 2) A high level of fraud awareness; and 3) Management and control an environment that makes it difficult to misappropriate assets.

There are essentially four pillars to a fraud prevention strategy which have been used as the basis for the SANAS Fraud Preven-tion Plan. They are as follows:

1) Creating an anti-fraud environment 2) Understanding and managing the risks; 3) Being proactive in defence; and 4) Reacting swiftly to suspected or known crimes.

Table 11.1: Fraud Prevention Plan

FPP Component and Area Ref No Action on required

Creating awareness

Education

1

2.3

2.3.1

1.2

2

2.1

2.2

1.1 Hold educational workshops for updates on Fraud Prevention Strategy

Awareness campaign

Enforce policies and procedures by:

Making management responsible for the continuous communication and training of employees in relation to policies and procedures

Ensure that operating procedures support the PFMA and Treasury Regulations

Monitor that awareness and education of the PFMA and Treasury Regulations are taking place

Communication

Organisation’s policies and procedures, rules and prescripts

PFMA and Treasury Regulations

Accountability in terms of adherence to policies and procedures

Investigations6

8

8.1

7

7.1

7.2

7.3

6.1 Monitor the level and quality of service and support received

Awareness of hotline facility

8.2 Monitor the effectiveness of the hotline in terms of reports receivedand level of awareness

Review the latest risk assessment to ensure that action is taken tomanage and mitigate fraud and corruption risks disclosed therein

Ensure that regular risk assessments are conducted and risk profiles updated

Conduct an annual organisation-wide risk assessment

Ongoing risk assessment

Anti-Fraud and Corruption Hotline


Computer services 3 230 000 3 410 880 3 598 478 3 832 379 4 081 484

Consultants and professional service: Business/Advisory (HR) 170 000 179 520 189 394 201 704 214 815

Consultants and professional service: Legal costs 120 000 126 720 133 690 142 379 151 634

Consultants (Assessors) 15 090 227 15 935 279 16 811 720 17 904 481 19 068 273

Course expenses 2 401 438 1 794 316 1 893 004 2 016 049 2 147 092

Depreciation and amortisation 944 891 997 805 1 052 684 1 121 109 1 193 981

Entertainment 10 000 10 000 10 220 10 884 11 592

General accreditation operating expenditure 1 045 725 1 104 286 1 165 021 1 240 748 1 321 396

International and regional responsibilities 2 516 060 2 656 959 2 803 092 2 985 293 3 179 337

Operating expenditure 5 605 716 5 896 058 6 219 791 6 624 077 7 054 642

Projects 2 315 000 1 758 240 1 820 719 1 939 066 2 065 105

Stationery and Printing 430 000 454 080 479 054 510 193 543 355

Training and Sta� Development 1 989 000 1 202 784 1 268 937 1 351 418 1 439 260

Transfer payment: NLA 667 390 704 764 743 526 791 855 843 326

Travel and subsistence 13 552 044 14 310 959 15 098 061 16 079 435 17 124 599


2.3.2

3.3

3.4

2.3.4

3

3.1

3.2

2.3.3

Making management accountable for disciplining nonconformance

Ensuring consistent and appropriate disciplinary actions

Holding employees accountable for their actions and transgressions

Empower line management to apply the disciplinary code and procedures through effective delegation

Monitor actions taken by managers to ensure proper supervision and compliance by managers

Hold management accountable for enforcing internal controls and discipline non-adherence and non-conformance

4

4.1

Monitor the implementation and improvement of internal controls in the areas identified to ensure that a noticeable improvement is achieved

To provide an adequate, value-adding support service, Internal Audit will:

4.3

5

Hold employees accountable for their actions and transgressions

4.2

Communicate disciplinary code and procedures to all employeesand managers

Provide training and support to line management in terms of the application of the disciplinary code and procedures

Disciplinary code and procedures

Internal controls to prevent and detect fraud and corruption

Effective internal audit function

5.1

Work according to an audit strategy that includes a coverage plan Focus on the programme operations in terms of their involvement in submissions and the valuation, design, implementation and maintenance of controls during programme implementation

5.1.1

5.1.2

Hold management accountable for taking corrective actions in terms of audit reports submitted to them Monitor the level of support received from Internal Audit to ensuresatisfactory standards and intensity

5.2

5.3

Cash Flows from Operating Activities

Cash Receipts 113 766 621 118 168 510 125 935 456 135 439 731 144 243 313

Funds Received from the dti 31 669 000 33 399 000 35 237 000 38 845 358 41 370 307

Fee Income 81 817 621 84 473 830 90 386 998 96 262 152 102 519 192

Payments 113 766 621 118 168 510 125 935 456 135 439 731 144 243 313

Employee Costs 59 008 013 62 700 796 67 466 015 73 169 777 77 925 812

Suppliers 54 758 608 55 467 714 58 469 441 62 269 954 66 317 501

Finance Costs - - - - -

Net Cash Flows from Operating Activities - - - - -

Cash Flows from Investing Activities

Finance Lease Payments - - - - -


Physical and information security9

10

10.1

9.2

9.3

9.1 Ensure that responsible persons are appointed to improve security measures

Ensure the ongoing maintenance and review of

10.2 Code of Ethics and Business Conduct

10.3 Anti-Fraud and Corruption Policy

Review the information security policy and procedures that deal with control over physical documents containing confidential information

Monitor the implementation of the actions detailed above to ensure that it has a positive impact on the security measures at various institutions

Ongoing maintenance and review


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SANAS STRATEGIC PLAN 2019/20 – 2023/24

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STRATEGIC PLAN 2019/20 - 2023/242019/20 to 2023/24. Mr Ron Josias Chief Executive O˜cer 31 January...

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