portfolio committee on trade and industry 17 april 2013
DESCRIPTION
Portfolio Committee on Trade and Industry 17 April 2013. Annual Performance Plan 2013/14 - 2015/16 & Business Plan 2013/14 Mr. Prags Govender Chairperson (016) 430 8823 [email protected] Ron Josias CEO (012) 394 3760 [email protected]. Acronyms. Content. Overview of SANAS - PowerPoint PPT PresentationTRANSCRIPT
Portfolio Committee on Trade and IndustryPortfolio Committee on Trade and Industry17 April 201317 April 2013
Annual Performance Plan 2013/14 - 2015/16 & Business Plan 2013/14
Mr. Prags Govender
Chairperson (016) 430 8823
Ron Josias CEO(012) 394 3760
AcronymsAcronyms AFRAC African Accreditation Cooperation MTEF Medium-term Expenditure Framework
B-BBEE Broad-based Black Economic Empowerment
NDT National Department of Tourism
CEM Customer Experience Measure NNR National Nuclear Regulator
CEO Chief Executive Officer NRCS National Regulator for Compulsory Standards
CFO Chief Financial Officer OECD Organisation for Economic Cooperation and
EAC Eastern African Community Development
EA European Accreditation Cooperation PDI Previously disadvantaged individuals
EMS Environmental Management System PFMA Public Finance Management Act
GFSI Global Food Safety Initiative QMS Quality Management System
GCP Good Clinical Practice SABS South African Bureau of Standards
GCPV Good Clinical Practice Veterinary SADC Southern African Development Community
GLP Good Laboratory Practice SADCA Southern African Development Community
IAF International Accreditation Forum Cooperation in Accreditation
ILAC International Laboratory Accreditation SADCAS Southern African Development Community
Cooperation Cooperation in Accreditation Services
IPAP Industrial Policy Action Plan SANAS South African National Accreditation System
ISO International Standards Organisation SANS South African National Standard
MAD Mutual Acceptance of Data TBT Technical Barriers to Trade
MLRA Multilateral Recognition Arrangement the dti The Department of Trade and Industry
MAURITAS Mauritius Accreditation Service WADA World Anti doping Agency
ContentContent
• Overview of SANAS• Strategic Overview• Service Offerings• Finances
Historical OverviewHistorical Overview
Role & Mandate of SANASRole & Mandate of SANAS
SANAS do & don’t doSANAS do & don’t do
Don’t Do
We do not develop or draft standards We support SANS We verify compliance to relevant national and international standards
We do not regulate Support regulators
We do not legislate We provide input to legislation when required
We do not prosecute We provide support to prosecutors
We do not provide conformity assessment services e.g. testing, inspection certification
We accredit conformity assessment bodies
Collaboration / PartnershipsCollaboration / Partnerships
Impact of AccreditationImpact of Accreditation• Ensure compliance to international standards• Underpin the acceptance of South African produced goods and
services • Negate technical barriers to trade (TBTs)• Crucial for “locking out” bad quality and unsafe imports and
“locking in” export markets
Facilitate Trade (Fair trade, International Trade)
• Use as a prerequisite by some regulators to approve private entities to perform work within the regulatory domain e.g. Department of Labour- Inspection, National Regulator for Compulsory Specifications (NRCS)- Trade Metrology
Support Regulations
• Reliable medical (diagnostic and treatment) and testing• Major Hazardous inspection (Inform emergency services and town
planning)• OHS measurements: For example noise exposure levels, light,
testing & inspection etc.• Protects against inferior imports (dumping)
Improve Quality of Life (Health, Safety, Environment; Law
enforcement, etc.)
• New energy sources, biofuels, liquefied natural gas, etc. • Increased reliable energy efficiency and green house gas emission
measurements, usage and claims (accurate consumption measures etc.)
• Contribute to safe water & food testing
Helps to meet social needs
Accreditation Stats – March 2013Accreditation Stats – March 2013
SANAS’ Service OfferingsSANAS’ Service OfferingsNO SUBPROGRAMME CONTRIBUTION TO ECONOMY AND/OR HEALTH AND SAFETY
1.
Calibration laboratories and proficiency testing schemes
Calibration laboratories provide legal metrological traceability in South Africa as stipulated in the Measurements Units and Measurement Standards Act (Act No. 18 of 2006). The laboratories therefore form an integral part of the metrological chain whenever physical measurements are performed, be these for trade, safety, scientific purposes, law enforcement or to ensure that South African manufacturers remain globally competitive. The calibration programme has an impact on the lives of ordinary South Africans, from ensuring that the weight of the sugar, maize meal and flour that is purchased is correct, to ensuring the accuracy of the equipment used for law enforcement, such as evidential breath analysers and speed measuring devices, and ensuring the accuracy and traceability of measurements required within the IPAP priority sectors. Proficiency testing is essential for the demonstration of the competency of a laboratory.
2. Testing laboratories
Testing laboratories play an important role in economies by providing objective evidence that a product or service offering conforms to certain customer requirements or specifications. SANAS-accredited laboratories in the food safety sector play an important role in monitoring the quality of food for import and export purposes, as well as for the health and safety of the public at large. The testing programme also provides an accreditation service in the IPAP priority Manufacturing sectors and other industry sectors, including environmental monitoring, food safety, infrastructure and construction, agriculture and minerals.
3. Medical laboratories
Creditability of medical pathology laboratories is paramount to the health and safety of the patients who rely on the testing services provided by these laboratories. Laboratory tests are an integral part of the workup of any patient, and constitutes up to 80% of a physician’s diagnosis and treatment choice. It is therefore important that the results are reliable, as medical doctors base their diagnosis on such results.
SANAS’ Service OfferingsSANAS’ Service Offerings
4A.GLP-compliant facilities
SANAS is the official OECD GLP monitoring authority. The main duty of the GLP monitoring authority is to monitor compliance with GLP Principles by conducting laboratory inspections and study audits. The OECD principles of GLP were primarily developed to promote the quality and validity of test data used to determine the safety of chemicals and chemical products.
4B.Forensic laboratories
Forensic laboratories are crucial to our criminal justice system as they provide very useful information that aid in the investigation and prosecution of crime through the scientific examination of physical evidence.
4C.
Veterinary laboratories and Good Clinical Practice (GCP)-compliant facilities
South Africa is no exception when it comes to the problems faced by the livestock industry worldwide. It is therefore important for the country to have a strong and competent veterinary laboratory industry to help with the diagnosis of diseases, especially emerging diseases such as Bovine spongiform encephalopathy (BSE – mad cow disease) and to test the safety of meat and other animal products.
4D. Blood transfusion
The primary goal of a blood transfusion facility is the transfusion of safe units of blood. Accreditation plays a vital role in ensuring that the personnel involved in all the activities (such as donor registration, blood collection, testing, processing and storage) of a blood transfusion service are competent and that national and/or international standards are being adhered to.
4E. Pharmaceutical
The South African pharmaceutical industry is regarded as the largest in Africa, constituting about 33% of all the pharmaceutical sales in Africa. The pharmaceutical or medicine industry is regarded as one of the best areas for business investment. Furthermore, it plays a vital role in fighting numerous diseases that are ravaging our country, such as TB, HIV and AIDS.
5. Inspection bodies
Inspection mainly operates within the regulatory domain where regulators and citizens need to be confident that inspection bodies, especially those inspecting health and safety issues in accordance with the Occupational Health and Safety (OHS) Act, are competent to do so. This also applies to bodies that are required to ensure the protection of consumers, such as the National Regulator for Compulsory Specification (NRCS) and those required under the IPAP, for example, nuclear inspection and measurement and verification agencies.
6.Verification laboratories
Verification laboratories fall under the domain of legal (trade) metrology, whose sole purpose is to protect consumers from unfair trade practices. These laboratories perform verifications on volume, mass and length measuring instruments in accordance with the requirements of the Trade Metrology Act (Act No. 77 of 1973) and other related technical regulations to ensure reliable results.
7. Certification bodies
Certification is the activity of conformity assessment where the focus is on a system that forms the basic requirements to ensure that an organisation has the necessary self-regulating procedures and controls on factors that affect a product so that it is possible to provide the customer with confidence that the product falls within the specified requirements. Accredited certification bodies certify other organisations with regard to compliance to management systems with recognised standards, such as quality management system, environmental management system. food safety management system requirements, responsible tourism and greenhouse gas validation and verification. This programme, together with the Inspection Body Programme, is the key accreditation implementer for the attainment of the IPAP projects assigned to SANAS.
8.
Broad-based Black Economic Empowerment (B-BBEE) verification agencies
In 2007, SANAS initiated the B-BBEE Verification Accreditation Programme, which supports government’s national objective to allow for a broader participation of previously disadvantaged people in the mainstream economy.
SANAS’ Service OfferingsSANAS’ Service Offerings
Accreditation Stats – March 2013Accreditation Stats – March 2013Countries @ 31 March 2013
Angola 1
Botswana 9
Ethiopia 3
Ghana 2
Kenya 14
Namibia 10
Nigeria 1
Swaziland 2
Tanzania 7
Uganda 7
Zambia 1
Zimbabwe 12
South Africa 1350SANAS Accredited facilities; SA = 95 % and the remaining 5% is shared by 12 African countries
SANAS’ Structure SANAS’ Structure 57 Full time staff - 72 by 2013180 Contracted Assessors (As need basis)
STRATEGIC OVERVIEWSTRATEGIC OVERVIEW
VISION
To pioneer and lead the future of accreditation in Africa and deliver services with a spirit of excellence.
MISSION
To create an impartial and transparent mechanism for organisations to independently demonstrate their com petence and facilitate the beneficial exchange of goods, services
and knowledge, and provide a service that is recognised as equitable to best international practice while reflecting the demographics of South Africa in all that we do.
VALUES
Integrity: To be consistent in our actions, principles and outcomes and to act with honesty without compromising the truth;
Excellence: Giving the best and world class service;
Partnership: Collaborating within and outside SANAS to give the best and to advance South Africa’s interest;
Pioneering: Offer creative new ways in accreditation which have the potential to change Africa.
PROGRAMMES
AdministrationAdministration AccreditationAccreditation GLP MonitoringGLP Monitoring Strategy & Development Strategy & Development Oversight, legal
support and Compliance
Assessment Engagements;
Inspection Engagements
New accreditation fields developments and
training
Increase Quality and Productivity
Improve External Relationships and Processes
Contribute to Government’s Strategic Objectives Processes
Key Intervention Areas & Results
Reduce vacancy positions to 10%;
Increase the registration of PDI assessors by 10 (total 76)
Develop and roll out an accreditation programme for:
The IPAP assigned: Energy
Management Systems; The DoL assigned: Risk Based
Inspection areas (1) BUSA assigned: Verification of
Green House; Road Transport Management
Systems; Expand number of accredited
Laboratories, Certification and Inspection Bodies (1438)
Provide Input to the international accreditation requirements
Provide AFRAC Secretariat;
Provide SADCA Secretariat
THE DTI’S PRIORITIES
Effective & Efficient service delivery;
Promote Industrial Development;
Build mutual beneficial regional and global relations to advance RSA trade
OVERVIEW OF SANAS’ ANNUAL PERFORMANCE PLAN & BUSINESS PLAN 2013/14 – 2015/16OVERVIEW OF SANAS’ ANNUAL PERFORMANCE PLAN & BUSINESS PLAN 2013/14 – 2015/16
Situational AnalysisSituational Analysis
• Background• Industrial Sector Support• South Africa’s Trade Facilitation• Protection of Health, Safety and the
Environment• Organisational Development
• Office Space• Skills availability
ConstraintsConstraints
Programme Alignment to the dti’s Priorities Programme Alignment to the dti’s Priorities
Cont: Programme Alignment to the dti’s Priorities Cont: Programme Alignment to the dti’s Priorities
IPAP Assigned ProjectsIPAP Assigned Projects
Business Plan 2013/14: Performance Plan Matrix Business Plan 2013/14: Performance Plan Matrix
OUTCOMES OUTPUTSPERFORMANCE INDICATORS/
MEASURES
Quarterly milestones
BASELINE2012/13
Annual Target
for 2013/14
Q1 Q2 Q3 Q4
Strategic objective 1: To Improve SANAS’s operational efficiency to deliver services with a spirit of excellence
Efficient service delivery
Improve the vacancy rate
Reduce the percentage of vacant positions
15 %
10%
15% 14% 13% 10%
Diversified assessor pool
Increase the registration of previously disadvantaged assessors
Number of previously disadvantaged assessors registered with SANAS in the assessors’ pool
68 76 69 71 73 76
Business Plan 2013/14: Performance Plan Matrix Business Plan 2013/14: Performance Plan Matrix
Strategic objective 2: To contribute to industrial development and the protection of health, safety and the environment
Established accreditation systems for new programmes
Develop and roll out an accreditation system for the accreditation of IPAP2 assigned areas
IPAP accreditation programmes for:-Energy Management Systems
IPAP accreditation programme for measurement and verification of Energy Efficiency
IPAP accreditation programme for Energy Management Systems
Draft and approve Feasibility studies for Energy Management Systems Draft terms of reference and establish working group for the Management Systems
Develop document for the SANAS Technical Requirements for Energy Management Systems
Energy Efficiency Management Assessors sourcedAssessors trained
Conduct the Energy Efficiency Management awareness workshop for potential clients Handover of completed accreditation programme for Energy Management Systems
- Wind turbines - Organic
Agricultural Production and Processing
Feasibility studies for Wind turbines and Organic Agricultural Production and Processing drafted
Feasibility studies for Wind turbines and Organic Agricultural Production and Processing approved
OUTCOMES OUTPUTSPERFORMANCE INDICATORS/
MEASURES
Quarterly milestones
BASELINE2012/13
Annual Target for 2013/14
Q1 Q2 Q3 Q4
Business Plan 2013/14: Performance Plan Matrix Business Plan 2013/14: Performance Plan Matrix
Established accreditation systems for new programmes
Develop and roll out an accreditation system for the accreditation of Department of Labour assigned areas
Department of Labour- Accreditation programmes for Risk Inspection
Department of Labour
accreditation programme
for occupational
hygiene
Department of Labour-
Accreditation programmes
for Risk Inspection 1
Assessors sourced
Assessors trained
Conducted an
awareness workshop
for potential clients
Handover of completed
accreditation programmes
for Risk Inspection to the stream
OUTCOMES OUTPUTSPERFORMANCE INDICATORS/
MEASURES
Quarterly milestones
BASELINE2012/13
Annual Target for 2013/14
Q1 Q2 Q3 Q4
Established accreditation systems for new programmes
Develop and roll out an accreditation system for the verification of greenhouse gases as requested by BUSA
Accreditation programmes for GHG emissions
0
Accreditation programmes
for GHG emissions
Handover of
completed GHG
validation and
verification accreditati
on programm
e to the relevant stream
0 0
Business Plan 2013/14: Performance Plan Matrix Business Plan 2013/14: Performance Plan Matrix
Established accreditation systems for new programmes
Develop and roll out an accreditation system for road transport management systems
Accreditation system for road transport management systems
Accreditation system for
road transport
management systems
Feasibility studies drafted
and approved
Draft
terms of reference
theWorking
group (WG) and
WG establishe
d
Draft SANAS Technical
Requirements document developed
Finalise the
SANAS Technical
Requirements document developed
Expand the number of accredited organisations in the fields of testing, inspection, calibration, certification bodies and other conformity assessment services
Number of accredited organisations
1408 1 438 1415 1422 1430 1438
OUTCOMES OUTPUTSPERFORMANCE INDICATORS/
MEASURES
Quarterly milestones
BASELINE2012/13
Annual Target for 2013/14
Q1 Q2 Q3 Q4
Business Plan 2013/14: Performance Plan Matrix Business Plan 2013/14: Performance Plan Matrix Strategic objective 3: To promote the acceptance of SANAS-accredited results among international partners to advance South Africa’s
trade and economic objectives Influencing international accreditation requirements to facilitate a level playing field for acceptance of South African goods and services
Provide input into the international accreditation requirements of the ILAC and IAF
Percentage input to the international accreditation requirements of the ILAC and IAF received quarterly from ILAC and IAF
90% 95% 95% 95% 95%
Strategic objective 4: To support regional integration and relations to advance South Africa’s trade, industrial policy and economic development objectives
Accreditation support to lock out poor quality goods and services
Provide an Intra-AFRAC Secretariat
Number of meetings where secretarial support is provided
3 meetings
3 meetings
AFRAC General Assembly AFRAC MRA Committee meeting AFRAC EXCO meeting
Provide a Southern African Development Community Cooperation in Accreditation (SADCA) Secretariat and regional coordination function
Number of meetings where secretarial support is provided
3 meetings
3 meetings
SADCA EXCO meeting
SADCA EXCO meeting SADCA General Assembly
Strategic objective Activity No. Risk description Actions to improve management of the risk
1
To improve SANAS’s operational efficiency to deliver services with a spirit of excellence
Staff retention 1 Failure to retain or attract critical skills
- Develop and implement a Management Development Strategy
- Expand the assessor pool
Developing and implementing an accreditation process IT system
2
Inefficiencies due to manual systems resulting in long turnaround times
- Automate the accreditation processes
Non-availability of assessors 3
Assessors who have confirmed for scheduled assessments cancel a few days before the assessment
Expand the assessor pool to allow for more flexibility by:- advertising for assessors- approaching employers of potential assessors to have an agreement
Risk Register & Mitigation ActionsRisk Register & Mitigation Actions
2
To contribute to industrial development and the protection of health, safety and the environment
Establishing new programmes 4
Lack of stakeholders/experts buy in to support the process
- Direct interaction sessions with regulators
- Involvement in stakeholder forums and drafting of regulations
Establishing new programmes 5
- Timing of regulators to establish required legislation
- Unawareness of regulations by SANAS
- Subscribe and track publication of new regulations
- Senior management to pursue regulations sent for comment
Establishing new programmes 6
Perceived costs versus the benefits of accreditation
Create a support mechanism to minimise accreditation costs for new applicants by:- holding an annual induction for new facilities- creating a toolkit to assist small, medium and micro enterprises (SMMEs) with accreditation process
Establishing new programmes 7
Expectations gap between industry regulators with regard to the delivery of accreditation programmes
- Develop and distribute relevant marketing material
- Conduct workshops
Establishing new programmes 8 Limited skills (assessors)
for new programmes
- Ensure stakeholder participation in the work of SANAS
- Provide stakeholders with regular progress updates
- Develop guidance documentation where applicable
Strategic objective Activity No. Risk description Actions to improve management of the risk
Risk Register & Mitigation ActionsRisk Register & Mitigation Actions
Risk Register & Mitigation ActionsRisk Register & Mitigation Actions
3
To promote the acceptance of SANAS-accredited results among global partners to advance South Africa's trade and economic development objectives
ILAC, IAF, SADC, AFRAC, Eastern African Community (EAC), regulators, industry
9 Failure to meet international requirements - Ensure international participation
Marketing, road shows, workshops, website, etc.
10
Lack of understanding of the Accreditation Act, SANAS's mandate by other government departments, industry and the public (including staff and assessors)
- Develop and distribute relevant marketing material
- Conduct workshops
4
To support regional integration and relations to advance South Africa’s trade, industrial policy and economic development objectives
Accreditation support to lock out poor quality goods and services
11 Increase in reliance on SANAS to support SADCAS - Identify and train regional resources
12 Insufficient funds to maintain regional projects - Acquire donor funding
Strategic objective Activity No. Risk description Actions to improve management of the risk
Financial PlanFinancial Plan
1. PROJECTION OF REVENUE & EXPENDITURE; 2. CASH FLOW PROJECTIONS3. FRAUD PREVENTION4. MATERIALITY & SIGNIFICANCE FRAMEWORK
3 Year Projected Revenue3 Year Projected Revenue2013/14 2014/15 2015/16
SUMMARY OF INCOME
Accreditation provision 35 168 823 36 940 269 38 745 339 Knowledge transfer (research and development) 5 949 355 6 125 612 6 407 390 Transfer from the dti 32 615 000 34 560 000 36 151 488 Utilisation of the approved reserve: 1 200 000 - - Interest 1 001 250 877 198 909 949 Sundry income 254 700 267 180 299 608 TOTAL 76 189 128 78 770 260 82 513 774 - Capital assets 10 592 000 50 350 000 300 000
3 Year Projected Expenditure3 Year Projected Expenditure SUMMARY OF EXPENDITURE 2013 2014 2015
1. Administration 29 777 748 31 206 433 33 163 356
2. Accreditation provision 33 154 580 34 784 059 36 524 179
3. Marketing and communication 2 822 800 2 938 317 2 881 958
4. Regional development 718 150 737 866 897 480
5. International trade facilitation 2 261 178 2 134 487 2 344 250
6. Research and development 7 454 672 6 969 097 6 702 551
TOTAL 76 189 128 78 770 260 82 513 774
SURPLUS/(DEFICIT) - - -
Cash Flow ProjectionCash Flow ProjectionBUDGET BUDGET BUDGET
2013/14 2014/15 2015/16 Cash flows from operating activities Cash receipts 69 039 773 72 644 648 76 106 384 Funds received from the dti 32 615 000 34 560 000 36 151 488 Fee income 35 168 823 36 940 269 38 745 339 Investment income 1 001 250 877 198 909 949 Other receipts 254 700 267 180 299 608 Payments (67 473 282) (71 549 021) (74 640 317) Employee costs (34 761 426) (36 463 733) (38 720 621) Suppliers (32 462 830) (34 824 061) (35 643 697) Finance costs (249 025) (261 227) (276 000) Net cash flows from operating activities 1 566 491 1 095 626 1 466 067
Cash flows from investing activities Purchase of property, plant and equipment (20 592 000) (50 350 000) (300 000) Intangible assets acquired - - - Net cash flows from investing activities (20 592 000) (50 350 000) (300 000)
Cash flows from financing activities Mortgage bond (Borrowing) 31 000 000 (3 000 000) Finance lease payments (131 392) (122 397) (114 019) Net cash flows from financing activities (131 392) 30 877 603 (3 114 019)
Net increase/(decrease) in cash and cash equivalents
(19 156 900) (18 376 771) (1 947 952)
Cash and cash equivalents at the beginning of the year
53 070 200 33 913 300 15 536 529
Cash and cash equivalents at the end of the year 33 913 300 15 536 529 13 588 577
Performance MeasurePerformance Measure
• Evaluation ToolsEvaluation Tools– Balance Score Card– Independent Internal Auditors: ORCA– Independent annual Customer Satisfaction Survey (University
of Pretoria)
– International Peer Evaluations (ILAC, IAF……SADCA/AFRAC)– Own Internal Audits
• ReportingReporting– Audit Committee & Board of Directors– the dti Quarterly reports– Annual report