Strategic Plan 2017 - 2020 - FRCS · 2018. 4. 2. · FRCA Strategic Plan 2017 - 2020 Page 3 NATURE AND SCOPE OF FRCA’S BUSINESS The Fiji Revenue and Customs Authority (FRCA) is

A WORLD CLASS REVENUE AUTHORITY DELIVERING

EXCELLENCE IN REVENUE COLLECTION, BORDER PROTECTION,

TRADE AND TRAVEL FACILITATION

Fiji Revenue and Customs Authority

Strategic Plan 2017 - 2020

FRCA Strategic Plan 2017 - 2020

Page 2

TABLE OF CONTENTS

Nature and Scope of FRCA’s Business 3

Our Vision and Mission 4

Our Values 5

Summary of Results 6

Informants of Strategy 7

Our Strategic Plan 2017 - 2020 8

Organization Strucutre 15

Our Roadmap 16


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NATURE AND SCOPE OF FRCA’S BUSINESS

—

The Fiji Revenue and Customs Authority (FRCA) is a statutory authority established under the FRCA Act 1998 that is governed by a Board and administered by a Chief Executive Officer.

FRCA’s role is to:

i. Collect taxes and duties on behalf of government;

ii. Provide quality advice on tax and customs matter to all its stakeholders;

iii. Facilitate trade and travel; and

iv. Protect the border.

Our services are available from ten locations throughout Fiji: Ba, Labasa, Lautoka, Levuka, Nadi, Rakiraki, Rotuma, Savusavu, Sigatoka and Suva. Regular visitations are also held with outer islands, often in partnership with Government.

FRCA has embarked on a transformation journey to deliver excellence in our services and in fulfilling our role. Our strategy to achieve this requires redesigning our business operating model with a strong focus on the ‘One Service One Team’ concept.

Accordingly our organization structure is re-aligning to take advantage of internal synergies and technological advancements that will not only make us more efficient and effective but also make it easier for taxpayers, traders or travelers to comply.

FRCA has five operating arms:

i. People, Capability & Culture

ii. Revenue Management

iii. Intelligence, Compliance & Investigations

iv. Border Force

v. Corporate Services

vi. Technology

804TOTAL STAFF

64%CUSTOMER

SATISFACTION INDEX 2015

8.5%AVERAGE REVENUE

GROWTH 2006 - 2015

2.3cAVERAGE COST OF COLLECTION

2006 - 2015

OUR VISION

OUR MISSION


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OUR VISION &MISSION

—

A World Class Revenue Authority Delivering Excellence in Revenue Collection, Border Protection, Trade And Travel Facilitation

Helping Fiji grow as a leading contributor and funder of sustainable economic, security and social initiatives.


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ONE ORGANIZATION

Everyone will work as one toward the goals of FRCA displaying teamwork and respect for each other.

OUR VALUES

—

INTEGRITY

It’s a character. It’s a culture. It’s a way of life.

LEADERSHIPOur senior leaders will set direction and create a customer orientation, clear and visible values and high expectations. The leaders will ensure the creation of strategies, systems, and methods of achieving excellence and building knowledge and capabilities.

VALUING EMPLOYEES

We will invest in the development of our workforce through education, training, welfare and giving opportunities for their continual growth. In return FRCA expects high levels of productivity and integrity from its employees.

RESULTS FOCUS

Our performance measurements will focus on key results. Results should be guided by and balanced by the interest of all stakeholders. The use of a balanced set of performance measures offers an effective means to monitor actual performance, and to marshall support for improving results.

PARTNERSHIP AND ENGAGEMENT

We will build internal and external partnerships to better accomplish our goals.

1


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SUMMARY OFRESULTS

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Revenue Collection

Revenue collected by FRCA has contributed close to 90% of total Government revenue over the last five years.

The positive revenue collection is attributed to sound tax policies, improved tax compliance as well as multiplier effect through tax cuts.

Figure 1 illustrates the trend in revenue collection in the last ten years.

Figure 2 illustrates the trend in ratio of revenue collections to Gross Domestic Product (GDP).

Border Control

The protection of our border and the facilitation of trade are also core roles for FRCA. Figure 3 illustrates the growth in the number of people and the volume of cargo facilitated at our ports of entry.

Operational Efficiency

The Authority receives an annual grant from the Government to finance its operations. This is supplemented with other income from fees and charges. From 2010 to 2015, the Authority’s average Net Surplus was $5.9 million per year. The cost of collecting revenue has remained stable in the last few years at around 2 cents for every revenue dollar collected. See Figure 4.

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500,000,000

1,000,000,000

1,500,000,000

2,000,000,000

2,500,000,000

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

2015

2016

1.8

1.9

1.9

2.0

2.0

2.1

2.1

2.2

2010 2011 2012 2013 2014 2015 2016

27.0%

27.5%

28.0%

28.5%

29.0%

29.5%

30.0%

30.5%

31.0%

31.5%

2010 2011 2012 2013 2014 2015 2016

1,250,000

1,300,000

1,350,000

1,400,000

1,450,000

1,500,000

1,550,000

1,600,000

1,650,000

1,700,000

1,750,000

0

1,000,000

2,000,000

3,000,000

4,000,000

5,000,000

6,000,000

7,000,000

8,000,000

2008 2009 2010 2011 2012 2013 2014 [p] 2015 [p]

Total Trade (EXP + IMP) Total Passenger Movements

Figure 1: Revenue Collection 2001 - 2016 Figure 2: Revenue Ratio to GDP 2011 - 2015

Figure 3: Travel and Trade Volume 2006 - 2015 Figure 4: Cost of Collection 2011 - 2016


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INFORMANTS OFSTRATEGY

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People Management

Our people are our greatest asset, therefore targeted investment and care of our asset is one of the four strategic drivers for achievement of a world class organization.

To ensure achievement of our operational outcomes and to progress towards being a world class Authority, we are focused on organizing and aligning our business structure for maximum focus on our four strategic focus areas, and on aligning our activities for efficiency and productivity. We are building accountable and capable leaders, developing a “One Service – One Team” FRCA workforce that is multi-skilled and agile, able to work across the organization meeting the needs of our customers, our stakeholders and our business objectives.

FRCA is actively seeking to retain and recruit people with a strong customer service approach, who understand and demonstrate the importance of competency, agility, productivity, and timeliness; officials who create value for the people of Fiji, who perform our critical functions with integrity and a continuous improvement approach to the services they are responsible for delivering.

In the coming year, as we progress our People Strategy, our focus is on ensuring clarity of expectations through a robust and transparent performance management framework. This is essential to build clarity, focus and accountability for delivery. Delivery and development will be recognised through the enhanced framework that is being designed specifically for FRCA.

We are focused on building a world class workforce, a workforce that delivers world class service, internally and externally to our customers, stakeholders, and the people of Fiji.

Technology

Technology is a key cornerstone of the FRCA transformation roadmap. In a nutshell, efficient revenue administration, ease of accessing services, ease of doing business, and intelligent analytics to name a few, are the drivers behind the technology

transformation journey.

Legacy systems are being replaced. A key project underway is the replacement of the Fiji Integrated Tax System (FITS). The Automated System for Customs Data (ASYCUDA) was recently upgraded from ASYCUDA++ to ASYCUDA World. FRCA is also moving towards a paperless environment. Intelligent analytics is expected to improve as automated information sharing is made easier with the upgraded and new systems.

These new developments require a sound and secure architecture to ensure security; data integrity; resiliency; interoperability; adherence to best practice standards and allowing for future growth. It also requires an agile IT workforce with the right skills to keep abreast of advancements and effectively support the business.

Customer service expectations and needs

Customers have an increasing expectation that access to FRCA information and services, filing of returns and payment procedures will be delivered in a way that is convenient and cost effective. In addition, there is also the need to continually and consistently apply Laws and Policies in case management.

With the pending introduction of self-assessment this expectation will increase. With the cost of internet service and hardware steadily decreasing, access to the internet in the community is increasing exponentially. The development of e-services will need to meet customer expectations and needs.

New branch offices, delivering full services have recently been opened in Sigatoka, Rakiraki and Ba. Making FRCA’s services more accessible is important.

National Disasters

It can be planned on that FIJI will continue to have natural disasters that will need to be responded to through ensuring services and relief applications are processed quickly. A Disaster recovery and business continuity plan must be ready for implementation in the event of natural disasters occurring.

Government requirements of FRCA

FRCA is the major funder of the National Budget. Apart from our primary mandate, FRCA continues to partner and support other government initiatives as needed. Our strategic plan is aligned with the Government’s national plan to ensure sustainable and effective performance.

Compliance behaviour (trends)

The economy is growing in a range of 2-3 percent with revenues collected exceeding the growth in the economy. At the macro level, compliance behaviours have remained consistent which in part can be attributed to the low tax rate broad-based policy regime and an improvement in the levels of outstanding returns and debt and customs revenues.

Compliance challenges continue to exist. Compliance risk management methodologies have been initiated within FRCA processes with further work to be done in anticipation of self-assessment being implemented for all revenues. The challenge for the Authority lies in the timely dissemination over multiple channels of clearly articulated Tax Rules as well as Quality Practice Statements and Guidelines.

The Intelligence-Led, Compliance-Based Risk Management model will ensure secure and safe trade and travel facilitation as well as the extended virtual border.

International developments

New relationships and markets are developing in Asia. FRCA is now the World Customs Organization Vice Chair Secretariat for the Asia Pacific Region and will hold this position until mid-2018. This presents many opportunities for FRCA and Fiji to strengthen economic relations and enhance capacity development.

Consultations with bilateral partners are expected to continue as more Double Taxation Agreements (DTAs) are modernized.

An overview of the structure and levels of FRCA’s Strategic Plan


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MISSION

OUR STRATEGIC PLAN 2017 - 2020 VISION

PARTNERSHIP LEGISLATION & PROCESSES

ORGANIZATIONAL GOALS ORGANIZATIONAL GOALS

OBJECTIVES OBJECTIVES

STRATEGIC FOCUS AREAS

ORGANIZATIONAL GOALS

OBJECTIVES

STRATEGIC FOCUS AREAS

Focus Areas are the foundation stones of our strategy. They expand on the Vision Statement and create the structure around how the organisation can achieve its goals.

ORGANIZATIONAL GOALS

Broad goals that FRCA wants to achieve. The primary goals of the organisation, to which objectives will align.

OBJECTIVESSpecific actions that need to be taken in order to achieve the organizational goals. Have specific measures associated to each objective.


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PEOPLE TECHNOLOGY

ORGANIZATIONAL GOALS ORGANIZATIONAL GOALS

OBJECTIVES OBJECTIVES

VALUES


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STRATEGIC FOCUS AREA 1: PARTNERSHIP

Organizational Goals Objectives Measures

1.1 Promote Voluntary Compliance

1.1.1 Implement Behavioral Driven Compliance

• Develop and publish annual compliance plan • Publications and assistance to TTT

1.1.2 Manage and promote stakeholder engagement

• Ongoing information exchange between all stakeholders

• Develop stakeholders training package

1.1.3 Implement Shared Information & Services under B2B & B2C Principles

• Shared services with identified partners (eg.BAF)

1.2 Enhance Gold Card Services

1.2.1 Develop the Gold Card Brand

• Increase membership• Increase incentives• Ensure Member compliance

1.2.2 An Integrated Approach with Selected Local and International Institutes

• Broaden the Gold Card compliance criteria

1.3 Maintain effective regional and international relationships

1.3.1 Develop an International Strategy

• Consultative process • International Plan

1.3.2 Lead Asia/Pacific Regional Initiatives (Vice Chair)

• Donor funding • Legal instrument that governs VC role

1.4 Develop Best Practice tools for the South Pacific Region

1.4.1 Develop the RTC Best Practice Compendium

• Partnership approach with local institutes/bodies• RTC Model for the small PIC’s

1.4.2 Promote FRCA Organization Transformation Model

• Transformation model for Fiji and small PIC organisations

OVERALL INDICATORS

Overall Indicators

• Revenue Collection• Debt Management• Cost of Collection• Customer Satisfaction


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STRATEGIC FOCUS AREA 2: LEGISLATION AND PROCESSES


2.1 Harmonize FRCA Administration Legislation

2.1.1 Modernize all FRCA administered laws

• Review and re-write archaic laws

2.1.2 Review & Consolidate Revenue Administrative Provisions

• Carry out preparatory works for drafting harmonized administrative provisions for Tax & Customs laws by Aug 2017

2.2 Enable Digital Enforcement Capabilities

2.2.1 Establish Legal Framework for Electronic Communications/ Electronic Fiscal Devices

• Prepare legal framework

2.2.3 Umbrella MOUs for Shared Information & Services

• Establish umbrella MOUs with Govt bodies and with banking sector by Sep 2017

2.2.4 Review & Implement Cybersecurity Legal Framework

• Prepare legal framework

2.3 Align with International Benchmarking Standards

2.3.1 Review Adoption of UN Conventions/WTO/ WCO/ OECD, etc. as Best Practice Legal Frameworks

• Gap analysis with international standards by June 2017

2.3.2 Transition towards Ratification of Best Practice Frameworks

• 80% compliance with selected international standards by 2020

2.4 Review policies and procedures

2.4.1 Review all SOPS; Prepare Practice statements

• Complete business process mapping of key tax & customs processes by Dec 2017

2.4.2 Simplification and harmonization of procedures

• Process mapping• Implement all process and legislative changes

within agreed timeframe


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STRATEGIC FOCUS AREA 3: PEOPLEOrganizational Goals Objectives Measures

3.1 Implement People Strategy and new FRCA Structure

3.1.1 Implementation of integrated FRCA Structure

• Level 1 – Structure implemented; CEO & Directors appointed

• Level 2 – Integration of units into the new business streams – March 2017

• Appointment of Level 2 & 3 leadership positions

3.1.2 Implementation of integrated workplace approach

• Director new responsibility areas defined, documented, and operational – July 31 2017

3.2 Leadership 3.2.1 Design and implementation of strategic leadership, people, capability and culture

• Establish a formal framework for development of leaders (current and potential)

• Succession planning framework - April 2017

3.3 FRCA’s Employment Framework

3.3.1 Agree, communicate and implement remuneration framework

• Framework completed – 1 Jan 2017• Training for managers to lead implementation • Communication and information for staff• Implementation and staff awareness completed

– March 2017

3.3.2 Establish partnership forum; Adopt Interest based bargaining

• Already underway • Quarterly engagements with partners

3.3.3 Refresh of Collective Agreement • Commence November 2016• Adoption of interest based bargaining approach

evidenced

3.4 Recruitment and Selection Frameworks

3.4.1 Overall recruitment Framework refresh; Establishment of assessment processes and exercises

• Refreshed generic Recruitment Framework designed and documented – March 2017

3.4.2 Development of cohort recruitment & assessment centre processes and exercises

• Cohort Recruitment and Assessment Framework designed, documented and implemented – January 2017

3.4.3 Development of assessor selection and training processes

• Design and build of new programme for FRCA cohorts ready for implementation February 2017

• FRCA officer induction programme underway – March 2017

3.5 Policies & Procedures Frameworks

3.5.1 Code of Conduct production and supported distribution

• Policy endorsed – October 2016• Regulation (2002) rescinded• Print, distribute, staff awareness

3.5.2 Disciplinary Policy & Procedures production and supported distribution

• Policy endorsed• Regulation (2002) rescinded• Print, distribute, manager awareness – 2017

3.5.3 Develop Suite of best practice HR policies and procedures

• HR policies and procedures suite developed – December 2016

• Distribution – 2017

3.5.4 Implement new HR system • Successful transition from current system to new HR system 2017/2018


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STRATEGIC FOCUS AREA 3: PEOPLE


3.6 Performance & Development Frameworks

3.6.1 Technical competency framework development

• Technical competency framework designed and documented – July 2017

• Implementation and ongoing enhancement 2017/2018/2019/2020

3.6.2 Leadership competency and career pathway framework

• Leadership and career pathway competency framework designed and documented – July 2017

• Establish a succession map for critical FRCA positions 2017/2018

• Graduate programme – linked to FRCA future skills and knowledge needs – 2018-2020

3.7 Career Boards Rotation Board Succession Planning

3.7.1 Design and implementation of Career Board policies, procedures, and materials

• Career Board policies and procedures designed and documented – March 2017

• Implement - June 2017• Enhance and design leadership pipeline for

critical FRCA roles 2018/2019/2020 • FRCA Succession Plan established – ongoing

2018> • First Career Board rounds successful completed

– July – September 2017 ongoing enhancement 2018-2020

3.7.2 Design and implementation of Rotation Board policies, procedures, and materials

• Rotation Board policies and procedures designed and documented – April 2017 ongoing enhancement 2018-2020

• First Rotation Board rounds successful completed – September – October 2017 ongoing enhancement 2018-2020


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STRATEGIC FOCUS AREA 4: TECHNOLOGY


4.1 Build Enterprise Capability

4.1.1 Develop IT Strategic Architecture • Identify and document IT enterprise framework - 2017 Dec

4.2 Manage Growth & Sustainable Projects

4.2.1 New Revenue Administration System

• Roll out from 2017

4.2.2 Single View of TTT (Single Window)

• Progressive implementation

4.2.3 International Mail / Subscriptions Management

• Project timelines

4.2.4 Upgrade Existing Support Systems (HRIS, TRIM, Infrastructure)


4.2.5 ASYCUDA World Expansion (Modules) / Fully implement ASYCUDA World Dev Plan


4.3 Ensure a Secure & Intelligent Information Platform

4.3.1 Carry out an Information Security Audit

• Complete and implement recommendations

4.3.2 Design a Digital Identity Framework

• Identify needs and sources

4.3.3 Develop an Information Sharing Framework

• Design the framework

4.3.4 Implement Business Intelligence Analytics

• Identify needs and develop the system

4.3.5 Integrated Information Systems (B2B & B2C); EFDs

• Develop and implement systems

4.3.6 Supply Chain Security Program (NIIE & Central Inspection)

• Purchase the system• Identify business model for the central inspection

area

4.4 Provide Agile & Innovative Solutions

4.4.1 Design and implement E-services (e-filing + e-payments)

• Roll out from 2017

4.4.2 Design and implement Mobile services

• Identify mobile services required

4.4.3 Unified Communication - Contact Centre (Phase 2)

• Roll out phase 2

4.4.4 Review Smart Gate • Feasibility Study

4.4.5 Hybrid infrastructure - Combining Hardware & software for efficiency

• Needs assessment and implement

4.4.6 Vendor Management • Consolidate into a package for contracts

4.4.7 Achieve a Paperless Environment—EDRMS Phase 2

• Roll out Phase 2

Board of Directors

Chief Executive Officer

Director Border Force

Director Intelligence,

Compliance & Investigations

Director Revenue Management

Chief Information Officer

Director Corporate Services

• Tax & Customs Revenue

• Tax & Customs Debt Management/ Lodgmentn-forcement

• FRCA Customer Services includingGold Card

• FRCA Objections Review

• Intelligence and Profiling

• Tax & Customs Fraud Investigations

• Tax & Customs Audit Compliance

• Border Control –Airports -Marine –Wharf –Cargo Clearance -Inspections –Passenger Processing

• Legal Services

• Strategy, Policy & Monitoring

• Change

• Financial & Asset Management

• Internal Assurance

• Stakeholder Engagement

• Strategic & Operational Technology enablement

• Knowledge and Record Management Systems

• IT Projects

Director People, Capability &

Culture

• Capability & Productivity Enhancement Frameworks and Initiatives

• Recruitment, Assessment, Induction & Technical Training

• HR Services/

• Organization Capability, Productivity, & Workforce Planning, Initiatives, Monitoring, Reporting & Forecasting


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OUR ORGANIZATION STRUCTURE


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OUR ROADMAP

Lead Asia/Pacific Regional Initiatives

Review SOPs & Prepare Practice statements

Develop an Information Sharing Framework

integrated workplace approach

Develop IT Strategic Architecture

ASYCUDA World Expansion

2017

BEGIN IMPLEMENTATION OF PLAN

Key Milestones from the plan.


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2018

2019

2020

Business Intelligience Analytics

Asia/Pacific Regional Initiatives (Vice Chair)

Technical Competency Framework ongoing

enhancement

Implement new HR system

Modernize all FRCA administered laws

People frameworks ongoing enhancement

Single View of TTT (Single Window)

Design and implement Mobile services

Achieve a Paperless Environment—EDRMS

Phase 2

Review & Consolidate Revenue Administrative

Provisions

Review & Implement Cybersecurity Legal

Framework

Ratification of international conventions


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NOTES


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NOTES

Documents

Strategic Plan 2017 - 2020 - FRCS · 2018. 4. 2. · FRCA Strategic Plan 2017 - 2020 Page 3 NATURE AND SCOPE OF FRCA’S BUSINESS The Fiji Revenue and Customs Authority (FRCA) is