SANAS - Department of Trade and Industry
SANAS - Department of Trade and Industry
SANAS - Department of Trade and Industry
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ANNUAL<br />
PERFORMANCE<br />
PLAN<br />
2013/14 – 2015/16
<strong>SANAS</strong> | Annual Performance Plan 2013/14 - 2015/16<br />
ACRONYMS AND ABBREVIATIONS<br />
AFRAC<br />
African Accreditation Cooperation<br />
AFTA<br />
ASEAN Free <strong>Trade</strong> Area<br />
APEC<br />
Asia-Pacific Economic Cooperation<br />
ASEAN<br />
Association <strong>of</strong> Southeast Asian Nations<br />
B-BBEE<br />
Broad-based Black Economic Empowerment<br />
BUSA<br />
Business Unity South Africa<br />
CAB<br />
Conformity Assessment Body<br />
CEO<br />
Chief Executive Officer<br />
COMESA Common Market for Eastern <strong>and</strong> Southern Africa<br />
DoE<br />
<strong>Department</strong> <strong>of</strong> Energy<br />
DoL<br />
<strong>Department</strong> <strong>of</strong> Labour<br />
EA<br />
Eastern African Community<br />
EAC<br />
European Accreditation Cooperation<br />
EU<br />
European Union<br />
GCP<br />
Good Clinical Practice<br />
GHG<br />
Greenhouse Gases<br />
GLP<br />
Good Laboratory Practice<br />
IAF<br />
International Accreditation Forum<br />
ICT<br />
Information <strong>and</strong> Communication Technology<br />
ILAC<br />
International Laboratory Accreditation Cooperation<br />
IPAP<br />
Industrial Policy Action Plan<br />
ISO<br />
International St<strong>and</strong>ards Organisation<br />
MLRA<br />
Multilateral Recognition Arrangement<br />
MP<br />
Member <strong>of</strong> Parliament<br />
MRA<br />
Mutual Recognition Arrangement<br />
MTEF<br />
Medium-term Expenditure Framework<br />
NDT<br />
National <strong>Department</strong> <strong>of</strong> Tourism<br />
NGP<br />
New Growth Path<br />
NLA<br />
National Laboratory Association<br />
NMISA<br />
National Metrology Institute <strong>of</strong> South Africa<br />
NNR<br />
National Nuclear Regulator<br />
NRCS<br />
National Regulator for Company Specification<br />
OECD<br />
Organisation for Economic Cooperation <strong>and</strong> Development<br />
OHS<br />
Occupational Health <strong>and</strong> Safety<br />
SABS<br />
South African Bureau <strong>of</strong> St<strong>and</strong>ards<br />
SADC<br />
Southern African Development Community<br />
SADCA<br />
Southern African Development Community Cooperation in Accreditation<br />
SADCAS Southern African Development Community Cooperation in Accreditation Services<br />
<strong>SANAS</strong><br />
South African National Accreditation System<br />
SMME<br />
Small, medium <strong>and</strong> micro enterprises<br />
SPS<br />
Sanitary <strong>and</strong> Phyto-sanitary<br />
SQAM<br />
St<strong>and</strong>ards, Quality Assurance, Accreditation <strong>and</strong> Metrology<br />
TBT<br />
Technical Barriers to <strong>Trade</strong><br />
the dti<br />
The <strong>Department</strong> <strong>of</strong> <strong>Trade</strong> <strong>and</strong> <strong>Industry</strong><br />
WTO<br />
World <strong>Trade</strong> Organisation<br />
2
CONTENTS<br />
ACRONYMS AND ABBREVIATIONS 2<br />
CONTENTS 3<br />
1. FOREWORD BY THE MINISTER 4<br />
2. OVERVIEW BY THE CHAIRPERSON 5<br />
3. OFFICIAL SIGN-OFF 6<br />
4. STRATEGIC OVERVIEW 7<br />
5. CONSTRAINTS 14<br />
6. SERVICES PROVIDED BY <strong>SANAS</strong> 15<br />
7. PROGRAMME DETAILS 17<br />
8. KEY PROGRAMMES ALIGNED TO THE DTI’S PRIORITIES 21<br />
9. PERFORMANCE PLAN MATRIX 22<br />
10. FINANCIAL PLAN 24<br />
11. STRATEGIC RISK REGISTER AND MITIGATING ACTIONS 26<br />
12. FRAUD PREVENTION PLAN 28<br />
13. MATERIALITY AND SIGNIFICANCE FRAMEWORK 30<br />
14. ANNEXURE INDICATOR PROFILE 32<br />
<strong>SANAS</strong> | Annual Performance Plan 2013/14 - 2015/16<br />
3
1.FOREWORD BY MINISTER<br />
The publication <strong>of</strong> the 2012 Industrial Policy Action Plan (IPAP) 2012/13–2014/15<br />
provides an opportunity to take stock <strong>of</strong> the progress made <strong>and</strong> challenges<br />
experienced since the commencement <strong>of</strong> the first IPAP in 2008. Government’s<br />
experience <strong>of</strong> the implementation <strong>of</strong> IPAP demonstrates that industrial policy<br />
can <strong>and</strong> does succeed in South Africa if it is well designed, adequately resourced<br />
<strong>and</strong> informed by robust <strong>and</strong> constructive stakeholder dialogue. IPAP represents<br />
a significant step forward in scaling up the country’s efforts to promote longterm<br />
industrialisation <strong>and</strong> industrial diversification beyond our current reliance<br />
on traditional commodities <strong>and</strong> non-tradable services. Its purpose is to exp<strong>and</strong><br />
production in value-added sectors with high employment <strong>and</strong> growth multipliers<br />
that compete in export markets, as well as against imports in the domestic market. In so doing, the action<br />
plan also places emphasis on the increased participation <strong>of</strong> historically disadvantaged people <strong>and</strong> regions<br />
in our economy, <strong>and</strong> will facilitate South Africa’s contribution to industrial development in the African<br />
region over the medium term. Our successes in implementing transformative industrial policy action place<br />
us in a position to upscale our efforts across a range <strong>of</strong> sectors. Three sectors in particular are well placed<br />
for upscaling through leveraging market growth <strong>and</strong> the associated upgrading <strong>of</strong> supply capacity <strong>and</strong><br />
capabilities:<br />
Green industries: The manufacturing <strong>of</strong> components inputs into the country’s 17.8 Gigawatt renewable<br />
energy generation programme, as do solar water heating <strong>and</strong> other industrial opportunities that arise from<br />
requirements for higher energy efficiency in the economy. Agro-processing: This sector includes expediting<br />
regulatory <strong>and</strong> support mechanisms to establish a large-scale bi<strong>of</strong>uels industry, the identification <strong>and</strong><br />
promotion <strong>of</strong> export market opportunities in net food-importing countries, <strong>and</strong> product development <strong>and</strong><br />
st<strong>and</strong>ards support.<br />
<strong>SANAS</strong> | Annual Performance Plan 2013/14 - 2015/16<br />
Metal fabrication, capital <strong>and</strong> transport equipment: This includes leveraging the large-scale public<br />
procurements in rail <strong>and</strong> electricity, providing associated upgrading support <strong>and</strong> taking advantage <strong>of</strong> mining<br />
capital equipment investment domestically <strong>and</strong> on the rest <strong>of</strong> the continent. Within this context, trade<br />
policy instruments such as tariffs will be deployed on a strategic basis, underpinned by the imperatives<br />
<strong>of</strong> sector strategies. St<strong>and</strong>ards, Quality Assurance, Accreditation <strong>and</strong> Metrology (SQAM) institutions <strong>and</strong><br />
practices – otherwise known as technical infrastructure – will be strengthened <strong>and</strong> aligned to support<br />
the development, accreditation <strong>and</strong> enforcement <strong>of</strong> st<strong>and</strong>ards, <strong>and</strong> to improve other measures for<br />
creating, upscaling <strong>and</strong> resuscitating certain industries. Accreditation interventions in Africa will underpin<br />
interventions in the agro-processing, mineral beneficiation <strong>and</strong> pharmaceutical sectors.<br />
During this Medium-Term Expenditure Framework (MTEF) period, <strong>SANAS</strong> accreditation will provide<br />
confidence in the competence <strong>and</strong> integrity <strong>of</strong> conformity assessment activities, which will go a long way<br />
towards realising the imperatives <strong>of</strong> sector strategies <strong>and</strong> clusters <strong>of</strong> sectors by unlocking the technical<br />
barriers to trade both locally <strong>and</strong> internationally, <strong>and</strong> in affording these sectors a competitive edge.<br />
I am confident that, despite the ongoing severe global <strong>and</strong> domestic headwinds, the South African National<br />
Accreditation System (<strong>SANAS</strong>) has the ability <strong>and</strong> the will to contribute to achieving these important<br />
priorities <strong>of</strong> our country.<br />
4<br />
Dr. Rob Davies, MP<br />
Minister <strong>of</strong> <strong>Trade</strong> <strong>and</strong> <strong>Industry</strong>
2. OVERVIEW BY THE CHAIRPERSON<br />
This three-year performance plan covers 2013/14 to 2015/16 <strong>and</strong> is anchored in<br />
the <strong>SANAS</strong> five-year strategic plan. Both plans are aimed at realising the strategic<br />
objectives <strong>of</strong> improving <strong>SANAS</strong>’s operational efficiency, contributing to industrial<br />
development <strong>and</strong> the protection <strong>of</strong> health, safety <strong>and</strong> the environment, promoting<br />
the acceptance <strong>of</strong> <strong>SANAS</strong>-accredited results among global partners to advance<br />
South Africa’s trade, supporting economic development objectives <strong>and</strong> regional<br />
integration, <strong>and</strong> establishing relationships to advance South Africa’s trade,<br />
industrial policy <strong>and</strong> economic development objectives.<br />
The effort <strong>of</strong> government to strengthen <strong>and</strong> support <strong>SANAS</strong> accreditation<br />
necessitated a review <strong>of</strong> the organisation’s processes to improve the speed <strong>of</strong> service delivery, while<br />
working towards minimising the cost <strong>of</strong> providing an internationally recognised accreditation infrastructure<br />
for the Republic <strong>of</strong> South Africa.<br />
The board <strong>of</strong> directors recognises the importance <strong>of</strong> <strong>SANAS</strong>’s contribution towards Cabinet’s approved<br />
New Growth Path (NGP), as articulated in the <strong>Department</strong> <strong>of</strong> <strong>Trade</strong> <strong>and</strong> <strong>Industry</strong>’s updated IPAP. The IPAP<br />
strategic thrust <strong>of</strong> locking out unsafe <strong>and</strong> poor quality imports <strong>and</strong> locking in access to the dem<strong>and</strong>ing<br />
export market is one <strong>of</strong> the key outcomes on which <strong>SANAS</strong> accreditation will focus over this MTEF period.<br />
In addition, the Board also recognised the role that <strong>SANAS</strong> should play in supporting other government<br />
departments in the protection <strong>of</strong> health, safety, the environment <strong>and</strong> economic growth objectives. The<br />
Board is also <strong>of</strong> the view that accreditation contributes to the establishment <strong>and</strong> sustainability <strong>of</strong> new<br />
entrants into the mainstream economy, which is an important platform for job creation. The balance<br />
between global free trade <strong>and</strong> a strategy aimed at facilitating job creation needs to be carefully managed<br />
<strong>and</strong> maintained to mitigate the risk <strong>of</strong> retaliation by those who may be affected. This requires South Africa<br />
to step up its conformity assessment (such as testing, inspection, certification) capabilities, as technical<br />
considerations would be one <strong>of</strong> the only acceptable tools that could be used successfully to defend<br />
<strong>and</strong> protect the local market from being flooded by inferior goods that undermine our local industries’<br />
competitiveness. <strong>SANAS</strong>’s contribution to the achievement <strong>of</strong> the country’s strategic objectives is therefore<br />
crucial.<br />
IPAP calls for <strong>SANAS</strong> to play a more strategic industrial policy role in the achievement <strong>of</strong> its objectives.<br />
It further highlights the strengthening <strong>of</strong> the South African technical infrastructure <strong>and</strong> addresses the<br />
weaknesses in such systems. <strong>SANAS</strong> cooperates with the other technical infrastructure institutions, namely<br />
the South African Bureau <strong>of</strong> St<strong>and</strong>ards (SABS), the National Metrology Institute <strong>of</strong> South Africa (NMISA)<br />
<strong>and</strong> the National Regulator for Compulsory Specifications (NRCS) to ensure alignment.<br />
<strong>SANAS</strong> will continue to align its processes, resources <strong>and</strong> objectives to achieve its m<strong>and</strong>ate <strong>of</strong> providing<br />
South Africa with an internationally recognised <strong>and</strong> effective accreditation system for the Republic <strong>of</strong><br />
South Africa. Within this context, the Board <strong>of</strong> Directors supports the continuation <strong>of</strong> the approved <strong>SANAS</strong><br />
objectives as set out in the organisation’s five-year strategic plan <strong>and</strong> the implementation <strong>of</strong> this three-year<br />
performance plan.<br />
<strong>SANAS</strong> | Annual Performance Plan 2013/14 - 2015/16<br />
Mr. Prags Govender<br />
Chairperson<br />
5
3. OFFICIAL SIGN-OFF<br />
IT IS HEREBY CERTIFIED THAT THIS ANNUAL PERFORMANCE PLAN:<br />
1. Was developed by the management <strong>of</strong> the South African National Accreditation System (<strong>SANAS</strong>)<br />
under the guidance <strong>of</strong> the <strong>SANAS</strong> Board <strong>of</strong> Directors;<br />
2. Takes into account all the relevant policies, legislation <strong>and</strong> other m<strong>and</strong>ates for which <strong>SANAS</strong> is<br />
responsible; <strong>and</strong><br />
3. Accurately reflects the strategic outcome <strong>and</strong> objectives that <strong>SANAS</strong> will endeavour to achieve<br />
over the period 2013/14–2015/16.<br />
Recommended by the CEO for approval<br />
Approval by the Accounting Authority<br />
Ron Josias<br />
Name: -------------------<br />
Signature:----------------<br />
Prags Govender<br />
Name: -------------------<br />
Signature:--------------------<br />
Rank: CEO<br />
Date: 21/02/2013<br />
Rank: Chairperson<br />
Date: 21/02/2013<br />
<strong>SANAS</strong> | Annual Performance Plan 2013/14 - 2015/16<br />
6
4. STRATEGIC OVERVIEW<br />
4.1. VISION<br />
To pioneer <strong>and</strong> lead the future <strong>of</strong> accreditation in Africa <strong>and</strong> deliver services with a spirit <strong>of</strong> excellence.<br />
4.2. MISSION<br />
To create an impartial <strong>and</strong> transparent mechanism for organisations to independently demonstrate their<br />
competence <strong>and</strong> facilitate the beneficial exchange <strong>of</strong> goods, services <strong>and</strong> knowledge, <strong>and</strong> provide a<br />
service that is recognised as equitable to best international practice while reflecting the demographics <strong>of</strong><br />
South Africa in all that we do.<br />
4.3. VALUES<br />
Table 1: <strong>SANAS</strong> values are based on the principles below<br />
INTEGRITY<br />
To be consistent in our actions, principles <strong>and</strong> outcomes <strong>and</strong> to act with honesty without compromising<br />
the truth.<br />
EXCELLENCE Giving the best <strong>and</strong> world-class service.<br />
PARTNERSHIP Collaborating within <strong>and</strong> outside <strong>SANAS</strong> to give the best <strong>and</strong> to advance South Africa’s interests.<br />
PIONEERING To <strong>of</strong>fer creative new ways in accreditation which have the potential to change Africa.<br />
4.4. STRATEGIC OBJECTIVES OF <strong>SANAS</strong><br />
To ensure that <strong>SANAS</strong> remains a well-functioning accreditation body that is able to effectively execute its<br />
m<strong>and</strong>ate <strong>and</strong> meet the increasingly high expectations <strong>of</strong> industry <strong>and</strong> government, the organisation developed<br />
the following strategic objectives:<br />
Figure 1: <strong>SANAS</strong>’s objectives for the period 2013/14-2015/16<br />
<strong>SANAS</strong> | Annual Performance Plan 2013/14 - 2015/16<br />
7
4.5. PRODUCTS AND SERVICES<br />
4.5.1 <strong>SANAS</strong>’S MANDATE AND FUNCTION<br />
Table 2: Legislative <strong>and</strong> functional m<strong>and</strong>ate<br />
ENABLING ACT<br />
MANDATE AND FUNCTIONS<br />
<strong>SANAS</strong> | Annual Performance Plan 2013/14 - 2015/16<br />
Accreditation for Conformity<br />
Assessment,<br />
Calibration <strong>and</strong> Good<br />
Laboratory Practice Act<br />
(Act No. 19 <strong>of</strong> 2006)<br />
<strong>SANAS</strong> is the only national accreditation body that provides an internationally recognised <strong>and</strong><br />
effective accreditation <strong>and</strong> good laboratory practice (GLP) compliance monitoring system that<br />
enables the Republic <strong>of</strong> South Africa to do the following:<br />
1. Accredit or monitor organisations falling within its scope <strong>of</strong> activity for GLP-compliance purposes.<br />
2. Promote accreditation as a means <strong>of</strong> facilitating international trade <strong>and</strong> enhancing the Republic’s<br />
economic performance <strong>and</strong> transformation.<br />
3. Promote the competence <strong>and</strong> equivalence <strong>of</strong> accredited bodies.<br />
4. Promote the competence <strong>and</strong> equivalence <strong>of</strong> GLP-compliant facilities.<br />
In order to achieve its m<strong>and</strong>ate, the Act empowers <strong>SANAS</strong> to perform the following functions:<br />
1. Promote the organisation as the sole national accreditation body in its scope <strong>of</strong> activity.<br />
2. Encourage <strong>and</strong> promote the accreditation <strong>of</strong> calibration, testing <strong>and</strong> verification laboratories,<br />
certification bodies, inspection bodies, rating agencies <strong>and</strong> any other type <strong>of</strong> body that may<br />
be added to its scope <strong>of</strong> activity.<br />
3. Encourage <strong>and</strong> promote GLP compliance with the principles adopted by the Organisation for<br />
Economic Cooperation <strong>and</strong> Development (OECD) for GLP facilities.<br />
4. Promote the acceptance <strong>of</strong> its activities <strong>and</strong> those <strong>of</strong> all bodies accredited by <strong>SANAS</strong> or its<br />
international counterparts.<br />
5. Promote the recognition <strong>of</strong> accredited bodies by users <strong>of</strong> conformity assessments.<br />
6. Liaise with regional <strong>and</strong> international st<strong>and</strong>ard bodies <strong>and</strong> with technical regulatory <strong>and</strong><br />
metrology organisations in respect <strong>of</strong> any matter related to accreditation.<br />
7. Liaise with national regulators in respect <strong>of</strong> any matter related to accreditation.<br />
8. Promote the use <strong>of</strong> accredited bodies to facilitate trade.<br />
9. Advise national, regional <strong>and</strong> international organisations on the conditions for accreditation<br />
<strong>and</strong> on other issues related to accreditation.<br />
10. Establish <strong>and</strong> maintain a register <strong>of</strong> all accredited organisations in South Africa.<br />
11. Initiate, negotiate, conclude <strong>and</strong> maintain multilateral recognition arrangements.<br />
12. Support government in activities on multilateral recognition arrangements.<br />
13. Obtain <strong>and</strong> maintain membership <strong>of</strong> national or international organisations that may assist<br />
<strong>SANAS</strong> in achieving its objects <strong>and</strong> actively participating in such organisations.<br />
14. Participate in formulating international <strong>and</strong> regional guidelines <strong>and</strong> st<strong>and</strong>ards to facilitate the<br />
accreditation process.<br />
15. Formulate <strong>and</strong> implement national guidelines <strong>and</strong> st<strong>and</strong>ards to facilitate the accreditation<br />
process.<br />
16. Promote recognition <strong>and</strong> protect the use <strong>of</strong> the <strong>SANAS</strong> logo nationally <strong>and</strong> internationally.<br />
17. Promote <strong>and</strong> protect regional <strong>and</strong> international arrangement logos, such as those <strong>of</strong> the<br />
International Laboratory Accreditation Cooperation (ILAC) <strong>and</strong> the International Accreditation<br />
Forum (IAF).<br />
18. Establish appropriate technical committees.<br />
19. Investigate methods <strong>of</strong> facilitating trade through accreditation.<br />
8
4.5.2 <strong>SANAS</strong>’S KEY INTERVENTION AREAS<br />
<strong>SANAS</strong> fulfils its function by enabling <strong>and</strong> supporting four key interventions at national, regional <strong>and</strong><br />
international level.<br />
Table 3: Key focus areas <strong>and</strong> interventions<br />
NO KEY FOCUS AREA INTERVENTION<br />
1. Industrial sector support IPAP-assigned sectors (the dti), such as green industries, metal fabrication,<br />
capital <strong>and</strong> transport equipment <strong>and</strong> agro-processing<br />
2. Health, safety <strong>and</strong> environmental<br />
protection support<br />
3. Regional integration <strong>and</strong> interregional<br />
trade support<br />
Occupational hygiene (<strong>Department</strong> <strong>of</strong> Labour – DoL),energy efficiency <strong>and</strong><br />
energy management (<strong>Department</strong> <strong>of</strong> Energy – DoE)<br />
The African Accreditation Cooperation (AFRAC), Southern African Development<br />
Community (SADC) <strong>and</strong> the Tripartite Grouping (Eastern African<br />
Community - EAC, SADC <strong>and</strong> the Common Market for Eastern <strong>and</strong> Southern<br />
Africa - COMESA)<br />
4. South African trade facilitation ILAC, IAF, OECD <strong>and</strong> the International St<strong>and</strong>ards Organisation (ISO)<br />
4.6. RECENT COURT RULINGS<br />
There are currently no court rulings that have a significant, ongoing impact on <strong>SANAS</strong>’s operations<br />
<strong>and</strong> service delivery.<br />
4.7. SITUATIONAL ANALYSIS<br />
4.7.1 BACKGROUND<br />
Accreditation plays a key role, firstly as a facilitator <strong>of</strong> trade aimed at enhancing economic growth, <strong>and</strong><br />
secondly by playing a major role in the protection <strong>of</strong> health, safety <strong>and</strong> the environment. In both these<br />
areas, major changes have taken place, driven by the ongoing economic crisis <strong>and</strong> its consequences,<br />
such as the increase in unemployment, customers’ increasing awareness <strong>of</strong> their impact <strong>and</strong> dem<strong>and</strong><br />
on the environment <strong>and</strong> natural resources, as well as a renewed emphasis on cleaner energy <strong>and</strong> environmental<br />
protection. <strong>SANAS</strong>’s contribution to job creation is indirect by empowering <strong>and</strong> providing<br />
an international accreditation infrastructure to facilitate trade <strong>and</strong> enabling small <strong>and</strong> medium-sized<br />
conformity assessment bodies to compete on an equal footing with the larger industry, which also<br />
requires an independent assessment <strong>of</strong> its competence. <strong>SANAS</strong> will continue to reprioritise its activities<br />
to support the development that accreditation can create, while simultaneously contributing to<br />
broader social benefits. It will, for instance, strengthen accreditation to support local manufacturing<br />
<strong>and</strong> export market access by assisting South African firms to meet the increasingly dem<strong>and</strong>ing conformity<br />
assessment requirements <strong>of</strong> advanced developed <strong>and</strong> developing countries. Moreover, accreditation<br />
will play an increasing role in addressing energy efficiency imperatives, at the household<br />
<strong>and</strong> industry levels.<br />
South Africa’s IPAP 2 recognises that the capacity a country has to assist manufacturers <strong>and</strong> exporters<br />
comply with international st<strong>and</strong>ards, norms <strong>and</strong> technical regulations underpins the potential<br />
for economic <strong>and</strong> industrial growth. The strengthening <strong>of</strong> technical infrastructure capacity in African<br />
countries is a precondition for industrialisation efforts. This capacity includes metrology, st<strong>and</strong>ards,<br />
accreditation <strong>and</strong> conformity assessment. The dumping <strong>of</strong> cheap, subst<strong>and</strong>ard manufactured goods<br />
on African markets has sometimes led to the collapse <strong>of</strong> local industries <strong>and</strong> has served as a major<br />
barrier to industrial development. Therefore, conformity assessment is required to prevent the influx<br />
<strong>SANAS</strong> | Annual Performance Plan 2013/14 - 2015/16<br />
9
<strong>of</strong> subst<strong>and</strong>ard <strong>and</strong> injurious products into African markets <strong>and</strong> to improve the quality <strong>and</strong> enhance the potential<br />
access <strong>of</strong> African products to export markets. The balance between global free trade <strong>and</strong> a strategy<br />
aimed at facilitating job creation has to be maintained <strong>and</strong> carefully managed to mitigate the risk <strong>of</strong> retaliation<br />
by those affected. This requires South Africa to step up its conformity assessment (such as accredited<br />
testing, inspection, certification, validation <strong>and</strong> verification) capabilities, as technical considerations would<br />
be one <strong>of</strong> the acceptable tools that can be successfully used to defend <strong>and</strong> protect the local market from<br />
being flooded by inferior goods that undermine local industries’ competitiveness. In order to capitalise on<br />
this opportunity while being aware <strong>of</strong> the challenges, South Africa will have to work with countries in the<br />
region to strengthen the coordination <strong>of</strong> accreditation <strong>and</strong> conformity assessment services. However, it<br />
has to be kept in mind that the development <strong>of</strong> such capacity has a long lead time <strong>and</strong> the scope <strong>of</strong> work<br />
is enormous <strong>and</strong> should therefore be prioritised.<br />
During this MTEF period, <strong>SANAS</strong> will focus on accreditation support for the green industries, metal fabrication,<br />
capital <strong>and</strong> transport equipment <strong>and</strong> agro-processing sectors nationally, in SADC, as well as in the new<br />
Tripartite Grouping (EAC, SADC, COMESA), including an arrangement <strong>and</strong> supporting infrastructure that<br />
will facilitate the acceptance <strong>of</strong> accredited certification, inspection <strong>and</strong> testing in many African markets<br />
based on single accreditation.<br />
4.7.2 INDUSTRIAL SECTOR SUPPORT<br />
The dti’s IPAP identified green industries, metal fabrication <strong>and</strong> capital <strong>and</strong> transport equipment, <strong>and</strong> agroprocessing<br />
for upscaling through leveraging market growth <strong>and</strong> an associated upgrading <strong>of</strong> supply capacity<br />
<strong>and</strong> capabilities. In Africa, there is agreement that agro-processing, mining beneficiation <strong>and</strong> pharmaceuticals<br />
<strong>of</strong>fer opportunities.<br />
<strong>SANAS</strong> | Annual Performance Plan 2013/14 - 2015/16<br />
10<br />
In South Africa, the green industry sector support focuses especially on the inputs <strong>of</strong> the manufacturing<br />
<strong>of</strong> components into the 17.8 Gigawatt renewable energy generation programme <strong>and</strong> other industrial<br />
opportunities arising from requirements for higher energy efficiency in the economy. The metal fabrication,<br />
<strong>and</strong> capital <strong>and</strong> transport equipment sector support focuses on leveraging the large-scale public procurements<br />
in rail <strong>and</strong> electricity, providing associated upgrading support, <strong>and</strong> taking advantage <strong>of</strong> mining<br />
capital equipment investment domestically <strong>and</strong> on the rest <strong>of</strong> the continent. The agro-processing sector<br />
support includes expediting regulatory <strong>and</strong> support mechanisms to establish a large-scale bi<strong>of</strong>uels industry,<br />
the identification <strong>and</strong> promotion <strong>of</strong> export market opportunities in net food-importing countries, <strong>and</strong><br />
product development <strong>and</strong> st<strong>and</strong>ards support.<br />
In addition to the above sectors, IPAP also introduces cross-cutting technical infrastructure sector support<br />
initiatives, including nuclear electricity generation, energy efficiency, water efficiency <strong>and</strong> climate change.<br />
Accreditation support for the abovementioned sectors has been identified as one <strong>of</strong> the key deliverables,<br />
namely to establish <strong>and</strong> maintain the necessary st<strong>and</strong>ards, measurement traceability, accreditation conformity<br />
assessment services, as well as appropriate regulatory interventions.<br />
4.7.3 SOUTH AFRICAN TRADE FACILITATION<br />
Exports are key to South Africa’s economic development. The competitiveness <strong>of</strong> South Africa’s goods <strong>and</strong><br />
services hinges on the quality <strong>of</strong> these products <strong>and</strong> services, which is confirmed by conformity assessment<br />
bodies (CABs), such as laboratories, certification <strong>and</strong> inspection bodies. Non-acceptance <strong>of</strong> conformity assessment<br />
normally leads to rejection or costly retesting, inspection or recertifying such exported goods<br />
<strong>and</strong> services, making these goods uncompetitive in the global market. Non-acceptance <strong>of</strong> conformity assessment<br />
results is mainly due to lack <strong>of</strong> confidence in the competence <strong>of</strong> the CABs to produce results.<br />
Accreditation provides confidence in the competence <strong>and</strong> integrity <strong>of</strong> conformity assessment activities <strong>and</strong>
goes a long way towards unlocking the technical barriers to trade both locally <strong>and</strong> internationally, <strong>and</strong><br />
in affording companies the opportunity <strong>of</strong> having a competitive edge.<br />
4.7.4 PROTECTION OF HEALTH, SAFETY AND THE ENVIRONMENT<br />
In many economies, the use <strong>of</strong> accreditation to assist governments is gaining momentum. Accreditation<br />
has become “m<strong>and</strong>atory” in many regulated areas as more governments <strong>and</strong> regulators appreciate<br />
the benefits accreditation brings about in assisting governments to meet their responsibilities in<br />
safeguarding the public. For example, in the Asia-Pacific region, the Asia Pacific Economic Cooperation<br />
(APEC) endorses accreditation, <strong>and</strong> accreditation is now used to underpin the conformity assessment<br />
component <strong>of</strong> APEC agreements. Similarly, the Association <strong>of</strong> Southeast Asian Nations (ASEAN) has<br />
included accreditation in the ASEAN sectorial mutual recognition arrangement (MRA) for electrical<br />
<strong>and</strong> electronic equipment as a means <strong>of</strong> meeting the m<strong>and</strong>atory requirements <strong>of</strong> each member <strong>and</strong><br />
to facilitate the implementation <strong>of</strong> the ASEAN Free <strong>Trade</strong> Area (AFTA).<br />
In Europe, the Council <strong>of</strong> the European Union <strong>and</strong> the European Parliament have enacted a regulation<br />
that provides a legal framework for the provision <strong>of</strong> accreditation services across Europe. In the<br />
Americas, regulators <strong>and</strong> government entities throughout the region are increasingly relying on results<br />
from accredited laboratories to meet their m<strong>and</strong>atory requirements in areas as diverse as food<br />
safety, environmental protection, toy safety, <strong>and</strong> the quality <strong>of</strong> concrete, steel, electrical products <strong>and</strong><br />
a variety <strong>of</strong> other products <strong>and</strong> services.<br />
The mainstream acceptance <strong>of</strong> accreditation by pan-regional bodies, <strong>and</strong> domestic regulators in individual<br />
governments also helps member governments <strong>of</strong> the World <strong>Trade</strong> Organisation (WTO) to meet<br />
their responsibilities <strong>of</strong> the Technical Barriers to <strong>Trade</strong> (TBT), <strong>and</strong> Sanitary <strong>and</strong> Phyto-sanitary (SPS)<br />
agreements.<br />
The WTO’s increasing recognition <strong>of</strong> accreditation in the conformity assessment requirements <strong>of</strong> the<br />
TBT Agreement <strong>and</strong> specific sector agreements, such as the agreements relating to telecommunication,<br />
the automotive industry, etc, is gaining acceptance, underpinning the current WTO agreements’<br />
conformity assessment requirements.<br />
Nationally, <strong>SANAS</strong> accreditation supports South Africa’s industrial policy aims <strong>of</strong> locking out unsafe<br />
<strong>and</strong> poor quality imports <strong>and</strong> locking in access to the dem<strong>and</strong>ing export market, as envisioned in the<br />
IPAP, as well as other programmes under various government departments <strong>and</strong> industry stakeholders.<br />
In support <strong>of</strong> its national accreditation activities, <strong>SANAS</strong> is a founding signatory <strong>of</strong> the multilateral<br />
recognition arrangements <strong>of</strong> both the International Laboratory Accreditation Cooperation (ILAC) <strong>and</strong><br />
International Accreditation Forum (IAF). These arrangements promote the global acceptance <strong>of</strong> technical<br />
test <strong>and</strong> calibration data, as well as certificates issued by certification bodies. In this regard, signatories<br />
to the ILAC <strong>and</strong> IAF arrangement are spread over 88 <strong>and</strong> 59 economies respectively. For South<br />
African trade, it implies the elimination <strong>of</strong> or reduction in the need for retesting or recertification to<br />
an importing country that is a signatory to the arrangement. In 2012, the multilateral recognition<br />
arrangement (MLRA) for inspection was <strong>of</strong>ficially launched under ILAC. <strong>SANAS</strong> was one <strong>of</strong> the first<br />
signatories to this agreement, allowing international recognition <strong>of</strong> the inspection results <strong>of</strong> South<br />
Africa’s accredited facilities.<br />
In support <strong>of</strong> government’s objective <strong>of</strong> regional integration, <strong>SANAS</strong> plays an important role in SADC<br />
by hosting the SADC Accreditation Secretariat <strong>and</strong> holding the regional coordinator position. The body<br />
is further currently assisting the newly established SADC Accreditation Services (SADCAS) by training<br />
assessors <strong>and</strong> partnering with that body. <strong>SANAS</strong> was also recently elected to host the secretariat for<br />
<strong>SANAS</strong> | Annual Performance Plan 2013/14 - 2015/16<br />
11
the newly established African Accreditation Cooperation (AFRAC), launched in support <strong>of</strong> an African<br />
technical infrastructure under the African Union. Internationally, <strong>SANAS</strong> holds signatory status to ILAC’s<br />
MRA <strong>and</strong> IAF’s MLRA. These are key agents for facilitating international trade <strong>and</strong> enhancing South Africa’s<br />
economic performance.<br />
Taking into consideration the forces that now shape the global environment, such as economic growth,<br />
or the lack there<strong>of</strong>, customers’ increasing awareness <strong>of</strong> their impact <strong>and</strong> dem<strong>and</strong> on the environment<br />
<strong>and</strong> natural resources, as well as a renewed global emphasis on cleaner energy <strong>and</strong> environmental<br />
protection, it is predicted that accreditation will become a key role-player over the next five years in<br />
underpinning conformity assessment requirements in both the voluntary <strong>and</strong> regulatory domain, with<br />
a special focus on economic growth. <strong>SANAS</strong> will thus focus on adding more value in these areas, while<br />
maintaining its current customer base.<br />
<strong>SANAS</strong> | Annual Performance Plan 2013/14 - 2015/16<br />
<strong>SANAS</strong> will continue to provide existing <strong>and</strong> developing new accreditation programmes, provide training<br />
in South Africa <strong>and</strong> the region, <strong>and</strong> promote the use <strong>of</strong> accreditation as a tool for fostering international<br />
trade <strong>and</strong> the protection <strong>of</strong> health, safety <strong>and</strong> the environment. It also intends to increase international<br />
recognition for its inspection functions under its current arrangement with ILAC.<br />
4.7.5 ORGANISATIONAL DEVELOPMENT<br />
IPAP 2 calls for the strengthening <strong>of</strong> technical infrastructure systems <strong>and</strong> the addressing <strong>of</strong> weaknesses<br />
in such systems. IPAP identified the “rightsizing <strong>of</strong> <strong>SANAS</strong> in order for it to continue to provide the accreditation<br />
services required by industry” as a key milestone. As <strong>of</strong> June 2012, <strong>SANAS</strong> has grown to 1<br />
401 accredited facilities. This change, together with the increased expectations <strong>of</strong> government, regulators<br />
<strong>and</strong> industry, necessitated a review <strong>of</strong> <strong>SANAS</strong>’s processes <strong>and</strong> structures aimed at positioning<br />
the organisation to effectively meet South Africa’s current <strong>and</strong> future accreditation dem<strong>and</strong>s. Over the<br />
MTEF period, <strong>SANAS</strong> will continue to roll out its approved project, Project Breakthrough, aimed at rightsizing<br />
the organisation to meet the dem<strong>and</strong> for its services. The project identified recruiting 72 staff<br />
members, a large investment in information <strong>and</strong> communication technology (ICT) <strong>and</strong> an increase in<br />
<strong>of</strong>fice space as objectives.<br />
12
Minister: <strong>Trade</strong><br />
<strong>and</strong> <strong>Industry</strong><br />
EXECUTIVE AUTHORITY<br />
Board <strong>of</strong><br />
Directors<br />
ACCOUNTING AUTHORITY<br />
Audit <strong>and</strong> Risk<br />
Committee<br />
Human<br />
Resources <strong>and</strong><br />
Remuneration<br />
Committee<br />
ADVISORY<br />
FORUM<br />
COMMITTEES OF THE BOARD<br />
<strong>SANAS</strong> CEO<br />
MEMBERS OF KEY MANAGEMENT<br />
Executive Committee<br />
Personal Assistant<br />
Company<br />
Secretary<br />
Approval Committee<br />
Senior Manager<br />
Mechanical <strong>and</strong><br />
Physical<br />
Senior Manager<br />
Certification,<br />
Testing, BEE<br />
Senior Manager<br />
Corporate Services<br />
(vacant)<br />
Senior Manager<br />
Strategy <strong>and</strong><br />
Development<br />
Chief Financial<br />
Officer<br />
Figure 2: Organogram<br />
<strong>SANAS</strong> | Annual Performance Plan 2013/14 - 2015/16<br />
13
5. CONSTRAINTS<br />
The implementation <strong>of</strong> this Annual Performance Plan takes place against the backdrop <strong>of</strong> serious constraints<br />
exogenous to its implementation.<br />
The failure to secure suitable <strong>of</strong>fice space for the rightsizing <strong>of</strong> <strong>SANAS</strong>, hampered by the current l<strong>and</strong>lord’s<br />
refusal to allow <strong>SANAS</strong> to cede its lease agreement, poses a huge constraint to the implementation<br />
<strong>of</strong> this annual plan.<br />
Secondly, <strong>SANAS</strong>’s service delivery is reliant on a high level <strong>of</strong> technical expertise in both permanently<br />
employed <strong>and</strong> short-term contracted individuals, providing services on an as-needed basis. The scarcity<br />
<strong>of</strong> this technical expertise in some specialised areas, dem<strong>and</strong> higher compensation <strong>and</strong> privileges,<br />
which exerts pressure on <strong>SANAS</strong>’s desire to provide a cost-effective accreditation infrastructure. These<br />
costs are normally passed on to the client. In addition, the majority <strong>of</strong> the technical experts in the<br />
<strong>SANAS</strong>’s assessors pool are nearing retirement age <strong>and</strong>, although they might still be used after their<br />
retirement, their expertise will fade if they are no longer operating in their field <strong>of</strong> expertise. This poses<br />
a danger to the technical integrity <strong>of</strong> the accreditation process.<br />
The implementation <strong>of</strong> this plan coincides with a major internal shock: double-digit increases in electricity<br />
<strong>and</strong> logistics costs <strong>and</strong> a range <strong>of</strong> negative factors that impact on the manufacturing sector, which<br />
were either exacerbated by the crisis or pre-dated it:<br />
• Weak growth in traditional export markets, particularly the US <strong>and</strong> European Union (EU) markets<br />
• Significantly, above-inflation increases for administered prices, with huge electricity price increases<br />
<strong>of</strong> between 75% <strong>and</strong> 90% from Eskom, <strong>and</strong> up to 140% when municipal increases are factored in<br />
• A significant slowdown <strong>and</strong> backlogs in infrastructure expenditure at all levels <strong>of</strong> government<br />
• Short-term <strong>and</strong> non-strategic procurement practices in relation to major areas <strong>of</strong> public capital expenditure<br />
• Slow progress with regard to addressing the shortage <strong>of</strong> skills<br />
<strong>SANAS</strong> | Annual Performance Plan 2013/14 - 2015/16<br />
These factors have impacted on <strong>SANAS</strong>’s customer base, with the calibration <strong>and</strong> legal metrology sector<br />
being hardest hit. It is against this background that <strong>SANAS</strong> initiated its long-term strategy <strong>of</strong> investing in<br />
tertiary educational institutions by providing training on accreditation, as well as internship <strong>and</strong> bursary<br />
programmes to address the future shortage <strong>of</strong> skills.<br />
14
6. SERVICES PROVIDED BY <strong>SANAS</strong><br />
To give effect to its vision, mission <strong>and</strong> objectives, <strong>SANAS</strong> undertakes various initiatives <strong>and</strong> interventions<br />
under the following key programmes:<br />
1. Administration<br />
2. Provision <strong>of</strong> accreditation services aimed at promoting the acceptance <strong>of</strong> such accredited results <strong>and</strong><br />
assistance to regulators in terms <strong>of</strong> its health, safety <strong>and</strong> environmental protection m<strong>and</strong>ate<br />
3. Monitoring authority for the OECD or for GLP-compliance<br />
4. Strategy, development <strong>and</strong> training<br />
5. Representing South Africa in matters <strong>of</strong> accreditation within the SADC region, the African continent <strong>and</strong><br />
internationally<br />
Table 4 below highlights the key accreditation scopes covered by <strong>SANAS</strong>’s accreditation provision responsibilities<br />
<strong>and</strong> their purpose.<br />
Table 4: Accreditation scopes<br />
NO SUBPROGRAMME CONTRIBUTION TO ECONOMY AND/OR HEALTH AND SAFETY<br />
1. Calibration laboratories <strong>and</strong><br />
pr<strong>of</strong>iciency testing schemes<br />
Calibration laboratories provide legal metrological traceability in South Africa as stipulated<br />
in the Measurements Units <strong>and</strong> Measurement St<strong>and</strong>ards Act (Act No. 18 <strong>of</strong> 2006).<br />
The laboratories therefore form an integral part <strong>of</strong> the metrological chain whenever<br />
physical measurements are performed, be these for trade, safety, scientific purposes,<br />
law enforcement or to ensure that South African manufacturers remain globally<br />
competitive. The calibration programme has an impact on the lives <strong>of</strong> ordinary South<br />
Africans, from ensuring that the weight <strong>of</strong> the sugar, maize meal <strong>and</strong> flour that is purchased<br />
is correct, to ensuring the accuracy <strong>of</strong> the equipment used for law enforcement,<br />
such as evidential breath analysers <strong>and</strong> speed measuring devices, <strong>and</strong> ensuring the<br />
accuracy <strong>and</strong> traceability <strong>of</strong> measurements required within the IPAP priority sectors.<br />
Pr<strong>of</strong>iciency testing is essential for the demonstration <strong>of</strong> the competency <strong>of</strong> a laboratory.<br />
2. Testing laboratories Testing laboratories play an important role in economies by providing objective evidence<br />
that a product or service <strong>of</strong>fering conforms to certain customer requirements or<br />
specifications. <strong>SANAS</strong>-accredited laboratories in the food safety sector play an important<br />
role in monitoring the quality <strong>of</strong> food for import <strong>and</strong> export purposes, as well as<br />
for the health <strong>and</strong> safety <strong>of</strong> the public at large.<br />
The testing programme also provides an accreditation service in the IPAP priority<br />
sectors <strong>and</strong> other industry sectors, including environmental monitoring, food safety,<br />
infrastructure <strong>and</strong> construction, agriculture <strong>and</strong> minerals.<br />
3. Medical laboratories Creditability <strong>of</strong> medical pathology laboratories is paramount to the health <strong>and</strong> safety <strong>of</strong><br />
the patients who rely on the testing services provided by these laboratories. Laboratory<br />
tests are an integral part <strong>of</strong> the workup <strong>of</strong> any patient, <strong>and</strong> constitutes up to 80% <strong>of</strong> a<br />
physician’s diagnosis <strong>and</strong> treatment choice. It is therefore important that the results are<br />
reliable, as medical doctors base their diagnosis on such results.<br />
4A. GLP-compliant facilities <strong>SANAS</strong> is the <strong>of</strong>ficial OECD GLP monitoring authority. The main duty <strong>of</strong> the GLP monitoring<br />
authority is to monitor compliance with GLP Principles by conducting laboratory<br />
inspections <strong>and</strong> study audits.<br />
The OECD principles <strong>of</strong> GLP were primarily developed to promote the quality <strong>and</strong> validity<br />
<strong>of</strong> test data used to determine the safety <strong>of</strong> chemicals <strong>and</strong> chemical products.<br />
4B. Forensic laboratories Forensic laboratories are crucial to our criminal justice system as they provide very<br />
useful information that aid in the investigation <strong>and</strong> prosecution <strong>of</strong> crime through the<br />
scientific examination <strong>of</strong> physical evidence.<br />
<strong>SANAS</strong> | Annual Performance Plan 2013/14 - 2015/16<br />
15
<strong>SANAS</strong> | Annual Performance Plan 2013/14 - 2015/16<br />
NO SUBPROGRAMME CONTRIBUTION TO ECONOMY AND/OR HEALTH AND SAFETY<br />
4C. Veterinary laboratories<br />
<strong>and</strong> Good Clinical Practice<br />
(GCP)-compliant facilities<br />
South Africa is no exception when it comes to the problems faced by the livestock<br />
industry worldwide. It is therefore important for the country to have a strong <strong>and</strong> competent<br />
veterinary laboratory industry to help with the diagnosis <strong>of</strong> diseases, especially<br />
emerging diseases such as Bovine spongiform encephalopathy (BSE – mad cow disease)<br />
<strong>and</strong> to test the safety <strong>of</strong> meat <strong>and</strong> other animal products.<br />
4D. Blood transfusion The primary goal <strong>of</strong> a blood transfusion facility is the transfusion <strong>of</strong> safe units <strong>of</strong> blood.<br />
Accreditation plays a vital role in ensuring that the personnel involved in all the activities<br />
(such as donor registration, blood collection, testing, processing <strong>and</strong> storage) <strong>of</strong> a<br />
blood transfusion service are competent <strong>and</strong> that national <strong>and</strong>/or international st<strong>and</strong>ards<br />
are being adhered to.<br />
4E. Pharmaceutical The South African pharmaceutical industry is regarded as the largest in Africa, constituting<br />
about 33% <strong>of</strong> all the pharmaceutical sales in Africa. The pharmaceutical or medicine<br />
industry is regarded as one <strong>of</strong> the best areas for business investment. Furthermore, it<br />
plays a vital role in fighting numerous diseases that are ravaging our country, such as<br />
TB, HIV <strong>and</strong> AIDS.<br />
5. Inspection bodies Inspection mainly operates within the regulatory domain where regulators <strong>and</strong> citizens<br />
need to be confident that inspection bodies, especially those inspecting health <strong>and</strong><br />
safety issues in accordance with the Occupational Health <strong>and</strong> Safety (OHS) Act, are<br />
competent to do so. This also applies to bodies that are required to ensure the protection<br />
<strong>of</strong> consumers, such as the National Regulator for Compulsory Specification (NRCS)<br />
<strong>and</strong> those required under the IPAP, for example, nuclear inspection <strong>and</strong> measurement<br />
<strong>and</strong> verification agencies.<br />
6. Verification laboratories Verification laboratories fall under the domain <strong>of</strong> legal (trade) metrology, whose<br />
sole purpose is to protect consumers from unfair trade practices. These laboratories<br />
perform verifications on volume, mass <strong>and</strong> length measuring instruments in accordance<br />
with the requirements <strong>of</strong> the <strong>Trade</strong> Metrology Act (Act No. 77 <strong>of</strong> 1973) <strong>and</strong> other<br />
related technical regulations to ensure reliable results.<br />
7. Certification bodies Certification is the activity <strong>of</strong> conformity assessment where the focus is on a system<br />
that forms the basic requirements to ensure that an organisation has the necessary<br />
self-regulating procedures <strong>and</strong> controls on factors that affect a product so that it is<br />
possible to provide the customer with confidence that the product falls within the<br />
specified requirements. Accredited certification bodies certify other organisations<br />
with regard to compliance to management systems with recognised st<strong>and</strong>ards, such as<br />
quality management system, environmental management system. food safety management<br />
system requirements, responsible tourism <strong>and</strong> greenhouse gas validation <strong>and</strong><br />
verification. This programme, together with the Inspection Body Programme, is the key<br />
accreditation implementer for the attainment <strong>of</strong> the IPAP projects assigned to <strong>SANAS</strong>.<br />
8. Broad-based Black Economic<br />
Empowerment (B-BBEE)<br />
verification agencies<br />
In 2007, <strong>SANAS</strong> initiated the B-BBEE Verification Accreditation Programme, which supports<br />
government’s national objective to allow for a broader participation <strong>of</strong> previously<br />
disadvantaged people in the mainstream economy.<br />
16
7. PROGRAMME DETAILS<br />
7.1.1 PROGRAMME 1: ADMINISTRATION PROGRAMME<br />
Purpose: The administration programme provides strategic <strong>and</strong> policy development support in <strong>SANAS</strong>.<br />
The programme aims to ensure that effective leadership, management, legal <strong>and</strong> administrative support<br />
continues the refinement <strong>of</strong> the organisational strategy <strong>and</strong> structure in compliance with the appropriate<br />
legislation <strong>and</strong> international best practices.<br />
Description <strong>of</strong> Sub – programmes<br />
The <strong>SANAS</strong> Board <strong>of</strong> Directors provides oversight <strong>and</strong> policy direction to <strong>SANAS</strong>; <strong>and</strong> the Office <strong>of</strong> the CEO<br />
provides overall management <strong>of</strong> <strong>SANAS</strong>’ resources. The Corporate services sub-programme provides legal<br />
advisory/ compliance services, company secretarial services <strong>and</strong> provide high level oversight <strong>of</strong> internal<br />
corporate support functions which includes; IT services, communications <strong>and</strong> marketing, <strong>of</strong>fice <strong>and</strong> quality<br />
management services. The financial management sub-programme provides support to <strong>SANAS</strong> with respect<br />
to all the financial <strong>and</strong> fiscal management aspects <strong>of</strong> the <strong>SANAS</strong> operations.<br />
7.1 2 PROGRAMME 2: ACCREDITATION PROGRAMME<br />
Purpose: The accreditation programme provides, manages <strong>and</strong> maintains accreditation services to new<br />
<strong>and</strong> existing clients in both the voluntary <strong>and</strong> regulatory domain.<br />
Description <strong>of</strong> Sub – programmes<br />
Purpose: The accreditation programme provides, manages <strong>and</strong> maintains accreditation services to new<br />
<strong>and</strong> existing clients in both the voluntary <strong>and</strong> regulatory domain.<br />
Description <strong>of</strong> Sub – programmes<br />
SCOPES OF AC-<br />
CREDITATION &<br />
(<strong>SANAS</strong> DOCU-<br />
MENT)<br />
Testing Laboratories<br />
(P04)<br />
Medical Laboratories<br />
(P04)<br />
ACCREDITATION<br />
STANDARD/<br />
SCHEME<br />
VOLUN-<br />
TARY OR<br />
REGULA-<br />
TORY<br />
DOMAIN<br />
COVERED<br />
BY:<br />
ISO/IEC 17025 Voluntary ILAC MRA<br />
• ISO 15189<br />
(Preferable) or<br />
• ISO/IEC 17025<br />
Voluntary<br />
ILAC MRA<br />
VALIDITY PERIOD<br />
OF CERTIFICATE OF<br />
ACCREDITATION<br />
5 years<br />
4 years<br />
ACCREDITATION IS GRANT-<br />
ED FOR:<br />
• Tests performed on specified<br />
materials or products<br />
to specified test methods;<br />
• Techniques - for specified<br />
instrument(s) using<br />
specific chemical <strong>and</strong>/<br />
or physical methods, to<br />
identify <strong>and</strong>/or determine<br />
a physical property <strong>of</strong> a<br />
material or species contained<br />
within.<br />
• Tests performed on human<br />
biological materials<br />
to specified test methods.<br />
<strong>SANAS</strong> | Annual Performance Plan 2013/14 - 2015/16<br />
17
<strong>SANAS</strong> | Annual Performance Plan 2013/14 - 2015/16<br />
SCOPES OF AC-<br />
CREDITATION &<br />
(<strong>SANAS</strong> DOCU-<br />
MENT)<br />
Calibration Laboratories<br />
(P04)<br />
Certification Bodies<br />
(P05)<br />
Certification Bodies<br />
(P05)<br />
Certification Bodies<br />
(P05)<br />
GLP/GCP Facilities<br />
(P16)<br />
Blood Transfusion<br />
Laboratories (P04)<br />
Pr<strong>of</strong>iciency Testing<br />
(PT) Providers<br />
(P04)<br />
ACCREDITATION<br />
STANDARD/<br />
SCHEME<br />
VOLUN-<br />
TARY OR<br />
REGULA-<br />
TORY<br />
DOMAIN<br />
COVERED<br />
BY:<br />
ISO/IEC 17025 Voluntary ILAC MRA<br />
ISO/IEC 17021 <strong>and</strong><br />
IAF m<strong>and</strong>atory<br />
documents<br />
ISO/IEC 17024 <strong>and</strong><br />
IAF M<strong>and</strong>atory<br />
documents<br />
ISO/IEC Guide 65,<br />
<strong>and</strong> any relevant<br />
IAF m<strong>and</strong>atory<br />
documents<br />
OECD Principles <strong>of</strong><br />
GLP/VICH Principles<br />
<strong>of</strong> GLP<br />
Voluntary<br />
or National<br />
Programme<br />
Voluntary<br />
Voluntary<br />
Voluntary<br />
IAF MLA<br />
IAF MLA<br />
IAF MLA<br />
OECD<br />
ISO/IEC 17025 Voluntary National<br />
Programme<br />
• ILAC-G13 Voluntary No<br />
• ISO/IEC Guide<br />
43-1<br />
• ISO/IEC 17043<br />
VALIDITY PERIOD<br />
OF CERTIFICATE OF<br />
ACCREDITATION<br />
5 years<br />
3 years<br />
3 years<br />
3 years<br />
2 years<br />
4 years<br />
4 years<br />
ACCREDITATION IS GRANT-<br />
ED FOR:<br />
• Specified types <strong>of</strong> measurements<br />
performed,<br />
measurement range <strong>and</strong><br />
calibration <strong>and</strong> measurement<br />
capability (CMC);<br />
• The transfer <strong>of</strong> traceability<br />
from national st<strong>and</strong>ards<br />
• QMS Certifiers for certifying<br />
organisations to ISO<br />
9001;<br />
• EMS Certifiers for organisations<br />
to ISO 14001;<br />
• QMS Certifiers for certifying<br />
organisations to<br />
HACCP SANS10330.<br />
• Responsible tourism<br />
• GHG validation <strong>and</strong> verification<br />
• Personnel Certifiers for<br />
certifying or registration<br />
<strong>of</strong> personnel.<br />
• Product Certifiers for<br />
certifying products min<br />
accordance with various<br />
national <strong>and</strong> international<br />
specifications, <strong>and</strong> sectorspecific<br />
industry schemes,<br />
whose requirements are<br />
maintained by the industries<br />
themselves. (Eg:<br />
Eurepgap, BRC (British<br />
Retail Consortium) <strong>and</strong><br />
GFSI (Global Food Safety<br />
Initiative)<br />
• GLP compliance monitoring,<br />
according to the<br />
Organisation for Economic<br />
Co-operation <strong>and</strong><br />
Development (OECD)<br />
Principles <strong>of</strong> Good Laboratory<br />
Practice for facilities<br />
conducting non-clinical<br />
environmental health <strong>and</strong><br />
safety studies<br />
• The operation <strong>of</strong> PT<br />
schemes<br />
18
SCOPES OF AC-<br />
CREDITATION &<br />
(<strong>SANAS</strong> DOCU-<br />
MENT)<br />
Producers <strong>of</strong> Certified<br />
Reference<br />
Materials (CRM)<br />
(P07)<br />
ACCREDITATION<br />
STANDARD/<br />
SCHEME<br />
• ISO Guide 34<br />
• (ISO/IEC<br />
17025 a prerequisite)<br />
VOLUN-<br />
TARY OR<br />
REGULA-<br />
TORY<br />
DOMAIN<br />
Voluntary<br />
COVERED<br />
BY:<br />
No<br />
VALIDITY PERIOD<br />
OF CERTIFICATE OF<br />
ACCREDITATION<br />
5 years<br />
ACCREDITATION IS GRANT-<br />
ED FOR:<br />
• The production <strong>and</strong><br />
assignment <strong>of</strong> property<br />
values <strong>of</strong> CRM<br />
Inspection Bodies<br />
(P15)<br />
Verification Laboratories<br />
(P17)<br />
Broad Based Black<br />
Economic Empowerment<br />
(B-BBEE)<br />
Verification (P24)<br />
• ISO/IEC 17020<br />
<strong>and</strong>/or the<br />
National<br />
St<strong>and</strong>ards<br />
specific to<br />
the field <strong>of</strong><br />
inspection<br />
• National<br />
st<strong>and</strong>ard:<br />
SANS 1825<br />
– Gas Test<br />
Stations<br />
• National<br />
st<strong>and</strong>ards:<br />
SANS 10227;<br />
• SANS 1347–<br />
Vessels under<br />
Pressure<br />
• SANS 10378<br />
• NRCS requirements<br />
<strong>SANAS</strong> R47 <strong>and</strong><br />
competence to the<br />
B-BBEE Codes <strong>of</strong><br />
Good Practice<br />
Regulatory<br />
Regulatory<br />
Regulatory<br />
7.1.3 PROGRAMME 3: GLP MONITORING<br />
ILAC MRA<br />
or National<br />
Programme<br />
National<br />
Programme<br />
National<br />
programme<br />
4 years<br />
4 years<br />
• The performance <strong>of</strong><br />
inspections in a specified<br />
field.<br />
• Energy efficiency measurement<br />
<strong>and</strong> verification<br />
bodies<br />
• Laboratories assessed<br />
to SANS 10378 are not<br />
allowed to perform<br />
commercial calibrations<br />
to ISO/IEC 17025 unless<br />
their accreditation certificate<br />
specifically indicates<br />
they are accredited for<br />
this. The Regulator recognised<br />
this exclusion<br />
• Accreditation is granted<br />
to facilities who verify<br />
compliance to the BBBEE<br />
Act <strong>and</strong> Codes <strong>of</strong> Good<br />
Practice<br />
Purpose: The GLP monitoring programme participates <strong>and</strong> contributes to the maintenance <strong>and</strong> expansion<br />
<strong>of</strong> the OECD GLP programme in order to fulfil South Africa’s international obligations as a signatory<br />
to the international Multilateral Arrangements <strong>and</strong> benefit South African testing facilities<br />
Description <strong>of</strong> Sub – Programmes<br />
<strong>SANAS</strong> is the <strong>of</strong>ficial GLP Monitoring Authority <strong>of</strong> South Africa. Its (GLP Monitoring Authority) main duty<br />
is to inspect test facilities <strong>and</strong> conduct study audits to ascertain their degree <strong>of</strong> compliance to the OECD<br />
principles. South Africa is a non-member country that met the OECD criteria through <strong>SANAS</strong>. <strong>SANAS</strong>’s<br />
<strong>SANAS</strong> | Annual Performance Plan 2013/14 - 2015/16<br />
19
participation in the various working groups <strong>of</strong> the GLP panel is a vital part <strong>of</strong> maintaining this acceptance<br />
agreement. <strong>SANAS</strong> actively participates in the OECD GLP Working Group meetings where decisions about<br />
the Mutual Acceptance <strong>of</strong> Data are made. <strong>SANAS</strong> also participated in OECD on-site visits as required by this<br />
arrangement <strong>of</strong> Mutual Acceptance <strong>of</strong> Data in order to influence decisions.<br />
7.1.4 STRATEGY AND DEVELOPMENT PROGRAMME<br />
Purpose: The Strategy <strong>and</strong> development programme provides effective leadership in developing new fields<br />
<strong>of</strong> accreditation, project development, knowledge transfer <strong>and</strong> supporting sub-regional, regional <strong>and</strong> international<br />
objectives pertaining to accreditation.<br />
Description <strong>of</strong> Sub – Programmes<br />
The International trade development sub-programme facilitates multilateral recognition arrangements<br />
aimed at promoting accreditation as a means <strong>of</strong> facilitating South African exports <strong>and</strong> enhancing the Republic’s<br />
economic performance. The African accreditation development sub-programme manage the SADC<br />
accreditation secretariat <strong>and</strong> regional coordinator function for SADC as well as secretariat for the newly<br />
establish African Accreditation Cooperation (AFRAC) aimed at providing leadership on accreditation matters<br />
in the African region <strong>and</strong> deepening regional integration. <strong>SANAS</strong> will continue to provide appropriate<br />
training <strong>and</strong> development for SADC member state delegates <strong>and</strong> leadership in the implementation <strong>of</strong> the<br />
regional accreditation infrastructure. The research <strong>and</strong> development sub-programme provides effective<br />
leadership in developing new fields <strong>of</strong> accreditation <strong>and</strong> project management. The knowledge transfer<br />
sub-programme provides training <strong>and</strong> mentoring to <strong>SANAS</strong>, industry <strong>and</strong> the region.<br />
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20
8. KEY PROGRAMMES ALIGNED TO THE DTI’S PRIORITIES<br />
DTI’S PRIORITIES <strong>SANAS</strong>’S STRATEGIC OBJECTIVES <strong>SANAS</strong>’S OUTCOMES<br />
Promote a pr<strong>of</strong>essional, competitive<br />
<strong>and</strong> customer-focused working environment<br />
that ensures effective <strong>and</strong><br />
efficient service delivery<br />
Facilitate transformation <strong>of</strong> the economy<br />
to promote industrial development,<br />
investment, competitiveness <strong>and</strong><br />
employment creation<br />
Build mutually beneficial regional<br />
<strong>and</strong> global relations to advance South<br />
Africa’s trade, industrial policy <strong>and</strong> economic<br />
development objectives<br />
Improve <strong>SANAS</strong>’s operational efficiency<br />
to deliver services with a spirit <strong>of</strong> excellence<br />
Provide accreditation support for industrial<br />
development <strong>and</strong> the protection<br />
<strong>of</strong> the health <strong>and</strong> safety <strong>of</strong> the South<br />
African public <strong>and</strong> the environment<br />
Promote the acceptance <strong>of</strong> <strong>SANAS</strong>-accredited<br />
results among global partners<br />
to advance South Africa’s trade <strong>and</strong><br />
economic development objectives<br />
Support regional integration <strong>and</strong> relations<br />
to advance South Africa’s trade,<br />
industrial policy <strong>and</strong> economic development<br />
objectives<br />
• Reduce the vacancy rate<br />
• Develop a diversified assessor pool<br />
• Operationalise accreditation programmes<br />
in the areas as assigned<br />
to <strong>SANAS</strong> by the dti in IPAP 2<br />
• Operationalise accreditation programmes<br />
in the areas as assigned<br />
by other government departments<br />
<strong>and</strong> stakeholders, e.g. DoL, Business<br />
Unity South Africa (BUSA)<br />
• Provide accreditation programmes<br />
for conformity assessments bodies<br />
to service government <strong>and</strong> industry<br />
sectors supporting the production<br />
<strong>of</strong> safe <strong>and</strong> good quality goods<br />
<strong>and</strong> services<br />
• Provide accreditation support to<br />
facilitate market access <strong>of</strong> South<br />
African goods <strong>and</strong> services supporting<br />
exports<br />
• Provide input into the international<br />
requirements concerning accreditation<br />
to facilitate a level playing field<br />
for the acceptance <strong>of</strong> South African<br />
goods <strong>and</strong> services<br />
• Establish <strong>and</strong> operationalise an<br />
African <strong>and</strong> SADC accreditation<br />
cooperation<br />
• Provide accreditation support to facilitate<br />
locking out <strong>of</strong> unsafe, poor<br />
quality goods <strong>and</strong> services<br />
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21
10. PERFORMANCE PLAN MATRIX<br />
<strong>SANAS</strong> | Annual Performance Plan 2013/14 - 2015/16<br />
9. PERFORMANCE PLAN MATRIX<br />
ANNUAL PERFORMANCE TARGETS<br />
Target for<br />
2012/13<br />
PERFORMANCE<br />
INDICATORS/ MEASURES<br />
OUTCOMES OUTPUTS<br />
2013/14 2014/15 2015/16<br />
Strategic objective 1: To Improve <strong>SANAS</strong>’s operational efficiency to deliver services with a spirit <strong>of</strong> excellence<br />
Efficient service delivery Reduce the vacancy rate<br />
Percentage <strong>of</strong> vacant positions 15%<br />
10% 10% 10%<br />
Increase the<br />
Diversified<br />
assessor pool<br />
76 82 90<br />
68<br />
Number <strong>of</strong> previously<br />
disadvantaged assessors<br />
registered with <strong>SANAS</strong> in the<br />
assessors’ pool<br />
registration <strong>of</strong><br />
previously<br />
disadvantaged<br />
assessors<br />
Strategic objective 2: To contribute to industrial development <strong>and</strong> the protection <strong>of</strong> health, safety <strong>and</strong> the environment<br />
0 1 1 0<br />
Number <strong>of</strong> new accreditation<br />
programmes developed <strong>and</strong><br />
rolled out<br />
Develop <strong>and</strong> roll out<br />
an accreditation<br />
system for the<br />
accreditation <strong>of</strong> IPAP2<br />
assigned areas<br />
Number <strong>of</strong> new accreditation<br />
programmes developed <strong>and</strong><br />
rolled out 1 1 0 1<br />
Develop <strong>and</strong> roll out<br />
an accreditation<br />
system for the<br />
accreditation <strong>of</strong> DoL<br />
assigned areas<br />
Number <strong>of</strong> new accreditation<br />
programmes developed <strong>and</strong><br />
rolled out 1 0 0 0<br />
Develop <strong>and</strong> roll out<br />
an accreditation<br />
system for the<br />
certification <strong>of</strong><br />
responsible tourism<br />
Established<br />
accreditation<br />
systems for<br />
new<br />
programmes<br />
0 1 0 0<br />
Number <strong>of</strong> new accreditation<br />
programmes developed <strong>and</strong><br />
rolled out<br />
Develop <strong>and</strong> roll out<br />
an accreditation<br />
system for the<br />
verification <strong>of</strong><br />
greenhouse gases as<br />
requested by BUSA<br />
<strong>SANAS</strong> ANNUAL PERFORMANCE PLAN 2013/14 – 2015/16 Page 23<br />
22
OUTCOMES OUTPUTS<br />
Exp<strong>and</strong> the number <strong>of</strong><br />
accredited<br />
organisations in the<br />
fields <strong>of</strong> testing,<br />
inspection, calibration,<br />
certification bodies <strong>and</strong><br />
other conformity<br />
assessment services<br />
PERFORMANCE<br />
INDICATORS/ MEASURES<br />
Number <strong>of</strong> accredited<br />
organisations<br />
Target for<br />
2012/13<br />
ANNUAL PERFORMANCE TARGETS<br />
2013/14 2014/15 2015/16<br />
1 408 1 438 1 470 1 500<br />
Strategic objective 3: To promote the acceptance <strong>of</strong> <strong>SANAS</strong>-accredited results among international partners to advance South<br />
Africa’s trade <strong>and</strong> economic objectives<br />
Influencing<br />
international<br />
accreditation<br />
requirements to<br />
facilitate a level<br />
playing field for<br />
acceptance <strong>of</strong><br />
South African<br />
goods <strong>and</strong><br />
services<br />
Provide input into the<br />
international<br />
accreditation<br />
requirements <strong>of</strong> the<br />
ILAC <strong>and</strong> IAF<br />
Percentage input to the<br />
international accreditation<br />
requirements <strong>of</strong> the ILAC <strong>and</strong><br />
IAF<br />
90% 95% 95% 95%<br />
Strategic objective 4: To support regional integration <strong>and</strong> relations to advance South Africa’s trade, industrial policy <strong>and</strong> economic<br />
development objectives<br />
Accreditation<br />
support to lock<br />
out poor quality<br />
goods <strong>and</strong><br />
services<br />
Provide an Intra-<br />
AFRAC Secretariat<br />
Provide a Southern<br />
African Development<br />
Community<br />
Cooperation in<br />
Accreditation (SADCA)<br />
Secretariat <strong>and</strong><br />
regional coordination<br />
function<br />
Number <strong>of</strong> meetings where<br />
secretarial support is provided<br />
Number <strong>of</strong> meetings where<br />
secretarial support is provided<br />
3 meetings 3 meetings 3 meetings 3 meetings<br />
3 meetings 3 meetings 3 meetings 3 meetings<br />
<strong>SANAS</strong> ANNUAL PERFORMANCE PLAN 2013/14 – 2015/16 Page 24<br />
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23
10. FINANCIAL PLAN<br />
i) PROJECTIONS OF REVENUE AND EXPENDITURE<br />
2013/14 2014/15 2015/16<br />
SUMMARY OF INCOME<br />
Accreditation provision 35 168 823 36 940 269 38 745 339<br />
Knowledge transfer (research <strong>and</strong> development) 5 949 355 6 125 612 6 407 390<br />
Transfer from the dti 32 615 000 34 560 000 36 151 488<br />
Utilisation <strong>of</strong> the approved reserve: 1 200 000 - -<br />
- Expenses<br />
Interest 1 001 250 877 198 909 949<br />
Sundry income 254 700 267 180 299 608<br />
TOTAL 76 189 128 78 770 260 82 513 774<br />
- Capital assets 10 592 000 50 350 000 300 000<br />
EXPENDITURE<br />
SUMMARY OF EXPENDITURE<br />
1. Administration 29 777 748 31 206 433 33 163 356<br />
2. Accreditation provision 33 154 580 34 784 059 36 524 179<br />
3. Marketing <strong>and</strong> communication 2 822 800 2 938 317 2 881 958<br />
4. Regional development 718 150 737 866 897 480<br />
5. International trade facilitation 2 261 178 2 134 487 2 344 250<br />
6. Research <strong>and</strong> development 7 454 672 6 969 097 6 702 551<br />
TOTAL 76 189 128 78 770 260 82 513 774<br />
SURPLUS/(DEFICIT) - - -<br />
<strong>SANAS</strong> | Annual Performance Plan 2013/14 - 2015/16<br />
24<br />
Economic classification<br />
Current payments: 76 189 128 78 770 260 82 513 774<br />
Compensation <strong>of</strong> employees 34 761 426 36 463 733 38 720 621<br />
Goods <strong>and</strong> services, <strong>of</strong> which:<br />
Administrative fees (bank charges) 41 427 702 42 306 527 43 793 154<br />
Advertising <strong>and</strong> marketing 2 822 800 2 938 317 2 881 958<br />
Assets
2013/14 2014/15 2015/16<br />
Depreciation <strong>and</strong> amortisation 402 711 422 444 441 877<br />
Entertainment 31 590 33 138 34 500<br />
General accreditation operating expenditure 1 366 880 1 315 520 1 428 749<br />
International <strong>and</strong> regional responsibilities 2 979 327 2 872 353 3 241 730<br />
Lease payments 3 992 523 4 188 157 4 380 812<br />
Operating expenditure 1 745 486 1 829 463 1 889 131<br />
Projects 2 124 550 1 333 293 1 064 792<br />
Stationery <strong>and</strong> printing 486 660 510 506 530 800<br />
Training <strong>and</strong> staff development 1 350 020 1 416 171 1 560 000<br />
Transfer payment: National Laboratory Association (NLA) 477 211 500 595 523 622<br />
Travel <strong>and</strong> subsistence 9 077 562 9 522 363 9 960 391<br />
SUBTOTAL 76 189 128 78 770 260 82 513 774<br />
TOTAL 76 189 128 78 770 260 82 513 774<br />
ii) CASH FLOW PROJECTIONS<br />
2013/14 2014/15 2015/16<br />
Cash flows from operating activities<br />
Cash receipts 69 039 773 72 644 648 76 106 384<br />
Funds received from the dti 32 615 000 34 560 000 36 151 488<br />
Fee income 35 168 823 36 940 269 38 745 339<br />
Investment income 1 001 250 877 198 909 949<br />
Other receipts 254 700 267 180 299 608<br />
Payments (67 473 282) (71 549 021) (74 640 317)<br />
Employee costs (34 761 426) (36 463 733) (38 720 621)<br />
Suppliers (32 462 830) (34 824 061) (35 643 697)<br />
Finance costs (249 025) (261 227) (276 000)<br />
Net cash flows from operating activities 1 566 491 1 095 626 1 466 067<br />
Cash flows from investing activities<br />
Purchase <strong>of</strong> property, plant <strong>and</strong> equipment (20 592 000) (50 350 000) (300 000)<br />
Intangible assets acquired - - -<br />
Net cash flows from investing activities (20 592 000) (50 350 000) (300 000)<br />
Cash flows from financing activities<br />
Mortgage bond 31 000 000 (3 000 000)<br />
Finance lease payments (131 392) (122 397) (114 019)<br />
Net cash flows from financing activities (131 392) 30 877 603 (3 114 019)<br />
Net increase/(decrease) in cash <strong>and</strong> cash equivalents (19 156 900) (18 376 771) (1 947 952)<br />
Cash <strong>and</strong> cash equivalents at the beginning <strong>of</strong> the year 53 070 200 33 913 300 15 536 529<br />
Cash <strong>and</strong> cash equivalents at the end <strong>of</strong> the year 33 913 300 15 536 529 13 588 577<br />
iii) DIVIDEND POLICIES - Not applicable<br />
<strong>SANAS</strong> | Annual Performance Plan 2013/14 - 2015/16<br />
25
11. STRATEGIC RISK REGISTER AND MITIGATING ACTIONS<br />
<strong>SANAS</strong> | Annual Performance Plan 2013/14 - 2015/16<br />
1.<br />
2.<br />
STRATEGIC<br />
OBJECTIVE<br />
To improve<br />
<strong>SANAS</strong>’s<br />
operational<br />
efficiency to<br />
deliver services<br />
with a spirit <strong>of</strong><br />
excellence<br />
To contribute<br />
to industrial<br />
development<br />
<strong>and</strong> the protection<br />
<strong>of</strong> health,<br />
safety <strong>and</strong> the<br />
environment<br />
ACTIVITY NO. RISK DESCRIPTION<br />
Staff retention 1<br />
Developing <strong>and</strong><br />
implementing<br />
an accreditation<br />
process IT<br />
system<br />
Non-availability<br />
<strong>of</strong> assessors<br />
Establishing<br />
new programmes<br />
Establishing<br />
new programmes<br />
Establishing<br />
new programmes<br />
Establishing<br />
new programmes<br />
Establishing<br />
new programmes<br />
Failure to retain or attract<br />
critical skills<br />
2 Inefficiencies due to<br />
manual systems resulting<br />
in long turnaround<br />
times<br />
3 Assessors who have<br />
confirmed for scheduled<br />
assessments cancel<br />
a few days before<br />
the assessment<br />
4<br />
5<br />
6<br />
7<br />
8<br />
Lack <strong>of</strong> stakeholders/<br />
experts buy-in to support<br />
the process<br />
Timing <strong>of</strong> regulators<br />
to establish required<br />
legislation<br />
Unawareness <strong>of</strong> regulations<br />
by <strong>SANAS</strong><br />
Perceived costs versus<br />
the benefits <strong>of</strong> accreditation<br />
Expectations gap between<br />
industry regulators<br />
with regard to the<br />
delivery <strong>of</strong> accreditation<br />
programmes<br />
Limited skills (assessors)<br />
for new programmes<br />
RESIDUAL<br />
RISK (SCORE)<br />
ACTIONS TO IMPROVE MANAGE-<br />
MENT OF THE RISK<br />
• Develop <strong>and</strong> implement a<br />
Management Development<br />
Strategy<br />
• Exp<strong>and</strong> the assessor pool<br />
• Automate the accreditation<br />
processes<br />
Exp<strong>and</strong> the assessor pool to allow<br />
for more flexibility by:<br />
• advertising for assessors<br />
• approaching employers <strong>of</strong><br />
potential assessors to have an<br />
agreement<br />
• Direct interaction sessions with<br />
regulators<br />
• Involvement in stakeholder<br />
forums <strong>and</strong> drafting <strong>of</strong> regulations<br />
• Subscribe <strong>and</strong> track publication<br />
<strong>of</strong> new regulations<br />
• Senior management to pursue<br />
regulations sent for comment<br />
Create a support mechanism to<br />
minimise accreditation costs for<br />
new applicants by:<br />
• holding an annual induction for<br />
new facilities<br />
• creating a toolkit to assist<br />
small, medium <strong>and</strong> micro<br />
enterprises (SMMEs) with accreditation<br />
process<br />
• Develop <strong>and</strong> distribute relevant<br />
marketing material<br />
• Conduct workshops<br />
• Ensure stakeholder participation<br />
in the work <strong>of</strong> <strong>SANAS</strong><br />
• Provide stakeholders with<br />
regular progress updates<br />
• Develop guidance documentation<br />
where applicable<br />
26
STRATEGIC<br />
OBJECTIVE<br />
ACTIVITY NO. RISK DESCRIPTION<br />
RESIDUAL<br />
RISK (SCORE)<br />
ACTIONS TO IMPROVE MANAGE-<br />
MENT OF THE RISK<br />
3. To promote<br />
the acceptance<br />
<strong>of</strong> <strong>SANAS</strong>-accredited<br />
results<br />
among global<br />
partners to<br />
advance South<br />
Africa’s trade<br />
<strong>and</strong> economic<br />
development<br />
objectives<br />
4.<br />
To support<br />
regional<br />
integration<br />
<strong>and</strong> relations<br />
to advance<br />
South Africa’s<br />
trade, industrial<br />
policy<br />
<strong>and</strong> economic<br />
development<br />
objectives<br />
ILAC, IAF,<br />
SADC, AFRAC,<br />
Eastern African<br />
Community<br />
(EAC), regulators,<br />
industry<br />
Marketing,<br />
road shows,<br />
workshops,<br />
website, etc.<br />
Accreditation<br />
support to lock<br />
out poor quality<br />
goods <strong>and</strong><br />
services<br />
9<br />
10<br />
11<br />
12<br />
Failure to meet international<br />
requirements<br />
Lack <strong>of</strong> underst<strong>and</strong>ing<br />
<strong>of</strong> the Accreditation<br />
Act, <strong>SANAS</strong>'s m<strong>and</strong>ate<br />
by other government<br />
departments, industry<br />
<strong>and</strong> the public (including<br />
staff <strong>and</strong> assessors)<br />
Increase in reliance<br />
on <strong>SANAS</strong> to support<br />
SADCAS<br />
Insufficient funds to<br />
maintain regional<br />
projects<br />
• Ensure international participation<br />
• Develop <strong>and</strong> distribute relevant<br />
marketing material<br />
• Conduct workshops<br />
• Identify <strong>and</strong> train regional<br />
resources<br />
• Acquire donor funding<br />
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12. FRAUD PREVENTION PLAN<br />
<strong>SANAS</strong>’s Fraud Prevention Strategy, as documented in FP04, is focused on the following areas:<br />
1. Formalisation <strong>and</strong> implementation <strong>of</strong> a zero-tolerance culture to fraud <strong>and</strong> corruption within <strong>SANAS</strong><br />
2. A high level <strong>of</strong> fraud awareness<br />
3. Management <strong>and</strong> control <strong>of</strong> an environment that proves difficult to misappropriate assets<br />
There are essentially four pillars to a fraud prevention strategy, which have been used as the basis for<br />
<strong>SANAS</strong>’s Fraud Prevention Plan. These are the following:<br />
1. Creating an anti-fraud environment<br />
2. Underst<strong>and</strong>ing <strong>and</strong> managing the risks<br />
3. Being proactive in defence<br />
4. Reacting swiftly to suspected or known crimes<br />
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Table 5: Fraud Prevention Plan<br />
FP04<br />
REF<br />
ACTION RESPONSIBILITY<br />
a) Formalising <strong>and</strong> reinforcing our anti-fraud environment<br />
Corporate governance<br />
14.1.2 Continued focus on governance Board <strong>and</strong> Management<br />
Ensure that the internal audit function is able to maintain its independence Audit <strong>and</strong> Risk Committee<br />
Review existing code <strong>of</strong> conduct as detailed in the HR Policy to ensure that it is<br />
Management<br />
comprehensive, clear <strong>and</strong> easily interpreted<br />
Fraud prevention responsibility, sponsorship <strong>and</strong> control functions<br />
Anti-fraud Policy reviewed annually Audit <strong>and</strong> Risk Committee <strong>and</strong><br />
Management<br />
Implement, maintain <strong>and</strong> monitor Fraud Prevention Plan Management<br />
Anti-fraud Policy <strong>and</strong> Anti-fraud Charter<br />
14.1.6 Create a zero-tolerance environment towards fraud Management<br />
Ongoing fraud awareness campaign<br />
14.1.7 Publish Anti-fraud <strong>and</strong> Corruption Policy together with the Fraud Prevention Plan <strong>and</strong> Antifraud<br />
Charter to employees<br />
Management<br />
Investigate methods to communicate issues with regard to fraud <strong>and</strong> corruption Management<br />
b) Underst<strong>and</strong>ing <strong>and</strong> managing risks<br />
14.2 Include fraud risk identification as part <strong>of</strong> the enterprise-wide risk assessment Board <strong>and</strong> Management<br />
c) Being proactive in defence<br />
Improvements to accounting <strong>and</strong> internal controls <strong>and</strong> other procedures<br />
14.3.1 Maintain proper, strong <strong>and</strong> appropriate accounting <strong>and</strong> internal controls Management<br />
If necessary, formulate appropriate solutions for fraud risks <strong>and</strong> control issues Management<br />
If necessary, institute forensic controls where risks are not adequately managed by ordinary Management<br />
controls<br />
Fraud awareness training for all employees<br />
14.3.2 Empower employees through awareness training Management<br />
Supplier <strong>and</strong> employee vetting procedures<br />
14.3.3 Perform background checks <strong>of</strong> prospective employees <strong>and</strong> service providers Management<br />
Confidential crime information database<br />
14.3.4 Establish a confidential crime reporting database for the recording <strong>of</strong> all incidents <strong>of</strong><br />
Management<br />
identified malpractice <strong>and</strong> criminal behaviour in <strong>SANAS</strong><br />
d) Reacting swiftly to suspected/known crimes <strong>and</strong> irregularities<br />
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13. MATERIALITY AND SIGNIFICANCE FRAMEWORK<br />
Realising <strong>SANAS</strong>’s vision depends on the nature <strong>of</strong> every transaction conducted by every employee. The<br />
ethical conduct <strong>of</strong> <strong>SANAS</strong> is built on moral values such as trust, integrity, confidentiality <strong>and</strong> discretion,<br />
<strong>and</strong> underpins the organisation’s commitment to adhere to the highest possible acceptable norms <strong>and</strong><br />
st<strong>and</strong>ards <strong>of</strong> society in all dealings with clients <strong>and</strong> stakeholders, as well as the relationships within <strong>SANAS</strong>.<br />
<strong>SANAS</strong>’s staff members will refrain from any conduct that may be prejudicial to the image <strong>and</strong> name <strong>of</strong><br />
<strong>SANAS</strong>, <strong>and</strong> will ensure that all activities are done in a spirit <strong>of</strong> exceeding expectations <strong>and</strong> according to the<br />
legal framework <strong>of</strong> South Africa.<br />
13.1 MATERIALITY LEVEL<br />
<strong>SANAS</strong> is not an asset-intensive entity <strong>and</strong> the revenue component is selected as a basis for the materiality<br />
calculation as the level <strong>of</strong> activity is dependent on the total revenue received. Therefore, the level <strong>of</strong> a<br />
material loss is assessed at 0.5% <strong>of</strong> the budgeted total revenue (which includes accreditation income, the<br />
dti grant, training income, interest <strong>and</strong> any other income).<br />
Misstatements that are large individually or in aggregate may affect a reasonable user’s assessment, which<br />
results in materiality being based on qualitative grounds. <strong>SANAS</strong> has considered the following qualitative<br />
factors:<br />
<strong>SANAS</strong> | Annual Performance Plan 2013/14 - 2015/16<br />
Table 6: Materiality – factors <strong>and</strong> measures<br />
FACTOR<br />
• Unusual transactions entered into that are not <strong>of</strong> a<br />
repetitive nature <strong>and</strong> are disclosable due to the nature<br />
<strong>and</strong> the knowledge there<strong>of</strong> that affect the decisionmaking<br />
<strong>of</strong> the users <strong>of</strong> financial statements<br />
• Fraudulent or dishonest behavior <strong>of</strong> all <strong>of</strong>ficers or staff<br />
<strong>of</strong> the organisation<br />
• Going concern <strong>and</strong> liquidity, including loss <strong>of</strong><br />
significant customers<br />
MEASURES<br />
• Any activity that has not occurred previously <strong>and</strong> has not<br />
been budgeted for<br />
• Any r<strong>and</strong> value will warrant disclosure<br />
• Loss <strong>of</strong> reserve<br />
• Significant increase in creditors/liabilities<br />
• Loss <strong>of</strong> large medical, blood <strong>and</strong> testing programme<br />
customers<br />
• Constraints on the availability <strong>of</strong> government funding • Non-payment <strong>of</strong> any transfer payment<br />
• Changes in the industries in which the entity operates • Any matter that changes the measures <strong>of</strong> accreditation<br />
• Changes in key personnel, including the departure <strong>of</strong> • Loss <strong>of</strong> the CEO, senior managers or field managers<br />
key executives<br />
• Changes in the IT environment • Loss <strong>of</strong> the dti’s service level agreement<br />
• Loss <strong>of</strong> the dti’s infrastructure<br />
• Pending litigation <strong>and</strong> contingent liabilities • Any legal action raised against <strong>SANAS</strong><br />
• Public accountability to stakeholders, Parliament,<br />
auditors <strong>and</strong> the community at large<br />
• The sensitivity <strong>of</strong> the organisation’s financial<br />
information in making decisions<br />
• Inadequate policies <strong>and</strong> procedures to mislead users in<br />
making decisions<br />
• Any matter that is raised as fruitless <strong>and</strong> wasteful<br />
expenditure<br />
• Any decision that impacts on operations or staff<br />
• Any unusual behaviour or transactions<br />
• Material infringement <strong>of</strong> legislation • Any misconduct for which disciplinary action is taken<br />
• The imposition <strong>of</strong> regularity restrictions that can<br />
impair operating capabilities<br />
• Unannounced regulations that affect the accreditation<br />
process<br />
30
FACTOR<br />
• Any transaction, activity or conduct entered into that<br />
could result in reputation risk<br />
• Application <strong>of</strong> a new accounting policy or changes in<br />
the accounting policy<br />
MEASURES<br />
• Any media liaison<br />
• Any change effected<br />
13.2 SIGNIFICANCE LEVEL<br />
The organisation will submit relevant particulars <strong>of</strong> the transaction to the Board for approval <strong>of</strong> the transaction.<br />
The following transactions will be regarded as significant <strong>and</strong> require full disclosure:<br />
• Acquisition or disposal <strong>of</strong> a significant asset<br />
• Commencement or cessation <strong>of</strong> a significant accreditation activity<br />
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14. ANNEXURE INDICATOR PROFILE<br />
Number <strong>of</strong> new accreditation programmes<br />
developed <strong>and</strong> rolled out<br />
Indicator title Reduce the vacancy rate Number <strong>of</strong> PDI assessors registered with <strong>SANAS</strong> in the<br />
assessors pool<br />
Develop <strong>and</strong> roll out accreditation<br />
programme for IPAP 2, <strong>Department</strong> <strong>of</strong><br />
Labour, etc<br />
Short definition Percentage <strong>of</strong> position vacant <strong>SANAS</strong> registered assessor pool is representative <strong>of</strong><br />
the demographics <strong>of</strong> our country<br />
The new programmes supports the<br />
monitoring <strong>of</strong> government’s strategic<br />
objectives pertaining to industrial<br />
development, exports <strong>and</strong> the protection <strong>of</strong><br />
health, safety <strong>and</strong> the environment<br />
Diversify <strong>SANAS</strong>’s assessor pool to perform the<br />
required assessment in support <strong>of</strong> <strong>SANAS</strong>’ m<strong>and</strong>ate<br />
Purpose/importance The indicator measures <strong>SANAS</strong>’ human<br />
resources capacity which is important for<br />
ensuring service delivery<br />
Alternative indicator None None None<br />
Potential other uses <strong>of</strong> indicator None None None<br />
Source/collection <strong>of</strong> data Termination report Assessor register Quarterly report against the Buisness plan<br />
Lead/ coordinating agency Human Resources Accreditation Provision Strategy <strong>and</strong> Development<br />
Number <strong>of</strong> PDI registered assessors Number <strong>of</strong> new programmes ready to <strong>of</strong>fer<br />
accreditation<br />
Method <strong>of</strong> calculation Number <strong>of</strong> vacant positions filled expressed<br />
as a percentage<br />
Baseline 15% annually by March 2013 62 by March 2012 1 for bodies that measurement <strong>and</strong> verify<br />
energy efficiency<br />
Target <strong>and</strong> target date for the indicator 10% annually 76 by March 2014 Quarterly milestones as per the Business<br />
Plan<br />
The numbers to be achieve is reliant on<br />
some activities outside <strong>of</strong> <strong>SANAS</strong> control<br />
such as were a regulation is required<br />
Data limitations None The target are dependent on the trainees successfully<br />
completing both theoretical <strong>and</strong> practical training<br />
Quality assurance strategy Quarterly performance evaluations Quarterly performance evaluation Quarterly performance evaluation<br />
Type <strong>of</strong> indicator Outputs Output Activity<br />
Calculation type Cumulative Cumulative Non-cumulative<br />
New indicator Continues without change Continues Continues<br />
Reporting cycle Quarterly Quarterly Quarterly<br />
A lower than target performance will<br />
impact negatively on governments’ ability<br />
to achieve l its development objectives<br />
A larger pool <strong>of</strong> PDI assessors is desirable in order<br />
to diversify the assessor pool <strong>and</strong> ensure sufficient<br />
availability <strong>of</strong> assessors to perform assessments<br />
Desired performance A lower level <strong>of</strong> performance may<br />
negatively impact on <strong>SANAS</strong>’s service<br />
delivery efficiency <strong>and</strong> prevent <strong>SANAS</strong> from<br />
achieving its stated objectives<br />
Indicator responsibility HR Manager Field Managers Senior Manager: Strategy <strong>and</strong> Development
ANNEXURE INDICATOR PROFILE<br />
Number <strong>of</strong> meetings where SADCA<br />
secretariat <strong>and</strong> regional services is<br />
provided<br />
Number <strong>of</strong> meetings where<br />
AFRAC secretariat services is<br />
provided<br />
Indicator title Number <strong>of</strong> accredited organisations Percentage input into the international<br />
accreditation requirements<br />
Provision <strong>of</strong> SADCA secretarial<br />
service<br />
Organisations accredited by <strong>SANAS</strong> Provision <strong>of</strong> AFRAC secretarial<br />
services<br />
Short definition The indicator measures <strong>SANAS</strong> attempts to<br />
influence the international accreditation<br />
requirements <strong>of</strong> ILAC <strong>and</strong> IAF in order<br />
to support acceptance <strong>of</strong> South African<br />
exports<br />
The support indicates South Africa’s<br />
commitment under SADC for<br />
regional integration<br />
The support indicates South<br />
Africa’s commitment under<br />
the African Union for regional<br />
integration<br />
Extension <strong>of</strong> accredited organisations in<br />
the fields <strong>of</strong> testing, inspection, certification<br />
bodies <strong>and</strong> other conformity assessment<br />
services<br />
Purpose/importance To influence the international accreditation<br />
requirements <strong>of</strong> ILAC <strong>and</strong> IAF in order to<br />
support acceptance <strong>of</strong> South African goods<br />
<strong>and</strong> services<br />
Alternative indicator None None None None<br />
None None None None<br />
Potential other uses <strong>of</strong><br />
indicator<br />
Quarterly report against the<br />
Buisness plan<br />
Quarterly report against the Business plan Quarterly report against the<br />
Business plan<br />
ILAC <strong>and</strong> IAF tracking register, <strong>SANAS</strong><br />
internal control register<br />
Source/collection <strong>of</strong><br />
data<br />
Quality Services Streams AFRAC Secretariat (<strong>SANAS</strong>) SADCA Secretariat (<strong>SANAS</strong>)<br />
Lead/ coordinating<br />
agency<br />
Number <strong>of</strong> accredited organisations 3 meetings 3 meetings<br />
Method <strong>of</strong> calculation Percentage input into international<br />
accreditation requirements<br />
Baseline 90 % by March 2013 1362 in December 2011 3 meetings 3 meetings<br />
95% by March 2014 1438 by March 2014 3 meetings 3 meetings<br />
Target <strong>and</strong> target date<br />
for the indicator<br />
None None None<br />
Data limitations The accuracy <strong>of</strong> the measures is dependent<br />
on the relevance <strong>of</strong> the information <strong>and</strong><br />
the expertise that can provide expert input.<br />
Quarterly performance evaluations<br />
Quarterly performance evaluations Quarterly performance<br />
evaluations<br />
Internal audit <strong>and</strong> centralise all<br />
international correspondence relating to<br />
input required<br />
Quality assurance<br />
strategy<br />
Type <strong>of</strong> indicator Output Activity Activity Activity<br />
Calculation type Cumulative for the year Cumulative Cumulative Cumulative<br />
New indicator None Continues New None<br />
Reporting cycle Quarterly Quarterly Annually Annually<br />
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A lower or higher level <strong>of</strong><br />
performance than targeted is not<br />
desirable there will be no added<br />
value<br />
A higher level <strong>of</strong> performance<br />
than targeted is very desirable as<br />
it will contribute to achieving the<br />
objective in a shorter period than<br />
expected, <strong>and</strong> thereby fast track<br />
the benefit to be derived<br />
A lower than targeted performance will<br />
impact negatively on government’s ability to<br />
achieve its development initiatives<br />
Desired performance Lower level than targeted is not<br />
desirable as it could damage <strong>SANAS</strong>’<br />
international st<strong>and</strong>ing <strong>and</strong> negatively<br />
affect South Africa’s exports <strong>and</strong> the cost<br />
<strong>of</strong> exports making our goods <strong>and</strong> service<br />
competiveness <strong>and</strong> restricting economic<br />
growth<br />
Indicator responsibility Quality Manager Senior Managers: Stream AFRAC Secretariat SADCA Secretariat
NOTES<br />
<strong>SANAS</strong> | Annual Performance Plan 2013/14 - 2015/16<br />
35
www.sanas.co.za<br />
Tel: +27 12 394 3760<br />
Fax: +27 12 394 0526