MITA Annual Report 2016

ANNUAL REPORT

MITA Annual Report 2016

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The mission of the Malta Information Technology Agency is:

To establish ICT policy and deliver solutions that enable public service delivery MITA reaches its mission by driving the development of Government’s ICT policy and national digital strategy, delivering information systems to enable reform and innovation in public service delivery as well as developing and providing ICT infrastructure and services for Government.

MITA actively supports students, start-ups and innovators in developing their ideas into products and services through digital technologies. The Agency works with leading local and international ICT companies, while encouraging the application and take-up of ICT in the wider Maltese economy.

TABLE OF CONTENTS

Mission 1

Executive Chairman’s Statement

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Board Members

6

Executive Committee

7

Citizen-centric

9

Digital Transformation

21

Committed Workforce

33

Corporate Social Responsibility

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Board Members’ Report

45

Independent Auditors’ Report

52

Financial Statements

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MITA is proud to assist Government in the preparation for the 2017 Maltese Presidency of the Council of the EU. This is certainly not by coincidence, but is a reflection of our collective motivation, enthusiasm, and intense commitment to excel in all our engagements.

MITA Annual Report 2016

Executive Chairman’s statement

We are living in a digital world, with technology being present in more ways than ever. Information technology has become more pervasive in every aspect of government activities, and is continuously transforming how government delivers its services and performs its mission.

These constant and rapid changes in technology are presenting opportunity niches for MITA and its employees.

We need to continuously upskill, become more agile and creative, to design, procure, as well as implement solutions that enhance government services, while improving citizens’ and businesses’ experiences.

Our success in eGovernment will need to be replicated in the delivery of government online services through all forms of mobile devices. The launch of the Mobile Government Strategy for the next two years will provide direction for the implementation of Government mobile services while facilitating more effective delivery of public services.

As we further promote the use of electronic and mobile services, we are acting proactively to enhance and tighten security against cyber-attacks. In this respect, Government launched the Malta Cyber Security Strategy 2016 which is aimed to provide an excellent platform to deal with the protection of systems, networks and information on the internet, as well as to provide guidance for citizens and businesses that make use of these services respectively.

MITA is an asset for the Government and for the public service. This is actively demonstrated, not only through the delivery of our portfolio of services, but is predominant in the Government’s trust to engage our services to assist in supporting national events. In fact, MITA is proud to assist Government in the preparation for the 2017 Maltese Presidency of the Council of the EU. This is certainly not by coincidence, but is a reflection of our collective motivation, enthusiasm, and intense commitment to excel in all our engagements.

Let us therefore consolidate our focus to reinforce our culture, structure, and resources aligned with our Agency’s strategy, to meet our set challenges for achieving a leading digital public sector landscape.

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MITA Annual Report 2016

Board Members As we progress to bridge the digital divide through more accessible and affordable technology and broadband connectivity, citizens and businesses are embracing emerging technologies and are enhancing their online experiences. The expectations for technology enabled government services have therefore increased significantly.

MITA has maximised its digital experience and adopted a user-centric and agile approach for the provision of government electronic and mobile services, while streamlining processes to achieve a more efficient, shared and integrated service delivery. MITA continued to rely on the support of local ICT businesses to deliver the the Government’s ICT strategy, while remaining confident to attain Government’s vision to come closer to the citizen through technology, while achieving more efficiency in the way public services are delivered.

of the public sector operations, employees and students alike.

Investment in the Data Centre facilities and networking technologies remained constant throughout 2016. Emerging technologies were leveraged to continuously improve our infrastructure, guaranteeing service reliability, resiliency and security, while achieving a green implementation, backed by support services to ensure our clients obtain maximum technical support.

MITA trusts that we will continue to devote our best efforts to offer quality services and to fulfil our profound commitment to continue achieving our best.

Investment was paramount to sustain this strategy, whereby MITA invested over â‚Ź22m in ICT, including the procurement of technical infrastructure, software licences, consultancy services, human capital investment and outsourcing. Our software licences agreement, with our main partner was extended, following a competitive process, for a further fiveyear period making available the latest tools for the support

Mr Joseph Agius, Dr Helen Borg Muscat, Dr Aron Mifsud Bonnici, Mr Tony Sultana, Mr Tony Borg, Ing. Saviour Baldacchino

MITA Annual Report 2016

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Ing. Emanuel Darmanin, Mr Raymond Navarro, Dr Godwin Caruana, Mr Carmelo Formosa, Mr Tony Sultana, Mr Robert Galea, Mr Ivan Alessandro, Mr Wayne Lee Valentine, Ing. Ian Bonello, Mr Rodney Naudi

Executive Committee The continuous improvement in the performance and quality of public services to citizens and businesses, as well as the need to assist in the process to simplify administrative processes remained our key focus for 2016. This was sustained by our commitment to further exploit new technologies and services to make public services more easily accessible and available.

Process reforms through the effective use of ICT were introduced within areas such as Social Policy, Customs and Taxation, Justice, Health, and Education, making processes more streamlined and efficient. MITA sought the experience of key players, including the local ICT business partners, to share their experiences and lessons learnt in utilizing mobile technologies to facilitate public service delivery.

The upgrade of our monitoring tools within the Control Centre continues to guarantee provision of services,

acting proactively to ensure service availability.

fund initiatives aimed to boost ICT innovation and ICT as a career stream.

We continued to assure service delivery, in collaboration with our suppliers and outsourcing providers, ranging from desktop support to server and network design and maintenance, from cyber security and cloud infrastructure to data centre consolidation, while keeping constant focus on customer service. We invested in new technologies to keep our high standard in Data Centre and network infrastructure, as well as for the email and internet services, making use of the latest tools supplied by market leading technology providers.

We kept our commitment to upkeep our workplace environment, not only through physical improvements but also through the implementation of further green initiatives. New office facilities were opened in Gozo, providing more employees with the opportunity to work closer to home.

Our support to new startups and ICT education remained paramount. Over â‚Ź1m were allocated, mostly through sponsorships, by the MITA Innovation Hub and the Digital Outreach to

The effort, commitment and leadership of our employees have once again been of critical value for MITA’s success and we trust that this will continue to help us achieve our significant milestones in the coming year.

Citizen-centric We combine advanced technology with best practices to deliver citizen-centric services.

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MITA Annual Report 2016

Rollout of the Welfare Case Management System Until a few years ago, the Foundation for Social Welfare Services did not have a centralised ICT system for managing welfare cases. MITA was commissioned to design and create a Welfare Case Management System using a Customer Relationship Management solution.

In 2016, MITA continued with the rollout of this system throughout Aġenzija Appoġġ. The system is now being used by 107 users from 15 different sections.

A new digital case management system for the Courts As part of the ongoing Justice Reform Programme, MITA has developed a new digital case management system through which citizens can follow the progress of their civil cases online, without the need to view the physical file at the Court’s Registry.

This development is a milestone in increasing transparency in the court case process. It allows better visibility to citizens, while providing litigants with the opportunity to participate in the process.

Justice Over

5,000 SMSs sent to legal professionals (including lawyers and legal procurators) for case sittings and case sitting deferrals.

The Courts sent

72,000 electronic notifications and

59,000 electronic court documents each year.

MITA Annual Report 2016

Malta has been reconfirmed as the leader in the delivery and performance of eGovernment services.

Analysis of the current School Management Information System MITA has conducted a requirements analysis for a solution that will replace the current School Management Information System. Based upon these requirements, the Ministry of Education and Employment will issue a tender for the development of the new system.

MITA has analysed the current system, observing what users like and what is lacking. Added to these observations, the Agency has put its knowledge acquired in the last five years of usage and formulated a list of requirements for the new solution, which is used by all the state schools and across all the state teaching grades.

Service development and enhancements in Social Security MITA has deployed 2 social security e-forms which address the Social Assistance and Maternity Leave Trust applications. Moreover, the Agency implemented various Government Budget measures which affect the assessments of pensions, the InWork benefits and the increases in the Cost of Living.

Enhancements related to reporting on overpayment, fund for the European Aid to the Deprived, SEPA, the automated award of the Social Security number, the automated assessments of non-contributory benefits and life certificates were also completed throughout 2016.

Social Security Issued over 2.1 million payments amounting to over

â‚Ź916 million.

â‚Ź EU eGov 1st in EU eGovernment Benchmark Report 2016 - Malta has been reconfirmed as the leader in the delivery and performance of eGovernment services among 34 countries, including the European Union Member States together with Iceland, Norway, Serbia, Switzerland, Turkey and Montenegro.

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MITA Annual Report 2016

A significant milestone in the Electronic Identity System A significant milestone in identity management was achieved through the implementation of a technology upgrade in the eID solution and the launch of a new single sign-on screen.

This development has provided a newly harmonised user experience for the eID authentication mechanism, which was intended to increase the take-up of e-Government services.

Apart from the upgrading of the underlying hardware and software technologies for the eID system, it was also necessary to develop and test a bespoke migration strategy for the data and the eID accounts to ensure the integrity of the process and its transparency to the users.

The single sign-on screen was newly designed using a simplified graphics user interface and re-engineered to streamline the key eID functions and operations. The screen was tested over a wide variety of platforms and implemented as part of the technology upgrade.

MITA will now embark on the next phase, through which the eID authentication mechanism will be simplified, through an alignment of assurance levels. The basic assurance level will use the eID account and possibly a one-time password, while the high assurance level will require the ID Card and a PIN number to provide more security capabilities.

eID Cards issued:

eResidency Permits issued:

ePassports issued:

61,793

38,950

46,500

UNITED NATIONS E-GOVERNMENT

SURVEY 2016

E-GOVERNMENT IN SUPPORT OF SUSTAINABLE DEVELOPMENT

Malta joined the top-tier performers in the UN e-Government Survey 2016 United Nations e-Government Survey 2016

MITA Annual Report 2016

MITA has launched a free Wi-Fi service and filtered internet in more than 80 sites within Government Departments.

Free Wi-Fi service in more than 80 Government sites In an initiative to increase internet accessibility, MITA has launched a free Wi-Fi service and filtered internet in more than 80 sites within Government Departments, mostly situated in public waiting areas.

This initiative forms part of the National Digital Strategy – Digital Malta, which focuses particularly on the importance of having a digital society.

The Next Generation myHealth portal In December 2016, MITA implemented the Next Generation myHealth portal, together with a dedicated hosting environment, based on a service oriented architecture designed to provide health related services.

The Next Generation myHealth replaced the previous myHealth portal that had been set up by MITA in 2012. This was according to the Government’s objective to make the portal more accessible to the general public, including Maltese medical practitioners. The Next Generation myHealth portal includes all existing myHealth services which will be augmented with new services in 2017.

Health 9,524,217

267,950

tests processed through the Laboratory system

tests processed through the Radiology system

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MITA Annual Report 2016

MITA was entrusted by the Office of the Principal Permanent Secretary to draft a green paper which was published for consultation.

Public Services available 24x7 on mobile devices Government has launched a Mobile Government Strategy that will enable public services to be accessible on mobile devices, at any time and from anywhere.

The introduction of the mServices, along with the public services that are already offered through the eGovernment programme, will help Government to achieve its goal of bringing public services closer to citizens, on a 24x7 basis.

MITA was entrusted by the Office of the Principal Permanent Secretary to draft a green paper which was published for consultation. After a broad consultative process, involving different sectors of civil society, the private sector and the public administration, MITA gathered all the feedback and suggestions and formulated the national strategy that was launched in November.

Once the strategy was launched, MITA immediately started working on its implementation through the development of the first mobile apps that were intended to be launched in the first quarter of 2017.

Launch of the Mobile Government Strategy 2017-2018

Mobile Government 2017-2018 Green Paper

MITA Annual Report 2016

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Apps launched in 2016

Planning App MCCFF App Blood Donors MT

The three phases of the strategy

Phase

1:

mCommunications Making all government websites fully accessible through mobile devices. The first mobile apps are to be launched in March 2017.

Phase

2:

mTransactions Providing mobile payment facilities where appropriate, and consider the use of near field communication. The second set of mobile apps are to be launched in March 2018.

Phase

3:

mDemocracy Implementing mobile devicebased feedback channels, for suggestions, investigations and improvements.

Mobile Government Strategy 2017-2018

mAdministration Providing public officers who work on site with mServices to reduce their need to travel.

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MITA Annual Report 2016

Celebrating Girls in ICT

Summer in STEM Club

To celebrate the Girls in ICT day, MITA has organised an event at the MITA Data Centre where a total of 70 female students and 30 parents participated.

More than 400 students, whose age varied between 7 and 12 years, have participated in the Summer STEM Club organised by MITA.

During this event, the girls visited the data centre, took part in hands-on activities such as robotics and game development and had the opportunity to interact with female ICT professionals from MITA. The activities were girldriven to help shatter the perception that only boys can be successful in ICT.

Some activities were held in class, while others involved outings related to technology. In all, there were 14 summer schools that participated in the Summer STEM club. The activities were led by a number of trainers who were engaged by MITA and had an IT and sciences background.

Celebrating Girls in ICT

Summer in STEM Club

MITA Annual Report 2016

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EU Code Week

EU Code Week As part of the EU Code week, MITA organised two days of related activities, including coding of robots and game development. Over 300 students participated in these hands-on activities, during which MITA also delivered a talk about potential career opportunities in ICT to all the students.

The first day of activities was hosted by Savio College, whose students were joined by those from Stella Maris College of Gzira. On the following day, the events were hosted at St Augustine’s College in Pietà, where students from St Monica’s School of Gzira joined in as well.

Offering job placements through the Student Placement Programme The Student Placement Programme is an annual opportunity offered to ICT students to get a job placement that provides them with a first-hand experience of working within an ICT environment. This can either be with a private company, a non-governmental organisation or within the public sector.

The programme is run during summer and students work 330 hours spread over 11 weeks. The organisations within the Public Sector and the non-governmental organisations are fully reimbursed of the students’ salary, whereas the private sector organisations get reimbursed for half of the students’ salary. In 2016, more than €520,000 have been paid in student salary reimbursements.

Student Placement Programme 546 applications 326 students engaged

330 hours worked by each student

Organisations:

36 from Private Sector 9 NGOs 51 from Public Organisations

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MITA Annual Report 2016

Game-based Learning

ICT Industry Insights

MITA is collaborating with the University of Malta, the Ministry of Education and with foreign partners to deliver an Erasmus+ funded project that uses game-based learning to alleviate early school leaving.

For the second consecutive year, MITA has collaborated with the Faculty of Economics, Management and Accountancy within the University of Malta, to deliver the ICT Industry Insights study-unit which forms part of the BSc Business and ICT degree course.

The first part of the project was delivered in 2016, where the game-based learning toolkit and guidebook have been presented to teachers participating in the project. Moreover, two training sessions were organised, one in Malta and another in Austria. Feedback on these intellectual outputs has been collected and the final products will be launched in the third quarter of 2017 when the project will be concluded.

The project has two main purposes: namely the use of innovative ICT-based teaching practices in the classroom with children and professional development programmes for teachers; and secondly to address vulnerable groups, particularly early school leavers, where Malta performs low compared to other EU countries.

Game Based Learning

MITA employees have delivered lectures to 21 students, who are following their second year of studies. Through these lectures, students were exposed to real-life scenarios on the various practices in ICT, ranging from national strategy, innovation and financial planning to more technical subjects such as operations of a data centre and project management of ICT projects.

MITA Annual Report 2016

The first Game Jam MITA organised its first Game Jam, during which 32 students from different educational institutions met to create nine educational games in a limited period of 45 hours. The students worked tirelessly throughout the weekend (also during the night) to create the digital educational games which focus on Science, Technology, Engineering and Maths (STEM) subjects at secondary level.

The first prize was awarded to the team that developed ‘Logiquest’. As the winner of the competition, this team enjoyed a 3-day trip to the University of Donau in Krems, Austria for lectures on game-based learning. The teams developing ‘Accellogates’ and ‘The Logic Escape’ were given the opportunity to develop their game further through the MITA Innovation Hub support programme.

The first Game Jam

Game Jam

45 hours

32 students

9 games created

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Digital transformation We harness the power of digital technologies and the expertise from the private sector, to optimise Government operations and transform the public service delivery for socio-economic prosperity.

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MITA Annual Report 2016

Public Registry: Issued over

77,000 certificates of which: 43,000 birth 90 adoption 13,700 marriage 20,000 death

Redevelopment of the Public Registry System MITA has awarded a tender for the redevelopment of the Public Registry System. Through this development, the public will be able to get its services over the internet and through mobile devices. Services will not be limited to online orders of birth, marriage, civil union and death certificates, but will also allow online notifications of births.

In addition, this system will incorporate document and work flow management features that are intended to reduce file movements and increase efficiency.

Facilitated business registration with Government entities

Land Registry: Issued over

35,000 site plans

Customs Department

MITA has collaborated with Malta Enterprise to develop a solution which consolidates the application forms used for registering a business with various Government entities.

The registration process used by various Government entities was analysed, to rationalise the redundant or duplicate information. In this way, information is presented only once to all entities. Furthermore, there was a re-engineering process, so that registration numbers like VAT Numbers, Income Tax Numbers and PE Numbers are automatically generated.

Development of a new Import System within the Customs Department Following the launch of a new export system for the Customs Department in 2015, MITA has embarked on a second phase of the project which involved the development of a new import system.

The new system will eventually be launched in 2017.

The new system will provide an easier to use setup for local economic operators, while providing the function for local importers to submit import declarations electronically.

This project forms part of the reform in the Customs Department and the new import system will serve as a catalyst for the implementation of the new Union Customs Code.

Customs: 78% of commodity goods

for export released within 1 hour from online submission of export declaration.

Over

1.35 million

declarations for commodity goods entering Malta from outside EU customs territory submitted online.

APPROVED

MITA Annual Report 2016

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Launch of the first National Cyber Security Strategy MITA was entrusted with the articulation of the first National Cyber Security Strategy that was launched on the 23rd of September. The strategy was published after a consultation period held in the first half of 2016, following the launch of a Green Paper in late 2015.

The strategy calls for a number of actions, covering the economic, societal and cultural dimensions, on the basis that cyber security is a technical and behavioural concern which impacts Government, businesses and citizens.

The strategy was published after a consultation period held in the first half of 2016, following the launch of a Green Paper in late 2015.

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MITA Annual Report 2016

National Data Strategy Through the drafting and launch for consultation of the National Data Strategy, MITA is addressing the need to establish a holistic and strategic approach to the management of data assets across public administration and beyond.

The strategy contains the main guiding principles and the best practices for the management of enterprise data. The main outcomes from the strategic objectives can be summarised under the Open by default; data from official source only and the linking of official (accredited) lists of records based on other official registers.

A key milestone during this reporting cycle was achieved through the compliance of specific datasets to the Directive’s regulations.

Committed towards the implementation of the EC INSPIRE Directive

MITA actively involved in the SUNFISH project

As the competent authority in charge of the implementation of the European Commission INSPIRE directive, MITA continued to provide ongoing operational support to the INSPIRE portal; has installed open source products to publish data; identified and involved new public authorities for the provision of geospatial datasets to be shared on the geoportal; uploaded new spatial data and published compliant spatial datasets.

As a member of the consortium working on the SUNFISH Horizon 2020 funded research and innovation project, MITA was involved in the development of the Use Case Scenario in collaboration with the Ministry for Finance; the development of Service Level metrics (SLA) and the development of a management and integration plan for the different components.

Furthermore, it organised two information sessions for the public authorities involved in the implementation of the Directive. In collaboration with the European Commission’s Joint-Research-Centre, a technical session related to the Directive’s data compliance process was also organised.

A key milestone during this reporting cycle was achieved through the compliance of specific datasets to the Directive’s regulations.

A technical session related to the EC INSPIRE Directive’s data compliance process

MITA has also contributed to the design and architecture of the project, where together with its partners it developed the concept called Federation-as-a-Service, with governance based on blockchain technology. This is a service for clouds that enables the secure creation and management of cloud federations.

MITA Annual Report 2016

The MITA Innovation Hub supporting more startups During 2016, the MITA Innovation Hub launched Malta’s first accelerator programme that was branded as YouStartIT. Through this “learning-bydoing” programme, startups validate, test and execute their digitally-enabled business idea in a structured manner.

Throughout the six-month programme, startups develop their ideas, while engaging with their early solution adopters by using rapid prototyping approaches, while at the same time incorporating into business undertaking and developing their business plan.

MITA has this year supported eight startups through a total pre-seed investment of €176,000. Three of the startups were from the previous StartAPP 2.0 programme, while the other five startups were from the YouStartIT accelerator. The latter included two Digital Serious Games.

In StartAPP 2.0, the business concepts revolved around the application of satellite data for intelligent farming for winegrowers; a lost and found platform; and an app which helps

drivers to avoid slow moving traffic.

In the YouStartIT programme, the business ideas focused on an app service for mobile workers at catering establishments; an antibullying platform for schools; an app for discounts on excess food for restaurants nearby and two digital serious games which support the learning of the physics of light for 6 to 11-year-old students and the gamification of climate change in a Maltese context.

The MITA Innovation Hub

Emails: Accounts:

Received per day:

Sent per day:

Tagged as spam:

30,000

315,000

84,000

200,000

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MITA Annual Report 2016

A new Corporate Travel Management System As part of MITA’s outsourcing contract, a new Corporate Travel Management System was developed for the Ministry of Finance.

This corporate solution will streamline the travel requests and approval workflows within all Government ministries, departments and entities; while providing a holistic repository of all the travelling carried out on Government duties, including the related expenditure. The system includes all the related security controls and provides the possibility for auditing, thus providing improved transparency. This solution is also offering a system upon which data analytics can be carried out to make sound management decisions based on the collected information.

This new Corporate Travel Management System is mobile responsive and has been built using an incremental development approach.

Implementation of a new Corporate Financial Management System In June 2016, the Director of Contracts announced the successful bidder for the solution that will replace the Departmental Accounting System and will address the current cash-based and accrual accounting models based on International Public Sector Accounting Standards.

The proposed system will be implemented across Government over a number of years and will introduce other applications related to key corporate business functions. The implementation will be carried out in phases, starting from an initial phase where the solution will impact 3,500 users and progressing gradually to affect around 5,000 users. This solution will benefit from ERDF funds under the CONvErGE programme.

A new Corporate Travel Management System has been developed for the Ministry of Finance

MITA Annual Report 2016

Taxation: €237million in

Over electronic IRD payments

€49 million

Facilitating Performance Appraisals through an online module

in Over electronic VAT payments

86% of employees’ FS3 submitted online by their employers

Through the setting up of a Performance Appraisals module, all Government employees falling within the general service grades, together with their respective supervisors, have been provided with an online tool that allows them to create, update and evaluate their Performance Appraisal.

This module was made available in July.

A tool to manage and report EU centralized funds The Direct Funds Management System was launched in 2016 as a tool to aid in the management and reporting of EU centralised funds. It was then enhanced to include a new functionality for the Migration and Security Information System which was deployed in the second quarter of the same year.

Agriculture: Around

12,000 farmers and

breeders received

€11 million in EU funds.

Government Payment Gateway: 580,000 payments

Over amounting to over

€90M

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MITA Annual Report 2016

A new notifications platform The new notifications platform is a web-based multilingual platform that has replaced the older version of the notifications gateway. It serves as the Government’s communication channel with citizens.

Clients and administrators are provided with complete access to this eGovernment Shared Service, which can be used either manually through a web interface (manual mode), or integrated within any type of software application through the Application Programmatic Interface (API).

Government Mobile Gateway: Over 1.8 million SMS sent

With such a high take-up from Government entities, the Notifications Platform offers a variety of advantages that make it an ideal method of communication via SMS (to both local and foreign numbers) and email to citizens and/or businesses.

Upgrading of networks in preparation of the EU Presidency In preparation for the Maltese Presidency of the Council of the European Union, MITA was instrumental in upgrading all the networks of Dar Malta in Brussels and those of the Grand Master’s Palace in Valletta.

Apart from the preparations prior to the Maltese term of the Presidency, MITA will also be providing ongoing support throughout this national event.

Servers: 506 – Physical 839 – Virtual

Networks:

400 routers 1600 switches 270 firewalls 76,450 networks points 4,943 km of network cable

Databases:

254 - Operational 467 - Test/Development

MITA Annual Report 2016

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Full migration to the MAGNET III infrastructure During 2016, MITA continued to migrate the remaining 57 MAGNET II intra connectivity sites to the MAGNET III infrastructure. At the same time, more than 20 new sites were connected to the new fibre infrastructure. The full migration, from the ‘older’ Malta Government Network to the newer infrastructure, was completed by the third quarter of 2016.

Simultaneously, a Secure Connectivity Solution made up of a range of firewallbased networking equipment, was procured both for the core network within MITA’s Data Centre, as well as for the Wide Area Network to be located at the various ministries, departments and entities connected to MAGNET. The project was aimed to enhance and increase security, already present, within the entire Malta Government Network, mainly through encryption. The implementation started in 2016 and will be completed in 2017.

The Malta Government Network

Home Users

Embassies

Schools Mater Dei Hospital

MITA Data Centre

Health Centres Local Councils

Police Stations Area Offices

Government Sites

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MITA Annual Report 2016

Renewal of the Microsoft Agreement for another five years Following discussions with Microsoft Malta, MITA has renewed its Enterprise Agreement for another five years.

In parallel, the Agency published a competitive call for bids, inviting all economic operators who are able to provide Microsoft licenses and services.

Through this call, MITA (on behalf of the Maltese Government) wanted to establish a framework contract with one economic entity that would act as the single purchase channel for the acquisition of Microsoft products and licences for a period of five years, through a reseller agreement.

Five economic operators responded to the invitation to bid, which was ultimately awarded to the administratively cheapest and technically compliant tenderer for the capped sum of €12,832,133. Through this reseller agreement, Government will benefit from very competitive rates and prices for its Microsoft licencing and services for the upcoming five years.

Partnership with the private sector During 2016, MITA awarded 31 tenders for a total value of €2.8 million and eight framework agreements for a total value of €1.98 million. Another 120 contracts and amendments, which were valued at €16.3 million, were also signed during this year.

Additionally, MITA generated €24,945,322 in revenue.

Of these, €11,403,301 (or 46% of the total revenue) are attributed to solutions and services rendered by the private sector.

Solutions rendered by the private sector: €11,403,301

attributed to solutions and services rendered by the private sector.

Service Call Centre: 1,731 calls per week 67% of calls resolved by 1st line support

MITA Annual Report 2016

The Maltese Presidency of the Council of the EU MITA is always at the forefront in delivering outstanding and innovative ICT solutions and services during events of national importance.

Such an occasion is the Maltese Presidency of the Council of the European Union for which MITA has been preparing with the implementation of the infrastructural services in various sites, such as the Grand Master’s Palace in Valletta and Dar Malta in Brussels. The deployed infrastructure will ensure the delivery of a secure and comprehensive ICT solution, tailored for the individual needs of the presidency-unit, the delegates and journalists.

The Agency will also be responsible for the implementation, hosting and upkeep of the official presidency websites, mobile app, and the access control solution, together with the cyber-security aspect.

Presidency of the Council of the EU: 1,200 wired points • 16 data cabinets • 12 UPS • 100 km of cable • 2 km of fibre • 100 wireless devices • More than 40 CCTV •

cameras around the Palace

• An access control solution available at three entrance points

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Committed workforce Our workforce is our greatest asset their commitment, resilience and determination have contributed to the success of our Agency.

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MITA Annual Report 2016

More than ₏5,000 collected during team building events MITA’s employees organised 16 team building events including a fishing expedition, a summer party, a session of wine making and tasting, an army experience, a Kilo Challenge, a night trekking experience, a diving experience, canoeing, photographic sessions, an event for the young ones, a cycling challenge, a karting challenge, a basketball challenge, a geo caching challenge, a philanthropic event and an event with EFRU SIMRES.

Around 400 attendees, of whom the majority were MITA employees, participated in one or more of these events which helped nurture team work, creativity and a sense of belonging at the work place. During these events, our employees collected around â‚Ź5,800 which showed their generosity towards those who are less fortunate in society.

During these events, our employees collected around â‚Ź5,800 which showed their generosity towards those who are less fortunate in society.

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MITA Annual Report 2016

Social Media:

732 posts Over 50,000 website clicks Over 31 social media campaigns More than 13,000 likes on Facebook

Further enhancement to the Career Progression Framework Following feedback from the interviewing panels and employees in 2015, the Career Progression Framework was furtherly enhanced, such that eligible employees could apply for career progression from early in 2016. Those employees who were successful in the skills assessment process carried out in mid-2016 were promoted to the next Career Level.

A new online platform offering specialised training MITA employees started to benefit from a new online platform that offers specialised online technical and nontechnical courses. The Agency also provided employees with the opportunity to attend for a number of specialised classroom training courses and other internally organised certified classroom training delivered by MITA employees.

Hosting the Student Placement Programme students during winter Similarly to previous years, MITA has continued to host a number of Student Placement Programme students. In 2016, the Agency started offering them the possibility to continue their placement also during winter.

MITA opens a new office in Gozo MITA has established a new office in Għajnsielem, Gozo to host MITA employees residing in Gozo, while offering them adequate office space and the required services to work remotely.

The current Hot Desking facility accommodates 12 employees, whose desks are equipped with networking and telephony infrastructure, identical to the offices in Malta.

MITA is planning to step up this facility by shifting specific elements of certain business functions such as the Call Centre and the Control Centre to operate from the Gozo office and hence reducing the travelling needs to Malta.

Commemorating our achievements during the MITA Conference For the second time around, MITA organised a full day conference to commemorate its achievements together with its employees. This year the conference was held on 7th December at the Westin Dragonara Resort.

Each Head of Department delivered a presentation outlining the main achievements of the respective department. At the end of each presentation, the Heads of Department presented their nominees for the 2016 Awards.

The Awards Ceremony was held after lunch, where those employees who received the largest number of votes from the top management and from their colleagues (through SMS voting), won the awards. During the Conference, employees were also given a glimpse of the different team building events organised during the year.

MITA Conference

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37

Corporate Social RESPONSIBILITY

40

MITA Annual Report 2016

Contributing towards the community…

In a continuous commitment to contribute towards society, MITA and its employees have organised several initiatives and participated in numerous activities throughout 2016.

Fund raising activities and monetary donations MITA’s employees have organised several fund-raising activities, from which the money collected was donated to various organisations and charities, namely the Malta Hospice Movement, the Moviment Missjunarju Ġesù filProxxmu – Dun Ġorġ Grima, Fondazzjoni Maratona Missjoni, Puttinu Cares and Living Ability Not Disability.

Moreover, the MITA-CSR committee donated €350 to a MITA employee who participated in a cycling tour in Sicily organised by the Emergency Fire & Rescue Unit (EFRU).

During the two-day event, participants cycled for 300 kilometres to raise funds for this non-profit voluntary organisation.

MITA’s CSR Committee was also requested to assist a person in need by Aġenzija Sapport. The person, who is living in an old house which requires refurbishment, wanted to convert a room into a bedroom to improve accessibility.

This person required financial assistance and the MITA CSR donated €260 towards this cause.

Xarabank’s fundraising programme for Puttinu Cares

Donation of other items An employee donated furniture to a residential home for disabled persons. The residential home provides shelter to those who have no family or cannot live with their family for some reason.

MITA employees also donated children’s clothes, books and toys to different institutes.

Technical assistance During Xarabank’s fundraising programme for Puttinu Cares, a substantial amount of MITA volunteers helped by answering the pledge line calls. They received more than 1,700 calls over 3 hours. MITA also helped Caritas during another Xarabank programme. Once again, the volunteers assisted by handling pledge telephone calls and also entered the respective data on a web-based application.

For the fourth consecutive year, MITA also contributed during the Puttinu Cares Football Marathon by updating the Puttinu Facebook page and assisting in other back-office logistics.

Office furniture donations MITA also assisted the Corradino Correctional Facility (CCF) by providing office furniture.

Donations of IT equipment

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The run departed from Rabat (11.13km), while the walk started from Santa Venera (4.49km). The Malta Community Chest Fund thanked all those who participated in this event and showed their solidarity. MITA’s employees collected €2,483.50 for this event.

MITA donated IT equipment to the Malta Community Chest Fund, Fondazzjoni Arka, Corradino Correctional Facility, SportMalta (during the National Sport Forum), the Rabat Scout Group, the Siggiewi Scout Group, MCAST, EFRU, University of Malta, St Albert The Great College, St Angela Nursery School, The Archbishop’s Seminary, St Monica School, St Jeanne Antide Foundation, Malta Hospice Movement, Caritas Prison Inmates Programme and Aġenzija Appoġġ.

Blood Donations Drive

The Agency also contributed towards the Children’s Dreams, which is a unique online project organised by Aġenzija Appoġġ and which aims to fulfil the dreams of children whose families are facing social problems, or are living in care. For most of the children, Christmas means decorative lights in the windows, gifts under the tree, parties and spending time with family and friends. Unfortunately, not all the children experience this during the festive season due to their various social problems or because they are living in care. These children are assessed by Aġenzija Appoġġ. MITA donated 3 brand new 7” tablets to 3 children.

MITA has teamed up with the Malta Community Chest Fund Foundation during L-Istrina 2016. The agency was tasked to handle the call centre and the dispatch functions of the pledging system.

MITA employees contributed regularly by donating blood at the National Blood Transfusion Service. Several employees donated blood at NBTS in Gwardamangia in January, February, March, April, May, June, July, August, October and November.

L-Istrina 2016

Over 90 volunteers took part in this solidarity event, where they had to receive the incoming pledges via telephone and enter the details in a web-based system that dispatches third parties to collect the funds through chaffeur driven cabs.

President’s Solidarity Fun Run A group of MITA employees participated in the President's Solidarity Fun Run 2016. The event was held on Sunday, 6th of November and was aimed to raise funds for The Malta Community Chest Fund (MCCF).

President’s Solidarity Fun Run

L-Istrina 2016

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MITA Annual Report 2016

Environment Carbon Footprint Reduction Following the successful implementation of the Environmental Management System (EMS), MITA continued to monitor and improve its carbon footprint.

During 2016, MITA managed to reduce its overall carbon footprint by 2,250 tons of CO2, namely from the following contributors: • Reduction of 12% (31 tCO2e) generated from direct emissions such as car fleet and generators; • Reduction of 2% (2,218 tCO2e) generated from indirect emissions generated from its electricity consumption.

Consolidated effort to maximise better use of resources MITA also embarked on other initiatives to reduce the paper consumption by 18% and the use of water by 65%. A notable improvement was also carried out on the waste separation and the associated recycling process across the offices. During 2016, the percentage of recycling waste has reached 37% of the total waste disposed.

MITA Annual Report 2016

Renewable energy As a result of the upgrading investment in photovoltaic panels that was carried out in late 2015, MITA increased its renewable generation from 34,980 kWh to 62,403 kWh. This is equivalent to the consumption of 16 households.

During 2016, MITA kicked off the third phase of the project which comprises the installation of other 50 kW of photovoltaic panels at MITA’s Data Centre. The project will be completed by 2017.

Further investment During 2016, MITA implemented a corporate Energy Metering System across its sites, aimed directly to monitor and log the electricity consumption in macro detail. This tool provides graphical detail of energy consumption within various infrastructures such as cooling, UPS and offices. Through its reporting mechanism, MITA can identify and address excess use of energy.

ISO14001 Certification Following the systematic implementation of the Environmental Management System, MITA undertook an external audit to assess its overall processes related to the environmental impacts and aspects of its business operations.

This audit was carried out by the Malta Competition and Consumer Affairs Authority (MCCAA) and MITA managed to attain the ISO14001:2015 Certification for its Environmental Management System. This achievement is a tangible result of MITA’s commitment and positive contribution towards a greener environment.

Installation of photovoltaic panels at MITA’s Data Centre

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Reports

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MITA Annual Report 2016

Board Members’ Report for the year ended 31 December 2016

Board members

Mr Tony Sultana – Executive Chairman

Registered address

Gattard House

Mr Anthony Borg

National Road

Ing. Saviour Baldacchino

Blata l-Bajda HMR 9010

Mr Joseph Noel Agius

Malta

Dr Helen Borg Muscat

Board secretary

Dr Aron Mifsud Bonnici

The Board Members of the Agency present their annual report together with the audited financial statements for the year ended 31 December 2016.

i.

Malta EU Presidency - MITA was responsible for the overall programme management function of all ICT aspects in preparation for the Malta EU Council Presidency Term. This included the Implementation of the Network at the Grand Master’s Palace, i.e. the main venue of Malta’s EU Council Presidency Term, and an overhaul of the network at Malta’s Permanent Representation for the EU in Brussels (Dar Malta). Moreover, MITA was also called to co-ordinate security posture assessments on various EU Presidency online components on behalf of Government.

ii.

National Cyber Security Strategy - In September 2016, Malta launched the first National Cyber Security Strategy. MITA was active in the drafting of the strategy which is based on two strategic goals, i.e. to defend and protect the national information infrastructure from cyber threats, and to ensure the security, safety and protection of users of cyber space.

iii.

Government mServices Strategy - As one of the activities held during the Public Service Week in May 2016, the Office of the Principal Permanent Secretary, supported by MITA, launched a Green Paper on the introduction of public services through mobile devices, referred to as mServices. Through the Green Paper, MITA initiated a broad consultative process with different

Overview Malta Information Technology Agency (MITA) is the central driver of Government’s information and communications technology policy, programmes and initiatives. The Agency is responsible for the delivery and management of all programmes related to the implementation of information technology and related systems in Government with the aim of enhancing public service delivery.

MITA also provides information and communications technology infrastructure services to Government.

Additionally, the Agency promotes and delivers programmes aimed at enhancing ICT education and the use of ICT as a learning tool. MITA is also involved in initiatives aimed at proliferating the further application and take-up of information and communications technologies in society and economy.

Core ICT Services to Government Throughout 2016, the provision of Core ICT Services to Government detailed by means of a contractual agreement between MITA and the Ministry for Competitiveness and Digital, Maritime and Services Economy continued to provide the basis for the provision of the core ICT infrastructure to Government.

sectors of civil society, the private sector and public administration, to gather comments and suggestions for improving public services by means of mobile technology. This led to the articulation and publication of a Government mServices Strategy in November 2016. iv.

Free Wi-Fi service available in Government departments - MITA facilitated the implementation of free Wi-Fi service in more than 80 sites across Government Departments. This initiative which forms part of the Digital Malta - National Digital Strategy, aims to increase internet accessibility, promoting the use of digital services and sustain a digital society.

v.

MITA and Microsoft Corporation extending their strategic partnership for the next five years MITA, on behalf of the Government, extended its strategic partnership with Microsoft Corporation for another five years. Through this agreement, Government will invest €12.5 million in software licences which will enable the smooth operation of the Government IT requirements. Apart from Government knowledge workers who will benefit from the procurement of the software licenses, Microsoft will be providing free online training to all Maltese students.

vi.

SecUre iNFormation SHaring in federated heterogeneous private clouds (SUNFISH) project - MITA and the Ministry for Finance are participating in an EU funded research project related to cloud computing. The project was funded under Horizon 2020. The SUNFISH project has a budget of €4.5 million which is all funded by the EU Commission. SUNFISH has three primary objectives: Integrate different clouds while assuring information security; improve infrastructure usage efficiency through more effective workload management between shared private clouds; and develop services for EU citizens that use sensitive data shared securely between different private clouds. In this project, MITA is leading work related to the legal aspects, as well as the definition of Service Level Agreements (SLAs) and measurement

MITA Annual Report 2016

47

metrics for the use of cloud services across cloud providers. vii.

€15m investment in educational technology In January 2016, the Government unveiled its largest direct investment in education with a total amount of €15 million purchase of equipment for teachers and classrooms. This covers the provision of over 7,000 new laptops purchased for teachers, Learning Support Assistants and Kindergarten Assistants. A total of 3,200 all-in-one touchscreen computer will also be installed in all classrooms in primary and secondary schools. The investment also includes a €4 million upgrading of network systems across schools in order to boost the data capabilities, especially in preparation of the one-tablet-per-child rollout in September. Other equipment purchased as part of this investment include 3D printers and scanners, as well as additional interactive whiteboards and flat panels.

MITA was a key player in this initiative, primarily assisting the Ministry in the procurement cycle.

viii.

First phase of the eID solution revamp - Identity Malta and MITA implemented the first phase of the eID solution revamp in March 2016. The upgraded system included new technology infrastructure to achieve better performance, stability and reliability in service delivery. This will allow the Government to pursue the next phases of the planned simplification of the user authentication experience.

ix.

Electronic Signatures and Infrastructures - This year, MITA successfully underwent an external independent audit based on the requirements of the ETSI TS 101 456 Electronic Signatures and Infrastructures (ESI) Technical Specification for its Qualified Certification Authority.

x.

Student Placement Programme (SPP) 2016 The SPP 2016 was open for all entities using technology in their operations. Through SPP, employers provide summer employment for ICT students following an ICT-related course at MQF

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MITA Annual Report 2016

Level 4 or higher. Employers obtain a refund of their students’ salary expense at predefined rates. xi.

xii.

xiii.

Startups pre-seed investment - In October, five startups were selected and each awarded a preseed investment of €22,000 to develop their innovative ideas. For this call, a record number of 19 startups submitted their ideas and took part in the pitching event which was organised by the MITA Innovation Hub. Three startups were chosen to develop a business idea that addresses a defined problem, while the other two startups focus was to develop a digital serious game designed to support the learning of science subjects. Apart from the grant awarded, MITA also provided mentoring related to market research, customer segment validation, content development, prototyping, product refinement and testing, together with training related to starting and managing the growth of an enterprise.

Game Jam - MITA, in conjunction with local tertiary education institutions, organised a Game Jam competition over a span of 45 hours. The aim of the competition was to bring together students from different creative fields to develop a digital serious game during a limited amount of time. The competition tested the students’ skill of fortitude, their ability to work under pressure and within a team. The event attracted 32 students who created 9 educational games. The members of the winning team were granted the opportunity to attend to a number of lectures on game development at the Donau University in Austria, including a €500 cash prize each redeemable against flights, and accommodation to attend these lectures.

STEM Summer Club - More than 400 children from 14 summer clubs have joined in the fun of the STEM Summer Club 2016. This included a number of hands-on creative activities, such as game development, building balloon rockets and science experiments to engage the students and demonstrate how Science, Technology, Engineering and Mathematics concepts can be applied in everyday life. It is envisaged that by the end of

their summer experience, many students will consider STEM as a viable choice of study. xiv.

Tarxien Temples app - MITA in collaboration with Heritage Malta, launched a mobile application for Tarxien Temples which was developed by a startup funded by MITA, with the aim to provide an app that included interactive audio visual features to enhance visitors’ experience when visiting Tarxien Temples, while allowing the visitors to further appreciate the importance of this archaeological site.

xv.

Planning Authority mobile app - A mobile application was launched to facilitate access to various services provided by the Planning Authority, such as viewing planning applications and enforcement. The app was developed by a startup through a programme scheme launched by MITA and with the collaboration of the Planning Authority. The app provides the public with the ability to load dynamic data related to planning applications and enforcements, while displaying the relevant details and status in an intuitive manner from their location. This map-based application will also provide the user with the facility to report a development illegality and attach a photograph taken of the illegality with the same mobile phone.

xvi.

Blood Donors MT app - MITA sponsored the development of a Blood Donors app. The app is intended to facilitate instant communication between the National Blood Transfusion Service (NBTS) and the Blood Donors community. It provides a number of key features including regular news updates, a schedule of upcoming events and a blood journal whereby end-users can maintain a personal record of their blood donations.

xvii. Systems & database services - Apart from the ongoing effort to support numerous Government systems, effort was ongoing to refresh systems and database technology to more recent product paths to ensure continuous platform service support. An overhaul of the File Share Services infrastructure was also performed with the aim to

increase performance, availability and reliability.

More systems were migrated onto virtualized platforms, thus making more efficient use of hardware resources, increase availability through lower investment, more easily augment the configuration and provide more flexible options for disaster recovery. The corporate Active Directory implementation was re-designed with the scope to simplify user and resource management while creating a scalable, secure, and manageable infrastructure for deploying additional important and emerging technologies. xviii. Network services - With the aim to address network security challenges, MITA revamped the Malta Government Network (MAGNET) infrastructure through the implementation of latest network technologies. The network infrastructure Fibre Links within the MAGNET II setup were successfully migrated onto the new MAGNET III infrastructure. Furthermore, a vendor neutral network management tool was implemented to better manage the ever growing Government network ecosystem. The Internet Bandwidth was further upgraded to 900Mbps, while that of the passive network within MITA Data Centre was increased to 10 Gbps. 27 additional fibre lines were deployed and a further 41 broadband connections were provided. xix.

Internet & web hosting - To further protect Government websites against malicious attacks, MITA implemented a Website Defacement Monitoring tool that proactively identifies any unauthorized changes to websites and instantly issues notifications. MITA also continued to migrate websites to the latest Web Framework implementation (Web Framework III) offering a more robust, secure and scalable hosting environment for web applications. Furthermore, a new Internet Web Filtering Solution is being implemented for website blocking and content filtering, while effort has been initiated to procure Virtual Load Balancers with Web Application Firewall (WAF) capabilities that enable the deployment of custom rules to protect web assets

MITA Annual Report 2016

49

on servers behind the load balances, applying security levels and audit as required. xx.

Outsourcing framework - In 2016, MITA invited suppliers to bid their expression of interest to participate in the MITA Outsourcing Framework aimed to supplement internal resource capacity to deliver government initiatives. 15 suppliers expressed their interest to participate. 7 Request for Quotations (RFQs) were published under this framework. In total, MITA had 16 outsourcing contracts ongoing during 2016.

xxi.

Technology refresh - 10 legacy systems were being re-written to newer technology, giving the opportunity to review functionality, increase accessibility and usability, and improve security and audit functions. Moreover, open source technology was utilised within 18 applications addressing different business needs, making the solution more cost effective and dependant on proprietary technologies.

xxii. Bespoke development - Bespoke development continued to remain a key pillar for the Agency to deliver and maintain core strategic information systems supporting Government business operations. Bespoke software development ranged from web-based, desktop and mobile solutions, including device agnostic solutions. xxiii. Commercial off-the-shelf solutions (COTS) - MITA also proceeded with the procurement / support of COTS solutions to address specific Government business needs that can be easily attained through the configuration of COTS solutions. In such instances, MITA’s role continued to be focused on programme implementation, and supplier and contract management. xxiv. INSPIRE Directive and the harmonisation process of spatial data training - MITA in collaboration with the European Commission’s Joint Research Centre (JRC), organised a two-day information and training sessions on the harmonisation process that leads to making spatial data compliant. The session

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MITA Annual Report 2016

was attended by over 70 participants representing Public Authorities, Government Agencies, Government Ministries and the University of Malta.

Apart from getting an overview about the INSPIRE directive, participants had the opportunity to get practical training on how to actually perform the harmonisation process using practical demos and related tools. xxv. ISO Certification - MITA attained the recertification in TickITplus against ISO 9001 & ISO 27001. This demonstrates the Agency’s continuous commitment towards maintaining international best practice standard to deliver the services to our client. In December 2016, the external auditor also recommended MITA for the award of the ISO 14001:2015 Certification for its Environmental Management System.

Financial Review The overall financial performance of the Agency was a positive one, with a net surplus before tax of €139,833.

Revenue from the provision of projects and ICT services to Government reached €24,955,322, down by 1% from 2015 results.

MITA also continued its investment programme to enhance and expand Government underlying infrastructure, with total

investment for the year amounting to €1,249,296. Direct operational costs decreased by 2% over 2015 as MITA continued in its efforts to manage and contain costs for Government.

Corporate Governance The Board Audit Committee (BAC) supports the works of the MITA Board in terms of overseeing the Internal Audit Office whilst enabling the objective assessment of the performance of the Agency, its management and its internal and external auditors. The BAC is currently chaired by Dr Helen Borg Muscat, with the other members being Dr Vincent Marmara and Mr Jurgen Zammit.

The Internal Audit Office (IAO) aims to ensure an independent disciplined approach in evaluating and improving internal controls while adding value to the Agency’s operations. During 2016, IAO conducted a number of internal audit initiatives in line with a risk based audit plan as commissioned and approved by the BAC. Audits performed were both technical and also operational in nature and included, process improvements and lessons learnt reviews, due diligence exercises and follow-ups.

MITA IAO works in ascertaining that the Agency’s internal controls are reliable, that its reporting arms are accurate, ethics are maintained, oversight is effective, risks are mitigated and investments are protected.

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51

Board Members' responsibilities The Agency's statute requires the Board Members to prepare consolidated financial statements for each financial year which give a true and fair view of the state of the affairs of the Agency and of the profit or loss of the Agency for that year, in accordance with the requirements of International Financial Reporting Standards as adopted by the EU. In preparing these the Board Members are required to: • adopt the going concern basis unless it is inappropriate to presume that the Agency will continue in business; • select suitable accounting policies and apply them consistently; • make judgements and estimates that are reasonable and prudent; • account for income and charges relating to the accounting period on the accruals basis; • value separately the components of asset and liability items; and • report comparative figures corresponding to those of the preceding accounting period.

The Board Members are responsible for keeping proper accounting records which disclose with reasonable accuracy, at any time, the financial position of the Agency. They are also responsible for safeguarding the assets of the Agency and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

The consolidated financial statements of MITA for the year ended 31 December 2016 may be made available on the Agency's website. The Board Members are responsible for the maintenance and integrity of the consolidated financial statements on the website in view of their responsibility for the controls over, and the security and jurisdictions, where legislation governing the preparation and dissemination of consolidated financial statements may differ from requirements or practice in Malta.

This report was approved and authorised for issue by the Board Members on 4 May 2017, and signed on its behalf by:

Mr Tony Sultana

Mr Anthony Borg

Executive Chairman

Board Member

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MITA Annual Report 2016

INDEPENDENT AUDITORS’ REPORT To the Members of Malta Information Technology Agency

We have audited the accompanying consolidated financial statements, which comprise the statements of financial position of the group and the Agency as at 31 December 2016, and the statements of profit or loss and other comprehensive income, statements of changes in equity and statements of cash flows for the group and the Agency for the year then ended, and a summary of significant accounting policies and other explanatory notes.

In our opinion, the financial statements give a true and fair view of the financial position of Malta Information Technology Agency as of 31 December 2016 and of its financial performance and its cash flows for the year then ended in accordance with International Financial Reporting Standards as adopted by the EU.

Board Members’ Responsibility for the Consolidated Financial Statements The board members are responsible for the preparation of the financial statements that give a true and fair view in accordance to International Financial Reporting Standards as adopted by the EU and for such internal controls as the board members determine are necessary to enable the preparation of financial statements that are free from material misstatements, whether due to fraud or error.

In preparing the financial statements the board members are responsible for assessing the entity's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the board members either intends to liquidate the entity or to cease operations, or has no realistic alternative but to do so.

Auditors’ Responsibility Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an Auditors' report that includes our opinion.

Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

As part of an audit in accordance with ISAs, we exercise professional judgement and maintain professional scepticism throughout the audit. We also: • Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.

• Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity's internal control.

• Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the board members.

• Conclude on the appropriateness of the board members’ use of going concern basis of accounting and based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the entity's ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditors' report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditors' report. However, future events or conditions may cause the entity to cease to continue as a going concern. • Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation.

We communicate with the board members regarding, among other matters, the planned scope and timing of

Mr Manuel Castagna For and on behalf of Nexia BT Certified Public Accountants The Penthouse, Suite 2 Capital Business Centre, Entrance C Triq taz-Zwejt San Gwann SGN 3000 Malta Date: 4 May 2017

MITA Annual Report 2016

53

the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.

Opinion We have audited the accompanying consolidated financial statements, which comprise the statements of financial position of the group and the Agency as at 31 December 2016, and the statements of profit or loss and other comprehensive income, statements of changes in equity and statements of cash flows for the group and the Agency for the year then ended, and a summary of significant accounting policies and other explanatory notes.

In our opinion, the financial statements give a true and fair view of the financial position of Malta Information Technology Agency as of 31 December 2016 and of its financial performance and its cash flows for the year then ended in accordance with International Financial Reporting Standards as adopted by the EU.

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MITA Annual Report 2016

Financial Statements Statement of profit or loss and other comprehensive income for the year ended 31 December 2016

2016

2015

â‚Ź

â‚Ź

24,945,322

25,315,746

(18,514,923)

(18,903,114)

Gross surplus

6,430,399

6,412,632

Provision for cost of service pensions payable to Government

(104,083)

(149,065)

(6,188,946)

(6,132,228)

137,370

131,339

2,719

13,038

-

-

(256)

(224)

Surplus before taxation

139,833

144,153

Income tax

(92,647)

(130,080)

Surplus for the year

47,186

14,073

Total comprehensive income

47,186

14,073

Revenue

Cost of sales

Administrative expenses

Operating surplus

Interest receivable and similar income Share of results of the associate Finance costs

MITA Annual Report 2016

Statements of financial positions as at 31 December 2016 2016

2015

â‚Ź

â‚Ź

4,903,958 33,776 20,000 425,255

5,643,887 33,776 20,000 291,303

5,382,989

5,988,966

17,988 3,515,518 7,211,575

19,474 3,727,181 423,588 6,413,614

10,745,081

10,583,857

16,128,070

16,572,823

EQUITY AND LIABILITIES Equity Accumulated fund Capital reserve

1,592,604 4,542,497

1,545,418 4,542,497

Total equity

6,135,101

6,087,915

Non-current liabilities Provision for liabilities and charges

1,188,436

1,141,138

1,188,436

1,141,138

8,598,136

9,252,074

91,385

91,696

115,012

-

8,804,533

9,343,770

9,992,969

10,484,908

16,128,070

16,572,823

ASSETS Non-current assets Property, plant and equipment Investment in subsidiary Investment in associate Deferred taxation

Current assets Inventories Trade and other receivables Current tax recoverable Cash at bank and in hand

Total assets

Current liabilities Trade and other payables Provision for liabilities and charges Current tax payable

Total liabilities Total funds and liabilities

The consolidated financial statements were approved and authorised for issue by the Board Members on 4 May 2017, and signed on its behalf by:

Mr Tony Sultana

Mr Anthony Borg

Executive Chairman

Board Member

55

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MITA Annual Report 2016

Notes

Malta Information Technology Agency Gattard House, National Road, Blata l-Bajda, HMR 9010, Malta +356 21234710 | info.mita@gov.mt | www.mita.gov.mt

/MITAofficial

/company/mita

/MITAmalta

/MITAchannel