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3MITA ANNUAL REPORT 2010
MITA MIssIon sTATeMenT
We shall be the central driver in the evolution of Malta into a World class inforMation society and econoMy, nurturing the groWth of a strong global knoWledge Workforce and transforMing public services through innovation Within an incessant aspiration for excellence.
5MITA ANNUAL REPORT 2010
IndexMessage froM chairMan 6
Message froM ceo 10
Mita’s objective 12
strategic priorities 13
2010 in nuMbers 14
Malta governMent netWork 16
2010 highlights and achieveMents 18
1. iso27001 accreditation 18
2. Malta declared european leader in egovernMent services 20
3. better care through the intelligent application of ict 22
4. bioMetric passports for Maltese citizens 23
5. enterprise inforMation as a resource for governMent 24
6. bandWidth speed for governMent and students doubled 25
7. setup of eskills alliance Malta 26
8. launch of second step training prograMMe 27
9. next generation egovernMent fraMeWork 28
10. facilitating the non-disruptive use of open source softWare 30
11. neW corporate data centre 31
12. latest coMputing equipMent across governMent 32
13. facilitating outsourcing to the private sector 33
corporate social responsibility 34
(i) digital inclusion 35
(ii) environMent 36
(iii) coMMunity 37
puttinu cares 38
board MeMbers’ report 40
independant auditors report 48
financial analysis 50
huMan resources in 2010 53
financial stateMents 54
Our mission is to enable Government to deliver efficient and effective public
services and to spearhead the take-up of technology in our society and
economy. MITA has been entrusted by Government to drive its transformation
into a citizen-centric joined-up organisation existing to serve its citizens. On
the other hand, MITA is mandated to nurture, expand and enable the growth
of our local ICT eco-system: from providing leading-edge e-Government
services to promoting the take-up of the services by citizens and businesses;
from outsourcing its own requirements to the local industry to ensuring that
the supply of ICT skills is adequate and timely.
Our strategy is clear, set and unequivocal. It is not about technology, but
about the needs of whom we serve and how technology can be applied to
best serve those needs. Every day we strive to improve on the service we
delivered the day before and ultimately this is all about taking challenging
and important decisions, with each decision reflected in how we trigger
positive changes in the way Government operates and delivers its services,
and in the way citizens use health, education, and transport services amongst
others, towards becoming the knowledge economy we aspire to be.
Over this last year, silently but surely we have revolutionised the approach
towards our strategy execution – on the organisational plane, we took on the
mandate of being the transformational leader rather than simply a software
house; on the operational level we recovered from the impact of the security
threats to become a beacon of service management in the sector, on an
international scale, despite the constant challenges which any organisation
within this sector was facing.
In the context of this radical transformation, the Board and the management
team have moulded the organisation to align the Agency’s structure according
to the responsibilities emanating from our strategic plan. We set up three new
departments handling e-Government, Human Capital, and Business Clusters:
in essence the three transformational drivers of the Agency.
We undertook a deep soul-searching exercise to trace what is core and
not to our mission, ensuring we focus on what we do best whilst leveraging
on the private sector to collaborate on expanding further our activities.
MESSAGE FROM ThE
ChAIRMAN
6 MITA ANNUAL REPORT 2010
7MITA ANNUAL REPORT 2010
Whilst the Agency retained its core responsibility for serving Government’s
ICT infrastructure under its operational arm, we have shifted our innovation
focus and value-added towards the programme management of large-scale
ICT enterprise projects across the public sector. This has triggered the Agency
to explore new technologies to build an ever-more robust, resilient and secure
ICT infrastructure for Government, and also to establish new and more
efficient ways of procuring solutions and services.
Despite the inevitable disruptive impact of this radical transformation, the
Agency has maintained its delivery tempo within a very challenging scenario
dictated by high expectations, mission-critical deployments and lower cost-
base.
In 2010, attacks on our infrastructure have remained a constant threat
to our operation. We remained focused and resilient and continued working
consistently to improve the overall information security framework of
government’s ICT infrastructure through an unprecedented investment of over
€2 Million in information security tools, technologies, skills and governance
measured against international benchmarks. The successful attainment of
the coveted ISO 27001 security standard is a major international milestone
which has been possible mainly through the outstanding commitment and
capabilities of the Agency’s team working on this.
The ranking of Malta as first amongst 32 EU and non-EU member states
in the European Commission eGovernment Benchmarking exercise, marked
the peak of our efforts in this regard. E-Government is undoubtedly the way
It is not about technology, but about the needs of whom we serve and how technology can be applied to best serve those needs.
8 MITA ANNUAL REPORT 2010
forward for citizens and businesses to interact with and avail of public services
in an efficient, transparent and citizen-centric fashion. In 2010, we sustained
our investment in the upcoming building blocks that will be forming the next
generation e-Government platform we plan to commission in 2011, including eForms
and myBills. We have also set out to acquire an eProcurement system that will
revolutionise the method through which government manages public procurement
enable all contracting authorities across Government to carry out tendering
processes more effectively online, in a more open and competitive fashion.
We invested over €1,000,000 to enhance Government’s internet infrastructure
in terms of security, capacity and high availability. This led to the doubling of
Government’s and state schools internet bandwidth comprising a total international
internet bandwidth of 130Mbps and a total internet bandwidth of 50Mpbs.
Furthermore, to reach expected growth objectives, MITA embarked on setting up
a third Data Centre facility in Santa Venera which will be operational later in 2011.
An upgrade to the Data Centre in Mater Dei was also made through the setting up
of a new hosting environment to allow for high density equipment and improved
redundancy.
One of the Agency’s responsibilities is to improve health care service delivery
through the application of ICT. eOrdering for Radiology and Laboratory Tests are
now accessible over our infrastructure in various public healthcare sites. This has
improved the communication and collaboration of healthcare professionals in Mater
Dei Hospital and Health centres, since patients’ radiology and laboratory tests can
be sent and viewed electronically between the hospital and centres. In turn, this
has enabled the Medical Imaging Department at Mater Dei to schedule patients’
appointments quicker and see patients earlier.
MITA is also leading the deployment of the national electronic identity
programme. As part of this programme, in 2010 we have deployed a system that
issues second generation biometric passports with fingerprints, thanks to which
Maltese passports are now in compliance with European standards and relevant
protection profiles. The same system has also been rolled out to Maltese embassies
across the world. In 2010, we have also kicked off the project to introduce electronic
ID cards for all citizens with a view of serving as the final element in delivering a
truly complete electronic service delivery model of global repute.
Another important development in 2010, is the establishment of the eSkills
Alliance. The Alliance brings together key players from the public and private
sectors that have an interest in the capacity building of the ICT skills sector in
We invested over €1,000,000 to enhance Government’s internet infrastructure in terms of security, capacity and high availability
9MITA ANNUAL REPORT 2010
Malta. The aim of the Alliance is to address the demand and suppliy of e-skills in
the ICT sector in a concerted effort to make sure ICT skills of the right quality and
quantity are increasingly available to meet the demands of the future.
We look forward to 2011 with confidence that we will manage to bring more
positive changes in the day to day lives of citizens across society by transforming
the way public services are delivered. Concretely we will work to increase further
security measures to safeguard Government’s ICT infrastructure; develop further
the e-Government platform to ensure all Government services are easily accessible
online and life-oriented according to citizens’ needs; open and operate the new Data
Centre; deploy a virtual learning environment in schools to make learning more
engaging and fun for students, teachers and parents; roll out the final cornerstone
of the integrated health solution that will further enable healthcare professionals
to have more access to health data for better decision-making and patients to have
easier access to their medical records; and strive to deliver a national e-skills
Competence Framework which will enable us to match supply with the demand in
the ICT industry landscape.
The national ICT Strategy set out by Government established the vision for
a Smart Island; our strategic plan charted the map which set out to realise this
vision; executing our strategy is the collective effort of our employees. In these
times of global turmoil, fiscal constraints and challenging developments successful
execution is no small feat. Nevertheless, with the positive ‘can do’ attitude of our
people these challenges are translated into opportunities, which I am convinced we
shall pursue with enthusiasm and deliver with confidence.
Claudio GrechChairman, MITA
2010 has seen the organisation reshaping and changing to adapt to MITA’s
strategic priorities as a National IT Agency. This change has proceeded in
a context of continued emphasis on structured operations around which the
Agency supports over 20,000 desktops, Government’s wide area network, and a
large portfolio of diverse solutions.
During the year we consolidated the delivery of Information Systems and
Transformation under a single organisational group, lead by a Chief Officer,
and have taken major steps forward in building an exciting portfolio of major
solutions with significant transformation potential for Government.
In parallel we identified areas where the degree of maturity in our
operations enabled the transition of our activities in software support and
evolutive maintenance to be moved to the private sector. In the large solutions,
MITA will direct the adaptation to ensure they remain technically current and
interoperable with MITA’s Strategic Information Systems Framework.
We extended the engagement with industry through discussions on the
fundamental contractual model for procurement activities and set the direction
for further pre investment discussions to enable more effective contracting of
Government ICT.
In the latter part of 2010 we achieved a significant first place in the
eGovernment Rankings in the EU. Coincidentally, during the same month 20
years ago Government formed the Management Systems Unit to facilitate the
transformation of the public service.
The usage of the Government Network and the increasing portfolio of core
solutions has contributed to a steady growth in the need for data centre space.
Detailed assessment of a number of options lead to a decision to develop a
new Data Centre. The site was identified in the second quarter and extensive
planning and procurement was immediately stepped up to allow preparatory
works to commence. The new facility is being adapted to provide a 15 to 20 year
data centre capacity and will be on line in 2011.
In the drive to find savings and ensure value we have continued to review
our cost profile and target investment activities at reducing long term cost. We
rebaselined the International Connectivity for Government, more than doubling
MESSAGE FROM ThE
CEO
10 MITA ANNUAL REPORT 2010
11MITA ANNUAL REPORT 2010
Matthew GattChief Executive Officer, MITA
We more than doubled the bandwidth and addressed the demand for discretionary browsing
the bandwidth and addressed the demand for discretionary browsing as well as
a quality of service for consuming cloud based services. Additional investment
in shared storage was commissioned in 2010 to provide a broader range of cost /
performance options to meet the flexible demand of Government and reduce unit
storage costs.
Our tempo in Human Capital programmes accelerated significantly with the
formation of an eSkills Alliance to bring stakeholders from industry and education
together to provide a strong and engaged consultative body. This provided the synergy
of through and direction which allowed us to take the first steps in a comprehensive
approach to developing ICT skills which will enable Malta’s 2015 knowledge economy
vision to materialise.
Underpinning our operations for 2010 was the drive to achieve a certified level of
capability and maturity in Information Security. With characteristic team effort the
Agency’s resources adopted practices and procedures to take a systemic risk based
approach to Information Security. We achieved preliminary certification mid-year and
by December had already extended the scope of our certification to cover all aspects
of the information assets we are responsible and accountable for. During this period
we also deployed new endpoint security on Government Desktops.
Looking forward, by this time next year, MITA is set to consolidate the delivery of
major transformational programmes in Identity Management, Education, Health and
other supporting shared services. We will also take a major step ahead in enabling a
citizen centric approach to the delivery of Government Services online.
MITA has adopted a pace of ongoing change which has genuinely embedded a
shift in mindset towards the multidimensional mandate of the Agency as opposed
to the more traditional IT delivery organisation. This would not have been possible
without the support and trust of the Board, as well as the commitment of all our staff,
to see the Agency lead the value of ICT enabled change forwards.
12 MITA ANNUAL REPORT 2010
MITA’S ObjECTIvE
There is no playing wiTh words.
MiTa aspires To be The backbone of
a sTrucTured and consolidaTed
icT secTor, which, inTegraTed wiTh
an e-skills proficienT workforce,
will bring MalTa To The forefronT
of The besT innovaTion socieTies
in The world.
such an aMbiTious objecTive
requires conTinuous invesTMenT,
excellenT indusTry relaTions,
a responsive sTrucTure and,
MosT of all, huMan capiTal
experTise. These key guiding
principles, aMongsT oThers,
forMally acknowledged wiThin
The agency’s sTraTegic plan, are
reflecTed in MiTa’s culTure and
in iTs way of doing business.
The business for MiTa is To be
of service. service, for MiTa, is
excellence.
“2010 has been a highly challenging and successful year and the Agency has attained exceptional achievements”
Dr Godwin Grima – Deputy Chairperson
13MITA ANNUAL REPORT 2010
STRATEGIC PRIORITIESIn bringing all its policies and principles to life, MITA has
drawn a set of specific, and measurable, Strategic Priorities:
The Strategic Priorities serve as a roadmap for MITA, and whatever the
agency performs and achieves has a direct effect towards the attainment
of these priorities. More specifically, each Strategic Priority, has been
subdivided into strategic coverages, further specifying targets and tasks.
To lead ICT strategy development and drive the deployment of an effective ICT Governance Framework within the public sector
To deliver and sustain a robust, resilient and secure ICT infrastructure and IT services to Government
To transform public service delivery through the application of ICTs
To enable the growth of the knowledge economy through the engendering of a life-long ICT learning framework
To deliver quality of life improvements through innovative citizen-centric application of ICTs
1
32
45
“During 2010 MITA carried out the groundwork necessary to ensure the attainment of all the key deliverables within its strategic plan.” Joanna Genovese - MITA Board Member
14 MITA ANNUAL REPORT 2010
INTRODUCINGTOMORROW
2010 IN NUMbERS
The Agency has the challenging task of changing what tomorrow’s public services would look like,
and what new needs and challenges government and citizens will encounter. Continuous, rapid
advances in technology also imply that not to lose momentum, we must invest wisely in technology
as a means not as an end, applying it consistently in the way government operates and citizens
interact with it.
MITA has the responsibility to enable the next generation public services where government is
ultimately more efficient and the citizens’ quality of life is constantly enhanced.
professionals eMployed by Mita,handling:338
15MITA ANNUAL REPORT 2010
28,000over
users spread in 600 sites across government.
27,292email accounts 15,679
internet accounts
network points
1600 sWitches
2,7
00
ON
E M
IL
LI
ON
eMails r
eceiv
ed p
er d
ay th
ro
ugh M
ita’s ser
ver
s
21,183workstations
450routers
kilometers of netw
ork cable
423
€
physical servers
117virtualised serversservers Were
discarded, generating a net saving of €30k per annuM
5,000,000 hits on government websites per week
263websites hosted
egovernment services
97
transactions processed through the online government payment gateway with a value of over
51 million600,000emails tagged as spam per day
450 TerabyTes in storage capacity. 200 TerabyTes Were added in 2010.
1stMalta placement in the eu
egovernment benchmarking
3,000user enquiries for support addressed per week, 76% of which are directly tackled and solved by first-line customer care support
attained the international iso 27 001 information
security standard
200citizens receiving an ict diploma
training for free through the second step programme
ict students given job
opportunities and experience
through the student placement
programme
67 tenders published amounting to a total worth of approx four - five Million euros
€18meu co-financing through eu cohesion fund, 2007-2013 operational prograMMe
redundant core vpn infrastructure
Mater dei hospitalcorporate data centre
gattard house corporate data centre
redundant fibre ethernet netWorkconnecting 129 governMent departMents and Ministries through vpn technology
fibre connected sitesMagnet fibre site
periMeter control
(secure la
yer)
InTerneT servIce sTrucTure
server farM
ThE MAlTA GOvERNMENT NETWORK
INTE RNET
16 MITA ANNUAL REPORT 2010
area offices (social security)
health centres
schools
6mbs dsl / cable
10 / 100 mbITs
1 gIgabIT
police stations
governMent business sites
periMeter control
(secure layer)
periMeter control
(secure layer) 36
105
39
81 17
438 73
7
eMbassy voice and data netWorks connected through vpn technology
local councilshoMe users
Magnet broadbandadsl and cable ModeM connected sites connected through vpn technology
technology
I NTE RNET
17MITA ANNUAL REPORT 2010
18 MITA ANNUAL REPORT 2010
2010 hIGhlIGhTS AND AChIEvEMENTS
1ISO27001 AccreditationThe Agency’s drive for excellence requires that high
standards are maintained at all times. Early in 2009, in
parallel to spearheading security solution investments of over
€1 million, MITA embarked on a project to certify its core
operations against the ISO27001 security standard.
The accreditation process required an in-depth analysis of
all systems and processes, during which the team identified
operational risks and implemented the necessary controls to
mitigate the risks.
The 133 controls forming part of the ISO 27001 standard,
were successfully implemented and a strict risk management
framework was created to identify, prioritise and address
security risks related to the three main aspects of information
security - confidentiality, integrity and availability.
In July 2010 core services were accredited with the ISO
27001 standard. The accreditation came after AFAQ-EAQA
- a UK certification body forming part of the AFNOR Group
- conducted an intensive five-day audit on MITA’s core
processes.
ISO27001 accreditation requires an ongoing demonstration
by the teams within scope of abidance to the principle of
continuous risk identification and
control. Bi-yearly surveillance visits
are carried out by the external
auditors to confirm the effectiveness of
this cycle. The first surveillance visit
following the ISO27001 accreditation was held in December
2010 where the auditor not only re-confirmed MITA’s
adherence to the ISO27001 requirements, but successfully
extended the ISO27001 certification to a number of additional
core processes in line with MITA’s drive to seek agency-wide
accreditation against this international benchmark.
To complement this accreditation, in January 2010, MITA
launched an awareness campaign targeting public officers.
The objective of this campaign was to educate users about
identifying and protecting their computer equipment from
potential security risks. In the meantime the Agency also
invested in new advanced virus and malware protection
systems on all Government computers..
19MITA ANNUAL REPORT 2010
“ISO 27001 accreditation is not a one off project but requires the ongoing assessment of the security risk posture of the agency and ensuring that appropriate security controls are implemented to treat the risk in line with the agency’s risk appetite.”
Rodney Naudi – Information Security Department Manager
20 MITA ANNUAL REPORT 2010
2Malta declared European
leader in eGovernment services In what was yet another confirmation of Government’s transformation and increased
efficiency and sophistication in delivering its services online, in December 2010, Malta
was acclaimed as the European leader in eGovernment services.
The European Commission (EC) revealed the findings of its ninth e-Government
Benchmarking Report, which measures public sector e-Government services performance
within 32 European countries, including the 27 member states as well as Croatia, Iceland,
Norway, Switzerland and Turkey. The report measured performance by analysing the
progress achieved in six core indicators. Malta is the only country amongst the EU27+
accomplishing a 100% score in five of these six core indicators, followed by Ireland which
managed to score 100% in three.
CoRe INDICAToRMAlTA’S SCoRe
TRADITIoNAl INDICAToRS
Fully online availability 100%
Online Sophistication 100%
USeR expeRIeNCe
Of 20 basic eGovernment services 100%
Of the national portal (.gov.mt) 100%
epRoCUReMeNTAvailability 100%
Pre-Award 76%
21MITA ANNUAL REPORT 2010
Malta is the only country which scored 100% in the traditional indicators for two
consecutive years. For the first time, the 2010 report included User Experience
indicators, in which Malta excelled.
The report also presents the opportunity of identifying areas which require further
attention. The eProcurement Pre-Award indicator, the only one in which Malta didn’t
obtain full score, confirms that MITA’s commitment in working with the Department
of Contracts to deploy a nationwide eProcurement solution was a step in the right
direction.
The e-Government Benchmarking study has been annually prepared since 2001, and
in 2010 was compiled by Capgemini, Sogeti, IDC, RAND Europe, and the Danish
Technological Institute for the EC Directorate General Information Society. Malta first
participated in such benchmarking research in 2004 and since then it has significantly
improved its performance year after year.
“The proactive approach adopted by the Agency is clearly serving as a benchmark in itself for other similar agencies across Europe.”
John Aquilina - MITA Board Member
22 MITA ANNUAL REPORT 2010
3Better care through the
intelligent application of ICTGovernment’s vision of eHealth is to use ICT to attain an effective and integrated, yet
sustainable, healthcare system focused on its patients. The agency is establishing an end-
to-end integrated eHealth system that offers anywhere, anytime access to relevant health
information for healthcare professionals and patients, while interconnecting the health sector
more effectively thus enabling easier sharing and access to health related information.
Progress has already been registered in the set up of the integrated eHealth system. For
instance, through access to the eOrdering System, data such as radiology and laboratory test
results, which are critical for circumstances of precarious surgical operations, are already
available at Mater Dei Hospital, Sir Paul Boffa Hospital and in a number of public healthcare
sites. Through the use of latest imaging equipment, x-ray tapes and film have been eliminated
and replaced by electronic images. Apart from reducing recurrent costs, this system has
improved the quality of images and reduced the need of repeated examinations therefore
avoiding unnecessary further x-ray exposure for patients. Besides the leap in quality of X-ray
images, access to this system for all departments across Mater Dei Hospital and public health
care centres enables healthcare professionals to view the results instantaneously so that they
take necessary medical decisions and, if necessary, schedule appointments for patients.
The way healthcare data is managed, shared and accessed is progressively improving through
the eHealth programme that MITA is programme managing. In 2010, the implementation of
the Pharmacy of Your Choice system at all Gozo pharmacies and a number of localities in
Malta was implemented.
Further improvements in the integrated health information system are expected with the
procurement of a health vault and health portal. These are aimed to enable the citizen to
take a more active role in the health care service cycle. In practice, citizens will be able to
have access to their own health record and input data, have access to preventive health care
information online, receive hospital appointment alerts, book hospital appointments online
and view waiting lists.
“In 2010 we extended the benefits of the IT investment made at Mater Dei Hospital to various hospitals and health centres. We have also laid the foundation for the next leap forward, extending these benefits to medical professionals and patients in the community.”
Ray Navarro - Department Manager, Business Cluster Department
laboratory test
processed through
the laboratory
inforMation systeM
(ilab) during 2010
by the laboratory
departMent at
Mater dei hospital:
nuMber of
patients served
by the Medical
iMaging departMent
at Mater dei hospital
during 2010:
23MITA ANNUAL REPORT 2010
4Biometric passports
for Maltese citizensThe Agency is responsible for leading a complete change of the business and
technical architecture of the focal systems which administer the Government’s
identity mechanisms for citizens, and other individuals, who either cross the border
into the country or are granted residence in Malta. Ultimately, this programme will
result in every citizen possessing an electronic identity card that is secure, can be
authenticated, provides reliable identification for the online world and allows one
to make easy and secure online transactions. The electronic identity programme
which the Agency is managing also included the issuance of ePassports.
In 2010, MITA managed the deployment of the ePassports solution which had
the purpose of issuing second generation passports with fingerprint biometrics
to comply with European standards with new security mechanisms for access
protection.
Before the deployment of the ePassports solution, MITA had issued a position
document on fingerprint biometrics subsequently endorsed by the Information and
Data Protection Commissioner. The ePassports solution has been rolled out at all
Maltese Embassies globally and in 2010 over 17,000 second generation passports
have been issued. Citizens have been very cooperative and have understood the
importance of the additional layer of protection. As part of the deployment, the
Malta Country Verifying Certification Authority and the Malta Document Verifier
Certification Authority have also been set up.
The implementation of a set of enhancements on the National Visa and VISION
Systems compliant to the new European Visa Code, and a temporary border
control solution for Visa alphanumeric checks at the border, were also carried
out during 2010. The systems were also migrated to a new architecture, which
was specifically designed to cater for the security requirements of the storage of
fingerprint biometrics.
“ We’re proud to have been instrumental in the successful issuance of biometric passports to citizens. In 2010 we commenced the electronic identity card project which will bring a wide range of benefits to citizens, the business community and other stakeholders.”
Juan Borg Manduca - Chief officer - Information Systems and Transformation
5,194,479
201,420
24 MITA ANNUAL REPORT 2010
5Enterprise Information as
a resource for Government In a knowledge economy, the amount of information
processed by government is almost inconceivable. This
extensive use of information brings with it substantial
challenges relating to storage, accessibility and retrieval,
standardisation and uniqueness, and security of this
critical resource.
During 2010, MITA worked on selecting a strategic partner
to implement an Enterprise Information Management
Solution (EIMS) for Government. The EIMS is based
on the structuring of information across Government’s
Ministries and departments in a way that will allow the
effective sharing of information across the board and thus
increasing the efficiency and speed of service delivery,
whilst reducing duplication of work.
The EIMS will be implemented across Government over
a timeframe of seven years. It aims at generating a
Knowledge Management Culture within Government
whereby everyone is aware, and educated, on the
importance of the proper structuring, digitisation,
storage, retrieval, processing, updating and archiving of
information.
The solution will serve as a common platform for web
content management systems, enabling users to access
the information through web browsing tools, thus
gaining access to an extensive variety of sources from
different ministries and departments. The solution
will enable interoperability and in collaboration with
searching and retrieving capabilities will confer a high-
level of information access. Furthermore, it will preserve
information and create a secure and robust environment
which reduces the risk of losing institutional memory, and
prevents the loss due to illicit circumstances and in case
of disaster situations.
The EIMS will eventually replace the traditional paper
records found in different types and formats to gradually
lead Government to become a “less-paper-based”
administration in harmony with its green strategy. It will
decrease recurrent costs, as well as the need for long-term
storage space, releasing office space for more valuable
purposes.
Information access will be possible from various devices
on a round-the-clock basis. Understandably, information
will not be accessible to all; the solution will balance the
“Right to Know” and the “Right to Protect” by complying
with all relevant legislations including, but not limited, to
the Data Protection Act, Freedom of Information Act and
the National Archives Act. Undoubtedly security features
will play a most significant role in this system.
The ultimate objective of the EIMS is to enable Government
to adopt a suite of best practices in order to capitalise on
the use of the information. This way, the solution will be a
key enabler in transforming the way government operates
and delivers its services.
“The EIMS will provide the necessary suite of policies, tools and knowledge which will sharply increase the value of information immediately available across Government.”
emanuel Darmanin - Strategy, planning, performance and CIo liaison
Department Manager
25
6Bandwidth speed for
Government and
students doubledIn order to meet the continuous growing demand
of Internet bandwidth within Government and state
schools, in September 2010 MITA signed a three year
agreement with Vodafone Malta Ltd for the provision
of international bandwidth and routing services .
Through this agreement, MITA doubled the internet
bandwidth in both classrooms and Government
departments thus improving its service to public
service officials and students alike, benefiting in total
over 46,000 users.
MITA has been acting as Government’s Internet
Service Provider (ISP) since the mid-nineties,
procuring Internet bandwidth and routing services
from local carriers, and repackaging it with value
added services, such as web filters, prior to providing
it to public service users, and state school students.
The performance enhancement and increased
bandwidth for state schools is a central element
in Government’s smart learning strategy, now
approaching completion from an infrastructural
standpoint.
The bandwidth enhancement caters also for the
growing number of public officers making use of the
Internet as a business tool, hence strongly reaffirming
Government’s belief that appropriate access to the
Internet, at a high performance and good quality, is an
enabler and an invaluable tool in today’s workplace,
including within the public service.
This agreement also increased local Internet bandwidth
and enabled faster access to Government’s portals and
to all eGovernment services hosted by MITA.
This was also an important step for the implementation
and delivery of bandwidth-intensive applications
within Government’s core operations. It allowed MITA
to start laying the foundations for the rollout of a new
generation of eGovernment services.
MITA ANNUAL REPORT 2010
“MITA’s strategy is in sync with the European Digital Agenda as we aim to deliver economic and social benefits based on fast internet and interoperability. We aim to enhance digital literacy and ensure widespread benefits through the provision of eGovernment services.”
Dr Jean pierre Scerri - Chief officer, legal Risk and Compliance Department
26 MITA ANNUAL REPORT 2010
7Setup of eSkills Alliance MaltaThe eSkills Alliance Malta brings together educational
entities, main industry players from the private ICT sector,
and Government. The Alliance members are the University of
Malta, MCAST and the Ministry for Education, Employment
and the Family, as the main decision-makers in ICT
education and skills supply. The Chamber of Commerce, a
handful of employers and the Malta Employers Association
are important members of the Alliance. Finally, The Malta
Council for Science and Technology (MCST) and MITA are
members given their role as Government bodies responsible
to support the development of the knowledge economy.
The Alliance was set up with the understanding that
change in the e-skills throughput from our educational
institutions is urgently required and that no stakeholder can
attempt to address this matter on one’s own. The Alliance
meets regularly to discuss and determine a concerted way
forward for the development of a stronger ICT workforce that
is capable to support the country’s current and future ICT
needs.
In order to address the demand for future ICT skills,
2010 saw the beginning of development work on an
eSkills Demand & Supply Monitor for Malta. This will be
coupled with an eSkills Competence Framework, currently
also under development, which will enable a consistent
understanding of skills requirements across the industry. A
further initiative intended to strengthen the ICT profession,
is the setting up of a National ICT Professional Body which
is also in the early stages of development. Discussions have
also started with the Faculty of ICT within the University of
Malta and the ICT Institute within MCAST for the creation
and updating of the educational programmes to fit closer to
the industry’s requirements.
“The ultimate goal for the eSkills Alliance Malta is to help Government, the private sector, and the educational authorities to produce and sustain a productive and competitive workforce to support both the ICT industry and those domains which require the skilled use of ICTs”
Dr. peter xuereb – Chief officer, Human Capital
27MITA ANNUAL REPORT 2010
8Launch of Second Step
Training ProgrammeWith the aim of increasing the supply of students with ICT skills, in July
2010, MITA launched the Second Step Training Program. The purpose of the
program is to offer free ICT National Diplomas in three areas: Information
Systems, Information Technology, and Computing and Information Systems.
The programme was primarily promoted to attract individuals who were either
unemployed, at risk of unemployment, employed in the manufacturing industry,
school leavers, those who opt to change or improve their career prospects, or
women wanting to return to work.
The Agency received no less than 375 applications and in January 2011 it began
another similar training programme for which close to 200 more applications were
recieved.. A total of 201 individuals are currently following training and successful
participants will be awarded a BTEC National Diploma in their chosen area.
The program spans over a period of two years and training is offered both on
a full-time and part-time basis. The training program is co-financed by the
European Social Funds.
Second Step was preceded by First Step, a foundation ICT and soft skills
training programme also co-financed by the European Social Fund, through
which over 300 persons benefited.
“Through First Step and Second Step, we reached over 500 persons providing them with training worth more than €2,500 per person. Both programmes have been successful, helping people gain ICT professional skills to increase their worth in the job market place.”
Joanna Azzopardi - Strategy Management executive
28 MITA ANNUAL REPORT 2010
9Next Generation \
eGovernment FrameworkAs part of MITA’s continuous, fast paced effort to increase
the quality of eGovernment services and to ensure that all
Government services are accessible online, during 2010 the
Agency started re-engineering its eGovernment framework
which will transform the concept of how e-Government
services are created and delivered. MITA has created a
central platform which will enable the rapid implementation
of services. eGovernment will be built about the needs of their
users and make services available from one port of call.. Work
was initiated on three important components forming part of
this framework: eForms, MyBills and eProcurement.
eForms is a new platform which will allow the creation of online
forms. Rather than having to go to a particular department to
fill in a form, or download a form which then has to printed,
filled-in and sent by post or fax, eForms allows the whole
process – from the creation of forms by the department to
the filling-in and sending process by the citizen or business
- to be done completely online in a secure environment.
Great attention has been given to the look and feel element
of the eForms, in order to generate an excellent overall user
experience of the service.
myBills is the Maltese Government’s online billing solution.
The first eGovernment service in Malta that offered online
payments was deployed in 2002. Over the past eight years
the number of eGovernment websites accepting payment has
increased considerably and we feel that users should be offered
the ability to also manage their bills online. myBills kicked
off with the Hosted Payment Page (HPP), which directs users
to make electronic payments through a central PCI-certified
environment. By the end of 2010 93% of online transactions
were taking place through the HPP. The first system to fully
integrate with myBills and allow users to manage and pay
their bills online was the Local Enforcement System.2010
was also central for the progress on another eGovernment
component – eProcurement. This solution will enable the
use of electronic communications and transaction processing
by the public sector, in order to purchase supplies, services,
or tender public works. eProcurement helps increase the
accessibility, transparency and efficiency of all public
procurement procedures and it also strengthens competition
for the benefit of Government. Functionalities include
eNotifications, eTendering, eAuction, eCatalogues, eOrdering,
eInvoicing, and ePayments. The solution allows elimination of
most of the related paperwork, hence reducing the cost and
time required to process the virtual and physical procurement
transaction. A substantial part of tenders and contracts issued
by Government are expected to be carried out entirely online
by the end of 2011.
“eGovernment is about us redefining public services to be completely user focused: explaining each service and its process, issuing a unique reference for tracking purposes and ensuring that all communication happens securely. Users can find all services from one port of call, on their electronic medium of choice.”
Derrick pisani, Department Manger - eGov programme Direction execution and operations
29MITA ANNUAL REPORT 2010
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30 MITA ANNUAL REPORT 2010
10Facilitating the non-disruptive
use of Open Source SoftwareWith the aim of nurturing the proliferation of open source software
(OSS) across Government, in October 2010 MITA published an
Open Source Vision white paper. At the same time, Government
also indicated that since the market had reached acceptable
levels of maturity, it was able to take a more constructive stand
towards OSS.
As a major ICT buyer in the local market, MITA’s role will be
pivotal in generating discussions and actions over OSS. Earlier
in 2010, the Agency published policies and directives aimed at
guiding Ministries and other entities on the adoption of Open
Standards and the facilitation of non-intrusive adoption of OSS
within Government. It is widely recognised that the adoption of
open source software needs to be considered properly on a level
playing field with proprietary software.
A Malta Open Source User Group was also established, comprising
of stakeholders from within Government and the private sector
with the aim of raising awareness on Open Source Software and
facilitating its adoption.
“The approach we have adopted is to identify respective opportunity areas in which we can consider open source whilst ensuring the necessary degree of continuity and non-intrusiveness.”
Godwin Caruana - Chief Technology officer
1
Nurturing the proliferation of Open Source Software
White Paper
opensourcevision
31MITA ANNUAL REPORT 2010
11New Corporate Data Centre
The efficiency and availability of Government ICT services delivered
by MITA depend on reliable data centre services. The servers and
networks equipment within the two Corporate Data Centres are
managed, monitored and maintained by the Network Operations
Centre (NOC) within MITA.
Based on the growing demand forecasts projected by MITA, during
2010 the Agency started work on a third Corporate Data Centre. A
related project blueprint as well as detailed financial analysis were
concluded and Government allocated a site in Santa Venera for the
housing of a custom built Government Data Facility. MITA, in
consultation with local and foreign experts, executed preliminary
engineering design blueprints and during 2010 issued a number of
tenders for the accomplishment of various works.
The design and scale of the new Data Centre were done according to
the projected needs in view of future growth and the introduction of
new technologies. The design comprises of modular, independent,
and segmented computer rooms, and a TIER III Classification based
on TIA 942 standards to address business continuity requirements.
The infrastructure in itself will also allow easier adaptation for
specific and custom requirements.
MITA’s plans have been drafted with constant and strong
considerations for energy efficiency in line with the European Union
Code of Conduct on Data Centres.
“The efficiency and availability of Government ICT services depend on reliable data centre services. During 2010 we started work on a custom built Corporate Data Centre that will provide the necessary hosting capabilities for the solutions identified in Government’s Smart Island Strategy.”
Robert Galea - Systems Management
Department Manager
32 MITA ANNUAL REPORT 2010
12Latest computing equipment
across Government The PC leasing programme, which allowed MITA to continuously
provide up-to-date computer equipment to all users across
Government, was completed during 2010. The programme,
initiated in 2008 has also managed to reduce related maintenance
costs.
During 2010 the remaining units within Government were replaced
with Leased Machines. This meant that a total of 7,687 PC’s and
1,503 laptops were deployed across Government departments. This
deployment included the leasing exercise within the Police Force.
By end December 2010 a total of 400 computers were ordered and
80% of them were deployed at the General Head Quarters, as well
as in various police stations across Malta and Gozo. In total,
6,827 PC’s and 3,890 laptops were deployed within Government
schools during 2009 and 2010.
Over 2,000 workstations collected from Government departments
have been refurbished and distributed to various beneficiaries,
such as church schools and local NGO’s. Amongst the refurbished
equipment distributed, there were PC’s, laptops, and monitors.
PC LEASInG PrOGrAMME
MITA CALL CEnTrE SErvICE Year
2006 2007 2008 2009 2010
Incidents Logged 57,679 71,133 93,904 108,609 98,100
Tasks Logged 26,311 36,688 46,148 56,076 56,933
SCC remote resolution Annual Average Percentage
45% 66% 72% 76% 76%
“The Desktop leasing programme was an enabler for the deployment of around 20,000 desktops in less than two years. Tight standardisation also meant efficient desktop support services to Government.”
Ian Bonello, Department Manager -
Networks and Service Management
Department
5,393Laptops
14,514PCs
33MITA ANNUAL REPORT 2010
13Facilitating outsourcing
to the private sectorAs part of its commitment in building excellent relations
with the industry, during 2010 MITA announced its intention
of adopting an aggressive outsourcing policy framework and
programme, wherein the industry’s capabilities will be used to
the largest extent possible.
The Agency set up an Outsourcing Framework allowing it to
outsource a number of functions to the private sector. The
framework was developed in collaboration with the private
industry and is a transparent and effective strategy of engaging
the private industry to support Government operations.
This is yet another milestone for the Agency as the process will
eventually strengthen Government’s vision of transforming
public service delivery through technology, while allowing
MITA to focus on other key projects with the aim of improving
the quality of life of citizens.
This is also happening at a time in which ICT remains at
the centre of Malta’s future economic growth. The EU2020
strategy adopted by the European Commission re-affirms the
importance of this sector for the creation of sustainable jobs.
Besides this framework, MITA had already entrusted the
private industry with the outsourcing and leasing of the
desktop services of schools and public service.
Through the framework, in which a total of 12 suppliers are
participating, a number of contracts for software development
and operational support have already been awarded.
“This framework is a statement from Government which confirms the trust in the capabilities of the private sector.” Victor Camilleri - Sourcing and Vendor Management Department Manager.
nuMber of suppliers
participating in
Mita’s outsourcing
fraMeWork
12
34 MITA ANNUAL REPORT 2010
CORPORATE SOCIAlRESPONSIbIlITyMITA recognises its responsibility to generate a better quality of life and consequently has a strong commitment
to being a responsible corporate citizen. In respect to this commitment, the Agency is constantly searching for
methods to make a significant contribution towards the fostering of
(i) digital inclusion,
(ii) the environment and
(iii) the community at large.
35MITA ANNUAL REPORT 2010
(i) Digital InclusionIn paving the way towards Malta truly becoming a knowledge society, the Agency
has placed digital inclusion as a priority in its programmes and initiatives.
Since 2001, MITA (formerly as MITTS) has been a founding partner of the Foundation
for Information Technology Accessibility (FITA), supporting FITA financially with
the main aim of increasing ICT accessibility for disabled persons.
During the year, MITA was also key in the provision of basic ICT training for
inmates attending the Substance Abuse Therapy Unit (SATU) to provide them with
some foundation employability skills which they can find useful once they complete
their therapy and return to work.
Besides initiatives aimed at the local society, the Agency has also opted to share its
knowledge, findings, and experience through participation in various workshops to
support developing Commonwealth countries who, in some cases, are still in the
initial stages of building their own information society.
36 MITA ANNUAL REPORT 2010
(ii) EnvironmentThe protection of the environment is now being taken into consideration in every
programme, service or system which MITA deploys. Throughout the years, the
Agency has put into action various measures and today, respect for the environment
is an instilled cultural behaviour within the entire Agency.
On a wider scale, the Agency:
MITA also adopts a vigilant approach when it comes to reducing the carbon footprint
of its corporate data centres. Between 2009 and 2010, the Agency undertook a server
consolidation exercise resulting in the replacement of old equipment with energy
efficient devices. Furthermore, the Agency managed to decommission 74 physical
servers indicating the use of less servers, lower power consumption, lower carbon
emissions, and lower costs. Locally it is assumed that a typical server has an
average energy consumption of 300 watts resulting in approximate 0.875 tonnes of
CO2 emissions per year.
Introduced a shuttle passenger service which reduced MITA’s car fleet by 65%
Promotes re-use and recycling
Contributes heavily to a practical teleworking concept on a national scale
replaced bulbs to energy-saving ones and fitted lightning cut-off sensors
Introduced common multi-purpose network printers/copiers to reduced the number of stand alone printers by 90%
requests green procurement measures in all its tenders
Planted a number of trees within the Tree For You programme
With the decommissioning of servers
MITA reduced its carbon footprint by over
170 tonnes of CO2 per year
37MITA ANNUAL REPORT 2010
(iii) CommunityA generous share of MITA’s work is driven by its commitment towards the
community. Along the years the Agency has introduced various initiatives aiding
young people to develop the needed skills in order to succeed in a dynamic ICT era.
The Agency also organises an annual, end of year, Community Day whereby all
employees are involved. All proceeds from the 2010 Community Day were donated
to Suret il-Bniedem, Sorijiet tal-Bon Pastur, and the Missionaries of Charity (Little
Sisters of the Poor).
Provided technical assistance for the extension of the local area network at Dar Tal-Providenza
Participated in the, ‘Me too!’ ESF co-funded programme managed by Aġenzija Sapport, ETC and KnPD by providing a work experience to three individuals for a period of 18-20 weeks
For the second consecutive year sponsored the worldwide Imagine Cup Competition organised by Microsoft, in which local students compete with thousands of students from over 100 countries for the most innovative ICT project
Helped a local company, BIZcon, in organising an Open Source event. This international event presented attendees with the opportunity to hear and share experiences with a number of foreign and local experts
Supported the BCS Malta Section in its drive to bring awareness to IT standards, methods and application
Organised a blood donation drive and raised awareness about blood donation amongst its employees
38 MITA ANNUAL REPORT 2010
puttinu caresIn 2010 MITA embarked on a project, using its expertise and contacts for the
benefit of patients being helped by the Puttinu Cares organisation.
In a tailor made program, specifically created for the direct benefit of the children
and their relatives, the Agency succeeded in creating a concentrated effort with
excellent results.
Together with the support of the Ministry for Infrastructure, Transport and
Communications (MITC), Malta Communications Authority (MCA), Ministry of
Education, Employment and the Family (MEEF), Cisco, Go plc, Jos Vincenti & Co
Ltd, IMS Ltd, ICT Solutions, Smart Technologies Ltd and 2i Ltd, MITA implemented
the following initiatives:
“Families of children undergoing cancer treatment are concerned that their children get isolated from their peers and lack the necessary education. MITA has worked with Puttinu Cares to buy the necessary equipment for education, entertainment and socialising purposes. Aside from the best level of treatment and support, it is also important that patients get a home-like environment and good education. This was made possible with the support of MITA and other sponsors.”
Angele Cuschieri & Rennie Zerafa - puttinu Cares
39MITA ANNUAL REPORT 2010
Laptops: Young patients, whose families cannot afford to purchase a PC
received a free new laptop. Children can now use their laptop anywhere,
whether receiving treatment in Malta or the UK, and are able to keep in
touch with family and friends.
PCs and WI-FI: The rooms at the Rainbow ward were already well-
equipped with technology, except for the playroom. MITA and MCA
donated and installed four refurbished PCs in the Playroom to facilitate
group activities. In addition, GO plc provided internet connections to
allow patients to surf the internet and communicate with their family
and friends. Furthermore, ICT Solutions set up WI-FI access throughout
the ward.
Interactive Whiteboard: Jos Vincenti & Co Ltd donated an interactive
whiteboard to the Rainbow Ward which was installed in the playroom.
Interactive Whiteboards allows integration of audio, video, graphics,
text, and animation thus enabling fun-filled and engaging interactive
learning and group activities.
WeDo Construction Set: IMS Ltd donated a WeDo Construction Set.
This enables children to build and program simple LEGO models which
are plugged into a computer And thus promotes various key learning
values including designing and making, brainstorming to find creative
alternative solutions, and learning to communicate, share ideas and work
together.
Video-Conferencing facilities: Cisco provided video-conferencing
facilities between the Rainbow Ward in Malta and the f lats in London for
young patients during their stay with family member/s while receiving
treatment in the UK (sometimes for 6 months, or longer). Besides nurses
and doctors, the relatives and friends of the children are able to visit the
ward in Malta and use these facilities to interact live with the young
patients in the UK.
A new website: MITC and 2i developed a new website for Puttinu Cares
which is now being used as an effective portal for the communication of
events and information to the public.
ICT Training and Fun activities: On a voluntary basis, employees from MITA
teach children and their families how to use the computer and Internet
to keep in touch. The volunteers also organise fun filled activities, using
both educational software and computer games and non-ICT activities
such as crafts, story-telling and cooking. The e-Learning Centre within
the Ministry for Education, Employment and the Family provided the
software as well as ‘train the trainer’ sessions for volunteers.
40 MITA ANNUAL REPORT 2010
bOARD MEMbERS’ REPORTThe board members present their second report and the audited financial statements
for the year ended 31 December 2010.
41MITA ANNUAL REPORT 2010
IntroductionThe Malta Information Technology Agency (MITA) was set up following a Government
decision to provide an administrative permanence to the drive to implement the
National IT Strategy.
MITA published a Strategic Plan (2009-2012) setting out its priorities and work
programmes till December 2012. The Plan was supplemented by a Business and
Financial Plan (2009-2012) that provided specific deliverables, associated resource
(financial and human) requirements and business and operations model to be
adopted in implementing the plan.
In 2010, MITA accelerated the implementation of its strategy by laying the
groundwork for the key deliverables. To this effect, MITA issued and awarded
various Tenders and Requests for Quotations for projects/services which will be
implemented during 2011 and beyond. The main tendering activities related to the
new Enterprise Data Centre, the Integrated Health Information Systems Phase 2,
the eProcurement Solution, the e-Learning Solution, the eForms Solution and the
Enterprise Information Management Solution (EIMS) for Government.
Concurrently, MITA re-dimensioned the execution of the technology operations,
where open standards are now the common technological denominator both at
policy and operational levels. The Agency published policies and directives aimed at
guiding ministries and other entities specifically on the adoption of Open Standards.
In its role as the primary guardian of public data held within Government, MITA
continued to pursue the most rigorous standards of information security. In fact, last
year the Agency attained and retained the globally recognised ISO 27001 security
accreditation.
While capitalising on the Internet penetration in households and business, MITA
continued to deliver and support first-class electronic services. This was recognised
by the European Commission (EC) in its 9th e-Government Benchmarking Report,
where Malta was ranked as the best performing country by achieving 100% in five
of the six core indicators measure.
42 MITA ANNUAL REPORT 2010
Core ICT Services
to Government
Throughout 2010, the provision of Core ICT Services to Government detailed by means
of a contractual agreement between MITA and the Ministry for Infrastructure,
Transport and Communications, continued to provide the basis for the provision
of the core ICT infrastructure to Government. Key Performance Indicators for the
services indicate a tight management of costs and some positive variations over
previous years, both in terms of actual resolution of individual support calls as well
as the overall service level availability of the distinct services.
As an integral part of the review of its software solution and support portfolio,
MITA selected a number of private sector providers to provide maintenance and
support services on a number of solutions, enabling a gradual shift to a core
transformational focus within the Agency.
Projects and
Programmes
The delivery of specific projects and programmes provided the remaining
significant portion of the Agency’s business during the year. Specific programmes
and deliverables included:
• Malta is the EU Leader in e-Government. The 9th e-Government Benchmarking
Report, released by the European Commission (EC) shows Malta as the best
performing country by achieving 100% in five of the six core indicators measure,
effectively establishing it as the European leader in e-Government. The report
measures six core indicators and through a ranking system, it shows the best
performing countries that have implemented the most mature e-Government
services. Malta was the only country amongst the EU27+ which managed to
score 100% in five of these six core indicators.
• Open Source Vision. MITA presented an Open Source Vision white paper which
has the aim of nurturing the proliferation of open source software. MITA
43MITA ANNUAL REPORT 2010
established the Malta Interoperability Centre (interop.intra.gov.mt) to set-up
a focal and collaborative environment for national interoperability initiatives
among Government, the business community and the general public. This
includes the representation of the key national interoperability framework and
the proliferation of Open Standards within Government.
• ICT Governance. MITA published an ICT Governance Framework and a
GMICT Policy Roadmap for 2010-2012. Furthermore, as part of the overall ICT
Governance Framework, MITA has also launched a new GMICT Policy Portal
available at http://ictpolicies.gov.mt. This portal provides a central point for all
policies and directives. It also enables the participation through feedback from
direct and indirect stakeholders.
• Establishment of HP Education Centres. In December 2010, a collaboration
agreement was signed between the MITA, the Malta College of Arts, Science
and Technology (MCAST) and Hewlett-Packard (HP) for the establishment of
an HP Education Centre at MCAST. At MCAST, lecturers will be able to receive
training on the latest HP technologies and in turn deliver such courses to the
students. An agreement was also concluded between MITA, the University of
Malta and HP for the establishment of another HP Education Centre at the
University. HP will also establish an Education and Research Centre at the
University under the scope of the ‘HP International Institute of Technology
Programme’.
• ISO 27001 security accreditation. In 2010, MITA attained the globally recognised
ISO 27001 security accreditation.
• New eMall portal. In October 2010, MITA launched a new online shopping mall,
TrolleyMania.com. This portal is aimed at all local businesses which want to
venture into the world of e-commerce and start selling their products online.
There are currently 58 shops online and a further 10 are currently setting up.
• eSkills Alliance Malta. As part of MITA’s Human Capital programme, the
eSkills Alliance Malta was launched in October 2010. The eSkills Alliance will
act as a link between local ICT industry, academia and Government, who have
a direct inf luence on the development of the ICT sectors’ Human Resource
requirements.
• Internet Bandwidth in Classrooms and Government. MITA entered into a
three-year agreement with Vodafone Malta Ltd for the provision of Internet
bandwidth and routing services to meet the continuous growing demand of
Internet bandwidth within Government and state schools.
• Second Step Training Programme. MITA organised the ‘Second Step Training
Programme’, which enables participants to achieve a diploma in ICT for free.
44 MITA ANNUAL REPORT 2010
MITA received a total of 375 applications for this programme through which
participants will achieve a BTEC National Diploma in Information Systems,
Information Technology, or Computing and Information Systems.
• Integrated Health Information Systems Phase 2. In September 2010, MITA issued
a tender for the procurement of a number of operational systems including the
replacement of the PAS; 2 citizen facing applications, Health Vault and eHealth
Portal, together with the implementation, programme and project management
and training services. The maintenance and support contract will run for 7 years.
• eProcurement Solution. The eProcurement tender was awarded in December
2010. This solution will streamline public procurement processes and encourage
the aggregation of procurement across entities, resulting in lower costs to
the Government through higher volume contracts. It will also facilitate the
implementation of the concept of one Government.
• e-Learning Solution. A tender for an e-Learning Solution was issued on 23 July
2010. This tender is expected to be awarded by February 2011. Deployment of
the e-learning solution will begin towards the end of Quarter 1 2011 and will
be completed by the end of Quarter 3, 2013. A tender was also issued for the
procurement of 1,876 interactive whiteboards. This is due to be awarded by
February 2011.
• eForms Solution. A tender for the provision of an eForms solution has been
published and awarded to Tecserv (a consortium made up of Loqus and
Systec). The eForms solution will enable citizens to submit applications related
to Government services electronically.
• Enterprise Information Management Solution (EIMS) for Government. MITA
issued a notification of award, for the Provision of an EIMS for the Government
of Malta, on the 14 December 2010. During the first quarter of 2011 MITA will
engage with the preferred bidder to conclude the contracting stage.
• Smart ID Card. In October 2010, Government has signed a contract with De La
Rue for the provision of a solution which issues eID cards. The eID Card shall
hold an authentication certificate and a signing certificate capable of producing
qualified electronic signatures.
• ePassports. Government has completed both phases of the ePassports project
and is currently issuing second generation passports, that is passports
containing facial and fingerprint biometrics of the holders. The ePassport is
protected by means of the Basic (BAC) and Extended Access Control (EAC)
protection mechanisms.
45MITA ANNUAL REPORT 2010
Organisational
DevelopmentThe development of MITA Organisational structures went through a number of
significant changes during the year. The engagement of Chief Officers to handle the
major delivery areas in Information Systems and Transformation, Human Capital,
and Legal, Risk and Compliance contributed to the consolidation of the organisation.
During the year, significant training initiatives were taken forward to provide a
broader enabling skill set in Business Analysis and Public Procurement as well
as a range of technical and certification training programmes. MITA renewed its
commitment to individual professional development through an open scheme for
sponsoring graduate and post graduate studies.
Corporate
GovernanceMITA Corporate Governance during 2010 was carried out through the control
departments/units that is the Internal Audit Office (IAO), ICT Compliance and
the Information Security Department. During the latter half of 2010 the Internal
Audit Office was staffed by an assistant auditor pending the identification and
engagement of a new Internal Auditor. In this period the Board also maintained an
audit oversight given that the majority of the Board Members also constitute the
Board Audit Committee.
The ICT Compliance function aims to provide effective assurance that MITA and
the Public Sector comply with established (GMICT & MITA internal) policies. These
Audits and spot checks focus on MITA specific processes against the requirements
of ISO 9001 and ISO 27001. Together these units ensure that MITA’s internal controls
are strong and reliable, that its reporting arms are accurate, ethics are maintained,
oversight is effective, risks are mitigated and investments are protected.
46 MITA ANNUAL REPORT 2010
Board membersThe board members of the Agency who held office during the period were:
Claudio Grech Chairman
Dr. Godwin Grima Deputy Chairman
John Aquilina
Joanne Genovese
Juan Borg Manduca resigned on 25 May 2010
The board members were appointed on 2 July 2008 up to 30 June 2011 by the
Minister for Infrastructure, Transport and Communications. The Agency’s statute
specifies that they may be reappointed upon expiration of their term of office.
Statement of board members’ responsibilities for the financial statements
The board members are required by the Agency’s statute to keep proper books
of accounts and other records and to prepare accounts that shall be subject to
audit. The board members have decided to prepare financial statements which
give a true and fair view of the state of affairs of the Agency as at the end of
each reporting period and of the profit or loss for that period in accordance with
International Financial Reporting Standards as adopted by the EU.
In preparing the financial statements, the board members are responsible for:
• ensuring that the financial statements have been drawn up in accordance
with International Financial Reporting Standards as adopted by the EU:
• selecting and applying appropriate accounting policies;
• making accounting estimates that are reasonable in the circumstances;
• ensuring that the financial statements are prepared on the going concern
basis unless it is inappropriate to presume that the Agency will continue in
business as a going concern.
The board members are also responsible for designing, implementing and
maintaining internal control relevant to the preparation and the fair presentation
of the financial statements that are free from material misstatement, whether
due to fraud or error and that comply with IFRSs as adopted by the EU. 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.
47MITA ANNUAL REPORT 2010
The financial statements of Malta Information Technology Agency for the year
ended 31 December 2010 may be made available on the company’s website.
The board members are responsible for the maintenance and integrity of the
financial statements on the website in view of their responsibility for the
controls over, and the security of, the website. Access to information published
on the Agency’s website is available in other countries and jurisdictions, where
legislation governing the preparation and dissemination of financial statements
may differ from requirements or practice in Malta.
On behalf of the board members
Claudio Grech Dr Godwin Grima John Aquilina Chairman Deputy Chairman Board Member
48 MITA ANNUAL REPORT 2010
INDEPENDENT AUDITOR’S REPORTTo the board members of Malta Information Technology Agency
Report on the Financial StatementsWe have audited the financial statements of Malta Information Technology Agency
on pages 55 to 76 which comprise the statement of financial position as at 31st
December 2010, the statements of comprehensive income, changes in accumulated
fund and cash flows for the year then ended and a summary of significant
accounting policies and other explanatory information.
Board members’ responsibility for the financial statementsAs explained more comprehensively in the Statement of board members’
responsibilities for the financial statements on page 46, the board members are
responsible for the preparation of financial statements that give a true and fair
view in accordance with International Financial Reporting Standards (IFRSs) as
adopted by the EU, and for such internal control as the board members determine
is necessary to enable the preparation of financial statements that are free from
material misstatement, whether due to fraud of error.
The board members are responsible for the preparation and fair presentation of
these financial statements in accordance with International Financial Reporting
Standards (IFRSs) as adopted by the EU. As described in the statement of board
members’ responsibilities on page 46, this responsibility includes designing,
implementing and maintaining internal control relevant to the preparation and fair
presentation of financial statements that are free of material misstatement, whether
due to fraud or error; selecting and applying appropriate accounting policies; and
making accounting estimates that are reasonable in the circumstances.
49MITA ANNUAL REPORT 2010
Auditor’s responsibilityOur responsibility is to express an opinion on these financial statements based on
our audit. We conducted our audit in accordance with International Standards on
Auditing. Those Standards require that we comply with ethical requirements and
plan and perform the audit to obtain reasonable assurance whether the financial
statements are free of material misstatement.
An audit involves performing procedures to obtain audit evidence about the
amounts and disclosures in the financial statements. The procedures selected
depend on the auditor’s judgement, including the assessment of the risks of material
misstatement of the financial statements, whether due to fraud or error. In making
those risk assessments, the auditor considers internal control relevant to the entity’s
preparation and fair presentation of the financial statements 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. An audit
also includes evaluating the appropriateness of accounting policies used and the
reasonableness of accounting estimates made by the board members, as well as
evaluating the overall presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to
provide a basis for our audit opinion.
OpinionIn our opinion the financial statements give a true and fair view of the financial
position of the Agency as at 31st December 2010, and of its financial performance
and its cash flows for the year than ended in accordance with IFRSs as adopted
by the EU.
167, Merchants Street
Valletta
Malta
11 March 2011
Fredrick Muscat Bonnici Partner
50 MITA ANNUAL REPORT 2010
FINANCIAl ANAlySIS
54% GrOWTH In THE DESKTOP LEASInG FOr GOvErnMEnT
16% InCrEASE EGOvErnMEnT AnD CITIZEn CEnTrIC InITIATIvES FUnDED
+5% ExPAnSIOn OF SErvICES FUnDED BY THE COrE SErvICES vOTE
an InvesTmenT of €265,895 for a more robusT underlyIng securITy
€306,776 To Improve The daTa cenTres aT mdh and gozo
€1.4m To Increase The hosTIng capacITy on The consolIdaTed envIronmenT.
MITA Financial Statements for the year ended 2010, showed revenue reaching
€26,519,693, an increase of 5% from 2009 results. This was mainly driven by
growth in the desktop leasing for Government (+54%), eGovernment and citizen
centric initiatives funded under the subvention vote (+16%) and the expansion of
services funded by the core services vote (+5% over 2009).
During 2010, MITA together with MITC managed to secure various EU funded
contracts, including eServices – Accessibility for all project (comprising an
eLearning, eForms and eID solutions) - €17m, Second Step Training Programme
- €1m and Pooling for Clusters - €100k. The funds will complement the ICT
budget for the period 2010-2012 and also towards the implementation of the MITA
strategic plan.
In 2010, MITA continued with the implementation of its strategy by laying the
groundwork for the key deliverables. To this effect, MITA invested €265,895
in order to obtain a more robust underlying security infrastructure, €306,776 to
improve the data centres at MDH (Mater Dei Hospital) and Gozo, and €1.4m to
increase the hosting capacity on the consolidated environment.
51MITA ANNUAL REPORT 2010
EU FUNDED CONTRACTS
ACCESSIBILITY FOr ELEArnInG, EFOrMS AnD EID SOLUTIOnS PrOjECTS €17M
SECOnD STEP TrAInInG PrOGrAMME - €€1M AnD POOLInG FOr CLUSTErS - €100K
During 2010, MITA also signed a contract to replace the Government Payroll
system and started to issue and award various tenders for projects and
services which will be implemented during 2011 and beyond. These relate to
the new Enterprise Data Centre, IHIS Phase 2, eProcurement solution and an
Enterprise Information Management Solution (EIMS) for Government.
MITA employment and related costs for the year reached €9,985,691,
ref lecting an increase of €712,857 (+7.6%) over the previous year. Average
headcount increased by 16, reaching 324 full timers by end of 2010. These
additional resources were required to aid in the transformation of MITA and
to fulfil operations.
MITA continued its efforts to manage and contain costs. Despite the increase
in the spectrum of operations and in the human resource complement over
previous year, MITA overheads costs increased by only 2.5%, reaching
€2,470,727. This increase was mainly driven by higher consultancy costs
required for the preparation of the new data centre, and slightly higher costs
of insurance and internal PC Leasing.
Overall 2010 was a good financial year for MITA, with accumulated surpluses
after accounting for tax reaching €1,262,982.
mITa employmenT and relaTed
cosTs for The year reached
€9,985,691
mITa overheads cosTs Increased
by only 2.5%, reachIng
€2,470,727
53MITA ANNUAL REPORT 2010
hUMAN RESOURCES IN 2010The Agency aims to be a leading employer of choice, providing an exciting place to
work at and excellent exposure for employees to develop their knowledge and skills
and advance in their careers.
2007
under 30 30 to 50 50+age differential since 2007
2008 2009 2010
70 179 41 93 175 37 113 186 32 118 194 26
2007
Male feMalegender differential since 2007
2008 2009 2010
226 234 246 244
64 71 85 94
78% 77% 74% 72%
22% 23% 26% 28%
24.14% 30.49% 34.14% 34.14%
14.14% 12.13% 9.67% 7.69%
61.72%57.38%
56.19% 57.4%
during 2010:12 – the amount of average training days per employee;
45 – the amount of overseas activities attended overall by a number of employees;
31 – the amount of employees sponsored for their post-graduate studies;
11 – the amount of employees sponsored for their industry certifications;
17 – the amount of University and MCAST ICT students given the opportunity to work at MITA during summer.
55MITA ANNUAL REPORT 2010
STATeMeNT of fINANCIAl poSITIoNAs at 31 December Notes 2010 2009
€ €
ASSeTS
Non-current assets
Property and equipment 4 5,202,144 4,327,149
Investment in subsidiary 5 33,776 33,776
Total non-current assets 5,235,920 4,360,925
Current assets
Inventories 6 32,353 37,169
Trade and other receivables 7 2,386,335 3,481,853
Short term deposits 8 11,465,875 9,965,875
Cash and cash equivalents 9 2,044,983 3,184,261
Total current assets 15,929,546 16,669,158
Total assets 21,165,466 21,030,083
fUNDS AND lIABIlITIeS
fund
Accumulated fund 2,096,002 833,020
Non-current liabilities
Finance lease liabilities 10 1,247,797 1,071,119
Deferred taxation 11 439,711 335,607
Total non-current liabilities 1,687,508 1,406,726
Current liabilities
Trade and other payables 12 15,928,416 17,840,091
Finance lease liabilities 10 1,013,047 618,190
Current taxation 440,493 332,056
Total current liabilities 17,381,956 18,790,337
Total liabilities 19,069,464 20,197,063
Total funds and liabilities 21,165,466 21,030,083
The notes on pages 58 to 78 are an integral part of these financial statements.
The financial statements on pages 55 to 76 were authorised for issue by the board members on 23
February 2011 and were signed on its behalf by:
Claudio Grech Dr Godwin Grima John Aquilina Chairman Deputy Chairman Board Member
56 MITA ANNUAL REPORT 2010
STATeMeNT of CoMpReHeNSIVe INCoMeNotes 2010 2009
Year ended 31 December
2010
Period from 18 August
2008 to 31 December
2009
€ €
Revenue 13 26,519,693 25,341,569
Cost of sales 14 (18,989,362) (18,583,829)
Gross profit 7,530,331 6,757,740
Administrative expenses 14 (6,031,347) (5,393,978)
operating profit 1,498,984 1,363,762
Finance income 16 180,964 166,803
Finance cost 17 (4,266) (4,862)
Profit before tax 1,675,682 1,525,703
Tax expense 18 (412,700) (692,683)
profit for the year/period – total comprehensive income 1,262,982 833,020
STATeMeNT of CHANGeS IN ACCUMUlATeD fUND
Accumulated fund
€
Comprehensive income
Profit for the period – total comprehensive income 833,020
Balance at 31 December 2009 833,020
Balance at 1 January 2010 833,020
Comprehensive income
Profit for the year – total comprehensive income 1,262,982
Balance at 31 December 2010 2,096,002
The notes on pages 58 to 76 are an integral part of these financial statements.
The notes on pages 58 to 76 are an integral part of these financial statements.
57MITA ANNUAL REPORT 2010
STATeMeNT of CASH flowSNotes Year ended
31 December 2010
Period from18 August
2008 to 31December
2009
€ €
Cash flows from operating activities
Cash generated from operations 19 3,210,697 5,732,456
Interest received 16 180,964 166,803
Interest paid 17 (4,266) (4,862)
Tax paid (358,699) (25,019)
Net cash generated from operating activities 3,028,696 5,869,378
Cash flows from investing activities
Purchase of property and equipment 4 (3,239,538) (1,090,575)
Proceeds from disposals of property and equipment 29 2,160
Movements in short term deposits (1,500,000) (1,498,792)
Net cash used in investing activities (4,739,509) (2,587,207)
Cash flow from financing activities
Finance lease 571,535 (861,728)
Net movement in cash and cash equivalents 10 (1,139,278) 2,420,443
Cash and cash equivalents at beginning of year/period 3,184,261 763,818
Cash and cash equivalents at end of year/period 9 1,687,508 3,184,261
The notes on pages 58 to 76 are an integral part of these financial statements.
58 MITA ANNUAL REPORT 2010
Notes to the financial statements
1. Summary of significant accounting policiesThe principal accounting policies adopted in the preparation of these financial
statements are set out below. These policies have been consistently applied to the
period presented, unless otherwise stated.
1.1 Basis of preparation
These financial statements have been prepared in accordance with International
Financial Reporting Standards (IFRSs) as adopted by the EU. The financial statements
are prepared under the historical cost convention.
The MITA statute was enrolled in the Public Registry by virtue of a notarial deed on 18
August 2008 and on 1 January 2009, the Agency acquired the net assets of MITTS Ltd
(see note 23). The Agency acquired the investment in MECS Limited from MITTS Limited.
The financial position of this subsidiary as at 31 December 2010 and 2009 is insignificant
and accordingly no consolidated financial statements are being presented for the year
ended 31 December 2010. The preparation of financial statements in conformity with
IFRSs as adopted by the EU requires the use of accounting estimates. It also requires
board members to exercise their judgement in the process of applying the Agency’s
accounting policies (see Note 3 – Critical accounting estimates and judgements).
Standards, interpretations and amendments to published standards that are not yet
effective Certain new standards, amendments and interpretations to existing standard
have been published by the date of authorisation for issue of these financial statements,
that are mandatory for the Agency’s accounting period beginning after 1 January 2010.
The Agency has not early adopted these revisions to the requirements of IFRSs as
adopted by the EU and the Agency’s board members are of the opinion that there are
no requirements that will have a possible impact on the Agency’s financial statements
in the period of initial application.
1.2 Foreign currency translation
(a) Functional and presentation currency
Items included in these financial statements are measured using the currency of
the primary economic environment in which the Agency operates (‘the functional
currency’). The euro is the Agency’s functional and presentation currency.
(b) Transactions and balances
Foreign currency transactions are translated into the functional currency using the
exchange rates prevailing at the dates of the transactions. Foreign exchange gains
and losses resulting from the settlement of such transactions and from the translation
at year-end exchange rates of monetary assets and liabilities denominated in foreign
currencies are recognised in profit or loss.
59MITA ANNUAL REPORT 2010
1.3 Property and equipment
Property and equipment comprising leasehold improvements, furniture, fixtures and
fittings, and IT and office equipment are stated at historical cost less depreciation.
Depreciation is calculated on the straight line method to write off the cost of the
assets to their residual values over their estimated useful life as follows:
%
IT and office equipment 20-33⅓
Furniture, fixtures and fittings 10
Leasehold property and improvements are depreciated on the straight line basis over
the period of the lease.
An asset’s carrying amount is written down immediately to its recoverable amount
if the asset’s carrying amount is greater than its estimated recoverable amount.
Gains and losses on disposals of property and equipment are determined by
comparing the proceeds with carrying amount and are recognised in profit or loss.
1.4 Investment in subsidiary
Investment in subsidiary is accounted for by the cost method of accounting. Provisions
are recorded where, in the opinion of the board members, there is an impairment in
value. Where there has been an impairment in the value of an investment, it is
recognised as an expense in the period in which the impairment is identified.
The results of the subsidiary is ref lected in these financial statements only to the
extent of dividends receivable.
On disposal of an investment, the difference between the net disposal proceeds and
the carrying amount is charged or credited in profit or loss.
1.5 Financial assets
1.5.1 Classification
The Agency classifies its financial assets in the loans and receivables category. The
classification depends on the purpose for which the financial assets were acquired.
Management determines the classification of its financial assets at initial recognition.
Loans and receivables are non-derivative financial assets with fixed or determinable
payments that are not quoted in an active market. They arise when the Agency
provides money, goods or services directly to a customer with no intention of trading
the asset. They are included in current assets, except for maturities greater than
12 months after the reporting date. These are classified as non-current assets. The
Agency’s loans and receivables comprise ‘trade and other receivables’, ‘short-term
deposits’ and ‘cash and cash equivalents’ in the statement of financial position (notes
1.8, 1.9 and 1.10).
60 MITA ANNUAL REPORT 2010
1.5.2 Recognition and measurement
The Agency recognises a financial instrument in its statement of financial position
when it becomes a party to the contractual provisions of the instrument. Loans
and receivables are initially recognised at fair value plus transaction costs. All
regular way transactions in assets classified in the loans and receivables category
are accounted for using settlement date accounting, i.e. on the date an asset is
delivered to or by the entity. Loans and receivables are subsequently carried at
amortised cost using the effective interest method. Amortised cost is the initial
measurement amount adjusted for the amortisation of any difference between the
initial and maturity amounts using the effective interest method. Financial assets
are derecognised when the rights to receive cash f lows from the financial assets
have expired or have been transferred and the Agency has transferred substantially
all risks and rewards of ownership or has not retained control of the financial assets.
The Agency assesses at the end of each reporting period whether there is objective
evidence that a financial asset or a group of financial assets is impaired. If there
is objective evidence that an impairment loss on loans and receivables has been
incurred, the amount of the loss is measured as the difference between the asset’s
carrying amount and the present value of estimated future cash f lows discounted
at the financial asset’s original effective interest rate. Impairment testing of trade
receivables is described in note 1.8.
1.6 Inventories
Inventories are stated at the lower of cost and net realisable value. Cost is determined
by the firstin first-out method. Net realisable value is the estimate of the selling price
in the ordinary course of business, less the costs of completion and selling expenses.
1.7 Leased assets
The Agency leases certain property and equipment. Leases of property and equipment
where the Agency has substantially all the risks and rewards of ownership
are classified as finance leases. Finance leases are capitalised at the lease’s
commencement at the lower of the fair value of the leased property and the present
value of the minimum lease payments. Each lease payment is allocated between
the liability and finance charges so as to achieve a constant rate on the finance
balance outstanding. The corresponding rental obligations, net of finance charges,
are included in other long-term liabilities. The interest element of the finance cost is
charged to profit or loss over the lease period so as to produce a constant periodic
rate of interest on the remaining balance of the liability for each period. The property
and equipment acquired under finance lease is depreciated over the shorter of the
useful life of the asset or the lease term. Leases of assets under which all the risks
and benefits of ownership are effectively retained by the lessor are classified as
operating leases. Payments made under operating leases are charged to profit or loss
on a straight line basis over the period of the lease.
61MITA ANNUAL REPORT 2010
1.8 Trade and other receivables
Trade receivables are amounts due from customers for merchandise sold or services
performed in the ordinary course of business. If collection is expected in one year
or less (or in the normal operating cycle of the business if longer), they are classified
as current assets. If not, they are presented as non-current assets. Trade and other
receivables are recognised initially at fair value and subsequently measured at
amortised cost using the effective interest method, less provision for impairment. A
provision for impairment of trade and other receivables is established when there
is objective evidence that the Agency will not be able to collect all amounts due
according to the original terms of the receivables. Significant financial difficulties
of the receivable, probability that the receivable will enter bankruptcy or financial
reorganisation, and default or delinquency in payments are considered indicators that
the receivable is impaired. The amount of the provision is the difference between
the asset’s carrying amount and the present value of estimated future cash f lows,
discounted at the original effective interest rate. The carrying amount of the asset
is reduced through the use of an allowance account, and the amount of the loss
is recognised in profit or loss. When a receivable is uncollectible, it is written off
against the allowance account for trade and other receivables. Subsequent recoveries
of amounts previously written off are credited in profit or loss.
1.9 Short-term deposits
Short term deposits held with banks or credit institutions are stated at face value.
1.10 Cash and cash equivalents
Cash and cash equivalents are carried in the statement of financial position at cost.
For the purposes of the statement of cash f lows, cash and cash equivalents comprise
cash in hand and deposits held at call with banks.
1.11 Trade and other payables
Trade payables are obligations to pay for goods or services that have been acquired
in the ordinary course of business from suppliers. Accounts payable are classified
as current liabilities if payment is due within one year or less (or in the normal
operating cycle of the business if longer). If not, they are presented as non-current
liabilities.
1.12 Current and deferred tax
The tax expense for the period comprises current and deferred tax. Tax is recognised
in profit or loss, except to the extent that it relates to items recognised directly in
equity. In this case, the tax is also recognised in equity. Deferred tax is recognised,
using the liability method, on temporary differences arising between the tax bases
62 MITA ANNUAL REPORT 2010
of assets and liabilities and their carrying amounts in the financial statements.
However, the deferred tax is not accounted for if it arises from initial recognition
of an asset or liability in a transaction other than a business combination that at
the time of the transaction affects neither accounting nor taxable profit or loss.
Deferred tax is determined using tax rates (and laws) that have been enacted
or substantially enacted by the end of the reporting period and are expected to
apply when the related deferred tax asset is realised or the deferred tax liability
is settled.
Deferred tax assets are recognised only to the extent that it is probable that future
taxable profit will be available against which the temporary differences can be
utilised. Deferred income tax assets and liabilities are offset when there is a
legally enforceable right to offset current tax assets against current tax liabilities
and when the deferred income taxes assets and liabilities relate to income taxes
levied by the same taxation authority on either the taxable entity or different
taxable entities where there is an intention to settle the balances on a net basis.
1.13 Provisions
Provisions are recognised when the Agency has a present legal or constructive
obligation as a result of past events, it is probable that an outf low or resources
embodying economic benefits will be required to settle the obligation, and a
reliable estimate of the amount of the obligation can be made. Provisions are
measured at the present value of the expenditures expected to be required to
settle the obligation using a pre-tax rate that ref lects current market assessments
of the time value of money at the risk specific to the obligation. The increase in
the provision due to passage of time is recognised as interest expense.
1.14 Borrowing costs
Interest costs are charged against income without restriction. No borrowing costs
have been capitalised.
1.15 Revenue recognition
Revenue comprises the fair value of the consideration received or receivable upon
delivery of products or performance of services in the ordinary course of the
Agency’s activities. Revenue is shown net of value-added tax, returns, rebates
and discounts. The Agency recognises revenue when the amount of revenue can
be reliably measured, it is probable that future economic benefits will f low to the
entity and when specific criteria have been met for each of the Agency’s activities.
Revenue from project contracts is recognised under the percentage of completion
method. Revenue is generally recognised based on the services performed to date
as a percentage of the total services to be performed.
63MITA ANNUAL REPORT 2010
Subventions from Government are recognised at their fair value where there is
a reasonable assurance that the subventions will be received and the Agency
will comply with all attached conditions. Government subventions relating to
costs are deferred and recognised in profit or loss over the period necessary to
match them with the costs that they are intended to compensate. Interest income
is recognised as it accrues, unless collectability is in doubt. Grants receivable
relating to property, plant and equipment are included in deferred income and are
credited to the statement of comprehensive income on a straight-line basis over
the expected lives of the related assets.
2. Financial risk management
2.1 Financial risk factors
The Agency’s activities potentially expose it to a variety of financial risks: credit
risk and market risk (including cash f low interest rate risk). The Agency’s overall
risk management focuses on the unpredictability of financial markets and seeks
to minimise potential adverse effects on the Agency’s financial performance. The
board members provide principles for overall risk management, as well as policies
covering risks referred to above.
(a) Credit risk
Financial assets which potentially subject the Agency to credit risk consist
principally of cash at bank and trade and other receivables. As a general rule,
the Agency has policies in place to assess and monitor credit exposures and risk
thresholds. The Agency’s cash is placed with quality financial institutions and as
such, does not consider credit risk in this respect to be significant. As part of its
credit risk management, the Agency assesses the credit quality of its customers,
taking into account the financial position, past experience, and other factors. It
has policies in place to ensure that sales of services are affected to customers
with an appropriate credit history. The Agency monitors the performance of these
financial assets on a regular basis to identify incurred collection losses, which
are inherent in the Agency’s receivables taking into account historical experience
in the collection of accounts receivable. The Agency manages credit limits and
exposures actively in a practicable manner such that past due receivable from
customers are minimized at the reporting date. The Agency’s trade and other
receivables are presented net of an allowance. The provision as at the end of
the reporting period covers the extent of impaired debtors. As at the end of the
reporting period impairment of trade receivables amounted to €69,888 (2009:
€107,536) and trade and other receivables which were past due but not impaired
amounted to €850,821 (2009: €764,221). The remaining trade and other receivables,
which are not impaired financial assets, are principally in respect of transactions
with customers for whom there is no recent history of default and were regular
payments and set-offs are being affected by these clients. The board members do
not expect any material losses from nonperformance of these customers.
64 MITA ANNUAL REPORT 2010
The Agency is exposed to concentration of credit risk with respect to its trade and
other receivables since €777,047 are due from four customers representing 49% of
the total amount due (2009: €1,370,126 are due from two customers representing
61% of the total amount due).
The following table illustrates the assets that expose the Agency to credit risk as
at the reporting date and includes the Standard & Poor’s (or equivalent) composite
rating, when available.
Assets bearing credit risk at the reporting date are analysed as follows:
(b) Market risk
(i) Cash f low interest rate risk
In general, the Agency’s exposure to risks associated with the effects of f luctuations
in the prevailing levels of the market interest rates on its financing position and
cash f low are not deemed to be substantial by the board members in view of the
nature of the assets. Notes 8, 9 and the following table incorporate interest rate
risk and maturity information with respect to the Agency’s assets.
31 DeCeMBeR 2010
A to A-€
B to B-€
Unrated€
Total€
Receivables
Trade and other receivables 1,473,553 128,208 - 1,601,761
Short term deposits 11,000,000 - 465,875 11,465,875
Cash and cash equivalents 2,043,751 - 1,232 2,044,983
Assets bearing credit risk 14,517,304 128,208 467,107 15,112,619
31 DeCeMBeR 2009
A to A-€
B to B-€
Unrated€
Total€
Receivables
Trade and other receivables 2,338,502 - - 2,338,502
Short term deposits 9,500,000 - 465,875 9,965,875
Cash and cash equivalents 3,181,539 - 2,722 3,184,261
Assets bearing credit risk 15,020,041 - 468,597 15,488,638
65MITA ANNUAL REPORT 2010
Up to the reporting date, the Agency did not have any hedging policy with respect to
the exposure of interest rate risk. The maturity of the floating interest bearing assets
is short-term and hence the interest rate risk is not deemed to be significant by the
board members.
(c) Foreign exchange risk
Foreign exchange risk arises from the possibility that fluctuations in foreign exchange
rates will impact on the amounts that are paid to settle liabilities and on the amounts
that are realised from the Agency’s assets. Such risk is not considered significant in
relation to liabilities and assets since most of the Agency’s liabilities are in euro and
are therefore not subject to currency risk.
2.2 Fair value estimation
At 31 December 2010 and 2009, the carrying amounts of cash at bank including short-
term deposits, receivables, payables and accrued expenses approximated their fair
values due to the short term maturities of these assets and liabilities.
3. Critical accounting estimates and judgements
Estimates and judgements are continually evaluated and based on historical
experience and other factors including expectations of future events that are believed
to be reasonable under the circumstances. In the opinion of the board members, the
accounting estimates and judgements made in the course of preparing these financial
statements are not difficult, subjective or complex to a degree which would warrant
their description as critical in terms of the requirements of IAS 1 (revised) except for
the application of critical judgement in applying the Agency’s accounting policy on
leased assets.
Finance leases
The Agency follows IAS 17 in relation to the accounting for lease agreements in line
with its accounting policy. IAS 17 defines a lease as being an agreement whereby the
lessor conveys to the lessee in return for a payment, or series of payments, the right to
use an asset for an agreed period of time. In determining the classification of leased
assets as finance leases, significant judgement is required. In making this judgement,
the Agency evaluates, among other factors, the risks and rewards of ownership. The
(b) Market risk - continued
The Agency’s interest bearing assets are as follows:
2010€
2009€
Assets at floating interest rates – short-term deposits 11,465,875 9,965,875
Assets at floating interest rates – short-term cash and cash equivalents 2,043,751 3,181,539
Total 1,232 2,044,983
66 MITA ANNUAL REPORT 2010
Agency entered into a lease agreement in relation to property and equipment and it
was considered that substantially all risks and rewards arising from this agreement
belong to the Agency and accordingly classified the assets as a finance lease.
4 pRopeRTY AND eqUIpMeNT
leaseholdproperty and
improvements€
furniture,fixtures and
fittings€
IT andoffice
equipment€
Total€
period ended 31 December 2009
Additions acquired on transfer of operations (note 23)
Cost 257,742 1,243,019 12,722,493 14,223,254
Accumulated depreciation (209,943) (602,507) (8,568,722) (9,381,172)
Additions 1,369 132,646 956,560 1,090,575
Disposals - (1,728) (424,894) (426,622)
Depreciation charge (11,811) (170,134) (2,182,340) (2,364,285)
Depreciation released on disposals 129,854 32,564 531,884 694,302
Closing net book amount 44,251 649,785 3,633,113 4,327,149
At 31 December 2009
Cost 259,111 1,373,937 13,254,159 14,887,207
Accumulated depreciation (214,860) (724,152) (9,621,046) (10,560,058)
net book amount 44,251 649,785 3,633,113 4,327,149
Year ended 31 December 2010
Opening net book amounts 44,251 649,785 3,633,113 4,327,149
Additions 89,761 521,949 2,627,828 3,239,538
Disposals (129,853) (32,823) (531,884) (694,560)
Depreciation charge (11,811) (170,134) (2,182,340) (2,364,285)
Depreciation released on disposals 129,854 32,564 531,884 694,302
Closing net book amount 122,202 1,001,341 4,078,601 5,202,144
At 31 December 2010
Cost 219,019 1,863,063 15,350,103 17,432,185
Accumulated depreciation (96,817) (861,722) (11,271,502) (12,230,041)
net book amount 122,202 1,001,341 4,078,601 5,202,144
2010€
2009€
Cost – capitalised finance lease 6,017,614 4,635,615
Accumulated depreciation (3,100,103) (1,965,868)
Net book amount 2,917,511 2,669,747
IT and office equipment includes the following amounts where the Agency is a lessee
under a finance lease:
The Agency took over assets from MITTS Ltd at the net book value and continued
to account for the original cost and accumulated depreciation.
67MITA ANNUAL REPORT 2010
5 INVeSTMeNT IN SUBSIDIARY2010
€ 2009
€
period ended 31 December
Opening net book amount 33,776 -
Additions acquired on transfer of operations (note 23) - 33,776
Closing net book amount 33,776 33,776
At 31 December
Cost and net book amount 33,776 33,776
The investment which is unlisted at 31 December 2010 is shown below:
Company Registered office Class of shares held percentage of shares held
Malta Electronic Certification
Services Limited
Gattard Housenational roadBlata L-Bajda
Malta
Ordinary shares 2010 2009
100% 100%
6 INVeNToRIeS2010
€ 2009
€
Inventories held for resale 23,804 27,490
Other inventories 8,549 9,679
32,353 37,169
The amount of € Nil (2009: €3,417) representing write-downs of inventories is
recognised as an expense during the period.
7 TRADe AND oTHeR ReCeIVABleS2010
€ 2009
€
Trade receivables – Gross 1,601,761 2,338,502
Provision for impairment (69,888) (107,536)
Trade receivables – net 1,531,873 2,230,966
Prepayments and accrued income 854,462 1,250,887
2,386,335 3,481,853
8 SHoRT TeRM DepoSITS2010
€ 2009
€
Deposits held with bank 11,465,875 9,965,875
Short term deposits have a weighted average interest rate of 1.86% (2009: 2.38%)
and have an average maturity date not exceeding one year from the reporting date.
68 MITA ANNUAL REPORT 2010
Cash and cash equivalents earn interest at 0.37% (2009: 0.38%) per annum.
9 CASH AND CASH eqUIVAleNTS2010
€ 2009
€
Cash at bank and in hand 2,044,983 3,184,261
10 fINANCe leASe lIABIlITIeS2010
€ 2009
€
Amounts falling due after more than one year 1,247,797 1,071,119
Amounts falling due within one year 1,013,047 618,190
The lease agreement covered a 7-year period with minimum lease payments of €7,478,381. Assets were delivered in 2010 and accordingly liability was recognised. The following is an analysis of the minimum lease payments covering the whole arrangement.
GRoSS fINANCe leASe lIABIlITIeS – MINIMUM leASe pAYMeNTS:
not later than 1 year 1,399,068 1,388,160
Later than 1 year and no later than 5 years 2,798,135 4,164,479
Future finance charges on finance lease 4,197,203 5,552,639
(755,496) (999,475)
present value of finance lease liabilities 3,441,707 4,553,164
The present value of finance lease liabilities is as follows:
not later than 1 year 1,273,151 1,288,212
Later than 1 year and no later than 5 years 2,168,556 3,264,952
69MITA ANNUAL REPORT 2010
11 DefeRReD TAxATIoN2010
€ 2009
€
At beginning of year 335,607 -
Charge to profit or loss (note 18) (54,436) 335,607
Absorption of deferred tax upon transfer of operations (note 23) 158,540 -
Later than 1 year and no later than 5 years 2,798,135 4,164,479
Future finance charges on finance lease 4,197,203 5,552,639
At end of year 439,711 335,607
Deferred income taxes are calculated on all temporary differences under the liability method using a principal tax rate of 35%.
The balance at 31 December represents:
2010€
2009€
Temporary differences on fixed assets due to accelerated tax depreciation 464,172 373,245
Temporary differences on provisions (24,461) (37,638)
439,711 335,607
12 TRADe AND oTHeR pAYABleS2010 2009
€ €
Trade payables 1,941,166 3,139,588
Other payables 288,259 797,600
Amounts owed to subsidiary 50,421 50,421
Amounts owed to related parties 5,094,497 5,253,037
Indirect taxation 705,168 144,347
Accruals and deferred income 7,848,905 8,455,098
15,928,416 17,840,091
Amounts owed to related party are interest free, unsecured and repayable on demand.
70 MITA ANNUAL REPORT 2010
13 ReVeNUePeriod from
18 August
Year ended 2008 to 31
31 December December
2010 2009
€ €
Core services 11,455,323 10,461,588
Desktop services 5,396,757 3,750,221
Other service contracts 4,878,318 5,804,131
EU funding 189,111 -
Total services 21,919,509 20,015,940
Projects 3,063,559 4,002,715
Subvention 1,536,625 1,322,914
26,519,693 25,341,569
71MITA ANNUAL REPORT 2010
14 expeNSeS BY NATURePeriod from
18 August
Year ended 2008 to 31
31 December December
2010 2009
€ €
Depreciation of property and equipment (note 4) 2,364,285 1,602,549
Employee benefit expense (note 15) 9,973,645 9,272,834
Training 309,558 334,852
Costs relating to projects and services 9,882,631 11,027,664
(Increase)/decrease in provision for impairment of receivables (37,648) 45,466
Impairment of receivables 21,826 -
operating lease:
Property 362,161 361,537
Motor vehicles and equipment 225,092 206,981
Services 684,323 672,676
Audit fees 4,750 4,750
Other expenses 1,230,086 448,498
Total cost of sales and administrative expenses 25,020,709 23,977,807
The Agency paid insurance premium of €5,750 (2009: €5,750) in respect of professional indemnity in favour of its board members. Board members’ fees amount to €7,532 (2009: €19,800).
Auditor fees
Fees charged by the auditor for services rendered during the financial periods ended 31 December 2010 and 2009 relate to the following:
2010 2009
€ €
Annual statutory audit 4,750 4,750
Other assurance services 2,330 2,330
Tax advisory and compliance services 1,472 -
Other non-audit services 71,920 66,203
80,472 73,283
72 MITA ANNUAL REPORT 2010
15 eMploYee BeNefIT expeNSePeriod from
18 August
Year ended 2008 to 31
31 December December
2010 2009
€ €
Salaries and employment benefits 9,403,806 8,745,039
Social security costs 569,839 527,795
9,973,645 9,272,834
Average number of persons employed by the Agency during the period:
2010 2010
Direct 227 214
Administration 102 99
329 313
16 fINANCe INCoMe Period from
18 August
Year ended 2008 to 31
31 December December
2010 2009
€ €
Other charges 180,964 166,803
17 fINANCe CoSTS Period from
18 August
Year ended 2008 to 31
31 December December
2010 2009
€ €
Other charges 4,266 4,826
73MITA ANNUAL REPORT 2010
18 TAx expeNSePeriod from
18 August
Year ended 2008 to 31
31 December December
2010 2009
€ €
Current tax expense 467,136 357,076
Deferred tax expense (note 11) (54,436) 335,607
412,700 692,683
The tax on the Agency’s profit before tax differs from the theoretical amount that would arise using the basic tax rate as follows:-
Period from
18 August
Year ended 2008 to 31
31 December December
2010 2009
€ €
Profit before tax 1,675,682 1,525,703
Tax on profit at 35% 586,489 533,996
Tax effect of:
Income subject to tax at 15% (36,193) (33,361)
Expenses not deductible for tax purposes 20,944 33,510
Temporary differences relating to equipment (158,540) 158,538
412,700 692,683
74 MITA ANNUAL REPORT 2010
19 CASH GeNeRATeD fRoM opeRATIoNSreconciliation of operating profit to cash generated from operations:
Period from
18 August
Year ended 2008 to 31
31 December December
2010 2009
€ €
Operating profit 1,498,984 1,363,762
Adjustments for:
Depreciation (note 4) 2,364,285 1,602,549
Loss on sale of property and equipment 229 798
(Increase)/decrease in provision for impairment of receivables (37,648) 44,764
Impairment of receivables 21,826 -
Changes in working capital:
Inventories 4,816 (429)
Trade and other receivables 1,111,340 1,636,601
Trade and other payables (1,753,135) 1,084,411
Cash generated from operations 3,210,697 5,732,456
21 CoMMITMeNTS2010 2009
€ €
Non-cancellable operating leases
Falling due within one year 4,819,938 4,444,768
Falling due between 2 and 5 years 11,001,640 13,778,561
Falling due after 5 years 189,290 369,270
16,010,868 18,592,599
Capital commitment - 1,397,624
Capital commitments – Authorised and not contracted for 6,685,000 -
Capital commitments – Contracted for 420,000 -
Uncalled issued share capital of MeCS limited 134,400 134,400
20. Contingencies
In terms of a lease agreement entered into with one of its suppliers, the Agency
will be liable to termination costs if the agreement is terminated as agreed
between both parties.
75MITA ANNUAL REPORT 2010
22 RelATeD pARTY TRANSACTIoNS 2010 2009
€ €
Purchases of goods and services 395,033 1,856,447
Sales of goods and services (including recharges) 25,405,546 25,293,038
22. Related party transactions
The Agency conducts transactions in the normal course of business with the
Government of Malta and with other state-controlled enterprises. Entities that are
ultimately controlled by the Government of Malta, are considered by the board
members to be related parties. The following transactions were carried out by the
Agency with related parties:
As at the year-end, amounts owed by related parties disclosed as trade receivables
(Note 7) amounted to € 1,455,297 (2009: €2,331,435). Amounts owed to related
parties amounted to € 5,363,828 (2009: €5,354,075) (Note 12). In the normal
course of business, the Agency acts as an agent by re-charging related parties
for services rendered by suppliers. Such services amounted to € 10,516,000 (2009:
€9,100,910) and are included in turnover and cost of sales.
76 MITA ANNUAL REPORT 2010
23 TRANSfeR of opeRATIoNS2009
€
Property and equipment 4,842,082
Investment in subsiduary 33,776
Inventories 36,740
Trade and other receivables 5,163,218
Short term deposits and cash equivalents 9,230,901
Finance lease liabilities (1,886,789)
Trade and other payables (11,502,645)
Finance lease liabilities (664,248)
5,253,035
Cash and cash equivalents acquired (763,818)
Cash inflow on transfer of operations 4,489,217
23. Transfer of operations
On 18 August 2008, MITA was set up by virtue of a public deed. The main
objectives of the Agency is to absorb the operations of MITTS Ltd. and the range
of functions previously carried out directly by the Ministry for Infrastructure,
Transport and Communications. With effect from 1 January 2009, a significant
part of the assets and liabilities of MITTS as at 31 December 2008 together with
its operations were transferred to MITA. The assets and liabilities arising from the
transaction are as follows:
In 2010 a deferred tax liability of €158,540 was transferred from MITTS Limited
to MITA.