08. BOARD MEMBERS’ REPORT

FOR THE YEAR ENDED 31 DECEMBER 2019

Board members Mr Tony Sultana - Chairman Mr Anthony Borg

Ing. Saviour Baldacchino

Mr Joseph Noel Agius

Dr Helen Borg Muscat

Board secretary Dr Aron Mifsud Bonnici

Registered address Gattard House

National Road

Blata l-Bajda HMR 9010

Malta

The board members of the Agency present their annual report and the audited financial statements for the year ended 31 December 2019.

Overview

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

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

Core ICT Services to Government

Throughout 2019, the provision of Core ICT Services to Government detailed by means of a contractual agreement between MITA and the Office of the Prime Minister, continued to provide the basis for the provision of the core ICT infrastructure to Government.

Projects and Programmes

The delivery of specific projects and programmes provided a significant portion of the Agency’s business during the year. Specific programmes and deliverables included:

eGovernment

The European Commission’s eGovernment Benchmark 2019 Report identified Malta as one of three European front-runners in eGovernment. Malta rankled highly namely within areas of usercentricity, transparency, cross-border mobility and key enablers. Such ranking has been enabled by Government’s continuous drive towards the use of online public services. These services are supported by innovative technologies, aimed at increasing efficiency and effectiveness of the service rendered. MITA has been instrumental throughout 2019 in attaining this goal.

Hybrid Cloud Platform

2019 saw the first implementation of solutions hosted on the new Hybrid Cloud platform. The client has now the flexibility to choose the right combination of off-premises and on-premises deployment models to meet the business and technical requirements for its solutions. All this can be done through a self-service portal, offering also the functionality to monitor the cost of their used resources. The resources within the cloud are billed on a pay-per-use basis, allowing tenants (users) to only pay for resources they are utilising.

Workflow Automation Solution

During 2019, MITA introduced the Workflow Automation Solution. An innovative means of simplifying Government’s workflow processes, through which online forms may be designed and implemented by even non-technical public officers. The Solution, which is funded under the CONvErGE ERDF Programme, was launched in August of 2019. It comes readily integrated with a number of eGovernment shared services such as eID, SMS notification, and payment gateway so as to make the creation of eServices easier. To date, there are 60 tenancies (work areas) and 110 eServices hosted on the platform. The solution was the first major solution to be hosted on MITA’s Hybrid Cloud.

Notifications Platform

Throughout 2019, 15 new services have been integrated with the Notifications platform; with Health and Education services amongst the new large consumers. Besides the latter integrations and support of the platform, MITA has worked on several enhancements to improve the overall quality of the service. MITA issued a Call for Tender for the Provision of SMS Services for a budget of €1.5M. By August 2019 the new SMS operator was engaged and a migration plan to the new operator was drawn up for all Government service consumers. By the end of the year all services were successfully migrated onto the new operator.

Corporate Financial Management System

MITA has also been actively involved in the Accrual Accounting financial reform which Government has been bringing the execution of this reform over the past years. It is expected to cost over €16M. Through the related Corporate Financial Management System (CFMS), financial statements and budget estimates will be easily generated online.

Departmental Accounting System

During 2019, MITA carried out several initiatives to ensure DAS Business Continuity is provided to the client. MITA replaced all servers and increased the pool of failover servers for both the production and the archive environment. All historical data from 2000 to 2018 was transferred from a physical server onto a virtual machine.

Document Registry System

All users were migrated to the new DocReg web application. MITA provided training to all registry administrators who can manage the respective registry user accounts with minimal help

from MITA. The feedback received during these sessions was discussed with the Office of the Prime Minister. A major upgrade of the system was released during the last quarter of 2019.

Payroll and HR Systems

2019 saw the implementation of the Circular Approval Module on the Government Recruitment Portal including integration with the Government Payment Gateway for recruitment calls where applications are against payment. Government employees can now access their FS3’s from the MyPersonalKiosk. A central data warehouse for Payroll\HR was created and both live and historical data were migrated into the new data repository. Various reports were developed on the new data warehouse.

Maltapps

MITA implemented a technology refresh of the Maltapps, which included an update to match the latest technology frameworks and migrated onto the cloud, enabling all backend services now being hosted on the MITA public cloud. Besides addressing the technology aspects, Maltapps was enhanced in terms of its user interface catering for the accessibility requirements mandated by the Accessibility Directive. Thus, besides providing a fresher look and feel, the app also provides an improved user experience to all users. Throughout the exercise, MITA worked in close collaboration with Servizz.gov and FITA respectively.

Windows 10 Upgrade

During 2019, MITA prioritised the deployment of Windows 10 operating systems on all Government workstations. As per Enterprise Agreement signed between the Government of Malta and Microsoft, Government has procured the required licences to upgrade its workstations to Windows 10. This deployment is more robust and includes additional secure features. This will also eliminate the security risk of having Government workstations whose operating system is no longer supported.

Modern Desktop

2019 saw the implementation of Modern Workplace initiative on most Government users’ workstations. This involved the rollout of a modern desktop with Microsoft 365, Office 365 and Enterprise Management and Security. The modern desktop environment provides users with an empowering and secure workspace, powered by the latest productivity, teamwork, and collaboration experiences from the Cloud. This harnessed an environment that facilitates Enterprise Mobility, whilst prioritising security and data governance at all time. This was complemented by related training.

Cybersecurity Services

Further initiatives to bolster cybersecurity within Government have been undertaken by MITA during 2019. Following the launch of the Security Operations Centre (SOC), MITA pursued investment efforts leading to more effective monitoring of cyber activities as well as to the protection of Government digital asses, applying industry best practice in the process. MITA invested in cybersecurity tools that leverage Artificial Intelligence (AI) capabilities to smarter recognise and predict cyber-attacks. The use of AI algorithms will empower our security engineers to focus more on strategic and threat reducing initiatives. The use of AI in conjunction with solutions that facilitate automation and orchestration will further enhance the SOC to timely adapt to protect against the ever increasing complexities of today’s threats. In this manner, MITA shall be ensuring more efficient response to potential cyberattacks whilst coordinating its efforts along with its national as well as its overseas threat intelligence partners.

Enterprise Resource Planning

Throughout 2019 major effort has been invested to define the requirements for the implementation of an Enterprise Resource Planning (ERP) Solution aimed to modernise and increase internal efficiencies, through more innovative and collaborative business processes, with seamless integration and automation. We aim to maximise the use of data through the use of integrated ERP Reporting, Dashboards, and Data Analysis tool set for better decision making and planning process.

New Computer Room

Due to the increasing demand for hosting services, MITA has invested €500,000 in the setup of a new Computer Room at Sir Anthony Mamo Oncology Centre, at Mater Dei Hospital (MDH). This computer room supplements the backup data centre hosted at MDH offering active replication of critical systems maintained at MITA Data Centre in Sta. Venera.

Information Systems

MITA remained instrumental in enabling various Ministries to implement various information systems within their scope. In collaboration with the Ministry for Finance and Financial Services, and the Ministry for Family, Children’s rights and Social Solidarity, MITA pursued its efforts in a major project, with a budget of €3.5M, involving the upgrade of the Inland Revenue, VAT and Social Security systems. The project aims to enable interoperability between the three systems and more widely accessible by 2021. Other initiatives include, the Online Payment Systems for high value payments and the Container Targeting System within the Customs department; aimed at increasing efficiency and facilitating high value payments, whilst combating customs-related crimes at Maltese ports. Throughout 2019, MITA has assisted the Ministry for Health in enhancing further its online systems, including the myHealth Portal; leading to increased participation of General Practitioners (GP) working in private practice whilst minimising waiting times to their patients to make use of public health services. One such instance includes the online scheduling by a patient’s GP for an X-Ray appointment at a Health Centre.

MITA embarked on the unprecedented opportunity to modernise legacy systems and reengineering them into cloud native solutions, opening the way to embrace emerging technologies in areas such as Taxation, Social Security and Justice, creating an innovative impulse for digital transformation. Through the drive for the modernisation of legacy systems, MITA is seeking to re-architect solutions to benefit from the new hybrid cloud platform, using modern development approaches; DevOps and Microservices. The project also aims to increase efficiency and wider information accessibility to related system beneficiaries.

A new Public Registry System (NPRS) was implemented in December 2019. As part of the MITA technology modernisation programme, this solution replaced the legacy Pub Reg System that has been in operation since 1993. In addition to the management of births, adoptions, marriages (religious, civil union, cohabitation), deaths and annotations, NPRS now incorporates other important functionality such as systems integration with various Government systems, document scanning, financial management and citizen notifications. NPRS brought value-added benefits, both for the business owner and to the general public.

Emerging and Disruptive Technologies

During 2019, MITA embarked on an initiative related to the use of emerging technology within MITA Service Call Centre (SCC) specifically focusing on the processing and classification of emails within the respective MITA service function. The aim of the proof-of-concept was to design, develop and train an AI Agent which will analyse the content of received SCC emails, initiate the respective service procedure as well as generate a response to the intended recipient. Such a system will considerably reduce the effort required by service centre agents to

reply to service request emails, as well as make the service centre more efficient and effective in assisting customers.

In collaboration with the Inland Revenue Department and the Department of Social Security, MITA is working upon Artificial Intelligence projects within the former entities’ respective line of business. This has entailed the delivery of related Proof of Concepts, in conjunction with the University of Malta, followed by the issue of related tenders which should serve as a means for private sector involvement in the implementation of such technologies. Ultimately, such innovative technology projects are aimed at providing more effective business analytic capabilities within the Public Administration.

Additionally, in collaboration with the University of Malta, MITA launched a pilot project to evaluate the use of smart contracts with the aid of blockchain technology potentially for its internal procurement activities. The pilot project, which has involved tertiary students, both from the University as well as from MCAST, has been deemed to be a success. In consultation with its key economic operators, MITA is therefore currently planning for the next steps leading to the further realisation of the pilot project.

YouStartIT Accelerator Programme

During 2019, MITA, through its Innovation Hub (MIH), has pursued further in its YouStartIT Accelerator Programme. Over €450,000 have been invested by the Agency in over 25 Startup organisations which are still in their infancy and are seeking to apply emerging and disruptive technologies such as Blockchain, Artificial Intelligence, Internet of Things, Immersive Technologies, among others. A number of such Startup firms are still functioning even after completion of the Programme. 10 of them have successfully attained investments or grants worth over €1,775,000 in total for the completion of their projects.

Scholarships

Further to the Memorandum of Understanding signed between the University of Malta and MITA, which was launched in August 2018, a further 19 scholarships were awarded during 2019, leading, in effect to an investment of around €200,000.

The scholarships enable students to read for Masters and Ph.D. programmes which focus on Blockchain and Distributed Ledger Technologies (DLT) within any applicable discipline and programme offered at the University.

B-Secure Scheme

Through the Cybersecurity Programme, on a national scale, MITA has launched the B-Secure scheme, targeting private sector organisations. The Scheme serves as an opportunity for the private sector to bolster itself in cyber security through heightened cyber security awareness as well as through related risk assessments aimed at highlighting areas where security measures would be necessary.

Student Placement Programme

2019 was the eleventh year of MITA ‘s undertaking of its Student Placement Programme. With a total annual investment of around €700,000 through such Scheme, the Agency provides work opportunities to around 400 ICT students throughout the summer months within public sector entities, NGO’s or private sector organisations.

National and Government Strategies

MITA has been instrumental in the articulation of two strategies. In June 2019, the Office of the

Principal Permanent Secretary launched ‘Mapping Tomorrow - A Strategic Plan for the Digital Transformation of the Public Administration 2019-2021’. The Strategy delineates a number of goals, one of which relates to the Once Only Principle, whereby public service beneficiaries shall not be required to re-submit information which is already available within the Public Administration. In this manner, excellence may be rendered for online public services, with an even wider use of various technologies.

In October 2019, a National AI Strategy, entitled ‘Malta - The Ultimate AI Launchpad: A Strategy and Vision for Artificial Intelligence in Malta 2030’ was launched. The Strategy aims to map the path for Malta to gain a strategic competitive advantage in the global economy as a leader in the AI field. It is built on strategic pillars which relate to investment, start-ups and innovation as well public sector and private sector adoption of Artificial Intelligence. The strategic pillars are in turn consolidated by three strategic enablers related to education and workforce, ethical and legal considerations as well as by an ecosystem infrastructure. Along with other key national stakeholders, MITA has given a significant contribution towards the Strategy’s articulation.

Enterprise Risk Management (ERM)

During 2019 MITA embarked on ongoing initiatives aimed towards ensuring that ERM is integrated within the Agency’s processes and that risks are being recognised and effectively managed in a timely manner in line with the Enterprise Risk Management (ERM) policy and procedure. This included:

regular reviews of all the risks logged in the MITA Risk Register System;

awareness sessions to MITA employees;

regular ERM Committee meetings and quarterly EXCO updates;

reviews of MITA policies and procedures;

management of risk assessment exercises carried out on selected MITA processes.

Also in 2019, the Internal Audit Office and Enterprise Risk Management worked closely to ensure that there is synergy between the two functions, hence aiming to ascertain that risks emerging from internal audit exercises are duly mitigated, and that internal audit activities are risk-based and thus target the most prevalent risk areas that MITA is exposed to. In 2019, the two functions have also embarked on a joint exercise consisting of a number of risk-based checks carried out on multiple MITA processes leading to a number of proposed controls to ensure that identified risks are duly mitigated.

Financial review

The overall financial performance of the Agency for 2019 shows a net surplus before tax of €805,480 (2018 :€933,074). Revenue from the provision of projects and ICT services to Government reached €32,016,955 (2018 : €27,462,556), up by 16.6% from 2018 results.

Board Members’ responsibilities

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

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

The financial statements of MITA for the year ended 31 December 2019 may be made available on the Agency’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 and jurisdictions, where legislation governing the preparation and dissemination of financial statements may differ from requirements or practice in Malta.

This report was approved and authorised for issue by the Board Members on 4 September 2020, and signed on its behalf by:

Mr Tony Sultana Chairman Mr Anthony Borg Board member