UNEMPLOYMENT INSURANCE FUND Annual Performance Plan€¦ · vision as the UIF is to be a caring,...

UNEMPLOYMENT INSURANCE FUND ANNUAL PERFORMANCE PLAN FOR THE FINANCIAL YEAR 2018/19

UNEMPLOYMENT INSURANCE FUND

Annual Performance Plan__________________________________________________________

MTEF and Annual Performance Plan 2018/19


First published in 2018, by the Unemployment Insurance Fund (UIF)

Copyright © 2018

Directorate: Communication & Marketing

Pretoria, South Africa

ISBN: 978-0-621-46181-7

RP78-2018

2


Foreword by Minister Foreword by the Accounting Authority Commissioner’s Statement Official Sign-Off

PART A: STRATEGIC OVERVIEW

1. Situational Analysis 1.1 Performance Delivery Environment 1.2 Organisational Environment 1.2.1 Vision, Mission, Strategic Objectives, Outputs, Key Performance Indicators, Critical Success Factors & Values 1.2.2 Current Organizational Structure 1.2.3 Organizational structure description per programme2. Revision to Legislative and Other mandates3. Overview of the 2018/19 Budget and MTEF Estimates 3.1 Expenditure Estimates

PART B: PROGRAMME AND SUB-PROGRAMME PLANS 2018/19-2020/21SERVICE DELIVERY OUTCOMES AND STRATEGIC GOALS

4. Programme Performance Indicators 4.1 Strategic Objective and annual targets for MTEF and APP 2018/2019 4.2 Quarterly Performance Target for 2018/19

Technical Indicator Descriptions (ANNEXURE A)

TABLE OF CONTENTS4568

10

1112131516

18

19

23

28

3


______________________________________

MN OLIPHANT, MPMINISTER OF LABOUR(EXECUTIVE AUTHORITY OF THE DEPARTMENT OF LABOUR)

Signed:

4

The Annual Performance Plan (APP) is guided by the Strategic Plan (SP) of the Unemployment Insurance Fund (UIF) and it is an instrument that is designed to give real meaning to the strategic programme of action of the department and by extension, government. The APP for the period 2018/19-2020/21 contains UIF’s set of action plans to give effect to the strategic priorities that are set by the Department of Labour (DoL) for this period. The strategic objectives and outputs contained in this APP are central to the UIF’s activities and are geared towards enhancing service delivery outcomes such as:

• The creation of decent employment through inclusive economic growth;

• Realising an efficient, effective and development orientated public service and an empowered and inclusive citizenship; and,• An inclusive and responsive social protection system.

The UIF has aligned its objectives and resources to contribute in making these outcomes a reality. Over the next year, we will work very closely with our stakeholders in order to leverage and enhance service delivery.

We have set ourselves challenging milestones through this APP and we commit to the implementation thereof, working very closely with all our social partners. We also look for-ward to the stewardship and guidance from the Members of Parliament as they go about in their oversight activities working very closely with all our social partners.

FOREWORD BY MINISTER


______________________________________

TM. LAMATIDIRECTOR GENERAL

Signed:

5

FOREWORD BY THE ACCOUNTING AUTHORITY

The Unemployment Insurance Fund (UIF) is a public entity of the Department of Labour (DoL) and is one of the key social security agencies in the country. In pursuing its mandate, the UIF’s Annual Performance Plan (APP) is guided by its strategic plan which reflects plans for the periods 2018/19 - 2022/23.

OVERVIEW OF THE UIF STRATEGY In the next five years UIF will pursue the following six strategic objectives:

• Ensure financial sustainability;• Strengthen institutional capacity of the Fund;• Improve service delivery;

• Collaborate with stakeholders to improve compliance with UIF Acts;• Provide easy to use services through multiple access points; and• Enhance employability of UIF beneficiaries, enable entrepreneurship and preserve jobs.

These strategic objectives were derived from the four strategic outcomes targeted over the five year strategic plan period which are informed by three of the fourteen government outcomes:(i) Decent employment through inclusive economic growth;(ii) An efficient, effective and development orientated public service and an empowered inclusive citizenship; and(iii) An inclusive and responsive social protection services.

UIF has targeted the following strategic outcome oriented goals: • Improve revenue collection from employers;• Improve benefit payment to beneficiaries; • Participate in government initiatives of creating and sustaining decent employment; and • Ensure effective administration of UIF operations.

The UIF recognises that to achieve its objectives it must develop performance measures for each financial year and constantly monitor and evaluate its performance. The Auditor General has identified gaps in the reporting methods applied on UIF investments and in some areas relating to performance information, which led to the Fund obtaining a disclaimer audit opinion. The department has raised a concern with the Commissioner in relation to the disclaimer, and he has shared a plan aptly called “Operation Clean Audit” to improve the situation.

UIF has also developed the Service Delivery Action Plan that is anticipated to radically improve service delivery during the 2018/19 financial year and beyond. Progress on the implementation of this plan and “Operation Clean Audit” will be monitored through governance structures of the department.


COMMISSIONER’S STATEMENT

6

• Provide easy to use services through multiple access points; and• Enhance employability of UIF beneficiaries, enable entrepreneurship and preserve jobs.

The number of people who benefit from the Fund increases every year and in the previous financial year we have been able cushion more than 750 000 beneficiaries against the pangs of hunger through benefits payment of more than R 8,47 billion. According to StatsSA unemployment rate remained high at 27.7% in the third quarter of 2017 and with several companies putting section 189 notices during the year, it is clear that claims for the unemployment benefit are set to increase significantly by the end of the 2017/18 financial year.

However, UIF is our equal to the task and contributors can rest assured that we will be able to meet our claims obligations and continue to fund poverty alleviation schemes that assist to re-skill them to increase their prospects of re-employment. The Fund has reviewed its mission, vision and objectives in order to reposition itself as a caring, customer-centric organisation. The repositioning of the Fund places the customer at the centre of its all activities and this has necessitated a major shake - up of our business processes, standard operating guides, policies, annual targets, and service delivery models. A key component of this development is the Service Delivery Action Plan, which outlines key activities to be embarked on to improve service delivery within the UIF.

For the first time in ten years the Fund re-ceived a disclaimer from the Auditor General. This negative audit opinion was largely due to unreliability of information on investments, and we were also found wanting in some areas of our performance. Although this is a blight on previous glorious performances of the Fund, we delight at the learning oppor-tunity this adversity has presented to us. UIF management has committed to turn things around through the “Project Clean Audit”

The Unemployment Insurance Fund continues to play a critical role in providing social security in South Africa. Our new vision as the UIF is to be a caring, accessible and customer centric UIF that contributes towards poverty alleviation. This vision is born out of a need to improve the service we offer to our customers, we want them to experience a caring and courteous treatment when interacting with UIF and receive their well - deserved benefits and the right time every time.Therefore the Annual Performance Plan is aligned to the following strategic objectives that the Fund will continue to pursue in the next five years:

• Ensure financial sustainability;• Strengthen institutional capacity of the Fund;• Improve service delivery;• Collaborate with stakeholders to improve compliance with UIF Acts;


______________________________________

T. MARUPINGUNEMPLOYMENT INSURANCE COMMISSIONER

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, which outlines vigorous actions to be taken to address the AG’s findings. We are going to work closer with our investment partners and the AG to address the findings and we are well equipped to perform better in the next financial year and beyond.

We are aware that workers are waiting in bated breath for the implementation of the Unemployment Insurance Amendment Act of 2016 that was approved by the president. UIF has been working on regulations that are necessary to effective implementation of this Amendment Act and we are delighted to announce that the regulations have been approved by the Minister of Labour, and sections of the Amendment Act that were taken for review have been approved by Parliament. We anticipate that promulgation for implementation to be announced before the end of the fourth quarter of the 2018/19 financial year.

The Fund is still committed to the national imperative of job creation and providing skills for UIF beneficiaries in order to increase their chances of re-employment. In the previous financial year about 6700 beneficiaries participated in various poverty alleviation schemes at a cost of more than R 160 million. Although commendable, we feel 6 700 is very low considering the number of people who are...

unemployed and those who are retrenched. Therefore in this APP we have drastically increased the target to 450 000 in order to achieve high levels of impact, while ensuring that we reach out to as many people as possible.

Sustaining sound financial performance and position of the UIF is dependent on investment intelligence in the market. The Fund’s investment portfolio is subject to market risks that we need to be concerned about. The reshuffling of cabinet in December 2015 and the recent Steinhoff debacle are two examples of such market risks. The two incidents have had a huge negative impact on the Fund’s investments, therefore it is imperative for our investment strategy to be subjected to constant review to ensure that we respond positively to economic conditions and maximise investment returns.

The success of any organisation is dependent largely on its people and systems. To monitor organizational performance, the UIF continues on improving the performance management system. In line with the government’s increased focus on managing performance information, monitoring and evaluation the UIF is implementing improved procedures to ensure compliance with the National Treasury and Auditor General recommendations.


It is hereby certified that this Annual Performance Plan:

• Was developed by the management of the Unemployment Insurance Fund under the guidance of the Minister of Labour, MN Oliphant and Deputy Minister, S P Holomisa;• Was prepared in line with the Strategic Plan of the Unemployment Insurance Fund; and• Accurately reflects the performance targets which the Unemployment Insurance Fund will endeavour to achieve given the resources made available in the budget for 2018/19 fiscal year.

H. MHLONGO

CHIEF DIRECTOR: CORPORATE SERVICES

SIGNATURE:__________________________

NB. MNCONYWACHIEF DIRECTOR: LABOUR ACTIVATION PROGRAMME

SIGNATURE:__________________________

F. PUZICHIEF FINANCIAL OFFICER

SIGNATURE:__________________________

J. KUMBICHIEF DIRECTOR: OPERATIONS

SIGNATURE:__________________________

OFFICIAL SIGN-OFF

8


P. HOLOMISA, MPDEPUTY MINISTER: LABOUR

SIGNATURE:__________________________

T. LAMATIDIRECTOR-GENERAL: LABOUR

SIGNATURE:__________________________

APPROVED BY:M. OLIPHANTMINISTER OF LABOUR

SIGNATURE:__________________________

T. MARUPINGUNEMPLOYEMENT INSURANCE COMMISSIONER

SIGNATURE:__________________________

9


PART A: STRATEGIC OVERVIEW

1. SITUATIONAL ANALYSIS

1.1 PERFORMANCE DELIVERY ENVIRONMENT.

There have been no changes to the UIF’s performance delivery environment. The Fund’s strategic and policy approach will continue to be derived from the policy directives of the Department of Labour, Minister of Labour’s Programme of Action and Performance Delivery Agreements. The performance target and indicators for the current financial year were aligned with the recommendations of the Auditor General and the National Treasury’s Framework for Managing Performance Information and the Framework for Annual Performance and Strategic Plans as issued by National Treasury.

This alignment has resulted in outputs, performance targets and indicators, meeting the recommended criteria of being SMART (Specific, Measurable, Achievable, Reliable and Time Bound). The performance indicators have also been improved to ensure that they meet the criteria of being Reliable, Well-Defined, Verifiable, Cost Effective, Appropriate and Relevant.

The Unemployment Insurance Board recommends to both the Minister (Executive Authority) and the Director General Labour (Accounting Authority) the approval of the Fund’s Strategic Plan and the Annual Performance Plan.

The Unemployment Insurance Board has overseen the process of planning and budget preparations.

1.2.1 VISION, MISSION, STRATEGIC OBJECTIVES, OUTPUTS, KEY PERFORMANCE INDICATORS, CRITICAL SUCCESS FACTORS & VALUES.

1.2 ORGANISATIONAL ENVIRONMENT

VISIONA caring, accessible and customer

centric UIF that contributes towards poverty alleviation

MISSIONThrough multiple channels, we will

deliver both financial and social relief, to the right person, at the right time, every

time.

VALUESTransparency, Mutual respect, Client-centered services, Integrity, Accountability, Team

work, Caring for our people

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STRATEGIC OBJECTIVES

CRITICAL SUCCESS FACTORS

OUTPUTS

Ensure financial

sustainability

Strengthen institutional

capacity of the Fund.

Improve service delivery

Collaborate with stakeholders

to improve compliance with

UIF Acts

Provide easy to use services

through multiple access points

Enhance employability of

UIF beneficiaries,

enable entrepreneurship and preserve jobs

Sound financial

management

Social responsible investment

80% of Social Responsible investment

100% of invoices

paid within 30 calendar days

after receipt by the UIF

Vacancy rate reduced to

≤ 10%

90% of benefits claims

processed within 15% working days

95% of new companies issued with registration

document within 2 working days

Free WI-FI in 126 sites

SAP release 1 implemented

65 000 new registered employers

250 000 new employees

registered with the Fund

450 000 beneficiaries provided with

learning and/or work place experience

90% of Training Lay-Off

Scheme approved within 20 working days

Maintain Staff establishment

Improve client service

Ease of doing business

Improved compliance

Improved Technology

Enhanced employability, preserve jobs.

11


12

1.2.2 CURRENT ORGANISATIONAL STRUCTURE

DIRECTORATE:RISK

MANAGEMENT

UNEMPLOYMENT INSURANCE COMMISSIONER

DIRECTORATE:INTERNAL AUDIT

CHIEFDIRECTORATE:CORPORATE

SERVICES

CHIEFDIRECTORATE:OPERATIONS

CHIEFFINANCIALOFFICER

CHIEFDIRECTORATE:

LABOURACTIVATION

PROGRAMME

Directorate:Compliance

Directorate:Provincial Support

Directorate: Operations

Directorate: Labour Activation

Programme


Programme

Directorate:Investment

Management and Actuarial Services

Directorate: Budget Expanditure and

Bank Reconciliation

Directorate: Supply Chain Management

Directorate: Income

Directorate: Financial Reporting


Programme

Directorate: Human Resource

Management

Directorate:Organisational Effectiveness

Directorate: Legal Services

Directorate: Policy Development, Strategic Planning,

Monitoring & Evaluation

Directorate:Information and Communication

Technology

Directorate:Board Services

Directorate: Communications and

Marketing


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1.2.3 ORGANISATIONAL STRUCTURE DESCRIPTION PER PROGRAMME.

A. PROGRAMME 1: ADMINISTRATIONProgramme purpose: To provide management, strategic and administrative support to the fund

OFFICE OF THE COMMISSIONERProvide strategicleadership and overall management ragarding the administration and overall operations of the Fund

CORPORATE SERVICESTo provide support and an enabling environment for the Fund to meet its strategic objectives through placing the right people at the right time.

CHIEF FINANCIAL OFFICERProvide financial governance on financial management and accounting services of the Fund.

INVESTMENT MANAGEMENTProvide financial governance on financial management and accounting services of the Fund.

SUPPLY CHAINMANAGEMENT AND AUXILIARY SERVICES•Enhance supply chain management processes and systems to be in line with the regulatory framework and governance best practices. •Provision of intergrated financial administration and supply chain management services •Records management; & •Assets facilities management.

EXPENDITURE, BUDGET, AND BANK RECONCILIATIONS•Creditor and expenditure management.•Claims payments; •Reconciliation of bank accounts; & •Intergated budget planning and management.

HUMAN RESOURCE MANAGEMENT•Training and development of staff; •Maintaining sound labour relations; •Promoting equality in the Fund; •Performance management; •Recruitment and selection; & •Provision of service condition and benefits.•Protection of vulnerable workers.

INTERNAL AUDITIndependently focus on reviewing the internal controls of the Fund; reviewing risk management, governance processes and programs of the Fund

RISKMANAGEMENTEnterprise wide risk management; and fraud investigations

COMMUNICATION & MARKETING•Provision of communication services;•Provision of marketing services; and •Advertising, branding and publications.

FINANCIAL REPORTING•Compilation and submission of the Annual Financial Statement and Auditor General as well as publication of AFS in the annual report. •Management of financial reporting; and •Provision of financial systems support.

LEGAL SERVICES•Provision of legal services

ORGANISATIONAL EFFECTIVENESS•Job design and evaluation;•Change management; and •Business process development and mapping

BOARD SERVICES•Enhance good governance of the organisation;•Board support and administration;•Compliance management & Governance;•Security management services. Policy management

INCOME MANAGEMENT•Management of revenue & debt collection process & management of payroll audits & enforcement.

INFORMATION & COMMUNICATION TECHNOLOGY•Manage the Funds projects; and Develop and implement ICT governance model.

UNEMPLOYMENT INSURANCE FUND ANNUAL PERFORMANCE PLAN FOR THE FINANCIAL YEAR 2018/19ABSA TOWERS, TSHWANE


B. PROGRAMME 2: BUSINESS OPERATIONS

C. PROGRAMME 3: LABOUR ACTIVATION PROGRAMME

Programme purpose: To collect contributions and pay benefits.

Programme purpose: Provide strategic leadership and guidance on the implementation of the Labour Activation Programmes.

The programme consists of the below sub-programmes:

Chief Directorate: Operations• Management and administration of benefits payments;• Management and administration of declaration processes;• Monitoring of provincial office performance;• Provision of Call Centre services; and• Registration of employers.

Chief Directorate: Labour Activation Programme• Develop strategies and policies to guide the monitoring of Labour Activation Programmes.• Maintain partnership and network with relevant stakeholders involved in Labour Activation Programmes.• Provide funding to the institutions identified with the responsibility of executing Labour Activation Programmes.

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2. REVISION TO LEGISLATIVE AND OTHER MANDATES

There have been no significant changes to the Unemployment Insurance Fund’s legislative and other mandates.


R3 882 481R3 505 600 R3 891 351 R4 122 217

Total Budget

3. OVERVIEW OF THE 2018/19 BUDGET AND MTEF ESTIMATES

3.1 EXPENDITURE ESTIMATES

Administrative Budget of the Unemployment Insurance Fund per Programme

Budget

PROGRAMME 1: ADMINISTRATION

TOTAL ADMINISTRATION BUDGET PER PROGRAMME

2017/2018(Revised Estimate) 2018/2019

R’000

R2 138 262

R’000

R1 844 206

2019/2020

R’000

R2 037 965

2020/2021

R’000

R2 154 648

Budget

PROGRAMME 2: BUSINESS OPERATIONS


R’000

R1 737 722

R’000

R1 658 270

2019/2020

R’000

R1 846 525

2020/2021

R’000

R1 960 331

Budget

PROGRAMME 3: LABOUR ACTIVATION PROGRAMME

2017/2018(Revised Estimate)

2017/2018(Revised Estimate)

2018/2019

2018/2019

R’000

R’000

R6 497

R’000

R’000

R3 124

2019/2020

2019/2020

R’000

R’000

R6 861

2020/2021

2020/2021

R’000

R’000

R7 238

16


OVERVIEW OF THE 2018/19 BUDGET AND MTEF ESTIMATES

R2 138 267

R1 737 722

R1 723 120

R14 602

R6 497

R6 497

R3 882 481

R1 844 206

R1 658 270

R1 647 980

R10 290

R3 124

R3 124

R3 505 600

R2 037 965

R1 846 525

R1 831 105

R15 420

R6 861

R6 861

R3 891 351

R2 154 648

R1 960 331

R1 944 063

R16 268

R7 238

R7 238

R4 122 217

Programmes

Programme 1: Administration

Programme 2:Business Operations

Grand Total forProgrammes:

Programme 3:Labour Activation Programmes

Strategic Objective:Ensure Financial Stability

Strategic Objective:Improve Service Delivery

Strategic Objective:Enhance employability of UIF beneficiaries, enable entreprneurship and preserve jobs.

Improve Compliance To TheUnemployment Insurance Act


R2 138 262R1 844 206

2019/2020

R2 037 965

2020/2021

R2 154 648

17


PART B: PROGRAMME AND SUBPROGRAMME PLANS 2018/19-2020/21 SERVICE DELIVERY OUTCOMES AND STARETEGIC GOALS

In the medium term, the UIF will contribute mainly on the following outcomes:

• Outcome 4: Decent employment through an inclusive economic growth; • Outcome 12: An efficient, effective and development oriented public service and an empowered and inclusive citizenship; and• Outcome 13: An inclusive and responsive social protection system.

The Fund will contribute mainly to the following strategic objectives of the Department of Labour:

• Contribute to decent employment creation (DOL strategic objective 1, Outcome 4);

• Strengthening social protection (DOL strategic objective 5, Outcome 13); and

• Strengthening institutional capacity of the Department of labour (DOL strategic objective 8, Outcome 12).

Unemployment Insurance Fund’s strategic objectives:

• Ensure financial sustainability (DOL strategic objective 8, Outcome 12);

• Strengthen institutional capacity of the Fund (DOL strategic objective 8, Outcome 12).

• Improve service delivery (DOL strategic objective 5, Outcome 13);

• Collaborate with stakeholders to improve compliance with UIF Acts (DOL strategic objective 3 & 5, Outcome 13);

• Provide easy to use services through multiple access points (DOL strategic objective 3 & 5, Outcome 13);and

• Enhance employability of UIF beneficiaries, enable entrepreneurship and preserve jobs (DOL strategic objective 6, Outcome 4);

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OUTPUT

Sound financial

management


Percentage of total

mandated Social

Responsible Investment committed

Percentage of Administrative expenditure (excluding

capex)maintained

10% 9.9% 11.1%(2038016/18239065x100) of admin

expenditureas at March

2017

≤ 15% by March 2018

≤ 15% by March 2018

≤ 15% by March 2018

≤ 15% by March 2018

Percentage of valid invoices paid within 30 calendar days after receipt

by the Fund

100% within 30 calendar days by March 2019

100% within 30 calendar days

by March 2020

100% within 30 calendar days by March 2021

New Indicator New Indicator New Indicator New Indicator

85% (R7 930m) of the total

mandated So-cial Responsible

Investment invested by March 2014

68% ( Total invested/

Committed R7 688m)

85% (R 20 935 691

043/24704 553x100) of

total mandated social responsible investment com-mitted by March

2017.

80% by March 2018

80% by March 2019

80% by March 2020

80% by March 2021

ESTIMATEDPERFORMANCE

2014/15 2015/16 2016/17 2017/18 2018/19 2019/20 2020/21

AUDITED/ACTUAL PERFORMANCE MEDIUM TERM TARGETSPROGRAMME

PERFORMANCEINDICATOR

4. PROGRAMME PERFORMANCE INDICATORS 4.1 STRATEGIC OBJECTIVE AND ANNUAL TARGETS FOR MTEF AND APP 2018/2019


Purpose: provide management, strategic and administrative support services to the Fund.

There are no changes to the budget structure.

Strategic Objective 1: Ensure Financial Sustainability

Strategic Objective 2: Strengthen Institutional Capacity of The Fund

OUTPUTESTIMATED

PERFORMANCE

2014/15 2015/16 2016/17 2017/18 2018/19 2019/20 2020/21



Staffestablishment

maintained

Percentage of vacancy rate

reduced.

14.7% 20.3% 22.9% Vacancy rate reduced by

10% byMarch 2018 (Baseline is 22.9 as at 31

Mach 2017)

Vacancy rate reduced to≤ 10% by

March 2019


March 2020


March 2021

19



Purpose: To collect contributions and pay benefits.


Strategic Objective 3: Improve Service Delivery

OUTPUTESTIMATED

PERFORMANCE

2014/15 2015/16 2016/17 2017/18 2018/19 2019/20 2020/21



Improved Client Service

Ease of doing business

Percentage of valid claims (Unemployment benefit) with complete information approved

or rejected within specified time frames.

90% within 15 working

days by March 2018


days by March 2019


days by March 2020


days by March 2021

90% within 5 working days

by March 2018

95% of payment

documents processed

within within 7 working days of receipt by

31 March 2018


by March 2018


days by March 2019


by March 2019

90% within 2 working days by 31 March

2018


by March 2019


by March 2019


by March 2020


by March 2021

100% within 2 working days by

March 2020


by March 2021


by March 2019


by March 2020


by March 2020


days by March 2020


by March 2021


by March 2021


by March 2021

Percentage of valid claims (In-service

benefits; Maternity, illness and adoption

benefits) with complete information approved

or rejected within specified time frames.

Percentage of valid claims (Deceased

benefit) with complete information approved or

rejected within specified time frames.

Percentage of benefit payment documents created after receipt within specified time

frame.

Percentage of new companies created

with a registration document

(UI54) within 2 working days.

Percentage of applications with

complete information issued with compliance certificates or tender

letter within 10 working days

92%

91% 82% 89%

Newindicator

Newindicator

Newindicator

Newindicator

Newindicator

Newindicator

Newindicator

Newindicator

Newindicator

Newindicator

90% 84%

88% 87%

89%

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Strategic Objective 4: Collaborate With Stakeholders To Improve Compliance With UIF Acts

Strategic Objective 5: Provide Easy To Use Services Through Multiple Access Points

OUTPUTESTIMATED

PERFORMANCE

2014/15 2015/16 2016/17 2017/18 2018/19 2019/20 2020/21



Number of newly registered

employers per year

Number of newly registered

employees with the Fund.

New indicator

4 % (61,198) by March 2015.

3.49% (53 261) by March 2016.

58 531 by March 2017

60 000 by March 2018

65 000 by March 2019

250 000 by March 2019

70 000 by March 2020

250 000 by March 2020

75 000 by March 2021

250 000 by March 2021

New indicator New indicator New indicator

Improved compliance

OUTPUTESTIMATED

PERFORMANCE

2014/15 2015/16 2016/17 2017/18 2018/19 2019/20 2020/21



Number ofprovincial sites upgraded with free Wi-Fi toaccess UIFsystems.

Integrated claims management

System (ICMS) implemented.

New indicator

New indicator 126 provincial sites by March

2019

Develop, test and deploy release 1 by March 2019

50 provincial sites by March 2020

Develop, test and deploy release 2 by March 2020

50 provincial sites by March 2021

Implement in all provinces by

March 2021

New indicator

New indicator

New indicator

New indicator

New indicator

New indicator

Improved Technology

21


PROGRAMME 3: LABOUR ACTIVATION PROGRAMMES

Purpose: To enhance employability.


Strategic Objective 6: Enhance Employability of UIF Beneficiaries, EnableEntrepreneurship and Preserve Jobs.

New indicator New indicator

OUTPUTESTIMATED

PERFORMANCE

2014/15 2015/16 2016/17 2017/18 2018/19 2019/20 2020/21



Enhanced employability

Job preservation

Number of UIF beneficiariesprovided with

learning and/or work placeexperience

opportunities

Percentage of Training Lay-off Scheme (TLS) applications

with complete information approved or

rejected by the delegated

authority within specified

timeframes.

5 applications received 2

approved and 3 rejected within 30

days.

5084 UI beneficiaries/ In-training by March 2015

3258 UIbeneficiaries

trained

6 000 5 000 450 000 by March 2019

1 000 000 by March 2020

2 000 000 by March 2021


March 2018.


March 2019


March 2020


March 2021

22


4.2 QUARTERLY PERFORMANCE TARGETS FOR 2018/2019


Strategic Objective 1: Ensure Financial Sustainability

Strategic Objective 2: Strengthen Institutional Capacity of The Fund

OUTPUT

OUTPUT

QUARTELY TARGETS

QUARTELY TARGETS

PROGRAMME PERFORMANCE INDICATOR


REPORTINGPERIOD

REPORTINGPERIOD

ANNUALTARGET

ANNUALTARGET

1st

1st

2nd

2nd

3rd

3rd

4th

4th

2018/19

2018/19

Percentage of administrative expenditure (excluding capex) maintained

≤ 15% byMarch 2019

100% within 30 calendar days by

March 2019

100% within 30 calendar

days

≤ 15% ≤ 15% ≤ 15% ≤ 15%


days


days


days

80% by March 2019

Vacancy rate reduced to ≤ 10% by March 2019

20%

Reducevacancy rate

to ≤ 15%

Reducevacancy rate

to ≤ 11%

40%

Reduce vacancy rate

to ≤ 13%

Reduce vacancy rate

to ≤ 10%

60% 80%

1.1 QUARTERLY

Sound financial management


Staffestablishment

maintained

QUARTERLY

QUARTERLY

QUARTERLY

1.2

1.3

1.4

Percentage of valid invoices paid within 30 calendar days after receipt by the Fund.

Percentage of total mandated socialresponsible investment committed

Percentage of vacancy rate reduced.

23





March 2019


March 2019


March 2019


March 2019


March 2019


March 2019

























Improved Client Service

QUARTERLY

QUARTERLY

QUARTERLY

QUARTERLY

QUARTERLY

QUARTERLY

2.1

2.2

2.3

2.4

2.5

2.6

Percentage of valid claims (Unemployment benefit) with complete information approved

or rejected within specified time frames

Percentage of valid claims (In-servicebenefits; Maternity, illness and

adoption benefits) with completeinformation approved or rejected within

specified time frames

Percentage of valid claims (Deceasedbenefit) with complete information approved

or rejected within specified time frames

Percentage of benefit payment documents created after receipt within specified time

frame.

Percentage of new companies created with a registration document (UI54) within 2

working days.

Percentage of applications with complete information issued with compliance

certificates or tender letter within 10 working days

OUTPUT QUARTELY TARGETSPROGRAMME PERFORMANCE INDICATOR

REPORTINGPERIOD

ANNUALTARGET

1st 2nd 3rd 4th2018/19



REPORTINGPERIOD

ANNUALTARGET

1st 2nd 3rd 4th2018/19

Ease of Doing Business

24


Strategic Objective 4: Collaborate with Stakeholders To Improve Compliance With UIF Acts

Strategic Objective 5: Provide Easy To Use Services Through Multiple Access Points

OUTPUT

OUTPUT

QUARTELY TARGETS

QUARTELY TARGETS



REPORTINGPERIOD

REPORTINGPERIOD

ANNUALTARGET

ANNUALTARGET

1st

1st

2nd

2nd

3rd

3rd

4th

4th

2018/19

2018/19

Improvecompliance

ImprovedTechnology

65 000 by March 2019

126 provincial sites by March

2019

250 000 by March 2019

Develop, test and deploy

release 1 reports by March 2019

15 000

32

60 000

Reports requirements

and specification

confirmed and signed off

20 000

48

80 000

Developed and tested

reports

15 000

20

60 000

Release 1Go - Live

15 000

26

50 000

Post Go- Live support and maintenance

QUARTERLY

QUARTERLY

QUARTERLY

QUARTERLY

2.7

2.9

2.8

2.10

Number of newly registered employers per year

Number of provincial sites upgraded with free Wi-Fi to access UIF systems

Number of newly registered employees by the Fund

Integrated claims management System (ICMS) implemented

25



REPORTINGPERIOD

ANNUALTARGET

1st 2nd 3rd 4th2018/19

Enhanced employability,

enabled entrepreneurship

and preserved jobs

Job preservation

450 000


March 2019

10 000





300 000 100 000 40 000QUARTERLY

QUARTERLY

3.1

3.2

Number of UIF beneficiaries provided with learning and/or work place experience

opportunities

PROGRAMME 2: LABOUR ACTIVATION PROGRAMMES

Strategic Objective 6: Enhance Employability of UIF Beneficiaries, Enable Entrepreneurship and Preserve Jobs

26

Percentage of Training Lay-off Scheme (TLS) applications with complete

information approved or rejected by the delegated authority within specified

timeframes.


27


Indicator title Percentage of Administrative expenditure ( excluding capex) maintained

Short definition Measure the administrative expenditure as a percentage of revenue.

Purpose/importance To maintain administrative expenditure at ≤ 15% of revenue

Source/collection of data Monthly Financial Statement and Trial BalanceEvidence to be submitted Signed calculation of administrative expenditure (exculding capex)

as a percentage of revenue in a PDF formatMethod of calculation Total administration expenditure (breakdown of all figures) divided

total revenue multiplied by 100%Data limitations None

Type of indicator Output

Calculation type Non-cumulative

Reporting cycle Quarterly

New indicator No

Desired performance Administration expenditure to be ≤ 15%

Indicator responsibility Chief Financial Officer

ANNEXURE A

TECHNICAL INDICATOR DESCRIPTIONS: PROGRAMME 1.

1.1

1.2Indicator title Percentage of valid invoices paid within 30 calendar days after

receipt by the Fund.Short definition Measures the percentage and turnaround time to pay suppliers

with valid invoices. (Valid invoice means certification of the invoice by the SCM. All valid invoices paid within 30 days of receipt as per PFMA and Treasury Regulations.

Purpose/importance To pay all valid invoices in compliance with the PFMA and Treasury Regulations

Source/collection of data Computron financial system – AP Trade sub-moduleEvidence to be submitted Age analysis report from the financial systems and signed off

summary of age invoices in a PDF format.Method of calculation Count the number of invoices paid within 30 days divided by the

number of invoices received by the fund multiplied by 100.Invoice received date by the Fund (SCM) (As per date stamp)

Data limitations NoneType of indicator OutputCalculation type Non-cumulativeReporting cycle QuarterlyNew indicator NoDesired performance Compliance with Prescripts by paying valid invoices within 30 daysIndicator responsibility Chief Financial Officer

28


1.3

Indicator title Percentage of vacancy rate reduced.Short definition Percentage of vacant funded posts on the establishment of the

Unemployment Insurance Fund reducedPurpose/importance To reduce the vacancy rate of the Fund

Source/collection of data Persal systemEvidence to be submitted Persal report as on the last day of the month

Method of calculation Vacancy rate = total number of funded vacant posts divided by the total staff complement multiplied by 100

Data limitations None


Calculation type Cumulative


New indicator Yes

Desired performance Vacant funded posts on the establishment of the Unemployment Insurance Fund reduced to ≤ 10% by March 2019

Indicator responsibility Chief Director: Corporate Services

Indicator title Percentage of total mandated social responsible investment committed

Short definition Percentage of the approved asset allocation committed in a social responsible investment. This is the percentage of the total market value of the Fund’s portfolio as at the beginning of the financial year. Closing balance as at 31 March 2017 multiplied by 20% = mandated social responsible investment.Committed means a specific amount of money budget for particular project.

Purpose/importance Tracks how much of the fund’s total investments are committed to achieve a desired level of social impact.

Source/collection of data Investment report from Public Investment CorporationEvidence to be submitted Signed report of the transferred amount in a PDF format and proof

of payment dated within the period under review.Method of calculation Mandated social responsible investment multiplied by 80% = the

annual amount to be invested.Cumulative amount invested for the period under review divided by mandated social responsible investment multiplied by 100.





New indicator No

Desired performance 80% of total mandated social responsible investment committed

Indicator responsibility Chief Financial Officer

1.4

29


Indicator title Percentage of valid claims (Unemployment benefit) with complete information approved or rejected within specified time frames.

Short definition A percentage of total valid claims with complete information received are approved or rejected within 15 working days (excluding weekends and public holidays).

Purpose/importance The indicator tracks how long it takes to approve or reject a valid claim with complete information.

Source/collection of data SIYAYA operations system/Oracle Evidence to be submitted ICT PDF report

Method of calculation Number of valid claims with complete information approved or rejected within 15 working days (excluding weekends and public holidays) divided by total number of valid claims with complete information received for the period multiplied by 100. Counting will be done based on the following two scenarios:

I: If the employment history/last supporting document receipt date is after application date, we use the employment history/last supporting document receipt date to calculate the turnaround time.II: If the employment history/last supporting document receipt date is before or equal to the application date, we use the application date to calculate the turnaround time.

Data limitations Access to system limited to certain IT personnel.




New indicator No

Desired performance 90% of total valid claims with complete information received are approved or rejected within 15 working days (excluding weekends and public holidays).

Indicator responsibility Chief Director: Operations

Indicator title Percentage of valid claims (In-service benefits; Maternity, illness and adoption benefits) with complete information approved or rejected within specified time frames.




TECHNICAL INDICATOR DESCRIPTIONS: PROGRAMME 2

2.1

2.2

30


Indicator title Percentage of valid claims (Deceased benefit) with complete information approved or rejected within specified time frames.














New indicator No



2.3

31




New indicator No



Indicator title Percentage of benefit payment documents created after receipt within specified time frame.

Short definition What percentage of payment documents are created within 6 working days (excluding weekends and public holidays) of receipt.Payment documents are: UI-3; UI-4; UI-5; UI-6A

Purpose/ importance Benchmark enables the fund to track the created of payment documents after receipt

Source/collection of data Siyaya Operating system/Oracle and SAPEvidence to be submitted ICT PDF report

Method of calculation The payment documents receipt date is compared against the capture date. The numbers of payments documents created on the siyaya system within six working days (excluding weekends and public holidays) from receipt date are divided by total number of payment documents received for the period and the quotient is multiplied by 100.(total payments documents excludes documents for first payments in respect of In Service benefits, Death Benefits and re-issues)

Data limitations Access is limited to certain personnel




New indicator Yes

Desired performance 95% of payment documents are created within 6 working days (excluding weekends and public holidays) of receipt.


Indicator title Percentage of new companies created with a registration document (UI54) within 2 working days.

Short definition Tracks the percentage and turnaround time to create registration document (UI54) to new companies after receipt of documents. Registration document is a UI 54 document.

Purpose/importance Capture or create registration document to new companies on time.

2.4

2.5

32


Indicator title Percentage of applications with complete information issued with compliance certificates or tender letter within 10 working days

Short definition Issue compliance certificates or tender letters for applications received that contain complete information, e.g. all required documentation provided and declarations and contributions are up to date on the date of application. The response can either be compliant or non-compliant.

Purpose/importance To issue compliance certificates or tender letters to complying applicants within the stipulated turnaround time.

Source/collection of data Allocation registersEvidence to be submitted Manual registers

Method of calculation The number of applications with complete information issued with compliance certificates or tender letter within 10 working days divided by the total applications with complete information received multiplied by 100. Counting starts from the date (working Date) an email is received by the fund until the date the certificate or letter is issued.





New indicator Yes

Desired performance 90% of applications with complete information issued with compliance certificates or tender letter within 10 working days


Source/collection of data Siyaya Operating system/Oracle Evidence to be submitted ICT PDF report

Method of calculation The number of new companies created with a registration document (UI54) within 2 working days after receipt of complete documents divided by the total number of new companies created issued with registrations documents multiplied by 100. The counting will start from Receipt date until the create date on the system.

Data limitations Access is limited to certain personnel




New indicator No

Desired performance 95% of new companies with complete information created with registration document within 2 working days.


2.6

33


Indicator title Number of newly registered employers per yearShort definition Number of new employers registered with the Fund for the first

timePurpose/importance Track the number of new employers registered with the Fund

Source/collection of data SIYAYA System//Oracle Evidence to be submitted ICT PDF report

Method of calculation A count of new employers registered with the Fund for the first time during the financial year (1 April to 31 March)



Calculation type Non-Cumulative


New indicator No

Desired performance 65 000 newly registered employers


Indicator title Number of newly registered employees with the FundShort definition The indicator is to determine the coverage of employees in the

country registered by the UIFPurpose/importance The indicator tracks the number of people registered by

Unemployment Insurance as defined in the UI Act.Source/collection of data Siyaya system/Oracle Evidence to be submitted ICT PDF report

Method of calculation A count of new employees registering with the Fund for the first time during the financial year (1 April to 31 March).

Data limitations Employer declarations




New indicator Yes

Desired performance 250 000 newly registered employees


Indicator title Number of provincial sites upgraded with free Wi-Fi to access UIF systems

Short definition The indicator is about the network upgrade at provincial sites which includes (labour centres, visiting points and satellite offices).

Purpose/importance To improve network speed when accessing UIF systems.

Source/collection of data Test certificates and Sign-off certificates from provinces.

2.7

2.8

2.9

34


Indicator title Integrated claims management System (ICMS) implementedShort definition Implementation of SAP: Enterprise Resource Plan system

Purpose/importance To improve turnaround time of processing claims

Source/collection of data SAP:ERP systemEvidence to be submitted Finance reports generated from the SAP:ERP system

Method of calculation None

Data limitations Procurement systems and business not supporting / committing on a go-live date.




New indicator Yes

Desired performance Integrated claims management System (ICMS) implemented

Indicator responsibility Director: ICT

Indicator title Number of UIF beneficiaries provided with learning and/or work place experience opportunities

Short definition Learning and/or work place experience opportunities provided to:• ≥ 70% UIF contributors; and• ≤ 30% non- UIF contributors.

Purpose/importance To support employment intervention measures (include but not limited to Enhancing employability jobs preservation and enterprise development etc.)

Source/collection of data Different stakeholder information (external e. g. TVET, SETAs, etc.)

Evidence to be submitted Sign-off certificate per each site approved by the Chief Director Provincial Operations/ Provincial representative

Method of calculation Simple countData limitations Procurement processes

Type of indicator Activity

Calculation type Non-cumulative


New indicator Yes

Desired performance Upgrade 126 ICT infrastructures on provincial sites and free WiFi to access UIF systems.

Indicator responsibility Director: ICT

2.10

TECHNICAL INDICATOR DESCRIPTIONS: PROGRAMME 3.

3.1.

35


Evidence to be submitted Enrolment or placement list from the contracted institution’s system

Method of calculation Count the number of UIF beneficiaries provided with learning and/or work place experience opportunities as per approved project in line with the 70%/30% split.





New indicator Yes

Desired performance 450 000 UIF beneficiaries provided with learning and/or work place experience opportunities

Indicator responsibility Chief Director: Labour Activation

3.2

Indicator title Percentage of Training Lay-off Scheme (TLS) applications with complete information approved or rejected by the delegated authority within specified timeframes.

Short definition Percentage of complete applications from companies approved or rejected by the delegated authority within 20 working days. Complete information is when CFO has supported the recieved information.

Purpose/importance The indicator tracks the percentage and turnaround time to approve or reject the applications for approval by delegated authority. The approval of TLS applications will assist companies in preserving jobs.

Source/collection of data Checklist and the supporting documents.Evidence to be submitted Signed by delegated authority.

Method of calculation Number of TLS applications with complete information approved or rejected by delegated authority within 20 working days divided by total number of complete applications recieved multiplied by 100. Counting of 20 days commence upon the CFO’s signature to the approval / reject by delegated authority.

Data limitations Turnaround time to get required documentation from the company and the endorsement from the SETA.




New indicator Yes

Desired performance 90% of applications with complete information approved / rejected within 20 working days.

Indicator responsibility Chief Director: LAP

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UNEMPLOYMENT INSURANCE FUND Annual Performance Plan€¦ · vision as the UIF is to be a caring,...

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