T and Annual Perormane Plan 201718 UNEMPLOYMENT INSURANCE FUND · T and Annual Perormane Plan 201718 UNEMPLOYMENT INSURANCE FUND 1 FOREWORD BY MINISTER The right of access to social

MTEF and Annual Performance Plan 2017/18 | UNEMPLOYMENT INSURANCE FUND

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UNEMPLOYMENT INSURANCE FUND

Final Annual Performance Plan

MTEF and Annual Performance Plan 2017/18

January 2017


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First published in 2017, by the Unemployment Insurance Fund (UIF)

Copyright © 2017 UIF Compiled by Chief Directorate: Communications Pretoria, South Africa

ISBN: 978-0-621-45168-9


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TABLE OF CONTENTS

Foreword by Minister 1

Foreword by the Accounting Authority 2

Commissioner’s Statement 3

Official sign off 5

PART A: STRATEGIC OVERVIEW 1. Updated Situational Analysis 7

1.1 Performance Delivery Environment 7

1.2 Organisational Environment 8

2. Revisions to Legislative and Other mandates 10

3. Overview of the 2017/18 Budget and MTEF Estimates 11

3.1 Expenditure Estimates 11

PART B: PROGRAMME AND SUB-PROGRAMME PLANS 2017/18-2019/20 SERVICE DELIVERY OUTCOMES AND STRATEGIC GOALS 4. Programme Performance Indicators 14

4.1 Strategic Objective and annual targets

for MTEF and APP 2017/2018 14

4.2 Quarterly Performance Target for 2017/18 18

TECHNICAL INDICATOR DESCRIPTIONS (ANNEXURE A) 22


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FOREWORD BY MINISTER

The right of access to social security is widely recognised in numerous international and regional human rights instruments. The most widely cited are Section 27 & 28 of our Constitution, the ILO Convention No. 102 of 1952 and the 1955 Freedom Charter. In addition, the International Covenant on Economic, Social and Cultural Rights provides for the right of access to social security in articles 9, 10 and 11.5. Article 9 makes provision for social security as a whole, while Article 10 addresses social security in the context of the protection of the family and benefits covering maternity leave for women.

It can be argued therefore that social security is indeed an internationally recognised fundamental right. It is also the most reliable way of strengthening and supporting people’s livelihoods. The Unemployment Insurance Fund is but one instrument, an important one at that, towards the alleviation of poverty and it is a means and not an end in itself.

During the 2008/9 global economic crisis, from which South Africa and many other countries have not yet fully recovered, close to a million workers lost their jobs in the South African economy. This was compounded by the fact that already South Africa had and continues to have high levels of unemployment and its two cousins Poverty and inequality. Studies have also found that if a worker loses a job in South Africa these days, it takes, everything being equal, about twelve months to get another job. It was against this background that we took steps to expand the reach of social security, by the recent introduction of new instruments in the Unemployment Insurance Act to cater for any eventuality given the uncertainty in global economic space.

Unemployment Insurance should be understood for what it is, it is an insurance to cater for instances where workers’ income are impacted on negatively. Just imagine what could have happened if the UIF did not have a healthy reserves during the 2008/9 Global economic crisis, one million workers and their dependants would have been thrown into

absolute crisis. If one takes the truth that each employed worker supports at least six dependents, it would have meant that about 6 million citizens would have been thrown into deep subsistence income crisis.

We thank the two houses of Parliament for their support and contribution in dealing with the recent Unemployment Insurance Amendment Bill.

This Annual Performance Plan finds expression in the Constitution of our country, the National Development Plan and the Government’s mission of making this country a better place for all who live in it and we are indeed on track in this regard. We can only get better in what we do.

MN Oliphant, MPMinister of Labour


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INTRODUCTION

The Unemployment Insurance Fund (UIF) is a public entity of the Department of Labour and is one of the key social security agencies in the country. In pursuing its mandate, the UIF’s annual performance plan is guided by its strategic plan which reflects plans for the periods 2017/18 – 2021/22.

OVERVIEW OF THE UIF STRATEGY

In the next five years UIF will pursue the following strategic objectives:

• Improve financial management;• Improve service delivery;• Improve compliance to the UIF acts; and • Fund poverty alleviation schemes.

These strategic objectives were derived from the four strategic outcome targeted over the five year strategic plan period which are informed by three of the 14 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

• 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 organisation is also keenly aware that in order to achieve its strategic objectives it has to collaborate with key strategic partners such as the South African Revenue Services, employers’ organisations, labour unions and the community. Harnessing and improving the above relationships is a continuous effort by the UIF to improve service delivery.

The UIF’s relationship with SARS, for example, continues to yield good results to the benefit of the organisation’s beneficiaries and South Africans in general. Persistent engagements ensure that this relationship grows to higher levels ensuring adequate cover for qualifying UIF beneficiaries.

T LamatiDirector-General

FOREWORD BY THE ACCOUNTING AUTHORITY


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COMMISSIONER’S STATEMENT

The Unemployment Insurance Fund (hereafter referred to as “the Fund”) has in the last few years contributed greatly to poverty alleviation by also extending its coverage to vulnerable workers. We have managed to transform the organisation by improving the internal control environment. This can be attributed to good work done by all internal stakeholders including the UI Board, Management and Staff. This is reflected in the nine consecutive unqualified audit reports that the Fund has obtained over the last nine years.

Our vision as the Unemployment Insurance Fund is to strive to alleviate poverty in the country by providing effective short-term unemployment insurance to all workers who qualify for unemployment and related benefits. In the next five years the Fund will continue to pursue the following strategic objectives:

• Improve financial management;• Improve service delivery;• Improve compliance to unemployment

insurance Acts; and• Fund Poverty Alleviation Schemes.

These strategic objectives are derived from the four strategic outcomes targeted over the five year strategic plan period which were informed by three of the 14 government outcomes; (i) decent employment through inclusive economic growth and (ii) An efficient, effective and development orientated public service and an empowered and inclusive citizenship, (iii) An inclusive and responsive social protection services. The Fund has targeted the following strategic outcomes oriented goals:

• Improve collection of revenue from employers

• Improve payment of benefits to beneficiaries

• Participate in government initiatives of creating and sustaining decent employment

• Effective administration of the Fund’s operations

From 2009/2010 the Fund has focused on the funding of initiatives or projects that are aimed at alleviating poverty and in general assisted employers during the global economic recession such as the Training Lay-off Scheme and the Training of the Unemployed. The Fund used internal capacity in cooperation with the Department of Labour and other Departments. Partnerships are formed with government entities such as Productivity SA, Industrial Development Corporation (IDC), the various SETA’s and the Public Investment Corporation (PIC) in selecting and funding feasible schemes.

The continuous updating of the Fund’s employer and employee database is crucial in ensuring a high degree of accuracy and most importantly the integrity of our data. Renewed emphasis is placed on this with projects such as the Call Centre upgrade and introduction of secured forms through the U-filing enhancements. Remarkable achievements should come from these projects over time in addressing the challenge posed by employer information gap, the increase of the number of registered employers on our database and service delivery improvement.

We have experienced a reduction in the growth rate of overpayments (“work and draw”) as a result of improved systems and controls that have been implemented. Although our systems are able to detect these overpayments based on employment declarations received from employers, the challenges remain the effective prevention and minimisation of these overpayments. In addition to the enhancements of the U-filing


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system to reduce the burden of manual employee information submission, the Fund will continue to focus on improving mechanisms used for the recovery of overpayments.

Sustaining sound financial performance and position of the Fund 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. Our investment strategy shall 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 Fund will focus on improving our performance management system and implementing the Work Place Skills Plan of the Fund to ensure improvement of skills of staff.

In line with the government’s increased focus on managing performance information, monitoring and evaluation the Fund is implementing improved procedures to ensure compliance with the National Treasury and Auditor General recommendations.


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OFFICIAL SIGN-OFF

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.• Accurately reflects the performance targets which the Unemployment Insurance Fund will

endeavour to achieve given the resources made available in the budget for the 2017/18 fiscal year.

HD MhlongoChief Director: Corporate Services

Signature:_________________________

NB Mnconywa Chief Director : LAP

Signature:_________________________

F Puzi Chief Financial Officer

Signature:_________________________

J KumbiActing Chief Director: Operations

Signature:_________________________

T Maruping Unemployment Insurance Commissioner

Signature:_________________________

T Lamati Director-General:Labour

Signature: _________________________

S P Holomisa, MPDeputy Minister: Labour

Signature: _________________________

Approved by:

MN Oliphant, MP Minister of Labour

Signature:_________________________

Date: 28 February 2017


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PART A STRATEGIC OVERVIEW

1. Updated Situational Analysis

1.1 Performance Delivery Environment

There have been no changes to the Unemployment Insurance Fund’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. The Fund has aligned this Annual Performance Plan to the requirement of the Framework on 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 of the Department of 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.


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1.2

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1.2.2 Office of the Commissioner The focus of the office is to provide strategic leadership and overall management regarding the administration and overall operations of the Fund. The office is complemented by the following divisions:

1.2.2.1 Chief Directorate: Labour Activation Programmes

• Management of special project sand active labour market programmes

1.2.2.2 Chief Directorate: Financial Management

The focus of the office is to provide financial governance on financial management and accounting services of the Fund. The CFO’s office is complemented by five sub-divisions namely:

a. Financial Reporting

• Management of financial reporting; and• Provision of financial systems support

b. Investment and Actuarial Services

• Investment management and treasury services

c. Income Management

• Management of revenue and debt collection processes; and

• Management of payroll audits & enforcement.

d. Expenditure, Budgets and Bank Reconciliations

• Creditor and expenditure management;• Claims payments;• Reconciliation of bank accounts; and• Integrated budget planning and

management.

e. Supply Chain Management and Auxiliary Services

• Provision of integrated financial administration and supply chain management services;

• Records Management; and • Asset and Facilities Management.

1.2.2.3 Chief Directorate: Corporate Services

The purpose of Cooperate Services function is to provide support and an enabling environment for the Fund to meet its strategic objectives through placing the right people at the right time. It also ensures implementation of employee engagement strategies and initiatives.

a. Human Resource Management

• Training and development of staff;• Maintaining sound labour relations;• Promoting equality in the Fund;• Performance management;• Recruitment and selection; and • Provision of service condition and benefits.

b. Organisational Effectiveness

• Job design and evaluation;• Change Management; and• Business Process development and

mapping.

c. Board Services

The focus of the office is to provide strategic Support Services to the Board and the Fund. The key functions are:

• Enhance good governance of the organisation;

• Board support and administration;• Compliance management &

Governance;• Policy management; and• Security management services.

d. Strategic Planning, Monitoring and Evaluation

• Strategic planning; and• Monitoring and evaluation.

e. Communications and Marketing

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


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1.2.2.4 Chief Directorate: Operations

The focus of the office is to support the operations of the Fund.

• 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.

1.2.2.5 Directorate: Information and Communication Technology

The focus of the office is to provide strategic Information and Communication Technology to the Fund and the purpose is to:

• Manage the Fund’s projects; and • Develop and implement ICT governance

model

1.2.2.6 Directorate: Risk Management

• Enterprise wide Risk management; and• Fraud investigations.

1.2.2.7 Directorate: Legal services

• Provision of legal services

1.2.2.8 Directorate: Internal Audit

• Independently focus on reviewing internal controls of the Fund;

• Reviewing risk management and programs of the Fund; and

• Reviewing governance processes of the Fund.

1.2.2.9 Provincial Offices Set-up

The operations performed at provincial level but supported at the Fund’s Head Office are as follows:

• Registration of employees; • Declaration management;• Claims management;• Overpayment debt Management;• Appeals; and• Financial Administration (budget and

expenditure).

2. Revisions to Legislative and Other mandates

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


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3. Overview of the 2017/18 Budget and MTEF Estimates

3.1 Expenditure Estimates

Administrative Budget of the Unemployment Insurance Fund per Programme

Total Administration Budget Per Programme

Program 1: Administration

Budget

2016/2017(Revised Estimate) 2017/18 2018/2019 2019/2020

R’000 R’000 R’000 R’000

1 405 837 1 538 463 1 347 852 1 430 876

Programme 2: Business Operations

Budget


R’000 R’000 R’000 R’000

1 311 796 1 597 705 1 707 775 1 823 781

Programme 3: Labour Activation Programmes

Budget


R’000 R’000 R’000 R’000

3 591 2 627 2 782 2 937

Total Budget


R’000 R’000 R’000 R’000

2 721 224 3 138 795 3 058 409 3 257 594

Overview of the 2017/18 Budget and MTEF Estimates

Programmes 2016/17R’000

2017/18R’000

2018/19R’000

2019/20R’000

Programme 1: Administration 1 405 837 1 538 463 1 347 852 1 430 876 Strategic Objective:

- Improve financial management1 405 837 1 538 463 1 347 852 1 430 876

Programme 2: Business Operations 1 311 796 1 597 705 1 707 775 1 823 781 Strategic Objective:

- Improve service delivery921 701 1 186 445 1 272 252 1 363 869

- Improve compliance to Unemployment Insurance Acts

390 095 411 260 435 523 459 912

Programme 3: Labour Activation Programmes 3 591 2 627 2 782 2 937

Strategic Objective:Fund Poverty Alleviation Schemes

3 591 2 627 2 782 2 937

Grand total Programmes 2 721 224 3 138 795 3 058 409 3 257 594


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PART B PROGRAMME AND SUB-PROGRAMME PLANS 2017/18-2019/20

SERVICE DELIVERY OUTCOMES AND STRATEGIC GOALS

In the medium term, the UNEMPLOYMENT INSURANCE Fund will contribute mainly on the following outcomes:

• Outcome 4: Decent employment through an inclusive economic growth; and• Outcome 12: An efficient, effective and development oriented public service and an

empowered and inclusive citizenship.• 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)• Strengthening institutional capacity of the

Department of labour (DOL strategic objective 8, Outcome 12)

Unemployment Insurance Fund’s strategic objectives

• Improve financial management (DOL strategic objective 8, Outcome 12);• Improve service delivery (DOL strategic objective 5, Outcome 13);• Improve compliance (DOL strategic objective 3 & 5, Outcome

13); and• Fund poverty alleviation schemes (DOL strategic objective 1, Outcome 4)


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rtifi

ca

te.

N/A

N/A

N/A

N/A

90%

with

in 2

w

ork

ing

da

ys b

y 31

M

arc

h 2

018

95%

with

in 2

w

ork

ing

da

ys b

y 31

M

arc

h 2

019

90%

with

in 1

w

ork

ing

da

y b

y 31

Ma

rch

202

0


16

Pro

gra

mm

e 2

: Bus

ine

ss o

pe

ratio

ns (

co

ntin

ued

)

Purp

ose

: To

co

llec

t c

on

trib

utio

ns

an

d p

ay

be

ne

fits.

The

re a

re n

o c

ha

ng

es

to t

he

bu

dg

et

stru

ctu

re.

Stra

teg

ic O

bje

ctiv

e 3

: Im

pro

ve c

om

plia

nce

to U

nem

plo

yme

nt In

sura

nce

Ac

ts

Out

put

Pro

gra

mm

e

Perfo

rma

nce

In

dic

ato

r

Aud

ited

/Ac

tua

l Pe

rform

anc

eEs

tima

ted

Pe

rform

anc

eM

ed

ium

Te

rm T

arg

ets

2013

/14

2014

/15

2015

/16

2016

/17

2017

/18

2018

/19

2019

/20

Imp

rove

d

co

mp

lianc

e

3.1

Nu

mb

er

of n

ew

ly

reg

iste

red

e

mp

loye

rs p

er

yea

r.

4%(6

1 19

8)

31 M

arc

h 2

013:

1,40

8,20

5

31 M

arc

h 2

014:

1,46

5,21

8

4 %

( 53

,312

) b

y M

arc

h 2

015.

3.3

%(5

1 90

4) b

y M

arc

h 2

016.

55 0

00 b

y M

arc

h

2017

60

000

by

Ma

rch

20

18

65 0

00 b

y M

arc

h 2

019

70

000

by

Ma

rch

202

0

3.2

Perc

en

tag

e

inc

rea

se in

R

eve

nu

e p

er

yea

r.

11.8

%

Ma

rch

201

3:

R

13 6

87 m

illio

nM

arc

h 2

014:

R15

309

mill

ion

.

5.5%

Ma

rch

201

4:

R15

309

mill

ion

Ma

rch

201

5:

R16

147

mill

ion

6%

Ma

rch

201

5:

R16

147

9 m

illio

n

Ma

rch

201

6:

R17

120

mill

ion

7.5%

(R

17 3

58)

by

Ma

rch

201

77.

2% b

y M

arc

h

2018

6.9%

by

Ma

rch

20

196%

by

Ma

rch

20

20


17

Pro

gra

mm

e 3

: La

bo

ur A

ctiv

atio

n Pr

og

ram

me

s

Purp

ose

: To

pro

vid

e a

ctiv

e la

bo

ur m

ark

et

pro

gra

mm

es

The

re a

re n

o c

ha

ng

es

to t

he

bu

dg

et

stru

ctu

re.

Stra

teg

ic o

bje

ctiv

e 4

: Fun

d p

ove

rty

alle

via

tion

sche

me

s

Out

put

Pro

gra

mm

e

Perfo

rma

nce

Ind

ica

tor

Aud

ited

/Ac

tua

l Pe

rform

anc

eEs

tima

ted

Pe

rform

anc

eM

ed

ium

Te

rm T

arg

ets

2013

/14

2014

/15

2015

/16

2016

/17

2017

/18

2018

/19

2019

/20

Soc

ial p

lan

fund

ed

4.1

Turn

aro

un

d t

ime

to

ap

pro

ve o

r re

jec

t fu

nd

ing

a

fte

r th

e re

ce

ipt

of c

om

ple

te

info

rma

tion

.

N/A

N/A

N/A

N/A

With

in 2

0 w

ork

ing

d

ays

by

Ma

rch

20

18

With

in 2

0 w

ork

ing

d

ays

by

Ma

rch

20

19

With

in 2

0 w

ork

ing

d

ays

y

Ma

rch

202

0

4.2

Turn

aro

un

d

time

to

tra

nsf

er

fun

ds

to p

art

ne

rs

aft

er r

ec

eip

t o

f ac

cu

rate

in

voic

e.

N/A

N/A

N/A

N/A

With

in 1

0 w

ork

ing

d

ays

by

Ma

rch

20

18

With

in 1

0 w

ork

ing

d

ays

by

Ma

rch

20

19

With

in 1

0 w

ork

ing

d

ays

by

Ma

rch

202

0


18

4.2

Qua

rte

rly P

erfo

rma

nce

Ta

rge

ts fo

r 201

7/20

18

Pro

gra

mm

e 1

: Ad

min

istr

atio

n

Stra

teg

ic O

bje

ctiv

e 1

: Im

pro

ve fi

nanc

ial m

ana

ge

me

nt

Out

put

Pro

gra

mm

e P

erfo

rma

nce

Ind

ica

tor

Rep

ort

ing

Pe

riod

Ann

ual T

arg

et

Qua

rte

rly T

arg

ets

2017

/18

1st2nd

3rd4th

Soun

d fi

nanc

ial

ma

nag

em

ent

1.1

Perc

en

tag

e re

turn

on

in

vest

me

nt.

Qua

rte

rly

CPI

retu

rn o

n

inve

stm

en

t b

y M

arc

h 2

018

CPI

by

Jun

e 2

017

CPI

by

Sep

tem

be

r 20

17

CPI

by

De

ce

mb

er

2017

CPI

b

y M

arc

h 2

018

1.2

Ad

min

istra

tive

exp

en

ditu

re

(exc

lud

ing

ca

pe

x) a

s a

p

erc

en

tag

e o

f re

ven

ue

.

Qua

rte

rly

Ad

min

istra

tive

e

xpe

nd

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≤

15%

by

Ma

rch

20

18

Ad

min

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tive

e

xpe

nd

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≤

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Jun

e 2

017

Ad

min

istra

tive

e

xpe

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iture

≤

15%

by

Sep

tem

be

r 201

7

Ad

min

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xpe

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≤

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by

De

ce

mb

er 2

017

Ad

min

istra

tive

e

xpe

nd

iture

≤

15%

by

Ma

rch

20

18

Soc

ial

resp

ons

ible

in

vest

me

nt

1.3

Perc

en

tag

e o

f to

tal

ma

nd

ate

d s

oc

ial r

esp

on

sible

in

vest

me

nt

co

mm

itte

d

Qua

rte

rly80

% b

y M

arc

h

2018

20%

by

Jun

e 2

017

40%

by

Sep

tem

be

r 201

760

% b

y D

ec

em

be

r 201

780

% b

y M

arc

h

2018


19

Pro

gra

mm

e 2

: Bus

ine

ss o

pe

ratio

ns

Stra

teg

ic O

bje

ctiv

e 2

: Im

pro

ve S

erv

ice

De

live

ry

Out

put

Pro

gra

mm

e P

erfo

rma

nce

Ind

ica

tor

Rep

ort

ing

Pe

riod

Ann

ual T

arg

et

Qua

rte

rly T

arg

ets

2017

/18

1st2nd

3rd4th

Imp

rove

d

Clie

nt

Serv

ice

2.1

Perc

en

tag

e o

f va

lid c

laim

s (U

ne

mp

loym

en

t b

en

efit

) w

ith

co

mp

lete

info

rma

tion

ap

pro

ved

o

r re

jec

ted

.

Qua

rte

rly90

% w

ithin

15

wo

rkin

g d

ays

by

Ma

rch

201

8

90%

with

in 1

5 w

ork

ing

da

ys b

y Ju

ne

201

7

90%

with

in 1

5 w

ork

ing

da

ys b

y Se

pte

mb

er 2

017

90%

with

in 1

5 w

ork

ing

da

ys b

y D

ec

em

be

r 201

7

90%

with

in 1

5 w

ork

ing

da

ys b

y M

arc

h 2

018

2.2

Perc

en

tag

e o

f va

lid c

laim

s (In

-se

rvic

e b

en

efit

s; M

ate

rnity

, illn

ess

a

nd

ad

op

tion

be

ne

fits)

with

c

om

ple

te in

form

atio

n a

pp

rove

d

or r

eje

cte

d.

Qua

rte

rly 9

0% w

ithin

5

wo

rkin

g d

ays

by

Ma

rch

201

8

90%

with

in 5

wo

rkin

g

da

ys b

y Ju

ne

201

7 9

0% w

ithin

5

wo

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g d

ays

by

Sep

tem

be

r 201

7

90%

with

in 5

w

ork

ing

da

ys b

y D

ec

em

be

r 201

7

90%

with

in 5

w

ork

ing

da

ys b

y M

arc

h 2

018

2.3

Perc

en

tag

e o

f va

lid c

laim

s (D

ec

ea

sed

be

ne

fit)

with

co

mp

lete

in

form

atio

n a

pp

rove

d o

r re

jec

ted

.

Qua

rte

rly 9

0% w

ithin

10

wo

rkin

g d

ays

by

Ma

rch

201

8

90%

with

in 1

0 w

ork

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da

ys b

y Ju

ne

201

7

90%

with

in 1

0 w

ork

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da

ys b

y Se

pte

mb

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017

90%

with

in 1

0 w

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ing

da

ys b

y D

ec

em

be

r 201

7

90%

with

in 1

0 w

ork

ing

da

ys b

y M

arc

h 2

018

2.4

Perc

en

tag

e o

f pa

yme

nt

do

cu

me

nts

pro

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sse

d a

fte

r re

ce

ipt

Qua

rte

rly95

% o

f pa

yme

nt

do

cu

me

nts

p

roc

ess

ed

with

in

7 w

ork

ing

da

ys

of r

ec

eip

t b

y 31

M

arc

h 2

018

95%

of p

aym

en

t d

oc

um

en

ts

pro

ce

sse

d w

ithin

7

wo

rkin

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ays

of

rec

eip

t b

y 30

Ju

ne

20

17

95%

of p

aym

en

t d

oc

um

en

ts

pro

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sse

d w

ithin

7

wo

rkin

g d

ays

o

f re

ce

ipt

30

Sep

tem

be

r 201

7

95%

of p

aym

en

t d

oc

um

en

ts

pro

ce

sse

d w

ithin

7

wo

rkin

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ays

o

f re

ce

ipt

by

31

De

ce

mb

er 2

017

95%

of p

aym

en

t d

oc

um

en

ts

pro

ce

sse

d w

ithin

7

wo

rkin

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ays

o

f re

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ipt

by

31

Ma

rch

201

8

2.5

Perc

en

tag

e o

f ne

w c

om

pa

nie

s w

ith c

om

ple

te in

form

atio

n is

sue

d

with

reg

istra

tion

ce

rtifi

ca

te.

Qua

rte

rly90

% w

ithin

2

wo

rkin

g d

ays

by

31

Ma

rch

201

8

90%

with

in 2

wo

rkin

g

da

ys b

y 30

Ju

ne

20

17

90%

with

in 2

w

ork

ing

da

ys b

y 30

Se

pte

mb

er 2

017

90%

with

in 2

w

ork

ing

da

ys b

y 31

D

ec

em

be

r 201

7

90%

with

in 2

w

ork

ing

da

ys b

y 31

Ma

rch

201

8

Stra

teg

ic O

bje

ctiv

e 3

: Im

pro

ve c

om

plia

nce

to th

e U

nem

plo

yme

nt In

sura

nce

Ac

ts

Out

put

Pro

gra

mm

e P

erfo

rma

nce

Ind

ica

tor

Rep

ort

ing

Pe

riod

Ann

ual T

arg

et

Qua

rte

rly T

arg

ets

2017

/18

1st2nd

3rd4th

Imp

rove

c

om

plia

nce

3.

1N

um

be

r of n

ew

ly re

gist

ere

d

em

plo

yers

pe

r ye

ar.

Qua

rte

rly

60 0

00 b

y M

arc

h

2018

15

000

by

Jun

e 2

017

30 0

00 b

y Se

pte

mb

er 2

017

45 0

00 b

y D

ec

em

be

r 201

760

000

by

Ma

rch

20

18

3.2

Perc

en

tag

e in

cre

ase

in

Re

ven

ue

pe

r ye

ar

Qua

rte

rly7.

2% b

y M

arc

h

2018

1.8%

by

Jun

e 2

017

3.6%

by

Sep

tem

be

r 201

75.

4 %

De

ce

mb

er

2017

7.2

% b

y M

arc

h

2018


20

Pro

gra

mm

e 3

: La

bo

ur A

ctiv

atio

n Pr

og

ram

me

s

Stra

teg

ic O

bje

ctiv

e 4

: Fun

d P

ove

rty

Alle

via

tion

Sche

me

s

Out

put

Pro

gra

mm

e P

erfo

rma

nce

In

dic

ato

rRe

po

rtin

g

Perio

dA

nnua

l Ta

rge

tQ

uart

erly

Ta

rge

ts

2017

/18

1st2nd

3rd4th

Soc

ial p

lan

fund

ed

. 4.

1Tu

rna

rou

nd

tim

e t

o

ap

pro

ve o

r re

jec

t fu

nd

ing

aft

er r

ec

eip

t o

f c

om

ple

te in

form

atio

n.

Qua

rte

rly

With

in 2

0 w

ork

ing

d

ays

by

Ma

rch

201

8W

ithin

20

wo

rkin

g d

ays

b

y Ju

ne

201

7

With

in 2

0 w

ork

ing

da

ys

by

Sep

tem

be

r 20

17

With

in 2

0 w

ork

ing

da

ys

by

De

ce

mb

er

2017

With

in 2

0 w

ork

ing

d

ays

by

Ma

rch

20

18

4.2

Turn

aro

un

d t

ime

to

tr

an

sfe

r fu

nd

s to

pa

rtn

ers

a

fte

r re

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ipt

of a

cc

ura

te

invo

ice

.

Qua

rte

rly

With

in 1

0 w

ork

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d

ays

by

Ma

rch

201

8W

ithin

10

wo

rkin

g d

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b

y Ju

ne

201

7

With

in 1

0 w

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ing

da

ys

by

Sep

tem

be

r 20

17

With

in 1

0 w

ork

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da

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by

De

ce

mb

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2017

With

in 1

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ays

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Ma

rch

20

18


21


22

TECHNICAL INDICATOR DESCRIPTIONS

ANNEXURE A

Indicator title Percentage return on investment

Short definition Investment return on the Fund’s investment

Purpose/importance To track performance of investments

Source/collection of data PIC reportStatistics South Africa website for CPI figure

Evidence to be submitted Signed % growth or loss calculation report in a PDF format and PIC report

Method of calculation Cumulated listed investment in portfolio less receipt from UIF less portfolio as at 01 April 2017 divided by portfolio as at 01 April 2017 multiplied by 100.

Data limitations None

Type of indicator Output

Calculation type Cumulative

Reporting cycle Quarterly

New indicator No

Desired performance Increase returns from the Fund’s investment

Indicator responsibility Chief Financial Officer


Indicator title Administrative expenditure (excluding capex) as a percentage of revenue

Short definition Measure of how big the administration expenditure is as compared to revenue.

Purpose/importance To control administration expenditureSource/collection of data Financial statementsEvidence to be submitted Signed financial statement report in a PDF format dated within the

period under review.Method 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-cumulativeReporting cycle QuarterlyNew indicator No Desired performance Administration expenditure to be ≤ 15%Indicator responsibility Chief Financial Officer


23


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.

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 Corporation

Evidence 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 Closing balance as at 31 March 2016 multiplied by 20% = mandated social responsible investment.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 Increase in mandated social investment to reach asset allocation.



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

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

Purpose/importance Benchmark enables the Fund to track how long it takes to finalise a valid claim with complete information.

Source/collection of data SIYAYA operations system

Evidence to be submitted SIYAYA system report and excel spread-sheet

Method of calculation Number of valid claims with complete information finalised 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.

Data limitations Access to system limited to certain IT personnel.


Calculation type Non-Cumulative


New indicator No

Desired performance All valid claims with complete information finalised within 10 working days.

Indicator responsibility Chief Director: Operations


24


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










New indicator Yes

Desired performance All valid claims with complete information finalised within 2 working days (excluding weekends and public holidays).



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










New indicator Yes

Desired performance All valid claims with complete information finalised within 10 working days.



25


Indicator title Percentage of payment documents processed after receipt

Short definition What percentage of payment documents are processed within seven 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 processing of payment documents after receipt

Source/ collection of data Siyaya Operating system


Method of calculation The payment documents receipt date is matched against the capture date and recorded. The Number of payments documents processed within seven working days (excluding weekends and public holidays) 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 and re-issues)

Data limitations Access is limited to certain personnel




New indicator Yes

Desired performance Increase percentage of payment documents processed within seven working days (excluding weekends and public holidays).



Indicator title Percentage of new companies with complete information issued with registration certificate.

Short definition Percentage of new companies issued with registration certificate processed within 2 working days (excluding weekends and public holidays).

Purpose/importance Track the processing of registrations after receipt of documentsSource/collection of data Siyaya Operating system and excel spread-sheetEvidence to be submitted The registration document receipt date is matched against the capture date

and recorded. The Number of registrations within one day is divided into total registrations and the quotient is multiplied by 100.

Method of calculation The number of registrations captured within one working day (excluding weekends and public holidays) divided by the total registrations captured multiplied by 100.

Data limitations Access is limited to certain personnelType of indicator Output Calculation type Non-CumulativeReporting cycle Quarterly New indicator YesDesired performance Increase in percentage of companies with complete information issued

with registration certificate.Indicator responsibility Chief Director: Operations


26


Indicator title Number of newly registered employers per year

Short definition Number of new active employers registered with the Fund for the first time

Purpose/importance Track the number of new active employers registered with the Fund

Source/collection of data SIYAYA System

Evidence to be submitted Signed SIYAYA system report and excel spread-sheet

Method of calculation A count of new active employers registering with the Fund for the first time at the end of financial year





New indicator No

Desired performance Increase in the number of newly registered employers



Indicator title Percentage increase in Revenue per year

Short definition Increase in revenue collected as compared to the closing balance of the previous financial year.

Purpose/importance Track increase in revenue

Source/collection of data Financial statement

Evidence to be submitted Signed financial statement reports in a PDF format

Method of calculation Cumulative revenue for current financial year subtracts the cumulative revenue for the previous financial year (same period) divided by cumulative revenue for the previous financial year and the quotient is multiplied by 100%.





New indicator No

Desired performance Increase in contribution revenue above the inflation rate



27

TECHNICAL INDICATOR DESCRIPTIONS Indicator title Turnaround time to approve or reject funding after receipt of complete

information.

Short definition The number of working days (excluding weekends and public holidays) taken to approve or reject funding after receipt of complete information. Complete information means submission of documents as per MOU and checklist where applicable. This involves the compilation of a due diligence report that determine funding decision. Due diligence means requirements as per the MOU and the checklist.

Purpose/importance Tracks the implementation of the projects as per the MOU.

Evidence to be submitted Due diligence report signed by the Chief Director

Source/collection of data Deliverables on the MOU and the checklist.

Method of calculation Count the number of days taken (excluding weekends and public holidays) to approve or reject funding after receipt of complete information.

Data limitations Late or non-submission of source documents




New indicator Yes

Desired performance Funding decision made within 20 working days.

Indicator responsibility Chief Director: Labour Activation Programme


Indicator title Turnaround time to transfer funds to partners after receipt of accurate invoice.

Short definition The number of working days (excluding weekends and public holidays) taken to transfer funds after receipt of accurate invoice. Accurate means invoice claimed in accordance with the MOU.

Purpose/importance Tracks number of days it takes to transfer funds to the partners after receipt of invoice

Evidence to be submitted Proof of payment

Source/collection of data Invoice

Method of calculation Count the number of days taken (excluding weekends and public holidays) to transfer funds after receipt of invoice

Data limitations Inaccurate invoice




New indicator Yes

Desired performance Transfer of funds made within 10 working days.

Indicator responsibility Chief Director: Labour Activation Programme


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Telephone Number(s): 012 337 1700 (Switchboard)012 337 1680 (Call Centre)0800 843 843/0800 UIF UIF (Call Centre)Fax Number(s): 086 713 3000

Street Address:ABSA Towers230 Lillian Ngoyi (formerly Van der Walt Street)

Postal Address:The UIFPretoria0052

Website:www.labour.gov.za

Documents

T and Annual Perormane Plan 201718 UNEMPLOYMENT INSURANCE FUND · T and Annual Perormane Plan 201718 UNEMPLOYMENT INSURANCE FUND 1 FOREWORD BY MINISTER The right of access to social