Annual Performance Plan

Transcription

1 UNEMPLOYMENT INSURANCE FUND Annual Performance Plan MTEF and Annual Performance Plan

2 First published in 2018, by the Unemployment Insurance Fund (UIF) Copyright 2018 Directorate: Communication & Marketing Pretoria, South Africa ISBN: RP

3 TABLE OF CONTENTS 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 Vision, Mission, Strategic Objectives, Outputs, Key Performance Indicators, Critical Success Factors & Values Current Organizational Structure Organizational structure description per programme 2. Revision to Legislative and Other mandates 3. Overview of the Budget and MTEF Estimates 3.1 Expenditure Estimates PART B: PROGRAMME AND SUB-PROGRAMME PLANS -2020/21 SERVICE DELIVERY OUTCOMES AND STRATEGIC GOALS 4. Programme Performance Indicators 4.1 Strategic Objective and annual targets for MTEF and APP 2018/ Quarterly Performance Target for Technical Indicator Descriptions (ANNEXURE A)

4 FOREWORD BY MINISTER 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. 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 -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: 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 forward 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. The creation of decent employment through inclusive economic growth; Signed: MN OLIPHANT, MP MINISTER OF LABOUR (EXECUTIVE AUTHORITY OF THE DEPARTMENT OF LABOUR) 4

5 FOREWORD BY THE ACCOUNTING AUTHORITY 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. 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 /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; Signed: TM. LAMATI DIRECTOR GENERAL 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 financial year and beyond. Progress on the implementation of this plan and Operation Clean Audit will be monitored through governance structures of the department. 5

6 COMMISSIONER S STATEMENT 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 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. 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; 6 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 received 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 opportunity this adversity has presented to us. UIF management has committed to turn things around through the Project Clean Audit

7 , 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 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 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 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. T. MARUPING UNEMPLOYMENT INSURANCE COMMISSIONER 7

8 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; and Accurately reflects the performance targets which the Unemployment Insurance Fund will endeavour to achieve given the resources made available in the budget for fiscal year. H. MHLONGO CHIEF DIRECTOR: CORPORATE SERVICES SIGNATURE: NB. MNCONYWA CHIEF DIRECTOR: LABOUR ACTIVATION PROGRAMME SIGNATURE: F. PUZI CHIEF FINANCIAL OFFICER SIGNATURE: J. KUMBI CHIEF DIRECTOR: OPERATIONS SIGNATURE: 8

9 T. MARUPING UNEMPLOYEMENT INSURANCE COMMISSIONER SIGNATURE: T. LAMATI DIRECTOR-GENERAL: LABOUR SIGNATURE: P. HOLOMISA, MP DEPUTY MINISTER: LABOUR SIGNATURE: APPROVED BY: M. OLIPHANT MINISTER OF LABOUR SIGNATURE: 9

10 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 ORGANISATIONAL ENVIRONMENT VISION, MISSION, STRATEGIC OBJECTIVES, OUTPUTS, KEY PERFORMANCE INDICATORS, CRITICAL SUCCESS FACTORS & VALUES. VISION A caring, accessible and customer centric UIF that contributes towards poverty alleviation MISSION Through multiple channels, we will deliver both financial and social relief, to the right person, at the right time, every time. VALUES Transparency, Mutual respect, Client-centered services, Integrity, Accountability, Team work, Caring for our people 10

11 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 Enhance employability of UIF beneficiaries, enable entrepreneurship and preserve jobs OUTPUTS Sound financial management Social responsible investment Maintain Staff establishment Improve client service Ease of doing business Improved compliance Improved Technology Enhanced employability, preserve jobs. CRITICAL SUCCESS FACTORS 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% 95% of new companies issued with registration document within new registered employers new employees registered with the Fund Free WI-FI in 126 sites SAP release 1 implemented beneficiaries provided with learning and/or work place experience 90% of Training Lay-Off Scheme approved within 20 11

12 1.2.2 CURRENT ORGANISATIONAL STRUCTURE UNEMPLOYMENT INSURANCE COMMISSIONER DIRECTORATE: RISK MANAGEMENT DIRECTORATE: INTERNAL AUDIT CHIEF DIRECTORATE: CORPORATE SERVICES CHIEF DIRECTORATE: OPERATIONS CHIEF DIRECTORATE: LABOUR ACTIVATION PROGRAMME CHIEF FINANCIAL OFFICER Directorate: Human Resource Management Directorate: Operations Directorate: Labour Activation Programme Directorate: Investment Management and Actuarial Services Directorate: Communications and Marketing Directorate: Compliance Directorate: Labour Activation Programme Directorate: Budget Expanditure and Bank Reconciliation Directorate: Organisational Effectiveness Directorate: Provincial Support Directorate: Labour Activation Programme Directorate: Supply Chain Management Directorate: Legal Services Directorate: Income Directorate: Policy Development, Strategic Planning, Monitoring & Evaluation Directorate: Financial Reporting Directorate: Information and Communication Technology Directorate: Board Services 12

13 1.2.3 ORGANISATIONAL STRUCTURE DESCRIPTION PER PROGRAMME. A. PROGRAMME 1: ADMINISTRATION Programme purpose: To provide management, strategic and administrative support to the fund OFFICE OF THE COMMISSIONER Provide strategic leadership and overall management ragarding the administration and overall operations of the Fund INTERNAL AUDIT Independently focus on reviewing the internal controls of the Fund; reviewing risk management, governance processes and programs of the Fund RISK MANAGEMENT Enterprise wide risk management; and fraud investigations CORPORATE SERVICES To provide support and an enabling environment for the Fund to meet its strategic objectives through placing the right people at the right time. 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. ORGANISATIONAL EFFECTIVENESS Job design and evaluation; Change management; and Business process development and mapping COMMUNICATION & MARKETING Provision of communication services; Provision of marketing services; and Advertising, branding and publications. INFORMATION & COMMUNICATION TECHNOLOGY Manage the Funds projects; and Develop and implement ICT governance model. BOARD SERVICES Enhance good governance of the organisation; Board support and administration; Compliance management & Governance; Security management services. Policy management LEGAL SERVICES Provision of legal services INCOME MANAGEMENT Management of revenue & debt collection process & management of payroll audits & enforcement. CHIEF FINANCIAL OFFICER Provide financial governance on financial management and accounting services of the Fund. INVESTMENT MANAGEMENT Provide financial governance on financial management and accounting services of the Fund. 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. EXPENDITURE, BUDGET, AND BANK RECONCILIATIONS Creditor and expenditure management. Claims payments; Reconciliation of bank accounts; & Intergated budget planning and management. SUPPLY CHAIN MANAGEMENT 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. 13

14 ABSA TOWERS, TSHWANE

15 B. PROGRAMME 2: BUSINESS OPERATIONS Programme purpose: To collect contributions and pay benefits. 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. C. PROGRAMME 3: LABOUR ACTIVATION PROGRAMME Programme purpose: Provide strategic leadership and guidance on the implementation of the Labour Activation Programmes. 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. 2. REVISION TO LEGISLATIVE AND OTHER MANDATES There have been no significant changes to the Unemployment Insurance Fund s legislative and other mandates. 15

16 3. OVERVIEW OF THE BUDGET AND MTEF ESTIMATES 3.1 EXPENDITURE ESTIMATES Administrative Budget of the Unemployment Insurance Fund per Programme TOTAL ADMINISTRATION BUDGET PER PROGRAMME PROGRAMME 1: ADMINISTRATION 2017/2018 (Revised Estimate) 2018/ / /2021 Budget R 000 R 000 R 000 R 000 R R R R PROGRAMME 2: BUSINESS OPERATIONS 2017/2018 (Revised Estimate) 2018/ / /2021 Budget R 000 R 000 R 000 R 000 R R R R PROGRAMME 3: LABOUR ACTIVATION PROGRAMME 2017/2018 (Revised Estimate) 2018/ / /2021 Budget R 000 R 000 R 000 R 000 R3 124 R6 497 R6 861 R /2018 (Revised Estimate) 2018/ / /2021 Total Budget R 000 R 000 R 000 R 000 R R R R

17 OVERVIEW OF THE BUDGET AND MTEF ESTIMATES Programmes 2017/2018 (Revised Estimate) 2018/ / /2021 Programme 1: Administration R R R R Strategic Objective: Ensure Financial Stability R R R R Programme 2: Business Operations R R R R Strategic Objective: Improve Service Delivery R R R R Improve Compliance To The Unemployment Insurance Act R R R R Programme 3: Labour Activation Programmes R3 124 R6 497 R6 861 R7 238 Strategic Objective: Enhance employability of UIF beneficiaries, enable entreprneurship and preserve jobs. R3 124 R6 497 R6 861 R7 238 Grand Total for Programmes: R R R R

18 PART B: PROGRAMME AND SUBPROGRAMME PLANS -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); 18

19 4. PROGRAMME PERFORMANCE INDICATORS 4.1 STRATEGIC OBJECTIVE AND ANNUAL TARGETS FOR MTEF AND APP 2018/2019 PROGRAMME 1: ADMINISTRATION 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 OUTPUT PROGRAMME PERFORMANCE INDICATOR Percentage of Administrative expenditure (excluding capex) Sound maintained financial management AUDITED/ACTUAL ESTIMATED PERFORMANCE PERFORMANCE MEDIUM TERM TARGETS 2014/ / / / / /21 10% 9.9% 11.1% ( / x100) of admin expenditure as at March % by March % by March % by March % by March 2018 Percentage of valid invoices paid within 30 calendar days after receipt by the Fund New Indicator New Indicator New Indicator New Indicator 100% within 30 calendar days by March % within 30 calendar days by March % within 30 calendar days by March 2021 Social responsible investment Percentage of total mandated Social Responsible Investment committed 85% (R7 930m) of the total mandated Social Responsible Investment invested by March % ( Total invested/ Committed R7 688m) 85% (R / x100) of total mandated social responsible investment committed by March % by March % by March % by March % by March 2021 Strategic Objective 2: Strengthen Institutional Capacity of The Fund OUTPUT PROGRAMME PERFORMANCE INDICATOR AUDITED/ACTUAL ESTIMATED PERFORMANCE PERFORMANCE MEDIUM TERM TARGETS 2014/ / / / / /21 Staff establishment 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 Vacancy rate reduced to 10% by March 2020 Vacancy rate reduced to 10% by March

20 PROGRAMME 2: BUSINESS OPERATIONS Purpose: To collect contributions and pay benefits. There are no changes to the budget structure. Strategic Objective 3: Improve Service Delivery OUTPUT PROGRAMME PERFORMANCE INDICATOR Percentage of valid claims (Unemployment benefit) with complete information approved or rejected within specified time frames. AUDITED/ACTUAL PERFORMANCE ESTIMATED PERFORMANCE MEDIUM TERM TARGETS 2014/ / / / / /21 90% 84% 89% 90% within 15 working days by March % within 15 working days by March % within 10 working days by March % within 10 working days by March 2021 Improved Client Service 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. 92% 88% 87% 91% 82% 89% 90% within 5 by March % within 10 by March % within 10 working days by March % within 20 by March % within 5 by March % within 20 working days by March % within 5 by March % within 15 by March 2021 Percentage of benefit payment documents created after receipt within specified time frame. New indicator New indicator New indicator 95% of payment documents processed within within 7 of receipt by 31 March % within 6 by March % within 4 by March % within 3 by March 2021 Percentage of new companies created with a registration document (UI54) within 2 working days. New indicator New indicator New indicator 90% within 2 by 31 March % within 2 by March % within 2 by March % within 2 by March 2021 Ease of doing business Percentage of applications with complete information issued with compliance certificates or tender letter within 10 working days New indicator New indicator New indicator New indicator 90% within 10 by March % within 10 by March % within 10 by March

21 Strategic Objective 4: Collaborate With Stakeholders To Improve Compliance With UIF Acts OUTPUT PROGRAMME PERFORMANCE INDICATOR Number of newly registered employers per year AUDITED/ACTUAL ESTIMATED PERFORMANCE PERFORMANCE MEDIUM TERM TARGETS 2014/ / / / / /21 4 % (61,198) by March % (53 261) by March by March by March by March by March by March 2021 Improved compliance Number of newly registered employees with the Fund by March by March by March 2021 Strategic Objective 5: Provide Easy To Use Services Through Multiple Access Points OUTPUT PROGRAMME PERFORMANCE INDICATOR Number of provincial sites upgraded with free Wi-Fi to access UIF systems. AUDITED/ACTUAL ESTIMATED PERFORMANCE PERFORMANCE MEDIUM TERM TARGETS 2014/ / / / / / provincial sites by March provincial sites by March provincial sites by March 2021 Improved Technology Integrated claims management System (ICMS) implemented. Develop, test and deploy release 1 by March 2019 Develop, test and deploy release 2 by March 2020 Implement in all provinces by March

22 PROGRAMME 3: LABOUR ACTIVATION PROGRAMMES Purpose: To enhance employability. There are no changes to the budget structure. Strategic Objective 6: Enhance Employability of UIF Beneficiaries, Enable Entrepreneurship and Preserve Jobs. OUTPUT PROGRAMME PERFORMANCE INDICATOR AUDITED/ACTUAL ESTIMATED PERFORMANCE PERFORMANCE MEDIUM TERM TARGETS 2014/ / / / / /21 Enhanced employability Number of UIF beneficiaries provided with learning and/or work place experience opportunities 5084 UI beneficiaries/ In-training by March UI beneficiaries trained by March by March by March 2021 Job preservation 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. 100% within 20 by March % within 20 by March % within 15 by March % within 15 by March

23 4.2 QUARTERLY PERFORMANCE TARGETS FOR 2018/2019 PROGRAMME 1: ADMINISTRATION Strategic Objective 1: Ensure Financial Sustainability OUTPUT PROGRAMME PERFORMANCE INDICATOR REPORTING PERIOD ANNUAL TARGET QUARTELY TARGETS 1st 2nd 3rd 4th Sound financial management Percentage of administrative expenditure (excluding capex) maintained Percentage of valid invoices paid within 30 calendar days after receipt by the Fund. QUARTERLY QUARTERLY 15% by March % within 30 calendar days by March % 15% 15% 15% 100% within 30 calendar days 100% within 30 calendar days 100% within 30 calendar days 100% within 30 calendar days Social responsible investment 1.3 Percentage of total mandated social responsible investment committed QUARTERLY 80% by March % 40% 60% 80% Strategic Objective 2: Strengthen Institutional Capacity of The Fund OUTPUT PROGRAMME PERFORMANCE INDICATOR REPORTING PERIOD ANNUAL TARGET 1st QUARTELY TARGETS 2nd 3rd 4th Staff establishment maintained 1.4 Percentage of vacancy rate reduced. QUARTERLY Vacancy rate reduced to 10% by March 2019 Reduce vacancy rate to 15% Reduce vacancy rate to 13% Reduce vacancy rate to 11% Reduce vacancy rate to 10% 23

24 PROGRAMME 2: BUSINESS OPERATIONS Strategic Objective 3: Improve Service Delivery OUTPUT PROGRAMME PERFORMANCE INDICATOR REPORTING PERIOD ANNUAL TARGET QUARTELY TARGETS 1st 2nd 3rd 4th Percentage of valid claims (Unemployment benefit) with complete information approved or rejected within specified time frames QUARTERLY 90% within 15 by March % within 15 90% within 15 90% within 15 90% within Percentage of valid claims (In-service benefits; Maternity, illness and adoption benefits) with complete information approved or rejected within specified time frames QUARTERLY 90% within 10 by March % within 10 90% within 10 90% within 10 90% within 10 Improved Client Service Percentage of valid claims (Deceased benefit) with complete information approved or rejected within specified time frames QUARTERLY 90% within 20 by March % within 20 90% within 20 90% within 20 90% within Percentage of benefit payment documents created after receipt within specified time frame. QUARTERLY 95% within 6 by March % within 6 95% within 6 95% within 6 95% within Strategic Objective 3: Improve Service Delivery OUTPUT PROGRAMME PERFORMANCE INDICATOR REPORTING PERIOD ANNUAL TARGET QUARTELY TARGETS 1st 2nd 3rd 4th 2.5 Percentage of new companies created with a registration document (UI54) within 2. QUARTERLY 95% within 2 by March % within 2 95% within 2 95% within 2 95% within 2 Ease of Doing Business 2.6 Percentage of applications with complete information issued with compliance certificates or tender letter within 10 working days QUARTERLY 90% within 10 by March % within 10 90% within 10 90% within 10 90% within 10 24

25 Strategic Objective 4: Collaborate with Stakeholders To Improve Compliance With UIF Acts OUTPUT PROGRAMME PERFORMANCE INDICATOR REPORTING PERIOD ANNUAL TARGET QUARTELY TARGETS 1st 2nd 3rd 4th Number of newly registered employers per year QUARTERLY by March Improve compliance Number of newly registered employees by the Fund QUARTERLY by March Strategic Objective 5: Provide Easy To Use Services Through Multiple Access Points OUTPUT PROGRAMME PERFORMANCE INDICATOR REPORTING PERIOD ANNUAL TARGET QUARTELY TARGETS 1st 2nd 3rd 4th 2.9 Number of provincial sites upgraded with free Wi-Fi to access UIF systems QUARTERLY 126 provincial sites by March Improved Technology 2.10 Integrated claims management System (ICMS) implemented QUARTERLY Develop, test and deploy release 1 reports by March 2019 Reports requirements and specification confirmed and signed off Developed and tested reports Release 1 Go - Live Post Go- Live support and maintenance 25

26 PROGRAMME 2: LABOUR ACTIVATION PROGRAMMES Strategic Objective 6: Enhance Employability of UIF Beneficiaries, Enable Entrepreneurship and Preserve Jobs PROGRAMME PERFORMANCE INDICATOR OUTPUT Enhanced employability, enabled entrepreneurship and preserved jobs Job preservation Number of UIF beneficiaries provided with learning and/or work place experience opportunities REPORTING PERIOD QUARTERLY ANNUAL TARGET QUARTELY TARGETS 1st 2nd 3rd 4th Percentage of Training Lay-off Scheme (TLS) applications with complete information approved or rejected by the delegated authority within specified timeframes. QUARTERLY 90% within 20 90% within 20 90% within 20 90% within 20 90% within 20 by March

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28 ANNEXURE A TECHNICAL INDICATOR DESCRIPTIONS: PROGRAMME Indicator title Short definition Purpose/importance Source/collection of data Evidence to be submitted Method of calculation Data limitations Type of indicator Calculation type Reporting cycle Percentage of Administrative expenditure ( excluding capex) maintained Measure the administrative expenditure as a percentage of revenue. To maintain administrative expenditure at 15% of revenue Monthly Financial Statement and Trial Balance Signed calculation of administrative expenditure (exculding capex) as a percentage of revenue in a PDF format Total administration expenditure (breakdown of all figures) divided total revenue multiplied by 100% None Output Non-cumulative Quarterly No Desired performance Administration expenditure to be 15% Indicator responsibility Chief Financial Officer 1.2 Indicator title Short definition Purpose/importance Source/collection of data Evidence to be submitted Method of calculation Data limitations Type of indicator Calculation type Reporting cycle Desired performance Indicator responsibility Percentage of valid invoices paid within 30 calendar days after receipt by the Fund. 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. To pay all valid invoices in compliance with the PFMA and Treasury Regulations Computron financial system AP Trade sub-module Age analysis report from the financial systems and signed off summary of age invoices in a PDF format. 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) None Output Non-cumulative Quarterly No Compliance with Prescripts by paying valid invoices within 30 days Chief Financial Officer 28

29 1.3 Indicator title Short definition Purpose/importance Source/collection of data Evidence to be submitted Method of calculation Data limitations Type of indicator Calculation type Reporting cycle Desired performance Indicator responsibility Percentage of total mandated social responsible investment committed 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. Tracks how much of the fund s total investments are committed to achieve a desired level of social impact. Investment report from Public Investment Corporation Signed report of the transferred amount in a PDF format and proof of payment dated within the period under review. 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. None Output Cumulative Quarterly No 80% of total mandated social responsible investment committed Chief Financial Officer 1.4 Indicator title Short definition Purpose/importance Source/collection of data Evidence to be submitted Method of calculation Data limitations Type of indicator Calculation type Reporting cycle Desired performance Indicator responsibility Percentage of vacancy rate reduced. Percentage of vacant funded posts on the establishment of the Unemployment Insurance Fund reduced To reduce the vacancy rate of the Fund Persal system Persal report as on the last day of the month Vacancy rate = total number of funded vacant posts divided by the total staff complement multiplied by 100 None Output Cumulative Quarterly Yes Vacant funded posts on the establishment of the Unemployment Insurance Fund reduced to 10% by March 2019 Chief Director: Corporate Services 29

30 TECHNICAL INDICATOR DESCRIPTIONS: PROGRAMME Indicator title Short definition Purpose/importance Source/collection of data Evidence to be submitted Method of calculation Data limitations Type of indicator Calculation type Reporting cycle Desired performance Indicator responsibility Percentage of valid claims (Unemployment benefit) with complete information approved or rejected within specified time frames. A percentage of total valid claims with complete information received are approved or rejected within 15 (excluding weekends and public holidays). The indicator tracks how long it takes to approve or reject a valid claim with complete information. SIYAYA operations system/oracle ICT PDF report Number of valid claims with complete information approved or rejected within 15 (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. Access to system limited to certain IT personnel. Output Cumulative Quarterly No 90% of total valid claims with complete information received are approved or rejected within 15 (excluding weekends and public holidays). Chief Director: Operations 2.2 Indicator title Short definition Purpose/importance Source/collection of data Evidence to be submitted Percentage of valid claims (In-service benefits; Maternity, illness and adoption benefits) with complete information approved or rejected within specified time frames. A percentage of total valid claims with complete information received are approved or rejected within 10 (excluding weekends and public holidays). The indicator tracks how long it takes to approve or reject a valid claim with complete information. SIYAYA operations system/oracle ICT PDF report 30

31 Method of calculation Data limitations Type of indicator Calculation type Reporting cycle Desired performance Indicator responsibility Number of valid claims with complete information approved or rejected within 10 (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. Access to system limited to certain IT personnel. Output Cumulative Quarterly No 90% of total valid claims with complete information received are approved or rejected within 15 (excluding weekends and public holidays). Chief Director: Operations 2.3 Indicator title Short definition Purpose/importance Source/collection of data Evidence to be submitted Method of calculation Percentage of valid claims (Deceased benefit) with complete information approved or rejected within specified time frames. A percentage of total valid claims with complete information received are approved or rejected within 20 (excluding weekends and public holidays). The indicator tracks how long it takes to approve or reject a valid claim with complete information. SIYAYA operations system/oracle ICT PDF report Number of valid claims with complete information approved or rejected within 20 (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: Data limitations Type of indicator 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. Access to system limited to certain IT personnel. Output 31

32 Calculation type Reporting cycle Desired performance Indicator responsibility Cumulative Quarterly No 90% of total valid claims with complete information received are approved or rejected within 15 (excluding weekends and public holidays). Chief Director: Operations 2.4 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 (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 SAP Evidence to be submitted ICT PDF report Method of calculation Data limitations Type of indicator Calculation type Reporting cycle Desired performance Indicator responsibility The payment documents receipt date is compared against the capture date. The numbers of payments documents created on the siyaya system within six (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) Access is limited to certain personnel Output Cumulative Quarterly Yes 95% of payment documents are created within 6 (excluding weekends and public holidays) of receipt. Chief Director: Operations 2.5 Indicator title Short definition Purpose/importance Percentage of new companies created with a registration document (UI54) within 2. 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. Capture or create registration document to new companies on time. 32

33 Source/collection of data Evidence to be submitted Method of calculation Data limitations Type of indicator Calculation type Reporting cycle Desired performance Indicator responsibility Siyaya Operating system/oracle ICT PDF report The number of new companies created with a registration document (UI54) within 2 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. Access is limited to certain personnel Output Cumulative Quarterly No 95% of new companies with complete information created with registration document within 2. Chief Director: Operations 2.6 Indicator title Short definition Purpose/importance Source/collection of data Evidence to be submitted Method of calculation Data limitations Type of indicator Calculation type Reporting cycle Desired performance Indicator responsibility Percentage of applications with complete information issued with compliance certificates or tender letter within 10 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. To issue compliance certificates or tender letters to complying applicants within the stipulated turnaround time. Allocation registers Manual registers The number of applications with complete information issued with compliance certificates or tender letter within 10 divided by the total applications with complete information received multiplied by 100. Counting starts from the date (working Date) an is received by the fund until the date the certificate or letter is issued. None Output Cumulative Quarterly Yes 90% of applications with complete information issued with compliance certificates or tender letter within 10 Chief Director: Operations 33

34 2.7 Indicator title Short definition Purpose/importance Source/collection of data Evidence to be submitted Method of calculation Data limitations Type of indicator Calculation type Reporting cycle Desired performance Indicator responsibility Number of newly registered employers per year Number of new employers registered with the Fund for the first time Track the number of new employers registered with the Fund SIYAYA System//Oracle ICT PDF report A count of new employers registered with the Fund for the first time during the financial year (1 April to 31 March) None Output Non-Cumulative Quarterly No newly registered employers Chief Director: Operations 2.8 Indicator title Short definition Purpose/importance Source/collection of data Evidence to be submitted Method of calculation Data limitations Type of indicator Calculation type Reporting cycle Desired performance Indicator responsibility Number of newly registered employees with the Fund The indicator is to determine the coverage of employees in the country registered by the UIF The indicator tracks the number of people registered by Unemployment Insurance as defined in the UI Act. Siyaya system/oracle ICT PDF report A count of new employees registering with the Fund for the first time during the financial year (1 April to 31 March). Employer declarations Output Non-Cumulative Quarterly Yes newly registered employees Chief Director: Operations 2.9 Indicator title Short definition Purpose/importance Source/collection of data Number of provincial sites upgraded with free Wi-Fi to access UIF systems The indicator is about the network upgrade at provincial sites which includes (labour centres, visiting points and satellite offices). To improve network speed when accessing UIF systems. Test certificates and Sign-off certificates from provinces. 34

35 Evidence to be submitted Method of calculation Data limitations Type of indicator Calculation type Reporting cycle Desired performance Indicator responsibility Sign-off certificate per each site approved by the Chief Director Provincial Operations/ Provincial representative Simple count Procurement processes Activity Non-cumulative Quarterly Yes Upgrade 126 ICT infrastructures on provincial sites and free WiFi to access UIF systems. Director: ICT 2.10 Indicator title Short definition Purpose/importance Source/collection of data Evidence to be submitted Method of calculation Integrated claims management System (ICMS) implemented Implementation of SAP: Enterprise Resource Plan system To improve turnaround time of processing claims SAP:ERP system Finance reports generated from the SAP:ERP system None Data limitations Type of indicator Calculation type Reporting cycle Desired performance Indicator responsibility Procurement systems and business not supporting / committing on a go-live date. Output Non-Cumulative Quarterly Yes Integrated claims management System (ICMS) implemented Director: ICT TECHNICAL INDICATOR DESCRIPTIONS: PROGRAMME Indicator title Short definition Purpose/importance Source/collection of data Number of UIF beneficiaries provided with learning and/or work place experience opportunities Learning and/or work place experience opportunities provided to: 70% UIF contributors; and 30% non- UIF contributors. To support employment intervention measures (include but not limited to Enhancing employability jobs preservation and enterprise development etc.) Different stakeholder information (external e. g. TVET, SETAs, etc.) 35

36 Evidence to be submitted Method of calculation Data limitations Type of indicator Calculation type Reporting cycle Desired performance Indicator responsibility Enrolment or placement list from the contracted institution s system 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. None Output Non-Cumulative Quarterly Yes UIF beneficiaries provided with learning and/or work place experience opportunities Chief Director: Labour Activation 3.2 Indicator title Short definition Purpose/importance Source/collection of data Evidence to be submitted Method of calculation Data limitations Type of indicator Calculation type Reporting cycle Desired performance Indicator responsibility Percentage of Training Lay-off Scheme (TLS) applications with complete information approved or rejected by the delegated authority within specified timeframes. 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. 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. Checklist and the supporting documents. Signed by delegated authority. Number of TLS applications with complete information approved or rejected by delegated authority within 20 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. Turnaround time to get required documentation from the company and the endorsement from the SETA. Output Cumulative Quarterly Yes 90% of applications with complete information approved / rejected within 20. Chief Director: LAP 36