Idea Transcript
MTEF and Annual Performance Plan 2017/18
|
1
UNEMPLOYMENT INSURANCE FUND
MTEF and Annual Performance Plan 2017/18
|
UNEMPLOYMENT INSURANCE FUND
UNEMPLOYMENT INSURANCE FUND Final Annual Performance Plan MTEF and Annual Performance Plan 2017/18
January 2017
3
MTEF and Annual Performance Plan 2017/18
|
UNEMPLOYMENT INSURANCE FUND
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
4
MTEF and Annual Performance Plan 2017/18
|
UNEMPLOYMENT INSURANCE FUND
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)
5
22
MTEF and Annual Performance Plan 2017/18
|
UNEMPLOYMENT INSURANCE FUND
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.
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.
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
MN Oliphant, MP Minister of Labour 1
MTEF and Annual Performance Plan 2017/18
|
UNEMPLOYMENT INSURANCE FUND
FOREWORD BY THE ACCOUNTING AUTHORITY 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:
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.
• 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’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.
The UIF recognises that to achieve its objectives it must develop performance measures for each financial year and constantly monitor and evaluate its performance. T Lamati Director-General 2
MTEF and Annual Performance Plan 2017/18
|
UNEMPLOYMENT INSURANCE FUND
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.
• 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.
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:
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.
• 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:
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
• Improve collection of revenue from employers • Improve payment of benefits to beneficiaries
3
MTEF and Annual Performance Plan 2017/18
|
UNEMPLOYMENT INSURANCE FUND
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.
4
MTEF and Annual Performance Plan 2017/18
|
UNEMPLOYMENT INSURANCE FUND
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 Mhlongo Chief Director: Corporate Services
T Maruping Unemployment Insurance Commissioner
Signature:_________________________
Signature:_________________________
NB Mnconywa Chief Director : LAP
T Lamati Director-General:Labour
Signature:_________________________
Signature: _________________________
F Puzi Chief Financial Officer
S P Holomisa, MP Deputy Minister: Labour
Signature:_________________________
Signature: _________________________ Approved by:
J Kumbi Acting Chief Director: Operations
MN Oliphant, MP Minister of Labour
Signature:_________________________ Signature:_________________________ Date: 28 February 2017
5
MTEF and Annual Performance Plan 2017/18
|
6
UNEMPLOYMENT INSURANCE FUND
MTEF and Annual Performance Plan 2017/18
PART A
|
UNEMPLOYMENT INSURANCE FUND
STRATEGIC OVERVIEW
1. Updated Situational Analysis 1.1 Performance Delivery Environment
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.
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.
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.
7
Directorate: Risk Management
Chief Directorate: Operations
Chief Directorate: Labour Activation Programmes Directorate: Internal Audit
Chief Directorate: Corporate Services
Chief Directorate: Financial Management
UNEMPLOYMENT INSURANCE COMMISSIONER
Directorate: Information and Communicatio n Technology
Directorate: Legal Services
The Fund has reviewed its organisational structure which was approved by the Executive Authority with the concurrence of the Minister of Public Service Administration. The current organisational structure of the Fund is as follows:
1.1.1 Organisational Structure
1.2 Organisational Environment
MTEF and Annual Performance Plan 2017/18 |
8
UNEMPLOYMENT INSURANCE FUND
MTEF and Annual Performance Plan 2017/18
|
UNEMPLOYMENT INSURANCE FUND
• Records Management; and • Asset and Facilities Management.
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:
1.2.2.3 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.
1.2.2.1 Chief Directorate: Labour Activation Programmes
• Management of special project sand active labour market programmes
a. Human Resource Management
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
b. Organisational Effectiveness
• Management of financial reporting; and • Provision of financial systems support
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.
• Job design and evaluation; • Change Management; and • Business Process development and mapping.
b. Investment and Actuarial Services • Investment management and treasury services
c. Board Services
c. Income Management
The focus of the office is to provide strategic Support Services to the Board and the Fund. The key functions are:
• Management of revenue and debt collection processes; and • Management of payroll audits & enforcement.
• Enhance good governance of the organisation; • Board support and administration; • Compliance management & Governance; • Policy management; and • Security management services.
d. Expenditure, Budgets and Bank Reconciliations • • • •
Creditor and expenditure management; Claims payments; Reconciliation of bank accounts; and Integrated budget planning and management.
d. Strategic Planning, Monitoring and Evaluation • Strategic planning; and • Monitoring and evaluation.
e. Supply Chain Management and Auxiliary Services
e. Communications and Marketing
• Provision of integrated financial administration and supply chain management services;
• Provision of communication services; • Provision of marketing services; and • Advertising, branding and publications. 9
MTEF and Annual Performance Plan 2017/18
|
UNEMPLOYMENT INSURANCE FUND
1.2.2.4 Chief Directorate: Operations
1.2.2.7 Directorate: Legal services
The focus of the office is to support the operations of the Fund.
• Provision of legal services 1.2.2.8 Directorate: Internal Audit
• 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.
• 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
1.2.2.5 Directorate: Information and Communication Technology
The operations performed at provincial level but supported at the Fund’s Head Office are as follows:
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
Registration of employees; Declaration management; Claims management; Overpayment debt Management; Appeals; and Financial Administration (budget and expenditure).
• Enterprise wide Risk management; and • Fraud investigations.
2. Revisions to Legislative and Other mandates There have been no significant changes to the Unemployment Insurance Fund’s legislative and other mandates.
10
MTEF and Annual Performance Plan 2017/18
|
UNEMPLOYMENT INSURANCE FUND
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
2016/2017 (Revised Estimate)
2017/2018
2018/2019
2019/2020
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
Total Budget
2016/2017 (Revised Estimate)
2017/2018
2018/2019
2019/2020
R’000
R’000
R’000
R’000
3 591
2 627
2 782
2 937
2016/2017 (Revised Estimate)
2017/2018
2018/2019
2019/2020
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 Programme 1: Administration Strategic Objective: - Improve financial management Programme 2: Business Operations Strategic Objective: - Improve service delivery - Improve compliance to Unemployment Insurance Acts Programme 3: Labour Activation Programmes
2016/17 R’000
2017/18 R’000
2018/19 R’000
2019/20 R’000
1 405 837
1 538 463
1 347 852
1 430 876
1 405 837
1 538 463
1 347 852
1 430 876
1 311 796
1 597 705
1 707 775
1 823 781
921 701
1 186 445
1 272 252
1 363 869
390 095
411 260
435 523
459 912
2 627
2 782
2 937
2 627
2 782
2 937
3 138 795
3 058 409
3 257 594
3 591
Strategic Objective: Fund Poverty Alleviation Schemes Grand total Programmes
3 591 2 721 224
11
MTEF and Annual Performance Plan 2017/18
|
12
UNEMPLOYMENT INSURANCE FUND
MTEF and Annual Performance Plan 2017/18
|
UNEMPLOYMENT INSURANCE FUND
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: • Outcome 12: • Outcome 13:
Decent employment through an inclusive economic growth; and An efficient, effective and development oriented public service and an empowered and inclusive citizenship. 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 • Improve service delivery • Improve compliance • Fund poverty alleviation schemes
13
(DOL strategic objective 8, Outcome 12); (DOL strategic objective 5, Outcome 13); (DOL strategic objective 3 & 5, Outcome 13); and (DOL strategic objective 1, Outcome 4)
14
Percentage of total mandated Social Responsible Investment committed.
Administrative expenditure (excluding capex) as a percentage of revenue
1.2
2015/16
10%
9.9%
11.83% (R11 3.3%(R3 085 m) 687m)
2014/15
53.4%. 85% (R7 68% ( Total (R3 561m) 930m) of invested/ Committed the total mandated R7 688m) Social Responsible Investment invested by March 2014
N/A
N/A
2013/14
Audited/Actual performance
≤ 15% by March 2018
CPI by 31 March 2018
2017/18
80% by March 80% by March 2018 2017. (R19 763 m; total investments as at beginning of financial year)
≤ 15% by March 2017
CPI + 2.5% by 31 March 2017
2016/17
Estimated performance
80% by March 2019
≤ 15% by March 2019
CPI by 31 March 2019
2018/19
Medium term targets
80 % by March 2020
≤ 15% by March 2020
CPI by 31 March 2020
2019/20
|
1.3
Percentage return on investment
1.1
Sound financial management
Social responsible investment
Programme performance indicator
Output
Strategic Objective 1: Improve financial management
There are no changes to the budget structure.
Purpose: Provide management, strategic and administrative support services to the Fund.
Programme 1: Administration
4.1 Strategic objective and annual targets for MTEF and APP 2017/2018
4. Programme Performance Indicators
MTEF and Annual Performance Plan 2017/18 UNEMPLOYMENT INSURANCE FUND
Improved Client Service
Output
Percentage of valid claims (Unemployment benefit) with complete information approved.
Percentage of valid claims (In-service benefits; Maternity, illness and adoption benefits) with complete information approved or rejected.
Percentage of valid claims (Deceased benefit) with complete information approved or rejected.
Percentage of payment documents processed after receipt
Percentage of new companies with complete information issued with registration certificate.
2.1
2.2
2.3
2.4
2.5
Programme Performance Indicator
Strategic Objective 2: improve service delivery
There are no changes to the budget structure.
15 N/A
N/A
N/A
N/A
N/A
90% (654 053)
2015/16
N/A
N/A
N/A
N/A
84% (608 347)
N/A
N/A
N/A
N/A
90% within 5 weeks by March 2017
2016/17
Estimated Performance 2017/18
2018/19
95% of payment documents processed within 5 working days of receipt by 31 March 2019
95% within 10 working days by March 2019
90% within 5 working days by March 2019
90% within 10 working days by March 2019
2019/20
95% of payment documents processed within 4 working days of receipt by 31 March 2020
100% within 10 working days by March 2020
90% within 5 working days by March 2020
90% within 10 working days by March 2020
90% within 2 95% within 2 90% within 1 working days by 31 working days by 31 working day by March 2018 March 2019 31 March 2020
95% of payment documents processed within 7 working days of receipt by 31 March 2018
90% within 10 working days by March 2018
90% within 5 working days by March 2018
90% within 15 working days by March 2018
Medium Term Targets
|
N/A
N/A
N/A
86% (655 882)
2014/15
Audited/Actual Performance 2013/14
Purpose: To collect contributions and pay benefits.
Programme 2: Business operations
MTEF and Annual Performance Plan 2017/18 UNEMPLOYMENT INSURANCE FUND
Improved compliance
Output
5.5% March 2014: R15 309 million March 2015: R16 147 million
11.8% March 2013: R13 687 million March 2014: R15 309 million.
3.2
Percentage increase in Revenue per year.
4 %( 53,312) by March 2015.
2014/15
Number 4%(61 198) of newly registered 31 March 2013: employers per 1,408,205 year. 31 March 2014: 1,465,218
2013/14
2015/16
2016/17
Estimated Performance
6% March 2015: R16 1479 million March 2016: R17 120 million
7.5% (R17 358) by March 2017
3.3%(51 904) by 55 000 by March March 2016. 2017
Audited/Actual Performance
3.1
Programme Performance Indicator
Strategic Objective 3: Improve compliance to Unemployment Insurance Acts
There are no changes to the budget structure.
Purpose: To collect contributions and pay benefits.
Programme 2: Business operations (continued)
7.2% by March 2018
60 000 by March 2018
2017/18
6.9% by March 2019
65 000 by March 2019
2018/19
Medium Term Targets
6% by March 2020
70 000 by March 2020
2019/20
MTEF and Annual Performance Plan 2017/18 |
16
UNEMPLOYMENT INSURANCE FUND
Social plan funded
Output
Turnaround time to approve or reject funding after the receipt of complete information.
Turnaround time to transfer funds to partners after receipt of accurate invoice.
4.1
4.2
Programme Performance Indicator N/A
N/A
N/A
2014/15
N/A
2013/14
N/A
N/A
2015/16
Audited/Actual Performance
Strategic objective 4: Fund poverty alleviation schemes
There are no changes to the budget structure.
Purpose: To provide active labour market programmes
Programme 3: Labour Activation Programmes
N/A
N/A
2016/17
Estimated Performance 2017/18
Within 10 working days by March 2018
Within 20 working days by March 2018
2019/20
Within 10 working Within 10 working days by March days by 2019 March 2020
Within 20 working Within 20 days by March working 2019 days y March 2020
2018/19
Medium Term Targets
MTEF and Annual Performance Plan 2017/18 |
17
UNEMPLOYMENT INSURANCE FUND
Percentage of total mandated social responsible investment committed
Administrative expenditure (excluding capex) as a percentage of revenue.
1.2
1.3
Percentage return on investment.
1.1
Sound financial management
Social responsible investment
Programme Performance Indicator
Output
80% by March 2018
Administrative expenditure ≤ 15% by March 2018
Quarterly
Quarterly
CPI return on investment by March 2018
2017/18
Annual Target
Quarterly
Reporting Period
Strategic Objective 1: Improve financial management
Programme 1: Administration
4.2 Quarterly Performance Targets for 2017/2018
20% by June 2017
Administrative expenditure ≤ 15% by June 2017
CPI by June 2017
1st
4th
Administrative expenditure ≤ 15% by December 2017
80% by March 2018
Administrative expenditure ≤ 15% by March 2018
CPI by December CPI 2017 by March 2018
3rd
40% by 60% by September 2017 December 2017
Administrative expenditure ≤ 15% by September 2017
CPI by September 2017
2nd
Quarterly Targets
MTEF and Annual Performance Plan 2017/18 |
18
UNEMPLOYMENT INSURANCE FUND
90% within 10 working days by March 2018 95% of payment documents processed within 7 working days of receipt by 31 March 2018 90% within 2 90% within 2 working working days by 31 days by 30 June March 2018 2017
Quarterly Percentage of valid claims (Deceased benefit) with complete information approved or rejected. Quarterly
Quarterly
Percentage of payment documents processed after receipt
Percentage of new companies with complete information issued with registration certificate.
2.3
2.4
2.5
19
Programme Performance Indicator
Number of newly registered employers per year.
Percentage increase in Revenue per year
3.1
3.2
Improve compliance
60 000 by March 2018 7.2% by March 2018
Quarterly
2017/18
Annual Target
Quarterly
Reporting Period
1.8% by June 2017
15 000 by June 2017
1st
Strategic Objective 3: Improve compliance to the Unemployment Insurance Acts
95% of payment documents processed within 7 working days of receipt by 30 June 2017
90% within 10 working days by June 2017
3.6% by September 2017
30 000 by September 2017
2nd
5.4 % December 2017
45 000 by December 2017
3rd
90% within 2 working days by 31 December 2017
95% of payment documents processed within 7 working days of receipt by 31 December 2017
90% within 10 working days by December 2017
Quarterly Targets
90% within 2 working days by 30 September 2017
95% of payment documents processed within 7 working days of receipt 30 September 2017
90% within 10 working days by September 2017
90% within 5 working days by December 2017
90% within 15 working days by December 2017
3rd
7.2 % by March 2018
60 000 by March 2018
4th
90% within 2 working days by 31 March 2018
95% of payment documents processed within 7 working days of receipt by 31 March 2018
90% within 10 working days by March 2018
90% within 5 working days by March 2018
90% within 15 working days by March 2018
4th
|
Output
90% within 15 working days by September 2017
2nd
Quarterly Targets
90% within 5 working 90% within 5 days by June 2017 working days by September 2017
90% within 5 working days by March 2018
90% within 15 working days by June 2017
1st
Quarterly
Percentage of valid claims (Inservice benefits; Maternity, illness and adoption benefits) with complete information approved or rejected.
2.2
2017/18
Annual Target
90% within 15 working days by March 2018
Reporting Period Quarterly
Percentage of valid claims (Unemployment benefit) with complete information approved or rejected.
Programme Performance Indicator
Improved 2.1 Client Service
Output
Strategic Objective 2: Improve Service Delivery
Programme 2: Business operations
MTEF and Annual Performance Plan 2017/18 UNEMPLOYMENT INSURANCE FUND
Programme Performance Indicator
Turnaround time to approve or reject funding after receipt of complete information.
Turnaround time to transfer funds to partners after receipt of accurate invoice.
4.1
4.2
Output
Social plan funded. Within 20 working days by March 2018
Within 10 working days by March 2018
Quarterly
2017/18
Annual Target
Quarterly
Reporting Period
Strategic Objective 4: Fund Poverty Alleviation Schemes
Programme 3: Labour Activation Programmes
Within 10 working days by June 2017
Within 20 working days by June 2017
1st
Within 10 working days by September 2017
Within 20 working days by September 2017
2nd
Within 10 working days by December 2017
Within 20 working days by December 2017
3rd
Quarterly Targets
Within 10 working days by March 2018
Within 20 working days by March 2018
4th
MTEF and Annual Performance Plan 2017/18 |
20
UNEMPLOYMENT INSURANCE FUND
MTEF and Annual Performance Plan 2017/18
|
21
UNEMPLOYMENT INSURANCE FUND
MTEF and Annual Performance Plan 2017/18
ANNEXURE A
|
UNEMPLOYMENT INSURANCE FUND
TECHNICAL INDICATOR DESCRIPTIONS
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 report Statistics 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
TECHNICAL INDICATOR DESCRIPTIONS 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 New indicator Desired performance Indicator responsibility
Administrative expenditure (excluding capex) as a percentage of revenue Measure of how big the administration expenditure is as compared to revenue. To control administration expenditure Financial statements Signed financial statement report in a PDF format dated within the period under review. Total administration expenditure (breakdown of all figures) divided total revenue multiplied by 100% None Output Non-cumulative Quarterly No Administration expenditure to be ≤ 15% Chief Financial Officer
22
MTEF and Annual Performance Plan 2017/18
|
UNEMPLOYMENT INSURANCE FUND
TECHNICAL INDICATOR DESCRIPTIONS 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.
Data limitations
None
Type of indicator
Output
Calculation type
Cumulative
Reporting cycle
Quarterly
New indicator
No
Desired performance
Increase in mandated social investment to reach asset allocation.
Indicator responsibility
Chief Financial Officer
TECHNICAL INDICATOR DESCRIPTIONS 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.
Type of indicator
Output
Calculation type
Non-Cumulative
Reporting cycle
Quarterly
New indicator
No
Desired performance
All valid claims with complete information finalised within 10 working days.
Indicator responsibility
Chief Director: Operations
23
MTEF and Annual Performance Plan 2017/18
|
UNEMPLOYMENT INSURANCE FUND
TECHNICAL INDICATOR DESCRIPTIONS Indicator title
Percentage of valid claims (In-service benefits; Maternity, illness and adoption benefits) with complete information approved or rejected.
Short definition
A percentage of total valid claims with complete information received are finalised within 5 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 5 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.
Type of indicator
Output
Calculation type
Non-Cumulative
Reporting cycle
Quarterly
New indicator
Yes
Desired performance
All valid claims with complete information finalised within 2 working days (excluding weekends and public holidays).
Indicator responsibility
Chief Director: Operations
TECHNICAL INDICATOR DESCRIPTIONS Indicator title
Percentage of valid claims (Deceased benefit) with complete information approved or rejected.
Short definition
A percentage of total valid claims with complete information received are finalised within 10 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 10 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.
Type of indicator
Output
Calculation type
Non-Cumulative
Reporting cycle
Quarterly
New indicator
Yes
Desired performance
All valid claims with complete information finalised within 10 working days.
Indicator responsibility
Chief Director: Operations
24
MTEF and Annual Performance Plan 2017/18
|
UNEMPLOYMENT INSURANCE FUND
TECHNICAL INDICATOR DESCRIPTIONS
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
Evidence to be submitted
SIYAYA system report and excel spread-sheet
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
Type of indicator
Output
Calculation type
Cumulative
Reporting cycle
Quarterly
New indicator
Yes
Desired performance
Increase percentage of payment documents processed within seven working days (excluding weekends and public holidays).
Indicator responsibility
Chief Director: Operations
TECHNICAL INDICATOR DESCRIPTIONS 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 New indicator Desired performance Indicator responsibility
Percentage of new companies with complete information issued with registration certificate. Percentage of new companies issued with registration certificate processed within 2 working days (excluding weekends and public holidays). Track the processing of registrations after receipt of documents Siyaya Operating system and excel spread-sheet 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. The number of registrations captured within one working day (excluding weekends and public holidays) divided by the total registrations captured multiplied by 100. Access is limited to certain personnel Output Non-Cumulative Quarterly Yes Increase in percentage of companies with complete information issued with registration certificate. Chief Director: Operations
25
MTEF and Annual Performance Plan 2017/18
|
UNEMPLOYMENT INSURANCE FUND
TECHNICAL INDICATOR DESCRIPTIONS
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
Data limitations
None
Type of indicator
Output
Calculation type
Cumulative
Reporting cycle
Quarterly
New indicator
No
Desired performance
Increase in the number of newly registered employers
Indicator responsibility
Chief Director: Operations
TECHNICAL INDICATOR DESCRIPTIONS 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%.
Data limitations
None
Type of indicator
Output
Calculation type
Cumulative
Reporting cycle
Quarterly
New indicator
No
Desired performance
Increase in contribution revenue above the inflation rate
Indicator responsibility
Chief Financial Officer
26
MTEF and Annual Performance Plan 2017/18
|
UNEMPLOYMENT INSURANCE FUND
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
Type of indicator
Output
Calculation type
Non-Cumulative
Reporting cycle
Quarterly
New indicator
Yes
Desired performance
Funding decision made within 20 working days.
Indicator responsibility
Chief Director: Labour Activation Programme
TECHNICAL INDICATOR DESCRIPTIONS 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
Type of indicator
Output
Calculation type
Non-Cumulative
Reporting cycle
Quarterly
New indicator
Yes
Desired performance
Transfer of funds made within 10 working days.
Indicator responsibility
Chief Director: Labour Activation Programme
27
MTEF and Annual Performance Plan 2017/18
|
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 Towers 230 Lillian Ngoyi (formerly Van der Walt Street)
Postal Address: The UIF Pretoria 0052
Website:
www.labour.gov.za
29
UNEMPLOYMENT INSURANCE FUND