Strategic Plan UNEMPLOYMENT INSURANCE FUND - Strategic Plan 2018/19 2022/23 - Amazon AWS

 
Strategic Plan UNEMPLOYMENT INSURANCE FUND - Strategic Plan 2018/19 2022/23 - Amazon AWS
UNEMPLOYMENT INSURANCE FUND

                                          Strategic Plan
                __________________________________________________________
                                         Strategic Plan 2018/19 - 2022/23

UNEMPLOYMENT INSURANCE FUND ANNUAL PERFORMANCE PLAN FOR THE FINANCIAL YEAR
2018/19
Strategic Plan UNEMPLOYMENT INSURANCE FUND - Strategic Plan 2018/19 2022/23 - Amazon AWS
First published in 2018, by the Unemployment Insurance Fund (UIF)

    Copyright © 2018

    Directorate: Communication & Marketing

    Pretoria, South Africa

    ISBN: 978-0-621-46182-4

    RP79-2018

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                                         UNEMPLOYMENT INSURANCE FUND ANNUAL PERFORMANCE PLAN FOR THE FINANCIAL YEAR
                                                                                                             2018/19
Strategic Plan UNEMPLOYMENT INSURANCE FUND - Strategic Plan 2018/19 2022/23 - Amazon AWS
TABLE OF CONTENTS
                Foreword by Minister                                             4.
                Foreword by the Accounting Authority                             5.
                Commissioner’s Statement                                         6.
                Official Sign-Off                                                8.

       PART A: STRATEGIC OVERVIEW                                                PART A: ST
       1.Vision, Mission and Values                                              10.
         1.1    Vision
         1.2    Mission                                                          11.
         1.3    Values                                                           12.
         1.4    Vision, Mission strategic Objectives, Outputs, Key Performance
       		       Indicators, Critical Success Factors & Values.
         1.5    Organisational Environment                                       14.
         1.6    Organisational Structure Description Per Programme               15.
                                                                                 16.
       2.       Legislative And Other Mandates
                2.1   Constitutional Mandate                                     16.
                2.2   Legislative Mandate
                2.3   Policy Mandate                                             17.
                2.4   Relevant Court Rulings                                     18.
                2.5   Planned Policy Initiatives                                 19.

       3.       Situational Analysis
                3.1    Performance Environment                                   20.
                3.2    Description of the strategic planning process

       4.       Strategic Outcome Oriented Goals                                 22.

       PART B: NEW STRATEGIC OBJECTIVES OF THE                                   PART B: ST
       FUND PER PROGRAMME.                                                       OF THE
       5.       Programme Strategic Objectives
                5.1   Programme 1: Administration                                23.
                5.2   Programme 2: Business Operations                           24.
                5.3   Programme 3: Labour Activation Programme                   25.
                                                                                 30.
       6.       Overview of the 2018/19 Budget and MTEF Estimates
                6.1   Expenditure Estimates                                      26.

       ANNEXURE A                                                                28.PART B

                Acronyms                                                         32.

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UNEMPLOYMENT INSURANCE FUND ANNUAL PERFORMANCE PLAN FOR THE FINANCIAL YEAR
2018/19
Strategic Plan UNEMPLOYMENT INSURANCE FUND - Strategic Plan 2018/19 2022/23 - Amazon AWS
FOREWORD BY MINISTER

                                                     •        The creation of decent employment
                                                              through inclusive economic growth;
                                                     •        Realising an efficient, effective and
                                                              development oriented public service
                                                              and an empowered and inclusive
                                                              citizenship; and
                                                     •        An inclusive and responsive social
                                                              protection system.

                                                     The Four Strategic Outcomes’ Goals are to:

                                                     •        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
                                                              the UIF operations.
Strategic planning in the
Unemployment Insurance Fund (UIF) is                 This strategic plan is aligned to the National
currently guided by the Medium Term                  Development Plan (NDP) and resources will
Strategic Framework (MTSF) which                     be mobilised to realise the objectives of the
reflects the national key priorities of              NDP that resonate with the mandate of the
Government. The plan contains the Fund’s             Fund.
response to the strategic priorities that talk
to the Department of Labour’s remit for the          We have set ourselves challenging
period 2018/19 to 2022/23.                           milestones through this strategic plan and we
The strategic objectives and outputs                 commit to the implementation of this plan
contained in this strategic plan are central to      working very closely with all our social
the Fund’s activities and are aimed at               partners.
contributing to service delivery outcomes
such as:

Signed:
______________________________________

MN OLIPHANT, MP
MINISTER OF LABOUR
(EXECUTIVE AUTHORITY OF THE DEPARTMENT OF LABOUR)

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                                                  UNEMPLOYMENT INSURANCE FUND ANNUAL PERFORMANCE PLAN FOR THE FINANCIAL YEAR
                                                                                                                      2018/19
Strategic Plan UNEMPLOYMENT INSURANCE FUND - Strategic Plan 2018/19 2022/23 - Amazon AWS
FOREWORD BY THE ACCOUNTING AUTHORITY
                                                                         to turn the situation around and take UIF
                                                                         back to its glory days, and as the department
                                                                         we are committed to provide support for him
                                                                         to achieve this.

                                                                         UIF has adopted a new vision that seeks to
                                                                         reposition it as a caring, customer-centric
                                                                         organisation, and we anticipate that the new
                                                                         vision will drive the Fund to greatly improve
                                                                         service delivery from the 2018/19 financial
                                                                         year and beyond.

                                                     During the 2018/19 MTEF period, the Fund
                                                     will pursue the following six strategic objec-
                                                     tives:
                                                     •      Ensure financial sustainability;
                                                     •      Strengthen institutional capacity of
                                                            the Fund;
                                                     •      Improve service delivery;
                                                     •      Collaborate with stakeholders to
                                                            improve compliance with UIF Acts;
       The UIF has in the last few years contributed •      Provide easy to use services through
       greatly to poverty alleviation by extending          multiple access points; and
       its coverage to vulnerable workers. It has    •      Enhance employability of UIF
       managed to transform the organization by             beneficiaries, enable entrepreunrship
       improving the internal control environment.          and preserve jobs.
       This can be attributable to good work done
       by the UIF Board, Management and Staff        These strategic objectives are derived from
       which saw the UIF receiving the ten           the four strategic outcomes targeted which
       consecutive unqualified audit reports from    were informed by the following three of the
       the Auditor General. However, the blight      fourteen Government outcomes:
       to the sterling previous performance of the
       Fund is the disclaimer audit opinion for the  •      The creation of decent employment
       2017/18 financial year for which we have             through inclusive economic growth;
       raised our concern.                           •      Realising an efficient, effective and
                                                            development oriented public service
       The Commissioner has made an undertaking             and an empowered and inclusive
                                                            citizenship; and
                                                     •      An inclusive and responsive social
                                                            protection system.

       Signed:
       ______________________________________                            The organisation is also keenly aware that in
                                                                         order to achieve its strategic objectives it has
                                                                         to collaborate with stakeholders such as the
       TM. LAMATI
                                                                         South African Revenue Services, other State
       DIRECTOR GENERAL                                                  Owned Entities, National, Municipal and
                                                                         Provincial governments, Employer
                                                                         organisations, and Labour unions among
                                                                         others. Collaboration with these
                                                                         stakeholders will harness the Fund’s ability to
                                                                         improve service delivery.
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UNEMPLOYMENT INSURANCE FUND ANNUAL PERFORMANCE PLAN FOR THE FINANCIAL YEAR
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Strategic Plan UNEMPLOYMENT INSURANCE FUND - Strategic Plan 2018/19 2022/23 - Amazon AWS
COMMISSIONER’S STATEMENT
                                                  stakeholders. To address these challenges,
                                                  the Fund has developed the Service Delivery
                                                  Action Plan which outlines key interventions
                                                  such as reviewing of business processes,
                                                  upgrading of IT infrastructure, leveraging on
                                                  IT tools that promote greater self - service,
                                                  integration of ICT systems, review of the
                                                  labour centre model and increasing staff
                                                  capacity through training.

                                                  All mentioned interventions are at various
                                                  stages of implementation. For example we
                                                  have already started piloting the Queue
                                                  Management system in three provinces. The
                                                  positive feedback from our customers
                                                  indicates that we are on the right path; the
                                                  next step is to address some of the teething
                                                  problems that were identified during the
                                                  piloting and rolling out the system in all
                                                  labour centres.

                                                  We have made the commitment to be a
                                                  forward thinking organisation by tapping
                                                  into new technologies as means of delivering
                                                  excellent service using affordable multiple
                                                  channels. We have on our plan the
The Unemployment Insurance Fund (UIF), as
                                                  determination to explore installation of Wi-Fi
the only state institution mandated to
                                                  facilities at our Labour Centres. We believe
provide short - term insurance to
                                                  this initiative will inculcate a culture of self-
vulnerable workers plays a critical role in
                                                  service amongst our customers, which will
alleviating poverty in South Africa. In order
                                                  subsequently position us as an institution
to effectively deliver on this mandate, the
                                                  that not only is concerned with
Fund decided to review its mission, vision
                                                  quantifying the number of claims processed
and objectives to reposition the organisation
                                                  during a particular period, but also as the
as a customer-centric organisation. The new
                                                  one that provides support to our customers
vision places the customer at the centre of
                                                  through innovative technology.
every activity of the Fund. It proposes the
rendering of excellent service to our
                                                  Our commitment to improve service delivery
customers in a courteous and caring manner.
                                                  prompted us to also segregate and review
                                                  turn - around times for processing of each
Through the analysis of our service delivery
                                                  benefit. The turn-around time for the
value chain, we have been able to identify
                                                  unemployment benefit, which accounts for
gaps and bottlenecks that contribute to the
                                                  90% of claims has been reduced from 30
frustration and dissatisfaction of our
                                                  days to 20 days. The intention is to ensure
customers and
                                                  that our timeous intervention helps to reduce
                                                  the impact of poverty amongst our citizens

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                                                UNEMPLOYMENT INSURANCE FUND ANNUAL PERFORMANCE PLAN FOR THE FINANCIAL YEAR
                                                                                                                    2018/19
Strategic Plan UNEMPLOYMENT INSURANCE FUND - Strategic Plan 2018/19 2022/23 - Amazon AWS
The Fund has been working tirelessly                              The Fund remains committed to
       towards the implementation of the                                 maintaining the current sound financial
       Unemployment Insurance Amendment                                  position and constantly ensures that
       Act of 2016. We have addressed all                                revenue collection constantly improves,
       problems that have hampered us from                               and compliance is enforced.
       implementing the Act and we anticipate
       the promulgation of the implementation                            The two recent developments at PIC
       date to be announced during the 208/19                            where the CEO was accused of
       financial year. We believe the                                    mismanagement and sharp decline in the
       implementation of the Act will drastically                        value of UIF equity at Steinhoff got the
       improve the lives of our beneficiaries as                         UIF board and management very
       they will be able to enjoy the benefits for                       concerned. In both instances UIF was
       a longer period of time at no extra cost.                         swift to call the CEO to apprise the Board
                                                                         and management on these issues, and in
       According to the latest figures from                              both instances the Board and
       StatsSA unemployment stood at 27,7%,                              management were quite satisfied. The
       which has a corresponding increase in                             CEO undertook to update the Board on
       the number of unemployment claims                                 new developments.
       lodged with the Fund. Our effort to fight
       the scourge of unemployment has not                               UIF will continue to maintain sound
       been limited to only paying close to R 40                         relations with all strategic stakeholders
       million worth of claims per day, but we                           such DoL, PIC, Nedlac, other SOEs, and
       have also responded by funding poverty                            Banks among others. These stakeholders
       alleviation schemes administered under                            play a pivotal role in assisting the Fund
       the Labour Activation Programmes (LAP)                            to achieve its objectives and executing its
       business unit.                                                    mandate.

       In an effort to elevate the role played by                        We are thankful for the tireless support
       LAP in poverty alleviation, we have                               of the Minister, Deputy Minister and
       reviewed its objectives to sharpen its                            the Director General of the Department
       focus and increased the targets to achieve                        of Labour, and we look forward to their
       greater impact. The UIF Board has also                            continued support as we implement the
       established a LAP Sub-Committee to                                2018/19 - 2022/23 strategic plan.
       oversee LAP functions and address any
       bottlenecks to achieve greater efficiency.

    ______________________________________

    T. MARUPING
    UNEMPLOYMENT INSURANCE COMMISSIONER

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UNEMPLOYMENT INSURANCE FUND ANNUAL PERFORMANCE PLAN FOR THE FINANCIAL YEAR
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OFFICIAL SIGN-OFF
It is hereby certified that this Annual Performance Plan:

•       Was developed by the management of the Unemployment Insurance Fund
        under the guidance of the Minister of Labour, MN Oliphant and Deputy
        Minister SP Holomisa;
•       Was prepared in line with the National Development Plan; and
•       Accurately reflects the strategic outcomes oriented goals and objectives which
        the Unemployment Insurance Fund will endeavour to achieve over the period
        2018/19 - 2022/23.

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:__________________________

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                                           UNEMPLOYMENT INSURANCE FUND ANNUAL PERFORMANCE PLAN FOR THE FINANCIAL YEAR
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X. MONAKALI
       CHIEF INFORMATION OFFICER

       SIGNATURE:__________________________

       T. MARUPING
       UNEMPLOYEMENT INSURANCE COMMISSIONER

       SIGNATURE:__________________________

       T. LAMATI
       DIRECTOR-GENERAL: LABOUR

       SIGNATURE:__________________________

       S.P. HOLOMISA, MP
       DEPUTY MINISTER: LABOUR

       SIGNATURE:__________________________

       APPROVED BY:
       M. OLIPHANT
       MINISTER OF LABOUR

       SIGNATURE:__________________________

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UNEMPLOYMENT INSURANCE FUND ANNUAL PERFORMANCE PLAN FOR THE FINANCIAL YEAR
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PART A: STRATEGIC OVERVIEW
The UIF’s strategic plan is derived from the Minister of Labour’s service delivery agreement
and policy directives from the Department of Labour. The strategic plan sets out the broad
strategic goals and objectives that the UIF pursues over the medium term. The UIF is on
a continuous journey to meet the needs of its clients, align its work with international best
practice and understands that the pursuit and search for relevance remains its critical
responsibility.

Our strategy is the key business driver for all areas in the organisation and aims to align all
activities and people to a common purpose. This Strategic Plan document includes the key
aspects of the Fund’s strategy for the period 2018/19 to 2022/23 and it is informed by the
strengths, weaknesses, threats and opportunities identified. A series of fundamental
statements relating to the UIF’s vision, mission, values and objectives guides the Fund’s
proposed strategic initiatives and action plans. This strategic plan is also informed by the
National Development Plan as well as the Medium Term Strategic Framework.

It is a fact that a high percentage of the South African workforce is not covered by UIF. This
poses a challenge which needs a comprehensive strategy which will ensure that all qualifying
workers are protected as legislated by the Act. This Strategic Plan provides a clear strategic
direction for the UIF to address this challenge as well as ensuring overall improvement in
service delivery.

The services of the UIF are carried out through the Department at 126 Labour Centres
spread throughout the nine provinces. The service delivery model of the Department is a
decentralisation and integrated model which requires undivided attention; as such the UIF
will focus in this area to improve service delivery.

The Unemployment Insurance Board oversees the processes of planning and budget
preparations, and recommends to both the Minister (Executive Authority) and the
Director-General Labour (Accounting Authority) the approval of the Fund’s Medium Term
Expenditure Framework. The Board will continue to ensure that the Fund’s mandate is taken
to the next level of improved service delivery.

      1.     VISION, MISSION AND VALUES

Based on the strategic context, the proposed strategic direction, the Board considerations,
and the various discussions and inputs from stakeholders, the UIF proposes some changes
to its vision and mission to make them more relevant.

		1.1              VISION

           CURRENT VISION                                         NEW VISION
   The UIF strives to contribute to the                A caring, accessible and customer
      alleviation of poverty in SA by                 centric UIF that contributes towards
      providing effective short term                           poverty alleviation.
     unemployment insurance to all
  workers who qualify for unemployment
            and related benefits

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                                               UNEMPLOYMENT INSURANCE FUND ANNUAL PERFORMANCE PLAN FOR THE FINANCIAL YEAR
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The new vision can be further elaborated as follows:
       •     CARING: After interacting with the UIF, customers should feel that their needs are
             being addressed, and that the UIF empathises and solves the customers queries or
             problems;

       •        ACCESSIBLE: The customer should be able to access the UIF through a variety of
                channels and locations. Increasing customer convenience should be at the centre of
                any planned ease of access measures; and

       •        CUSTOMER-CENTRIC: The customer should be placed at the centre of the UIF’s
                processes and procedures. Business activities and relief processes should support the
                idea of being customer centric.

       		1.2                      MISSION

               CURRENT MISSION                                                      NEW MISSION
               The central purpose of the UIF is                              Through multiple channels, we will
                          defined as:                                        deliver both financial and social relief,
                                                                             to the right person, at the right time,
           •      Rendering an effective accessible                                        every time.
                  service to all stakeholders;
           •      Being a sustainable organisation
                  with sufficient reserves; and
           •       Administering the UIF profes-
                             sionally.

       The new mission can be further elaborated as follows:
       •     MULTIPLE CHANNELS: Clients should be able to access the UIF and its services
             through various channels and across different physical locations. All this is aimed at
             increasing the UIF’s accessibility to its customers

       •        FINANCIAL RELIEF: Monetary claims paid out to contributors;

       •        SOCIAL RELIEF: Non-financial aspect of unemployment relief such as that provided
                under the Labour Activation Programme, e.g. training;

       •        RIGHT PERSON: The claim should be paid directly to the contributor.

       •        RIGHT TIME: The claim should be paid out at the time when the contributor requires
                it.

       •        EVERY TIME: complete applications should receive the correct form of relief every
                time.

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UNEMPLOYMENT INSURANCE FUND ANNUAL PERFORMANCE PLAN FOR THE FINANCIAL YEAR
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1.3.                VALUES

The UIF subscribes to the following values;

         TRANSPARENCY                         MUTUAL RESPECT                       CLIENT-CENTRED SERVICE
 We will be open to all stakeholders   We will respect our colleagues and         We will achieve a total customer
  without reservations on dealings     stakeholders and treat them as we         satisfaction by providing excellent
          within the fund.                     want to be treated.                 and world class services to our
                                                                                            stakeholders.
            INTEGRITY                         ACCOUNTABILITY                                TEAMWORK
   We will communicate openly,               We will own up to our                We will involve each other, work
  honestly and build relationships      responsibilities in relation to our       together across the organisation,
          based on trust.                behaviour, actions and results            seek ideas and share solutions.
                                       CARING FOR OUR PEOPLE
     We treat employees with care, dignity and respect. We grow our people for performance excellence.

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

                    INFORMATION AND
                   VISION
                   COMMUNICATION
                                                                               MISSION
                                                                                  FINANCIAL REPORTING
    A caring, accessible     and customer                     Through multiple    channels,
                                                                               Compilation  and we    will of the
                                                                                                submission
                TECHNOLOGY.                                                    Annual Financial Statement and
   centric UIF that contributes
                Manage   the Fund’s towards                  deliver both financial  and
                                                                               Auditor      social
                                                                                       General       relief,
                                                                                                as well as
                projects; and
            poverty   alleviation                            to the right person,   at theofright
                                                                               publication    AFS intime,
                                                                                                      the annual
                Develop and implement ICT                                      report. Management of financial
                    governance model
                                                                           every  time.
                                                                               reporting; and Provision of financial
                                                                                        systems support.

                                                VALUES                                  INCOME MANAGEMENT
                                                               Management of revenue and debt
   Transparency, Mutual respect, Client-centered services, Integrity,   Accountability,
                                                               collection processes; and
                         Team work, Caring for our people      Management of payroll audits and
                                                                                        enforcement.

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                                                        UNEMPLOYMENT INSURANCE FUND ANNUAL PERFORMANCE PLAN FOR THE FINANCIAL YEAR
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STRATEGIC OBJECTIVES

     Ensure                 Strengthen                 Improve              Collaborate      Provide easy          Enhance
    financial              institutional                service          with stakeholders to use services      employability of
  sustainability          capacity of the              delivery             to improve     through multiple           UIF
                               Fund.                                     compliance with     access points       beneficiaries,
                                                                             UIF Acts                               enable
                                                                                                               entrepreneurship
                                                                                                               and preserve jobs

                                                              OUTPUTS
    Sound                 Maintain Staff            Improve client             Improved          Improved         Enhanced
   financial              establishment                service                compliance        Technology      employability,
  management                                                                                                    preserve jobs.
                                                    Ease of doing
      Social                                          business
   responsible
   investment

                                    CRITICAL SUCCESS FACTORS

  80% of Social            Vacancy rate               90% of                  65 000 new        Free WI-FI          450 000
   Responsible              reduced to            benefits claims              registered       in 126 sites      beneficiaries
   investment                 ≤ 10%              processed within              employers                         provided with
                                                 15% working days                                SAP release    learning and/or
       100%                                                                   250 000 new      1 implemented       work place
   of invoices                                      95% of new                 employees                           experience
 paid within 30                                     companies                registered with
  calendar days                                     issued with                 the Fund                            90% of
 after receipt by                                   registration                                               Training Lay-Off
     the UIF                                     document within                                                   Scheme
                                                  2 working days                                               approved within
                                                                                                               20 working days

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UNEMPLOYMENT INSURANCE FUND ANNUAL PERFORMANCE PLAN FOR THE FINANCIAL YEAR
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1.5   CURRENT ORGANISATIONAL STRUCTURE

                     UNEMPLOYMENT INSURANCE COMMISSIONER

                                     CHIEF                                             CHIEF
DIRECTORATE:                                                  CHIEF                DIRECTORATE:                 CHIEF
                DIRECTORATE:     DIRECTORATE:
    RISK                                                  DIRECTORATE:                LABOUR                  FINANCIAL
               INTERNAL AUDIT     CORPORATE
MANAGEMENT                                                OPERATIONS                ACTIVATION                 OFFICER
                                   SERVICES
                                                                                   PROGRAMME

                                                                                                             Directorate:
                                Directorate: Human           Directorate:         Directorate: Labour
                                                                                                              Investment
                                     Resource                Operations                Activation
                                                                                                           Management and
                                   Management                                         Programme
                                                                                                           Actuarial Services

                                   Directorate:                                   Directorate: Labour     Directorate: Budget
                                Communications and           Directorate:
                                                                                       Activation          Expanditure and
                                   Marketing                 Compliance
                                                                                      Programme           Bank Reconciliation

                                    Directorate:                                  Directorate: Labour
                                                             Directorate:                                 Directorate: Supply
                                   Organisational                                      Activation
                                                          Provincial Support                              Chain Management
                                   Development                                        Programme

                                 Directorate: Legal
                                                                                                          Directorate: Income
                                      Services

                                     Directorate:
                                Policy Development,
                                 Strategic Planning,                                                     Directorate: Financial
                                    Monitoring &                                                               Reporting
                                     Evaluation

                                    Directorate:
                                  Information and
                                  Communication
                                    Technology

                                   Directorate:
                                  Board Services

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                                                      UNEMPLOYMENT INSURANCE FUND ANNUAL PERFORMANCE PLAN FOR THE FINANCIAL YEAR
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1.6 ORGANISATIONAL STRUCTURE DESCRIPTION PER
       			PROGRAMME.
       A.		 PROGRAMME 1: ADMINISTRATION
       Programme purpose: To provide management, strategic and
       				               administrative support to the fund
  OFFICE OF THE CORPORATE SERVICES                                                                   CHIEF FINANCIAL
  COMMISSIONER To provide support and an enabling environment for the Fund to
                meet its strategic objectives through placing the right people at
                                                                                                     OFFICER
  Provide strategic                                                                                  Provide financial governance on
                               the right time.
  leadership and overall                                                                             financial management and
  management ragarding                                                                               accounting services of the Fund.
  the administration and
  overall operations of the
                              HUMAN RESOURCE
                                                                BOARD SERVICES
  Fund                        MANAGEMENT                        •Enhance good governance of
                              •Training and development of                                     INVESTMENT
                                                                 the organisation;
                               staff;
                                                                •Board support and
                                                                                               MANAGEMENT
                              •Maintaining sound labour                                        Provide financial governance on
  INTERNAL                     relations;                        administration;               financial management and
  AUDIT                       •Promoting equality in the        •Compliance management &       accounting services of the Fund.
  Independently                Fund;                             Governance;
  focus on reviewing the      •Performance management;          •Security management services.
  internal controls of the    •Recruitment and selection; &      Policy management
                              •Provision of service condition
                                                                                               FINANCIAL REPORTING
  Fund;                                                                                              •Compilation and submission of the
  reviewing risk               and benefits.
                                                                                                      Annual Financial Statement and
  management,                 •Protection of vulnerable
                                                                                                      Auditor General as well as
  governance processes         workers.
                                                                 LEGAL SERVICES                       publication of AFS in the annual
  and programs of the                                            •Provision of legal services         report.
  Fund                        ORGANISATIONAL                                                         •Management of financial reporting;
                                                                                                      and
                              EFFECTIVENESS                                                          •Provision of financial systems
                              •Job design and evaluation;
                                                                                                      support.
                              •Change management; and
  RISK                        •Business process
                               development and mapping
  MANAGEMENT                                                                                         EXPENDITURE, BUDGET,
  Enterprise wide risk
  management; and fraud       COMMUNICATION &                                                        AND BANK
  investigations              MARKETING                                                              RECONCILIATIONS
                              •Provision of communication                                            •Creditor and expenditure
                               services;                                                              management.
                              •Provision of marketing                                                •Claims payments;
                               services; and                                                         •Reconciliation of bank accounts; &
                              •Advertising, branding and                                             •Intergated budget planning and
                               publications.                                                          management.

                               INFORMATION &
                               COMMUNICATION                      INCOME                             SUPPLY CHAIN
                               TECHNOLOGY                                                            MANAGEMENT AND
                               •Manage the Funds projects;
                                                                  MANAGEMENT
                                                                  •Management of revenue & debt      AUXILIARY SERVICES
                               and Develop and implement
                                                                  collection process & management •Enhance supply chain
                               ICT governance model.                                                management processes and
                                                                  of payroll audits & enforcement.
                                                                                                    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.

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UNEMPLOYMENT INSURANCE FUND ANNUAL PERFORMANCE PLAN FOR THE FINANCIAL YEAR
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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.

		 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. LEGISLATIVE AND MANDATES

The UIF is a Schedule 3 A public entity in terms of the Public Finance Management
Act (PMFA), 1 of 1999.

      2.1   CONSTITUTIONAL MANDATE

The supreme mandate of the UIF is derived from section 27 (1) (c) of the
Constitution of the Republic of South Africa. The UIF provides social security to its
contributors in line with section 27 (1) (c) which states that “everyone has the right to
social security”.
      2.2   LEGISLATIVE MANDATE

The mandate of UIF is stated in the Unemployment Insurance Act (Act 63 of 2001)
as amended. The UIF was established in terms of section 4(1) of the UIA. The Act
empowers the UIF to register all employers and employees in South Africa and pay
those who qualify for unemployment insurance benefits.

 16
                                           UNEMPLOYMENT INSURANCE FUND ANNUAL PERFORMANCE PLAN FOR THE FINANCIAL YEAR
                                                                                                               2018/19
The Unemployment Contributions Act (Act 4 of 2002) empowers the SARS
       Commissioner and the UI Commissioner to collect monthly contributions from both
       employers and employees. Section 9 of the UCA empowers the UI Commissioner
       to collect contributions from all those employers who are not required to register as
       employers in terms of the fourth schedule of the Income Tax Act (Act 58 of 1962)
       and who are not liable for the payment of the skills development levy in terms of the
       Skill Development Act (Act 9 of 1999). These contributions are used to pay benefits
       and other expenditure reasonably incurred relating to the application of the Act.

                2.3      POLICY MANDATE

       The UIF is expected to make a contribution to the following service delivery
       outcomes:
       •    Creation of decent employment through inclusive economic growth;
       •    An efficient, effective and development-oriented public service and an
            empowered and inclusive citizenship; and
       •    An inclusive and responsive social security system.

       Overall, the UIF is expected to provide adequate social safety nets to protect
       vulnerable workers.

       The Fund administers the following legislations:

       •        Unemployment Insurance Act, 30 of 2001, as amended (UIA).
                Purpose: the Act empowers the UIF to register all employers and employees in
                in South Africa for unemployment insurance benefits.
       •        Unemployment Insurance Contributions Act, 4 of 2002.
                Purpose: to provide for the imposition and collection of contributions for the
                benefit of the Unemployment Insurance Fund; and to provide for matters
                connected therewith.

                                                                                          17
UNEMPLOYMENT INSURANCE FUND ANNUAL PERFORMANCE PLAN FOR THE FINANCIAL YEAR
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2.4       RELEVANT COURT RULINGS

                         AMOUNT                  NATURE                                                ATTORNEYS
   PARTIES                                                                    STATUS
                         CLAIMED                OF CLAIM                                              PARTICULARS

         1.                                      Payment of                                         State Attorney.
  S Khepelele              Still to be          unemployment                                        Mr V. Siphondo
                                                                             Still pending
        Vs                determined          benefits of ex-mine                                   VSpondo@justice.gov.za
Minister of Labour                                  worker.                                         Tel : (021) 441-9200

        2.
                                                                                                    State Attorney
    H. Saqqid
                                                                                                    Ms. T. Naidoo
        Vs                 Still to be          Unemployment
                                                                             Still pending          ThNaidoo@justice.gov.za
Minister of Labour        determined               benefits                                         Tel: (011) 330 7600 (EXT
  and another                                                                                       7727)

         3.
      H. Phili                                                                                      State Attorney
         vs                                                                                         Ms M. Pillai
                       Benefits still to be
  The Minister of                              Maternity benefits            Still pending          mpillai@justice.gov.za
                          determined
the Department of                                                                                   Tel: (031) 365 2554
      Labour

       4.
                                                                                                    State Attorney
   B.P Mzamo            Costs still to be     Cancellation of the                                   Ms Dlanjwa
       vs                                                                    Still pending
                         determined            Mortgage Bond                                        TDlanjwa@justice.gov.za
 UIF and another                                                                                    Tel: (043) 706 5100 / 19

                           1st claim:             Payment for
        5.                                                                                          State Attorney
                        R 3 440 766.00         services rendered           UIF paid MICT
   MICT SETA                                                                                        Mr. S. Zulu
                                                in terms of the           SETA. The matter          SZulu@justice.gov.za
       vs
                            2ndclaim:               Funding                 was finalised.          Tel: (012) 309 1528
 UIF and another
                         R 11 411 847.77          agreement.

         6.
   B. E. Ndlovu                                                                                     State Attorney
         vs            Benefits still to be   Death/dependent’s                                     Mr. T. Skosana
  The Minister of                                                            Still pending          TSkosana@justice.gov.za
                          determined               benefits
the Department of                                                                                   Tel: (031) 365 2546
      Labour

        7.
    V. Tengo                                                                                        State Attorney
        vs                 Still to be          Payment of the               Matter is still        Ms. L. Hart
 The Minister of          determined            illness benefits              pending               LHart@justice.gov.za
the of Labour and                                                                                   Tel: (041) 585 7921
     another

    18
                                                      UNEMPLOYMENT INSURANCE FUND ANNUAL PERFORMANCE PLAN FOR THE FINANCIAL YEAR
                                                                                                                          2018/19
2.5      PLANNED POLICY INITIATIVES

       The amendments to the Unemployment Insurance Act No. 63 of 2001 relate to
       improvements of benefits and administrative changes regarding the submission of
       information by employers to the organisation. The UI amendment Act of 2017 was
       accented to by the President in January 2017.

       3.       SITUATIONAL ANALYSIS

       Due to the economic crisis South Africa is experiencing a rise in unemployment. This
       is shown by the high number of claims approved by the UIF that have been always
       above seven hundred thousand in the past five years. The new administration
       introduced the National Development Plan (NDP) so that it can deal with rising
       unemployment.

       The NDP proposes that social security reforms should be undertaken to ensure,
       among others, the following:
       •    Expanding public employment to provide work for the unemployed, particularly
            youth and women;
       •    Closing the retirement savings and risk benefit gap through reforms, including
            mandatory contributions, with consideration given to government subsidising
            these contributions for low income or periodic workers; and
       •    Integrating databases in the social security environment to enable communities
            to conduct social audits of government services, leading to better and more
            effective targeting of government’s social and employment programmes.

       In this regard, the UIF has established a Labour Activation Programme (LAP) as one
       of the active labour market interventions. The LAP seeks to engage and promote
       activities that preserve and create jobs, and focuses on:

       •        Enhancing the employability of UIF beneficiaries;
       •        Re-introducing working-age UIF beneficiaries into work;
       •        Supporting job preservation;
       •        Accessible LAP services; and
       •        Enabling entrepreneurial environment.

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UNEMPLOYMENT INSURANCE FUND ANNUAL PERFORMANCE PLAN FOR THE FINANCIAL YEAR
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3.1   PERFORMANCE ENVIRONMENT

The services of the UIF are carried out through the 126 labour centres of the
Department of Labour spread across the nine provinces. The service delivery model
of the department is decentralised and integrated and requires specific attention. As
such, the Fund will continue to focus on this area to improve service delivery as in the
past financial year 2017/18.

Efficiency improved with 89% of claims finalized within five weeks. In order to
improve the turnaround times for the claims, the UIF has successfully piloted web
based claims system which enables claimants to lodge their claims through the
internet. More than twenty thousand (20 000) beneficiaries were able to claim from
the comfort of their homes. Revenue collection also increased by 6.6% as compared
to the previous year. Enforcing compliance to the Unemployment Insurance Acts has
always been one of the challenges; however the online u-filling system has increased
the number of employers declaring their employees. More than seventeen thousand
employers were registered on u-filling.

There are challenges in the Taxi industry with regard to how the industry operates.
This results in employers being reluctant to register for UIF purposes. This deprives
their employees of the benefits available from the UIF. In addition to sending the
Inspectors to the industry to enforce compliance, we are in discussions with the
department of transport in order for us to access their database of registered taxis.
Enforcing compliance will be easy as soon as we get details of the owners and their
business addresses.

      3.2   DESCRIPTION OF THE STRATEGIC PLANNING PROCESS

Description of the Strategic Planning Process

    1st Performance               Strategic Planning
                                                                            Mid Term Review
        Review in                      Session
                                                                          (2nd Draft SP & APP)
        June/July                (1 Draft SP & APP)
                                   st
                                                                         In October/November
                                      In August

 Tabling of SP & APP             Approved Strategy &                      Directorate Planning
      In February                  APP in January                               Sessions

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                                          UNEMPLOYMENT INSURANCE FUND ANNUAL PERFORMANCE PLAN FOR THE FINANCIAL YEAR
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The first step, the UIF undertakes an annual evaluation of the previous financial year,
        and considers proposals on key priorities and budget requirements for the coming
        MTEF cycle. The key priorities and strategic objectives are informed by the MTSF
        and service delivery outcomes specific to the Fund. This process is the basis for the
        Fund to submit the first draft Annual Performance Plan to National Treasury at the
        end of August each year.

        The second step is a strategic planning consultation process that takes places from
        August to the end of November each year. The focus of the consultation process
        is to take stock of the previous years’ financial and non-financial performance and
        chart the way forward for the MTEF period in terms of the strategic objectives, key
        deliverables and budget.

        The third step is a Mid-Term Review and Planning workshop which takes place at
        the end of the second quarter of every year. Whilst the focus of this session is a
        mid-term review of progress with regards to the current performance of the
        Department, it equally ensures that the agreed priorities of the annual evaluation are
        developed into a concrete programme of action (Annual Performance Plan) taking
        into account the possible MTEF allocations for the following year. This will allow the
        Department to submit the second draft Annual Performance Plan to National
        Treasury at the end of November.

        The fourth step entails the strategic planning sessions of the branches to finalize on
        agreed priorities of the annual evaluation and mid-term review and formulate the
        annual work plans of the branches taking into account the possible MTEF allocations
        for the following year.

        The fifth step is the finalisation and approval of the Strategic Plan and Annual
        Performance Plan in line with the allocated funds. This will lead to agreed targets
        and resource allocations between the DG and branch heads with the COO/Chief
        Directors: Provincial Operations by the end of January. The APP will inform the DG’s
        performance agreement (Integrated Work Plan), and is cascaded down to branches
        and provincial operations’ work plans and performance agreements.

        The sixth step and final step in a given planning cycle is the approval of the Strategic
        Plan and the Annual Performance Plan and for tabling to Parliament by the Minister
        by March every year.

                                                                                          21
UNEMPLOYMENT INSURANCE FUND ANNUAL PERFORMANCE PLAN FOR THE FINANCIAL YEAR
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4.      STRATEGIC OBJECTIVES AND OUTCOME ORIENTED GOALS

 The fund also needs to contribute mainly to the following strategic objectives,
 outcomes and goals of the Department of Labour:

      STRATEGIC OBJECTIVE                                 OUTCOME                           GOAL STATEMENT
Strategic Objective 1                              Decent employment through         •        Promote Occupational
•       Ensure Financial Sustainability.           inclusive                                  and health services;
                                                   economic growth.                  •        Contribute to decent
                                                                                              employment creation;
                                                                                     •        Protect vulnerable
                                                                                              workers;
                                                                                     •        Strengthen occupational
                                                                                              safety protection;
                                                                                     •        Promote sound labour
                                                                                              relations;
                                                                                     •        Monitor the impact of
                                                                                              legislation and
                                                                                     •        Development of the
                                                                                              occupational Health and
                                                                                              Safety policies
Strategic Objective 2                              (DOL strategic                    •        Maintain vacancy rate at
•       Strengthen the institutional capacity of   objective 8, Outcome 12).                  10%
        the Fund.
Strategic Objective 3                              Create a better South Africa,     •        Contribute in the various
•       Improve service delivery.                  a better Africa and a better               schemes designed to
                                                   World                                      alleviate the harmful
                                                                                              effects
                                                                                              of unemployment which
                                                                                              includes investing
                                                                                              mandated funds in the
                                                                                              Social Responsible
                                                                                              Investments
Strategic Objective 4                              An efficient, effective and       •        Strengthening the
•       Collaborate with stakeholders to improve   development                                institutional capacity of
        compliance with UIF Acts.                  oriented public service.                   the Department
Strategic Objective 5                              Transforming society and unit-    •        Promote equity in the
•       Provide easy to use services               ing the country                            labour market
        through multiple access points
Strategic Objective 6                              Decent employment through         •        To increase the Fund’s
•       Enhance employability of UIF               inclusive economic growth.                 participation in the schemes
        beneficiaries and preserve jobs, enable                                               aimed at training of
        entrepreneurship and preserve jobs.                                                   unemployed UI contributors,
                                                                                              preserve jobs and creating
                                                                                              the enabling environment
                                                                                              that enhance the
                                                                                              entrepreneurship.

 22
                                                           UNEMPLOYMENT INSURANCE FUND ANNUAL PERFORMANCE PLAN FOR THE FINANCIAL YEAR
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PART B: NEW STRATEGIC OBJECTIVES OF THE FUND PER PROGRAMME.
       5. PROGRAMME STRATEGIC OBJECTIVES
            5.1 PROGRAMME 1: ADMINISTRATION.

       Programme purpose: To provide management, strategic and administrative support to
       the fund.
           STRATEGIC OBJECTIVE 1                                 ENSURE FINANCIAL SUSTAINABILITY
      Objective Statement                            To establish, improve and maintain effective, efficient and transparent
                                                     systems of financial management.
      Baseline                                       The Fund achieved 11.1% for administrative expenditure and 85% of total
                                                     mandated Social Responsible Investment.
      Justification                                  Ensure financial management function provides services to its
                                                     stakeholders to enable them to achieve their mandates.
      Links                                          National Treasury Regulations and the Public Finance
                                                     Management Act of 1999.

           STRATEGIC OBJECTIVE 2                       STRENGTHEN INSTITUTIONAL CAPACITY OF THE
                                                                        FUND
      Objective Statement                            To reduce the vacancy rate of the Fund.
      Baseline                                       The Fund had 582 posts of which 77.1% were filled and 22.9% were
                                                     vacant as at 31 March 2017.
      Justification                                  Provide necessary support to the UIF strategic functions.
      Links                                          Public Service Act and Public Service Regulations

     RISK REGISTER FOR PROGRAMME 1

                                                 STRATEGIC RISK REGISTER
      RISK          RISK TITLE                             RESIDUAL              PLANNED RESPONSE ACTION
      NO.                                                  RANKING                 (MITIGATING FACTORS)
      1.            Inadequate skills and capacity        Medium             •     Full implementation of the approved
                                                                                   organisational structure; and
                                                                             •     Training and development of officials.
      2.            Fraud and Corruption                  High               •     Improve internal controls around the
                                                                                   UI19 and verification process;
                                                                             •     Profile/vetting of officials processing UI
                                                                                   claim; and
                                                                             •     Improve the implementation of the Fraud
                                                                                   detection and prevention strategies.
      3.            Inadequate Stakeholder                Medium             •     Development and implementation of a
                    engagement (internal and                                       communication strategy; and
                    external)                                                •     Strengthen the working relations with IES
                                                                                   during communication campaigns.
      4.            Under spending                        Medium             •     Alignment of the budget to strategic
                                                                                   objectives; and
                                                                             •     Monthly monitoring of budget utilisation.
      5.            Volatile economic environ-            Medium             •     Continuous monitoring of investment
                    ment investments                                               performance and market trends; and
                                                                             •     Investment strategy and mandate to be
                                                                                   reviewed yearly.

                                                                                                                        23
UNEMPLOYMENT INSURANCE FUND ANNUAL PERFORMANCE PLAN FOR THE FINANCIAL YEAR
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5.2   PROGRAMME 2: BUSINESS OPERATIONS.

Programme purpose: To collect contributions and pay benefits.

 STRATEGIC OBJECTIVE 3                        IMPROVE SERVICE DELIVERY
Objective Statement           Improve service delivery to beneficiaries and employers by introducing
                              technology to ease the burden of compliance and increase revenue
                              collections; increase processing centers and improve the claim
                              turnaround times.
Baseline                      89% of valid claims with complete information approved/rejected within
                              5 weeks.
Justification                 Ensure efficient and effective UIF services.
Links                         Government Outcome 4: Decent employment through inclusive eco-
                              nomic growth. DoL Strategic Objective (KRA 3): Protecting vulnerable
                              workers, (KRA 5): Strengthening social protection.

 STRATEGIC OBJECTIVE 4                COLLABORATE WITH STAKEHOLDERS TO
                                      IMPROVE COMPLIANCE WITH UIF ACTS
Objective Statement           To increase the number of employers who are declaring their employees
                              and paying correct contributions.
Baseline                      A total of 58 531 newly registered employers were recorded at the end of
                              March 2017.
Justification                 Lack of employer/employee information on the database delays the
                              processing of claims and increases the risk of fraud.
Links                         Government Outcome 4: Decent employment through inclusive eco-
                              nomic growth. DoL Strategic Objective (KRA 3): Protecting vulnerable
                              workers, (KRA 5): Strengthening social protection.

 STRATEGIC OBJECTIVE 5              PROVIDE EASY TO USE SERVICES THROUGH
                                          MULTIPLE ACCESS POINTS
Objective Statement           To increase the ICT infrastructure in all Labour centres to have automat-
                              ed compliance system and U-filing modernization
Baseline                      New
Justification                 The delays in the processing of claims and payments which increases the
                              risk of fraud.
Links                         Government Outcome 4: Decent employment through inclusive
                              economic growth. DoL Strategic Objective (KRA 3): Protecting
                              vulnerable workers, (KRA 5): Strengthening social protection.

  24
                                              UNEMPLOYMENT INSURANCE FUND ANNUAL PERFORMANCE PLAN FOR THE FINANCIAL YEAR
                                                                                                                  2018/19
RISK REGISTER FOR PROGRAMME 2

                                                 STRATEGIC RISK REGISTER
     RISK          RISK TITLE                             RESIDUAL               PLANNED RESPONSE ACTION
     NO.                                                  RANKING                  (MITIGATING FACTORS)
     1.            Non-compliance with                   High                •    Cleansing of the employer master data.
                   legislation by employers                                  •    Improve working relations between the
                                                                                  Fund and DoL (IES) to enforce compliance
                                                                                  to UI Act.
                                                                             •    Improve working current relations with
                                                                                  SARS, to enforce compliance to UI
                                                                                  contributions Act.
     2.            Inadequate governance                 Medium              •    Improve reporting lines between the Fund,
                   structures                                                     Provinces and Labour centres in regard to
                                                                                  UI operations.
     3.            Low recovery rate on                  Medium              •    Improve compliance by
                   overpayments                                                   Employers-Unemployment Insurance Act.
                                                                             •    Follow up and recovery of debt.
     4.            Inadequate IT systems,                Medium              •    Development and implement of ICT
                   structure and infrastructure.                                  strategy for the Fund; and
                                                                             •    Improve ICT governance.

                5.3      PROGRAMME 3: LABOUR ACTIVATION PROGRAMME.

          Programme purpose: To provide strategic leadership and guidance on the implemen-
          tation of the Labour Activation Programme.

          STRATEGIC OBJECTIVE 6                               ENHANCE EMPLOYABILITY OF UIF
                                                          BENEFICIARIES, ENABLE ENTREPRENEURSHIP
                                                                    AND PRESERVE JOBS.
      Objective Statement                            To increase the Fund’s participation in the schemes aimed at training of
                                                     unemployed UI contributors.
      Baseline                                       5 applications for Training Lay-off Scheme received of which 2 were
                                                     approved and 3 rejected within 30 days during 2016/2017 financial year.
                                                     6000 UIF beneficiaries provided with learning and/or work place
                                                     experience
      Justification                                  To assist those who have lost their jobs to get skills in order to
                                                     participate fully in the labour market. To assist companies to preserve
                                                     jobs.
      Links                                          Government Outcome 4: Decent employment through inclusive
                                                     economic growth. DoL Strategic Objective (KRA 3): Protecting
                                                     vulnerable workers, (KRA 5): Strengthening social protection. (KRA 1)
                                                     Contribute to employment creation.

                                                                                                                        25
UNEMPLOYMENT INSURANCE FUND ANNUAL PERFORMANCE PLAN FOR THE FINANCIAL YEAR
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RISK REGISTER FOR PROGRAMME 3

                                    STRATEGIC RISK REGISTER
RISK        RISK TITLE                        RESIDUAL            PLANNED RESPONSE ACTION
NO.                                           RANKING               (MITIGATING FACTORS)
1.          Inadequate utilisation of        Medium          •        Improve collaboration between CCMA,
            Training layoff schemes (TLS)                             PSA and the Fund.
            funding                                          •        Review the current TLS process.
2.          Delays in signing funding        High            •        Development and implementations of
            agreements with SETAs.                                    Labour Activation Strategy.

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

          6.1    EXPENDITURE ESTIMATES

     Administrative Budget of the Unemployment Insurance Fund per Programme

                   TOTAL ADMINISTRATION BUDGET PER PROGRAMME

                                PROGRAMME 1: ADMINISTRATION

                                  2017/2018            2018/2019                 2019/2020                 2020/2021
                                 (Revised Estimate)

          Budget                        R’000             R’000                     R’000                      R’000

                                  R1 844 206          R2 138 262                R2 037 965                 R2 154 648

                            PROGRAMME 2: BUSINESS OPERATIONS

                                  2017/2018            2018/2019                 2019/2020                 2020/2021
                                 (Revised Estimate)

          Budget                        R’000             R’000                     R’000                      R’000

                                  R1 658 270          R1 737 722                R1 846 525                  R1 960 331

                    PROGRAMME 3: LABOUR ACTIVATION PROGRAMME

                                  2017/2018            2018/2019                 2019/2020                 2020/2021
                                 (Revised Estimate)

          Budget                        R’000             R’000                     R’000                      R’000

                                    R3 124               R6 497                    R6 861                     R7 238

     26
                                                      UNEMPLOYMENT INSURANCE FUND ANNUAL PERFORMANCE PLAN FOR THE FINANCIAL YEAR
                                                                                                                          2018/19
2017/2018                 2018/2019     2019/2020     2020/2021
                                             (Revised Estimate)

          Total Budget                           R’000                       R’000      R’000         R’000
                                             R3 505 600                R3 882 481     R3 891 351    R4 122 217

                        OVERVIEW OF THE 2018/19 BUDGET AND MTEF ESTIMATES

          Programmes                        2017/2018                 2018/2019      2019/2020     2020/2021
                                           (Revised Estimate)

         Programme 1:
                                           R1 844 206                R2 138 262      R2 037 965    R2 154 648
         Administration
     Strategic Objective:                  R1 844 206                R2 138 267      R2 037 965    R2 154 648
      Ensure Financial Stability

      Programme 2:
                                           R1 658 270                R1 737 722      R1 846 525    R1 960 331
    Business Operations
     Strategic Objective:
      Improve Service Delivery
                                           R1 647 980                R1 723 120      R1 831 105    R1 944 063

   Improve Compliance To The
  Unemployment Insurance Act                  R10 290                  R14 602        R15 420       R16 268

         Programme 3:
                                               R3 124                   R6 497         R6 861       R7 238
    Labour Activation Programmes

     Strategic Objective:
   Enhance employability of UIF                R3 124                   R6 497         R6 861       R7 238
          beneficiaries.
         Grand Total for
                                           R3 505 600                R3 882 481      R3 891 351    R4 122 217
          Programmes:

                                                                                                        27
UNEMPLOYMENT INSURANCE FUND ANNUAL PERFORMANCE PLAN FOR THE FINANCIAL YEAR
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ANNEXURE A
The management of the Fund have decided on pursuing the following strategic
objective for the planning period 2017/2018 to 2021/2022: The structure of the
strategic objectives has been aligned with National Treasury guidelines on
Performance Information.

STRATEGIC OBJECTIVES AND ANNUAL PERFORMANCE INDICATORS FOR THE
FIVE YEAR PLANNING PERIOD 2018/19 TO 2021/22

        PROGRAMME 1: ADMINISTRATION

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

STRATEGIC OBJECTIVE 1: ENSURE FINANCIAL SUSTAINABILITY
 OUTPUT        PERFORMANCE               TARGET               TARGET           TARGET           TARGET           TARGET
                 INDICATOR               2018/19              2019/20          2020/21          2021/22          2022/23
Sound      Percentage of admin-        ≤ 15% by March       ≤ 15% by         ≤ 15% by          ≤ 15% by         ≤ 15% by
Financial  istrative expenditure       2019                 March 2020       March 2021        March 2022       March 2023
Management (excluding capex)
              maintained
              Percentage of valid      100% within 30       100% within      100% within       100% within      100% within
              invoices paid within     calendar days by     30               30                30               30
              30 calendar days after   March 2019           calendar days    calendar days     calendar days    calendar days
              receipt by the Fund                           by March         by March          by March         by March
                                                            2020             2021              2022             2022
Social        Percentage of total      80% by March         80% by           80% by            80% by           80% by
responsible   mandated Social Re-      2019                 March 2020       March 2021        March 2022       March 2023
investment    sponsible Investment
              committed.

STRATEGIC OBJECTIVE 2: STRENGTHEN INSTITUTIONAL CAPACITY OF THE
FUND
  OUTPUT        PERFORMANCE               TARGET             TARGET           TARGET           TARGET           TARGET
                  INDICATOR               2018/19            2019/20          2020/21          2021/22          2022/23
Staff         Percentage of vacancy     Vacancy rate        Vacancy rate     Vacancy rate     Vacancy rate     Vacancy rate
establishment rate reduced.             reduced to ≤        maintained       maintained       maintained       maintained
maintained                              10% by March        at ≤ 10% by      at ≤ 10% by      at ≤ 10% by      at ≤ 10% by
                                        2019                March 2020       March 2021       March 2021       March 2021

        PROGRAMME 2: BUSINESS OPERATIONS

Purpose: To collect contributions and pay benefits

STRATEGIC OBJECTIVE 3: IMPROVE SERVICE DELIVERY

 28                                                       UNEMPLOYMENT INSURANCE FUND ANNUAL PERFORMANCE PLAN FOR THE FINANCIAL YEAR
                                                                                                                              2018/19
OUTPUT            PERFORMANCE                   TARGET              TARGET       TARGET           TARGET          TARGET
                             INDICATOR                   2018/19             2019/20      2020/21          2021/22         2022/23
      Improved       Percentage of valid              90% within 15      90% within 10   90% within 10    90% within 10   90% within 10
      Client Service claims (Unemployment)            working days       working days    working days     working days    working days
                          benefit) with complete      by March 2019      by March        by March         by March        by March
                          information approved or                        2020            2021             2022            2023
                          rejected within specified
                          time frames.
                          Percentage of valid         90% within 10      90% within 5    90% within 5     90% within 5    90% within5
                          claims (In-service          working days       working days    working days     working days    working days
                          benefits; Maternity,        by March 2019      by March        by March         by March        by March
                          illness and adoption                           2020            2021             2022            2023
                          benefits) with complete
                          information approved or
                          rejected within specified
                          time frames.
                          Percentage of val-          90% within 20      90% within      90% within 15    90% within 10   90% within 10
                          id claims (Deceased         working days       20 work-        working days     working days    working days
                          benefit) with complete      by March 2019      ing days by     by March         by March        by
                          information approved or                        March 2020      2021             2022            March 2023
                          rejected within specified
                          time frames.
                          Percentage of benefit       95% within 6       95% within 4    95% within 3     95% within 3    95% within 3
                          payment documents           working days       working days    working days     working days    working days
                          captured/created after      by March 2019      by              by               by March        by March
                          receipt within specified                       March 2020      March 2021       2022            2023
                          time frame.
      Ease of doing       Percentage of new           95% within 2       100% within 2   100% within 2    100% within 2   100% within 2
      business            companies captured or       working days       working days    working days     working days    working days
                          created with a registra-    by March 2019      by March        by March         by March        by March
                          tion document (UI54)                           2020            2021             2022            2023
                          within 2 working days.
                          Percentage of               90% within 10      95% within 10   100% within      100% within     100% within
                          applications with           working days       working days    10 working       10 working      10 working
                          complete information        by March 2019      by March        days by          days by         days by
                          issued with compliance                         2020            March 2021       March 2022      March 2023
                          certificates or tender
                          letter within 10 working
                          days

       STRATEGIC OBJECTIVE 4: COLLABORATE WITH STAKEHOLDERS TO IMPROVE
       COMPLIANCE WITH UIF ACTS
         OUTPUT            PERFORMANCE                   TARGET              TARGET       TARGET           TARGET          TARGET
                             INDICATOR                   2018/19             2019/20      2020/21          2021/22         2022/23
      Improved            Number of newly             65 000 by          70 000 by       75 000 by        80 000 by       80 000 by
      compliance          registered employers per    March 2019         March 2020      March 2021       March 2022      March 2023
                          year.
                          Number of newly             250 000 by         250 000 by      250 000 by       250 000 by      250 000 by
                          registered employees        March 2019         March 2020      March 2021       March 2022      March 2023
                          with the Fund

       STRATEGIC OBJECTIVE 5: PROVIDE EASY TO USE SERVICES THROUGH MULTI-
       PLE ACCESS POINTS
        OUTPUT          PERFORMANCE                   TARGET           TARGET            TARGET           TARGET          TARGET
                          INDICATOR                   2018/19          2019/20           2020/21          2021/22         2022/23
      Improved         Number of provincial     126 provincial       50 provincial  50 provincial        50 provincial  50 provincial
      Technology       sites upgraded with free sites by March       sites by March sites by March       sites by March sites by March
                       Wi-Fi to access UIF      2019                 2020           2021                 2022           2023
                       systems

UNEMPLOYMENT INSURANCE FUND ANNUAL PERFORMANCE PLAN FOR THE FINANCIAL YEAR
2018/19
                                                                                                                                29
OUTPUT          PERFORMANCE                TARGET          TARGET            TARGET            TARGET            TARGET
                  INDICATOR                2018/19         2019/20           2020/21           2021/22           2022/23
Improved        Integrated claims         Develop, test   Develop, test    Implement in  N/A                   N/A
Technology      management System         and deploy      and deploy       all provinces
                (ICMS) implemented.       release 1 by    release 2 by     by March 2021
                                          March 2019      March 2020

       PROGRAMME 3: LABOUR ACTIVATION PROGRAMME

Purpose: To provide strategic leadership and guidance on the implementation of the
Labour Activation Programme.

STRATEGIC OBJECTIVE 6: ENHANCE EMPLOYABILITY OF UIF BENEFICIARIES,
ENABLE ENTREPRENEURSHIP AND PRESERVE JOBS.

 OUTPUT          PERFORMANCE                TARGET          TARGET            TARGET            TARGET            TARGET
                   INDICATOR                2018/19         2019/20           2020/21           2021/22           2022/23
Enhanced         Number of UIF            450 000 by      1 000 000 by      2 000 000 by      2 000 000 by      2 000 000 by
employability    beneficiaries provided   March 2019      March 2020        March 2021        March 2022        March 2023
                 with learning and/or
                 work place experience
                 opportunities
Job              Percentage of            90% within 20   90% within        95% within 15 95% within            95% within
preservation     Training Lay-off         working days    15 working        working days  10 working            10 working
                 Scheme (TLS)             by March 2019   days by March     by March 2021 days by March         days by March
                 applications with                        2020                            2022                  2023
                 complete information
                 approved or rejected
                 by the delegated
                 authority within
                 specified timeframes.

 30                                                        UNEMPLOYMENT INSURANCE FUND ANNUAL PERFORMANCE PLAN FOR THE FINANCIAL YEAR
                                                                                                                               2018/19
UNEMPLOYMENT INSURANCE FUND ANNUAL PERFORMANCE PLAN FOR THE FINANCIAL YEAR
2018/19
                                                                             31
ACRONYMS
AFS         Annual Financial Statements
APP         Annual Performance Plan
CFO         Chief Financial Officer
DG          Director-General
DPSA        Department of Public Services and Administration
EEA         Employment Equity Act
ESA/B       Employment Services Act or Bill
HRM         Human Resource Management
IDC         Industrial Development Corporation
LAP         Labour Activation Programme
MTEF        Medium Term Expenditure Framework
MTSF        Medium Term Strategic Framework
NDP         National Development Plan
ICD         Integrated Client Database
ICT         Information and Communication Technology
IES         Inspection and Enforcement Services
PIC         Public Investment Corporation
SARS        South African Revenue Services
SETA        Sector Education and Training Authority
UCA         Unemployment Contributions Act
UIA         Unemployment Insurance Act
UIF         Unemployment Insurance Fund

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