1. Operations of the Unemployment Insurance Fund

2. Index Transformation of the fund – getting the basics right
What has the operation being doing
As relates to its mandate of servicing public
Current and Future actions

3. In transforming the Fund an holistic approach was adopted
Processes and procedures required to support the stated purpose/ objective
Support structures & information systems/ technology
Process
Vision
Culture
Infrastructure
Organisation
Human
Resources
Stated purpose/ objective of Fund
Provide effective social safety net to unemployed workers
Structure, roles & organization interfaces
People practices, skills & competencies
Values, behaviour and attitudes required to enable vision

4. Business transformation is a continuous process
Current
state
Future state
Strategic
vision
“It is not what the vision is, but what the vision does”.
(Peter Senge)

5. Organisational re-construction 36 months
Implement new processes
Quick wins :org struct.
Improve service delivery
We are we?
Future
State
Organisational re-construction 36 months
Realising
Build processes
Instit. capacity
Re-engineer
Build application
Investigation org struct.
Meet all commitments
to clients
Strengthen capacity
Implemented law
Insolvent-to-solvent
Actuarial assessment
Integration to SARS
Extended coverage
Implement law
Phase 3
Current
State
Phase 2
Phase 1

6. Pillars on which turnaround is based
Information Technology
Revised Legislation
Institutional restructuring
Sustainable
Fund

7. Progress with re-structuring
Information
Technology
Creation of business applications to support business, during the last year the fund was engaged in the development of its new business applications, that is expected to significantly improve the control environment.
PPP with Siemens
In addition to implementing the legislation approved by parliament in 2002, the fund successful extended coverage to all domestic workers in More than domestic employers were registered and more than half a million domestic employees were registered on the funds database. Coverage was also extended to all those employee employed by organs of state that are not defined as officials in terms of the public service regulations.
Legislative
re-structuring
UIA 63 of 2002
Institutional
restructuring
The Fund continued the process of developing a new blue print for the organisation by negotiating with key stakeholders the mechanics of the new structure. This is intended to transform the organisation to deliver on its mandate of social protection to unemployed workers.
UIF world class model

8. 2004/2005 was a challenging year in which the fund continued to lay a firm foundation for future growth.
Growth in investments
2002/2003
2001
- 255k deficit
2,620,052 investments R
2003/2004
6,255,000 investments

9. Benefit Expenditure (R,000)
As part of its turnaround the fund was able to contain expenditure in an attempt to return to financial health and create the financial strength needed to bring about lasting change. For three quarters of the new financial year this trend sustained improvement has continued.

10. Growth in Revenue (R,000) 5.06 R bn Five year revenue growth 4.3
April 2004-Dec 2004
15 months
4.3
2004/2005
4.08
2003/2004
12 months
2002/2003
R bn
2.8
2001
2000
2.7
Five year revenue growth

11. Registration of domestic Employers
domestic employers registered.
details of employees recorded.
Overwhelming Public response
to campaign
The inclusion of
Domestic workers
was a World first
for the Department.
Fax
Labour
Centres
Call
Centre
Internet

12. Registration of domestic Employers
As at:
Domestic Employers registered
Active Domestic Employers registered
Active Distinct
Domestic Employees registered
29 February 2004
31 March 2004
30 April 2004
31 May 2004
30 June 2004
31 July 2004
31 August 2004
30 September 2004
29 October 2004
30 November 2004
31 December 2004
31 January 2005

13. Compliance by domestic Employers
Of the 529 216 active employers, an estimated 444 303 (84%) employers have sent in their declarations, whilst (16%) employers have still not sent in their declarations.

14. Registration of Commercial Employers
As at:
Active Commercial Employers registered
Active Distinct Commercial Employees registered
31 January 2004
29 February 2004
31 March 2004
30 April 2004
31 May 2004
30 June 2004
31 July 2004
31 August 2004
30 September 2004
29 October 2004
30 November 2004
31 December 2004
31 January 2005

15. Compliance by Commercial Employers
Registered SARS active , not declaring (32%), declaring (68%)
Registered UI active , not declaring (24.50%), declaring (75.50%)
Of the active employers, (71%) have sent in declarations whilst 169 879(29%) have still not sent in their declarations.

16. Claims Processing for Jan 2005
A total of claims were received in January 2005, were finalised. Claims in process of being finalised for the month is therefore 8909.The value of the overpayments raised represents 0.91% of the benefits paid.
With reference to processing volumes, 5 centres make up almost 56.43% of the total claims processed; these are KwaZulu Natal with 15.99%, Western Cape with 9.72%, Gauteng South with 11.58%, Germiston with 8.38% and Free State with 6.8%.

17. Trend of claim payments
Month
Received
Approved
Value of overpayments raised
Number of payments to beneficiaries
Amount paid to beneficiaries
Value of payments that were cancelled due to beneficiary failing to report for collection or starting work
Dec-03
32 378
39 060 R R R
Jan-04
48 659
37 968 R R R
Feb-04
52 209
41 858 R R R
Mar-04
58 229
45 290 R R R
Apr-04
52 263
36 529 R R R
May-04
63 867
49 536 R R R
Jun-04
60 906
50 046 R R R
Jul-04
62 503
54 172 R R R
Aug-04
55 529
47 247 R R R
Sep-04
54 744
47 267 R R R
Oct-04
59 272
51 862 R R R
Nov-04
55 604
47 679 R R R
Dec-04
41 590
37 194 R R R
Jan-05
52 957
44 048 R R R
Feb-05
58 176
50 006 R R R

18. Number of payment by benefit type
Unemployment
Illness
Maternity
Adoption
Dependants
Grand Total
Received
489122
29390
62554 52
27017
608135
Approved
402835
24053
59252 49
21046
507235
86.03
81.8
94.7
94.2
77.8
AVG 86.9
Number
Paid
152484
183549
236
22382
Amount Paid
1.682 b m
242.1 m
355.9
188 5m
2.227 b

20. Breakdown of domestic claims processed
DOMESTIC CLAIMS December 2004
DOMESTIC CLAIMS PAID January 2005
REGION
Number of claims received from domestic workers
Amount paid
Pretoria
3 295
3551
Johannesburg
2 761
2763
Durban
3 989
4297
Pietermaritzburg
994
1043
East London
737
781
166213
Port Elizabeth
1 399
1546
Cape Town
1 371
1440
Bloemfontein
2 276
2534
Kimberley
1 132
1218
George
479
497
Germiston
2 661
647592
2796
690266
Mpumalanga
3 020
3219
Limpopo
944
1041
199813
North West
602
607
25 660
27333

21. Processing of domestic claims per region showing movement from December 2004 to January 2005

22. Domestic Amount paid per region showing movement from December 2004 to January 2005

23. Turnaround time for claims processing in 2003

24. Turnaround time for claims processing in 2004

25. Performance against Key performance Indicator

26. How have we performed? Adoption Death Illness Maternity Unem ploym ent
Days To apply
2003
58.37
46.17 21
37.02
82.26
2004
32.15
26.10
7.57
11.55
62.05
Days To approve
145.44
117.26
101.32
70.42
36.36
106.10
107.05
87.53
56.15
26.86

27. Call centre trends Calls Received Calls answered Calls abandoned
Calls Received
Calls answered
Calls abandoned
Service level
Abandon rate
Average time in queue (seconds)
Nov-03
37961
34966
2959
82% 8% 23
Dec-03
25034
23615
1331
85% 5% 16
Jan-04
35524
33795
1709 15
Feb-04
34160
32992
1138
90% 3% 10
Mar-04
36228
33705
1796
Apr-04
25076
23745
1330 14
May-04
31482
30068
1414
86% 4%
Jun-04
26902
25126
977
87% 12
Jul-04
27410
25806
1574 6%
Aug-04
25964
24959
1005
89% 11
04-Sep
24201
23131
1049
88%
04-Oct
28414
27099
1232 13
04-Nov
29086
28115
938
04-Dec
17023
16563
456
93% 9
05-Jan
28015
26232
1659 18
05-Feb
33318
32228
1006
91%
Average
28832
27328
1371
86.47%
4.67%
13.8

28. UIF CALL CENTRE

29. Full audit trail of user Labour centre official
actions
Channels
New UIF Business Process
Application
response
Call Centre
Employer wishes to
Register
Declare employees
Unemployed worker
wishes to claim
Access Siyaya
Employer/Employee
Databases are
updated
UI 54
Agent
Client Correspondence Database
Tel
Fax
UI 32 / 33 a
Notice of
Amended details
Call in
Walk-In
Post
Self-help
WWW
Labour centre official
Exception reports
For risk management
Registration of employer, declaration of employees, payment of contributions, Claims
Receipt issued
From AR
INCREASING FOCUS ON SERVICE DELIVERY

30. High level Siyaya work flow

31. Adjudication of claim employee on database
Application
response
Channels
New UIF Business Process
Enters id Number
into Siyaya, system
Search's for
previous claim
If the client is found
on the Database, a
claim can be
registered
Access Siyaya
Pay
schedule
Client Correspondence Database
Siyaya requests clerk to verify
tombstone details Once verified,
Siyaya applies Business rules
Claim approved based on
Declaration or rejected
If approved Siyaya prints
pay dates as per schedule
or if rejected refusal notice
Labour centre official
Walk-In
Refusal
notice
Full audit trail of user
actions
Exception reports
For risk management

32. Future work Programme April 2006 April 2006 April 2006 April 2006
Grow database
Implement CRM
Operationalise SIYAYA
Improve service delivery
Communication and education
April 2006
100% of all approved claims are paid within 28 days
April 2006
Crm upgraded customer care line
April 2006
April 2005
Siyaya operational
80% of registered
employers submit
their declarations
April 2006
100% of benefit
claims are paid
Electronically
utilising Mzansi
and Teba bank
channels
Way forward