UNEMPLOYMENT INSURANCE FUND RESTRUCTURING STRATEGY

1. UNEMPLOYMENT INSURANCE FUND RESTRUCTURING STRATEGY

2. EMPLOYEE MANAGEMENT SYSTEM

3. EMPLOYEE MANAGEMENT SYSTEMKEY STRATEGIC INTERVENTIONS • WORKFLOW PROCESS (CLAIMS) • EMPLOYEE / EMPLOYER DATABANK (AXSPoint) • COMPUTRON FINANCIALS • General Ledger • Accounts Receivable • Accounts Payable • Cashbook • Fixed Assets

4. EMPLOYEE MANAGEMENT SYSTEMGOALS • To increase customer satisfaction through service delivery improvement and immediate and complete one-stop customer services • To reduce response times and costs through automation of business (claims) processes • To improve the UIF’s financial position through collection of all contributions due, paying only valid beneficiaries and optimising cash flow management

5. EMPLOYEE MANAGEMENT SYSTEMGOALS (Continued) • To establish an integrated employer / employee database and dynamically link each benefit paid to a contribution received • To establish a centralised, interactive employee / employer database for all integrated processes within the department of Labour

7. EMPLOYEE MANAGEMENT SYSTEMPAYROLL DECLARATIONS • Individual Employee payment details • Receive declarations via: • WEB SUBMISSIONS • FTP • E-MAIL • OTHER • Fax • Post • Manual Capturing

8. EMPLOYEE MANAGEMENT SYSTEMEMPLOYEES • Complete employment details • ID number • Employer • Periods of service • Salary details • Contributions • Skills & Occupational details • Tax reference number

9. EMPLOYEE MANAGEMENT SYSTEMEMPLOYERS • Complete employer details • UIF Reference number • No of employees • Total Income • Contribution amount • SARS & Company Registration • Industry / Sector details

10. EMPLOYEE MANAGEMENT SYSTEMAXSPOINT • Data Warehouse • Employer/ Employee History • SARS compatibility • Profile of each employee • Employer contributions (Invoice Amounts) • Claims details (History) • MIS Information etc. • Link between Employer & Employee & Contributions

11. EMPLOYEE MANAGEMENT SYSTEMCOMPUTRON FINANCIALS • Complete Financial Management System • General Ledger • Accounts Payable • Accounts Receivable (Cashbook) • Fixed Assets / Purchase Orders & Inventory • Ensure that all contributions received and claims processed are managed correctly • Complete set of Financial Statements

12. EMPLOYEE MANAGEMENT SYSTEMCOMPUTRON WORKFLOW • Automated & Simplified Claims Process • Validations: • Employee profile (Employment & Previous Claims History) • Status of claimant prior to payment • Contributions paid vs Benefits claimed • Home Affairs • Medical & Dental Council • Skill identification process • Employer services (Job Placement)

13. EMPLOYEE MANAGEMENT SYSTEMCOMPUTRON WORKFLOW (Continued) • Increase process efficiency • Reduce subjective evaluation of claim • Provide secure audit trail • Reduction of Paperwork

14. EMPLOYEE MANAGEMENT SYSTEM BENEFITS

15. EMPLOYEE MANAGEMENT SYSTEMBENEFITS • AXSPOINT • Bank Reconciliation • Data analysis, forecast and Trend Reporting • Secure Historical Archive • Payroll declarations • Claims paid • Cross reference for employment skills forming basis of a Labour Bureau

16. EMPLOYEE MANAGEMENT SYSTEMBENEFITS • AXSPOINT • Moving Labour-market statistics • Industry tracking for claims by S I Codes, by employer • Actuarial databank

17. EMPLOYEE MANAGEMENT SYSTEMBENEFITS (Continued) • COMPUTRON WORKFLOW • Standardised Automated Claims Process • Virtual UIF office • Valid Claimants are paid in time and at the correct amount • Online record of all claimants history amounts and payments • Fraud minimisation (including Audit Trails) • Concept of a pre-qualified beneficiary

18. EMPLOYEE MANAGEMENT SYSTEMBENEFITS (Continued) • COMPUTRON FINANCIALS • Full control of Debtors Book • Effective Invoicing process • Timeous invoicing • Interest and Penalty charges • Efficient Follow Up and Ageing • Reduction of High Level Debt • High income vs correct (lower) payments

19. EMPLOYEE MANAGEMENT SYSTEMBENEFITS (Continued) • COMPUTRON FINANCIALS • Early Identification of Employer defaulters • Complete Financial Statements & Reports • Audit trails & Exception Reports • Project future levels of income & expenditure • Budget control

20. EMPLOYEE MANAGEMENT SYSTEMINSTITUTIONAL IMPLICATIONS • Infrastructure upgrades • Organisational Structure • Rationalisation of Claims process • Virtual Office • Human Resources • Integrated inspection services

21. EMPLOYEE MANAGEMENT SYSTEMDEPLOYMENT • AP Data take-on 31-Oct-2000 • AR Data take-on 31-Oct-2000 • GL Data take-on 30-Nov-2000 • Procurement process 31-Oct-2000 • System implementation starting 01-Apr 2001 • Plan for rollout to other regions 30-Jun-2001 • ILO Actuarial Databank 31-Oct-2001 • Completely Operational 18-Dec-2001

22. EMPLOYEE MANAGEMENT SYSTEM DEVELOPMENT & DEPLOYMENT COSTS • Y2K TO DATE (INCLUSIVE) R 42,783,089.00 • EMS PROJECT COST(TO DATE) R 7,082,384.40 • TOTAL PROJECT ESTIMATE R15,000,000.00

23. Company(Employer) Actual Payments(EFT preferred) PayrollDeclaration PayrollDeclaration UIF ReconcilesActual vsDeclared Company Relationship Management System Financial Management System Call Centre Management Information System Audit and Control BeneficiaryPaymentSchedule Credits Employee Management System Beneficiary Management System Confirms RequestsBenefitClaim FutureLabour Bureau Beneficiaries

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