Compensation Fund 2012-2017 Strategic Plan and 2012-2013 Annual Performance Overall Responsibility: Compensation Commissioner: Mr. S. Mkhonto

Compensation Fund

2012-2017 Strategic Plan and 2012-2013 Annual Performance

Overall Responsibility:Compensation Commissioner: Mr. S. Mkhonto

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Table of Contents Slide1. Overview & Objectives of the Fund 3

2. CF Measurable Objective 4

3. Service Delivery Outcomes 5

4. Vision, Mission and Values 6-8

5. Situational Analysis 9

6. 2011/12 Major Achievements 10

7. Priorities for 2012/13 Financial Year 11

8. Programmes Objectives an Annual Targets 12-44

9. Budget Allocation and Utilisation 45

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Overview & Objectives of the Fund• The Compensation Fund is a public entity of the Department of

Labour.

• The Fund administers the Compensation for Occupational Injuries and Diseases Act no. 130/1993 as amended by the COIDA 61/1997.

• The main objective of the Act is to provide compensation for disablement caused by occupational injuries or diseases sustained or contracted by employees, or for death resulting from such injuries or diseases, and provide for matters connected therewith.

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CF Measurable Objective

“To pay compensation for death or disablement caused by occupational injuries and diseases

sustained or contracted by employees within 90 days of receipt of full documentation”

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Service Delivery OutcomesGovernment Service Delivery Outcomes

DOL Strategic Objectives CF Strategic Objectives Accountable Programme

Outcome 4: Decent employment through inclusive economic growth

Strategic Objective 3: Protecting vulnerable workers

Promote policy advocacy Communication

Strengthening corporate governance Risk Management, Internal Audit

Integration of CF with the comprehensive social security reforms

Legal Services

Strategic Objective 5: Strengthening social protection

Providing an efficient social safety net Compensation, Medical

Improve financial viability Finance

Outcome 12: An efficient, effective and development oriented public service and an empowerment and inclusive citizenship.

Strategic Objective 9: Strengthening the institutional capacity

Provide professional, efficient and client orientated human resources

HRM

Improve corporate support and services ICT

Enhance quality and access to COIDA services and information

Organisational Effectiveness, PMO, ICT

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Vision

•To be an employer of choice and an internationally reputable provider of compensation for occupational injuries and diseases, rehabilitation and reintegration services.

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Mission

• To utilise\leverage automated solutions to provide efficient, quality, client-centric and accessible Compensation Fund services.• To ensure effective rehabilitation and re-integration services,

through reputable (proven) programmes.• To ensure financial viability through efficient collections and

prudent investments.• To promote job creation initiatives through social

responsible investments.• To develop and retain a competent and content workforce.

8

Values

•We treat employees with care, dignity and respect•We respect and promote:– Client centred services – Accountability– Integrity and ethical behaviour

• Learning and development•We live the Batho Pele Principles•We live the principles of the Department’s Service Charter•We inculcate these values through our performance

management system

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Situational Analysis

• IT Systems.•Turnaround time in processing of compensation

claims.•Backlog in processing claims and payments.•Delay and/or non-reporting of accidents.•Human capacity constraints.•Document management.•Records management system.

10

2011/12 Major Achievements•Approval of the new CF Organisational Structure.•Deployment of the SAP System (Financial and Integrated

Claims Management System).• Implementation of the Integrated Claims and Financial

Management Systems.•Approval of the Rehabilitation, Reintegration and Return

to Work Policy.• Sections for of COID Act to be amended were identified.•Provincial Stakeholder engagement.

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Priorities for 2012/13 Financial Year• Implementation of the approved Organisational Structure.•Decentralisation of COIDA services to Provinces.• Enhancement of the Integrated Claims and Financial

Management Systems.•Consultation on Rehabilitation, Reintegration and Return

to Work Policy Framework.• Amendment of COID Act.•Continue with COIDA Stakeholder engagement.• Improve revenue collection.

Programmes Objectives and Annual Targets

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CompensationProgramme Overview & Objectives

•The strategic goal of this Directorate is to promote an effective safety net through the registration, processing and payment of compensation claims resulting from occupational injuries and diseases, and monitoring of compliance with COIDA legislation.

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PROVIDING AN EFFICIENT SOCIAL SAFETY NETDirectorate: CompensationStrategic goal Performance Indicator Annual target

Improvement in compensation claims turn around time

% of new compensation claims adjudicated within months of registration

80% of new compensation claims adjudicated within 2 months of registration

Advocacy of policy to prevent accidents

Fund, monitor and evaluate number of projects Fund, monitor and evaluate 9 projects

Improve Compensation benefits

Review compensation benefits by end of financial year

Review compensation benefits by end of financial year

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Medical ServicesProgramme Overview & Objectives

•The strategic goal of this Directorate is to provide an effective safety net through the registration, processing and payment of medical claims resulting from occupational injuries and diseases, and monitoring of compliance with COIDA legislation.

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PROVIDING AN EFFICIENT SOCIAL SAFETY NETDirectorate: Medical ServicesStrategic goal Performance Indicator Annual target

Finalise 100% of medical claims (valid, accurate and complete documentation) finalised within 30 days of receiving an invoice by 2016

% of medical claims finalised within number of months of receiving an invoice

80% of medical claim finalised within 2 months of receiving an invoice

Provide medical advice on all medical claims within 24 hours by 2016

% medical advice on all medical claims provided within specified time

80% medical advice on all medical claims provided within 15 days

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PROVIDING AN EFFICIENT SOCIAL SAFETY NETDirectorate: Medical ServicesStrategic goal Performance Indicator Annual target

Development and implementation of rehabilitation and reintegration policy framework and participate in consultative process by 2014

Participation in all stakeholder consultation as invited

Participation in all stakeholder consultation as invited

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Human Resource ManagementProgramme Overview & Objectives•The Directorate provides a professional, efficient and client oriented human resources service, promoting representivity and sound labour relations and to strengthen HR capacity and monitor human performance within the Fund. The HRM also ensures the effective implementation of the Fund’s Skills Development Plan and Human Resource Plan.

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PROVIDE PROFESSIONAL, EFFICIENT AND CLIENT ORIENTATED HR

Directorate: Human Resource ManagementStrategic goal Performance Indicator Annual target

100% compliance with the performance management system annually

Full compliance and enforcement of the performance management policy

100% compliance and enforcement of the performance management policy

Improve competency levels of CF staff by 100% alignment and implementation of work skills development plan (WSP) BY 2016

% of identified needs addressed as per PDP aligned with WSP

100% of the identified needs addressed

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PROVIDE PROFESSIONAL, EFFICIENT AND CLIENT ORIENTATED HUMAN RESOURCE

Directorate: Human Resource ManagementStrategic goal Performance Indicator Annual target

Improve competency levels of CF staff by 100% alignment and implementation of work skills development plan (WSP) BY 2016

Implement Internship / Leanership programme

Engage 100 Interns by end of the year

Achieve a conducive working environment by implementing an employee wellness strategy by 2016

Employee wellness strategy implemented annually

Implement Pillar 2

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PROVIDE PROFESSIONAL, EFFICIENT AND CLIENT ORIENTATED HUMAN RESOURCE

Directorate: Human Resource ManagementStrategic Goal Performance Indicator Annual target

Implement recruitment and retention strategy through maintenance of 10% vacancy rate by 2016

% vacancy rate maintained annually

10% vacancy rate maintained

Implement Employment Equity Plan annually by 2016

Eliminate work place discriminatory and social prejudice and achieve realistic target by 2016

Conduct an analysis of employment policies, practices, procedures and working environment to identify barriers to the employment and advancement of people from designated groups

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Risk ManagementProgramme Overview & Objectives•The Risk Management Unit comprises of risk and security units, and is responsible for pro-active and reactive implementation of risk management principles. The Risk Management Unit assesses and mitigates the identified risks in order to meet the set strategic and operational objectives of the Compensation Fund.

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STRENGTHENING CORPORATE GOVERNANCE

Directorate: Risk ManagementStrategic goal Performance Indicator Annual target

Full implementation of Minimum Information Security Standard (MISS) by 2016

Full compliance with MISS by 2016 (Physical, ICT, Document Management)

Full implementation of Information security (ICT) According to MISS

Fraud Prevention Detection strategy implemented annually

% finalisation of the cases received/detected annually

100% of fraud and corruption cases received/detected finalised by end of the year

Implement an Enterprise Risk Management (ERM) system by 2016

Implement Enterprise Risk in accordance with Risk Management Framework

Risk Assessment and risk registers reviewed and updated annually

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Legal ServicesProgramme Overview & Objectives•The Legal Services provides legal support, legal administration and assistance in the implementation of the COIDA and relevant legislation associated with the Compensation Fund.

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INTEGRATION OF CF WITH THE COMPREHENSIVE SOCIAL SECURITY REFORMS

Directorate: Legal ServicesStrategic goal Performance Indicator Annual target

Submit COID Act Amendment draft to LMP office for consultation by 2013 and Monitor the process of the

promulgation of the ACT by 2015

COIDA Amendment draft submitted to LMP by 2013 and monitor the process for promulgation by 2015

Finalise and submit COIDA Amendment draft to LMP for

further processes Resolve 95% of received application for increased compensation where there is

no dispute of fact.

% of application for increased compensation finalised within 60 days of receipt

65% % of Application for increased compensation finalised within 60 days of receipt

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Resolve 95% of received objections that have been decided by the Review

Committee within 60 days by 2016

% of Section 91 objections finalised within 60 days from the date of receipt from the Review Committee

65% objections finalised within 60 days from the date of receipt from the Review

Committee

Resolve 95% of received litigation cases where there is no factual dispute within 5 days by 2016

% of litigation cases resolved within days of receipt

95% of litigation cases resolved within 21 days

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90% of legal advice requests and contracts finalised within 5 days of receipt by 2016

% of legal advice and contracts provided within days of receipt

90% of legal advice and contracts provided within 5 days of receipt

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CommunicationProgramme Overview & Objectives•The Communication Sub-directorate is responsible for educating all CF stakeholders on services rendered in terms of the COID Act. The Sub-directorate also assists in encouraging stakeholders, in particular service providers and employers to partner with the Fund with respect to their role in the strengthening of the social security net.

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PROMOTE POLICY ADVOCACY

Directorate: CommunicationStrategic Goal Performance Indicator Annual Target

Implement Communication

Strategy/Marketing by 2017 Communication strategy implemented by 2017

Run 3 Media Adverts

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FinanceProgramme Overview & Objectives•This programme is managed by the Chief Financial Officer and consists of the following four Directorates; Financial Control, responsible for accounting and financial management, Financial Reporting to report financial performance of the Fund, Financial Income is responsible for revenue generation and the Supply Chain Management unit.

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IMPROVE FINANCIAL VIABILITY

Directorate: FinanceStrategic goal Performance Indicator Annual target

Eliminate debt book of R5 Billion by 2016

R1 billion per annum of the debt book as at 31 March 2011.

R1 billion debt recovered

Increase revenue by 8% by 2016 % increase as compared to previous year

6% increase in revenue as compared to the previous year

Obtain a clean audit opinion by 2014 Implement all AG recommendations Implement 50% previous years AG recommendations

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IMPROVE FINANCIAL VIABILITYDirectorate: FinanceStrategic goal Performance Indicator Annual target

Improve efficiency of processes by full implementation of an integrated financial system to improve payment to 30 days by 2016

All payments processed within 30 days of receipt of invoice

Sundry payments processed within 30 days of receipt of invoice and claims processed within 60 days of receipt of banking details.

Improve asset: liability ratio to 2:1 by 2016

Financial ratio maintained 2:1 Financial ratio maintained

Maximise investment return to above benchmark

Receive above the (STEFI) benchmark returns

Receive above the (STEFI) benchmark returns

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ICT and Call CentreProgramme Overview & Objectives•The Directorate is responsible to deliver Information and Communication Technology solutions and manage the ICT environment, ensuring provision of services and automation of processes aligned to the Compensation Fund strategic objectives.

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IMPROVE CORPORATE SUPPORT AND SERVICES / ENHANCE QUALITY AND ACCESS TO COIDA SERVICES AND INFORMATION

Directorate: ICT an Call CentreStrategic goal Performance Indicator Annual target

To define IT Strategy and implement systems and infrastructure to support business goals by March 2013

CF IT strategy developed, supporting systems and infrastructure implemented

Integrated systems and

infrastructure implemented

Implement 100% customer services at all customer touch points (phone-in, web, walk-in) by 2016

% Customer service support provided at all customer service touch points (phone-in, web, walk-in)

70% Customer service support provided at all customer service touch points (phone-in, web, walk-in)

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IMPROVE CORPORATE SUPPORT AND SERVICES / ENHANCE QUALITY AND ACCESS TO COIDA SERVICES AND INFORMATION

Directorate: ICT an Call CentreStrategic goal Performance Indicator Annual target

Improve customer satisfaction for call centre by 40% above baseline

Achieve % increase of customer

satisfaction rating on baseline Determine customer satisfaction baseline

Finalisation of governance measures and policies within the ICT environment by March 2013

Finalisation of a governance plan and implementation

Review and implementation of plan, structures

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Organisational EffectivenessProgramme Overview & Objectives•The Directorate is established to provide organizational design and development services, manage the implementation of the quality management system in the Fund, render effective and efficient advisory services on matters relating to business process improvement, and ensure access to services and customer service improvement.

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ENHANCE QUALITY AND ACCESS TO COIDA SERVICES AND INFORMATION

Directorate: Organisational EffectivenessStrategic goal Performance Indicator Annual target

Annual Strategic planning as per NT Framework for Performance Information

Strategic Plan and Annual Performance Plan developed in line the with the NT Framework for Performance information

Coordinate the development and approval of the Strategic plan and Annual Performance plan a per NT Framework

Annual organisational performance management

Quality, relevant and timeliness of performance reports in line with the NT Framework

Monitor and evaluate organisational performance to ensure that quarterly, mid-term and annual reports are tabled as per NT

Framework

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Directorate: Organisational EffectivenessOutput Performance Indicator Annual target

Implement change management programme by 2016

Change management programme implemented by 2016

Develop organisational wide change management programme

Decentralise COIDA services to 9 provinces by 2016

COIDA services decentralised to 9 provinces

COIDA services decentralised to 2 provinces

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Programme Management OfficeProgramme Overview & Objectives•The function of this Directorate is to create a centralized hub for all projects and programmes, supervise a portfolio of projects, and support the strategic objectives within the organization. The PMO oversees and provides governance for business value

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Directorate: Programme Management OfficeStrategic goal Performance Indicator Annual target

Coordinate and monitor all priority projects currently running in the Compensation Fund.

Co-ordinate and monitor the implementation of all CF priority projects within committed project plan/ schedule with measurable

targets and budget as per PMBOK

Submit quarterly reports

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Internal AuditProgramme Overview & Objectives•The Directorate is established to enhance good corporate governance within the Compensation Fund, especially in ensuring that there is effective and efficient governance, risk management and internal controls.

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Directorate: Internal AuditStrategic goal Performance Indicator Annual target

Developing and executing a risk based internal audit plan with 100% coverage annually

Preparation and approval of the 3 year risk based internal audit plan and the Annual coverage plan by the

Audit Committee

Approval of the 3 year and annual risk based and annual coverage internal audit plan on the 1st April 2012Approval of the 3 year and annual risk based and annual coverage internal audit plan

Reporting quarterly report to the Audit Steerco

Submit quarterly report to Audit Steerco

Reporting quarterly report to the Audit Committee

Submit quarterly report to Audit Committee

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Conform with IIA standards by 2016 (100% compliance) – Develop and implement Internal Audit Methodology, Policies and Procedures

Develop and implement internal audit Policies (Quality assurance and document retention Policies and skills transfer plan)

Full Implementation of Quality Assurance Policy

Develop and implement the internal audit Methodology

Implementation of the internal audit methodologyDraft Methodology.First training workshop

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Conform with IIA standards by 2016 (100% compliance) – Develop and implement Internal Audit Methodology, Policies and Procedures

Acquire, implement audit software tool

Application of the Audit software

Streamline all assurance functions into one enterprise-view by 2014

Combined assurance plan. Approval of a combined assurance plan

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BUDGET AND MTEF ESTIMATES (EXPENDITURE ESTIMATES)

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OVERVIEW OF 2012/13 BUDGET AND MTEF ESTIMATES (EXPENDITURE ESTIMATES)

R’000 Expenditure Outcome Adjusted Appropriation

Medium Term Expenditure estimates

2008/09 2009/10 2010/11 2011/12 2012/13 2013/14 2014/15

Administration/Operations

R 439,403

R 495,530

R 672,739

R 518,453

R 518,403,000

R 532,502

R 539,234

Compensation Claims

R 1,389,133

R 1,142,512

R 594,220

R 1,029,645

R 1,547,424,235

R 1,636,169

R 1,735,602

Medical Claims R 2,832,410 R 2,287,540 R 3,154,519 R 2,756,104 R 2,423,154,000 R 2,556,427 R 2,684,249

Other objectives R 782,172 R 932,248

Total Summary R 5,443,118 R 4,857,830 R 4,421,478 R 4,039,936 R 4,256,869,212 R 4,483,701 R 4,708,033

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THANK YOU

Documents

Compensation Fund 2012-2017 Strategic Plan and 2012-2013 Annual Performance Overall Responsibility: Compensation Commissioner: Mr. S. Mkhonto