Compensation Fund Strategic Plan and Annual Performance Overall Responsibility: Compensation Commissioner: Mr. S. Mkhonto

2 Table of Contents Slide 1.Overview & Objectives of the Fund 3 2.CF Measurable Objective 4 3.Service Delivery Outcomes 5 4.Vision, Mission and Values Situational Analysis /12 Major Achievements 10 7.Priorities for 2012/13 Financial Year 11 8.Programmes Objectives an Annual Targets Budget Allocation and Utilisation 45

3 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.

4 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”

5 Service Delivery Outcomes Government Service Delivery Outcomes DOL Strategic ObjectivesCF Strategic ObjectivesAccountable Programme Outcome 4: Decent employment through inclusive economic growth Strategic Objective 3: Protecting vulnerable workers Promote policy advocacyCommunication Strengthening corporate governanceRisk 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 netCompensation, Medical Improve financial viabilityFinance 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 servicesICT Enhance quality and access to COIDA services and information Organisational Effectiveness, PMO, ICT

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

7 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

9 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.

/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.

11 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

13 Compensation Programme 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.

14 PROVIDING AN EFFICIENT SOCIAL SAFETY NET Directorate: Compensation Strategic goalPerformance 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 projectsFund, monitor and evaluate 9 projects Improve Compensation benefits Review compensation benefits by end of financial year

15 Medical Services Programme 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.

16 PROVIDING AN EFFICIENT SOCIAL SAFETY NET Directorate: Medical Services Strategic goalPerformance 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

17 PROVIDING AN EFFICIENT SOCIAL SAFETY NET Directorate: Medical Services Strategic goalPerformance 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

18 Human Resource Management Programme 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.

19 PROVIDE PROFESSIONAL, EFFICIENT AND CLIENT ORIENTATED HR Directorate: Human Resource Management Strategic goalPerformance 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

20 PROVIDE PROFESSIONAL, EFFICIENT AND CLIENT ORIENTATED HUMAN RESOURCE Directorate: Human Resource Management Strategic goalPerformance 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

21 PROVIDE PROFESSIONAL, EFFICIENT AND CLIENT ORIENTATED HUMAN RESOURCE Directorate: Human Resource Management Strategic GoalPerformance 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

22 Risk Management Programme 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.

23 STRENGTHENING CORPORATE GOVERNANCE Directorate: Risk Management Strategic goalPerformance 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

24 Legal Services Programme 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.

25 INTEGRATION OF CF WITH THE COMPREHENSIVE SOCIAL SECURITY REFORMS Directorate: Legal Services Strategic goalPerformance 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

26 INTEGRATION OF CF WITH THE COMPREHENSIVE SOCIAL SECURITY REFORMS Directorate: Legal Services Strategic goalPerformance Indicator Annual target 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

27 INTEGRATION OF CF WITH THE COMPREHENSIVE SOCIAL SECURITY REFORMS Directorate: Legal Services Strategic goalPerformance Indicator Annual target 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

28 Communication Programme 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.

29 PROMOTE POLICY ADVOCACY Directorate: Communication Strategic GoalPerformance Indicator Annual Target Implement Communication Strategy/Marketing by 2017 Communication strategy implemented by 2017 Run 3 Media Adverts

30 Finance Programme 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.

31 IMPROVE FINANCIAL VIABILITY Directorate: Finance Strategic goalPerformance Indicator Annual target Eliminate debt book of R5 Billion by 2016 R1 billion per annum of the debt book as at 31 March 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 2014Implement all AG recommendationsImplement 50% previous years AG recommendations

32 IMPROVE FINANCIAL VIABILITY Directorate: Finance Strategic goalPerformance 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 maintained2:1 Financial ratio maintained Maximise investment return to above benchmark Receive above the (STEFI) benchmark returns

33 ICT and Call Centre Programme 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.

34 IMPROVE CORPORATE SUPPORT AND SERVICES / ENHANCE QUALITY AND ACCESS TO COIDA SERVICES AND INFORMATION Directorate: ICT an Call Centre Strategic goalPerformance 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)

35 IMPROVE CORPORATE SUPPORT AND SERVICES / ENHANCE QUALITY AND ACCESS TO COIDA SERVICES AND INFORMATION Directorate: ICT an Call Centre Strategic goalPerformance 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

36 Organisational Effectiveness Programme 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.

37 ENHANCE QUALITY AND ACCESS TO COIDA SERVICES AND INFORMATION Directorate: Organisational Effectiveness Strategic goalPerformance 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

38 ENHANCE QUALITY AND ACCESS TO COIDA SERVICES AND INFORMATION Directorate: Organisational Effectiveness OutputPerformance 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

39 Programme Management Office Programme 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

40 ENHANCE QUALITY AND ACCESS TO COIDA SERVICES AND INFORMATION Directorate: Programme Management Office Strategic goalPerformance 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

41 Internal Audit Programme 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.

42 STRENGTHENING CORPORATE GOVERNANCE Directorate: Internal Audit Strategic goalPerformance 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

43 STRENGTHENING CORPORATE GOVERNANCE Directorate: Internal Audit Strategic goalPerformance Indicator Annual target 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

44 STRENGTHENING CORPORATE GOVERNANCE Directorate: Internal Audit Strategic goalPerformance Indicator Annual target 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

45 BUDGET AND MTEF ESTIMATES (EXPENDITURE ESTIMATES)

46 OVERVIEW OF 2012/13 BUDGET AND MTEF ESTIMATES (EXPENDITURE ESTIMATES) R’000Expenditure OutcomeAdjusted Appropriation Medium Term Expenditure estimates 2008/092009/102010/112011/122012/132013/142014/15 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 2,832,410R 2,287,540R 3,154,519R 2,756,104R 2,423,154,000R 2,556,427R 2,684,249 Other objectives R 782,172R 932,248 Total Summary R 5,443,118R 4,857,830R 4,421,478R 4,039,936R 4,256,869,212R 4,483,701R 4,708,033

47 THANK YOU