1. PRESENTATION ON THE ACTION PLAN OF THE COMPENSATION FUND
PRESENTATION PREPARED FOR THE PORTFOLIO COMMITTEE ON LABOUR
30.06–

2. CONTENTS BACKGROUND OBJECTIVES OF THE ACTION PLAN
PILLARS OF THE ACTION PLAN
SUMMARY PROGRESS
PROGRESS REPORT ON ACTION PLAN
HIGHLIGHTS OF ACTIVITIES
PROGRESS ON CLAIMS PROCESSING

3. BACKGROUND
The Compensation Fund (the Fund) has been receiving negative spotlight from media and other key stakeholders due to its service delivery record.
In order to restore its reputation and improve the service delivery record, the Fund has developed an Action Plan which will serve as a blue print for the service delivery improvement initiatives
Action Plan was developed by management of the Fund in June and implementation started on 01 July 2015
The Action Plan was submitted to the Standing Committee on Public Accounts as resolved during the appearance of the Fund at the committee in June 2015
The Action Plan is not a replacement for the current Strategic Plan and Annual Performance Plan of the Fund but will enhance the pursuit of the objectives as outlined in these documents.
2018/12/31

4. OBJECTIVES OF THE ACTION PLAN
The main objectives of the Action Plan are to put in place basics that will assist in :
Improving the service delivery performance in the Fund
Increasing the efficiency of the Fund‘s overall administration, financial management and operations
Restoring the reputation of the Fund
2018/12/31

5. PILLARS OF THE ACTION PLAN
Compensation Fund
Financial Administration
Customer Focus and Service Delivery Imrpvement
People Management
Internal Business Process and Administration

6. Summary Progress Pillars Progress Financial Management 14 29 17 12
No of Initiatives
Planned Activities
Progress
Activities Not Started
Activities in Progress
Completed Activities
Financial Management 14 29 17 12
Customer Focus and Service Delivery Improvement 7 11 6 5
Internal Business Process/Administration 10 15 8
People Management 54 40
Total 39
109 45 64
Percentage 0%
41%
59%
2018/12/31

7. PROGRESS – Financial Administration
Projects/Initiatives
Status
Revision of the Employer Assessment Model
In Progress
Loading and reduction of assessment tariffs
Implementing Employer Discount
Finalised
Improving Debt Collection
Correcting the Interest and penalty functionality and prior year figures
Approval of Financial Policies
Clearance of suspense accounts on contributions
Finalising the Merit Rebates
Improving the bulk payment processes on uMehluko
Build capacity with the Financial Management unit
Clearing of long outstanding reconciliation items
Correction of all prior open vouchers
Automate Bank Reconciliation on Ability
2018/12/31

8. PROGRESS – Financial Administration
Output
No of Initiatives
Planned Activities
Progress
Activities Not Started
Activities in Progress
Completed Activities
Management of Revenue 6 15 9
Financial Policies Implemented 1
Unallocated Receipts Cleared 2
Payment of merit rebates
Daily Payment of Benefits 4 3
Financial Management Capacity
Reconciliations (Financial Transactions)
Total 14 29 17 12
Percentage Completion 0%
59%
41%
Financial Administration
2018/12/31

9. PROGRESS – Customer Focus and Service Delivery Improvement
Projects/Initiatives
Status
Participate in the Department of Health contract for the supply of chronic medication
In Progress
Engagements with Hospitals, Health Association and key stakeholders to improve relations
Develop and implement Return to Work programme
Development of the Rehabilitation and reintegration of injured employees
Establishment of a panel of experts for the Post Traumatic Stress Disorder (PTSD)
Finalised
Restructuring of the query resolution process to improve the turnaround time for customer queries and complaints
2018/12/31

10. PROGRESS – Customer Focus and Service Delivery Improvement
Output
No of Initiatives
Planned Activities
Progress
Activities Not Started
Activities in Progress
Completed Activities
Effective Supply of Chronic Medication to COID Patients 1
Improving Relations with Hospitals and Health Associations 2
Rehabilitation and Return to work policy
Deal effectively with Post Traumatic Stress Disorder (PTSD)
Improving the reputation of the Fund 5 3
Total 7 11 6
Percentage Completion 0%
55%
45%
Customer Focus and Service Delivery Improvement
2018/12/31

11. PROGRESS – Internal Business Process /Administration
Internal Business Processes
Projects/Initiatives
Status
Restructure the employer registration and compliance functions to align core business
In Progress
Eradicating claims backlogs at Operations
Improving functional knowledge of team through multi-skilling
Allocating project team, to process open items from the SAP system
Finalised
Filling of medical posts at provincial offices
Performing independent quality assurance on uMehluko to ensure that it will meet the business requirements
Improving Hospital Case Management to introduce efficiency
Implementing the CCMA case management system for hearings and objection matters
Implementing the fraud prevention and detection measures
Develop and implement a business continuity programme
2018/12/31

12. PROGRESS – Internal Business Process/Administration
Output
No of Initiatives
Planned Activities
Progress
Activities Not Started
Activities in Progress
Completed Activities
Core Business Value Chain Integration 1 2
Improved rate of processing compensation benefits and medical claims 5 3
Effective Management and Monitoring of Hospitals benefits to reduce costs
Effective Management of Legal Services
Effective Risk Management 6 4
Total 10 15 8 7
Percentage Completion 0%
53%
47%
Internal Business Processes/Administration
2018/12/31

13. PROGRESS – People Management
Projects/Initiatives
Status
Project on Skills Audit for staff performing CF functions at both national and provincial levels
In Progress
Implementing change management on current projects
Finalised
Developing a change management framework for the Fund
Adhere and Implementation of Performance Management policies
Enhancing training and development
Improving internal and external communication
Assess the impact of decentralisation on staff
Embark on project for the review of Organisational structure
2018/12/31

14. PROGRESS – People Management
Output
No of Initiatives
Planned Activities
Progress
Activities Not Started
Activities in Progress
Completed Activities
Competency Gaps Addressed 1 14 13
Improve Organisational Culture 5 29 10 19
Improve Staff Morale 9 2 7
Revised and Approved Organisational Structure
Total 8 54 40
Percentage Completion 0%
26%
74%
People Management
2018/12/31

15. HIGHLIGHTS OF ACTIVITIES
ACTION PLAN – COMPENSATION FUND TURNAROUND (cont…)
Internal controls improved with the introduction of 20 new policies to address a number of areas that have been the cause of non compliance to the PFMA and its Regulations
All infrastructure solutions that were recommended by an independent assessor for the effective implementation of uMehluko were implemented by end of December 2015 and payments have since improved.
A total of R211 million has been credited back to employer accounts in discount that have been due since
A system enhancement process to correct the interest and penalties since 2011 has been completed and the users are signing off. Configuration/development commenced in March 2016 and is due for completion in September 2016.
2018/12/31

16. HIGHLIGHTS OF ACTIVITIES
Oct‘15
Nov‘15
Dec‘15
Jan‘16
Feb‘16
Mar‘16
Apr‘16
May‘16
Jun‘16
Jul‘16
Aug‘16
Sep‘16
Enhancements on the system to cater for refunds
Enhancements (key-offs and batch processing) of debt management system
Enhance the Finance system for calculation of interest and penalty
Correction of allowance for impairment on corrected debt
System enhancement to process contribution per line item instead of a batch and apply key-off
Implement algorithm checks for the Fund’s deposits
System enhancement to integrate uMehluko and SAP FI
Legend:
Stabilise Reporting Platform
Project went Live Successfully
Project is in progress, no issues found
Project behind schedule
Project is progressing well no issues
Project behind schedule

17. HIGHLIGHTS OF ACTIVITIES
ACTION PLAN – COMPENSATION FUND TURNAROUND (cont…)
Revised Assessment Model for the Fund has been submitted for Socio Economic Impact Study and consultations at NEDLAC will commence in September 2016
Capacity in the Financial Management Unit has been increased with the appointment of key personnel in Financial Reporting, Revenue Management and Internal Control
There are on-going interactions with key Medical Service Providers and industry bodies that represent our clients to address concerns and bottlenecks. This has yielded positiv results in the operations of the Fund
There are various enhancements of the uMehluko system that have assisted with the faster processing of claims and more enhancements are planned and on-going
2018/12/31

18. HIGHLIGHTS OF ACTIVITIES
ACTION PLAN – COMPENSATION FUND TURNAROUND (cont…)
The development of a programme for the dispensing of chronic medication to COIDA clients has been completed and will be implemented from September COIDA patients will have chronic medication delivered at home and in some cases within close proximity of their residential areas.
A Panel to deal with Post Traumatic Stress Disorder claims has been appointed and has already commenced with the work on backlog claims
The Fund has absorbed the 90 interns appointed during 2015 as part of the measures to improve the rate at which the benefits are processed and paid. This has resulted in the elimination of backlogs on uMehluko. The team is now working claims received prior to 2014.
2018/12/31

19. HIGHLIGHTS OF ACTIVITIES
ACTION PLAN – COMPENSATION FUND TURNAROUND (cont…)
A new functional structure which focuses the business of the Compensation Fund into three functional units (Compensation Benefits, Registrations & Pensions, Medical Services as well as Orthotic, Prosthetic and Rehabilitation Services) has been developed is undergoing approval processes before implementation.
The Skills Audit and Change Management Projects have been completed and the Fund is in the process of implementing the recommendations
Human Resources intervention to deal with the unintended consequences of the decentralisation process have been implemented to improve the organisational climate and improve work ethic
2018/12/31

20. PROGRESS ON CLAIMS PROCESSING
The Fund has started to make a significant progress with regards to the processing of claims
2018/12/31

21. PROGRESS ON CLAIMS PROCESSING
2018/12/31

22. PROGRESS ON CLAIMS PROCESSING
2018/12/31

23. PROGRESS ON CLAIMS PROCESSING
2018/12/31

24. Thank You…
2018/12/31 24