1. Compensation Fund Briefing to the Portfolio Committee on CF Preliminary Annual Performance, Strategic Plan for 2013 -2018 and 2013/14 Annual Performance Plan Overall Responsibility: Compensation Commissioner: Mr. S. Mkhonto

2. 2 Table of Contents 1. Overview & Objectives of the Fund 2.CF Measurable Objective 3.Service Delivery Outcomes 4.Vision and Mission PART A : PRELIMINARY ANNUAL REPORT 5. CF Performance 6.Challenges contributing to non achievement of some indicators and how we are responding to them 7.Auditor General’s Report 8.Summary of Budget allocated and expenditure as at end of Dec 2012 PART B: 2013-2018 STRATEGIC PLAN AND 2013/2014 ANNUAL PERFORMANCE PLAN 9.Issues that were in the plan but not finalised 10.Priorities for 2013/14 11.Compensation Fund Strategic Plan and APP for 2013/14 12.Budget Allocation and MTEF Estimates 13.CF expectations of the Portfolio Committee

3. 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. 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. 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 8: 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. 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. 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. PART A PRELIMINARY ANNUAL REPORT (CF PERFORMANCE AGAINST THE 2012-13 ANNUAL PERFORMANCE PLAN)

9. Status LegendNo of Indicators AchievedAchieved 100% + of Target 28 (62%) Partially AchievedAchieved 50% - 99% of Target 7 (16%) Not AchievedAchieved 0% - 49% of Target 10 (22%) Summary of Performance

10. Claims RegisteredAccepted ClaimsNumber of Awards Amount E-ClaimsSAPE-ClaimsSAPE-ClaimsSAP 26584175140149368429047 539969 201 72499 22648 508986 687 432 Compensation Claims April 2012- March 2013

11. Compensation Fund Claims (Comparison with previous financial years) 2009/20102010/20112011/20122012/2013 Claims registered 200560215493141437201 724 Claims Accepted 17829319016811018099 226 Claims Repudiated 361447129323 Claims with outstanding information/not accepted 21906248783112883552 Number of Payments issued 34015932910920515048 508 Monetary value Paid R 771 801 533R 801 774 215R 549 000 702R 986 687 432

12. Claims breakdown per benefit : April 2012- March 2013 Benefit TypeNumber awardedAmount awarded (R) Additional Compensation(Sect 56)32 753 026 Burial Expenses2071 686 996 Lump sum To Widow4595 913 711 partial Dependency14 437 870 PD Lump sum3 567107 418 213 Pension (Employee and fatal)25 536783 804 057 TTD18 72284 673 559 TOTAL48 508986 687 432

13. Claims breakdown and comparison with the previous years Benefit type Awards 2011/2012 Awards 2012/2013 Amount awarded 2011/2012 Amount awarded 2012/2013 Additional Compensation sect 56 13200 000275 3026 Burial Expenses 1842071 372 8661 686 996 CAA 8 641-12 520 809- Lump sum to Widows 2404592 467 3445 913 711 Partial Dependency 71477 843437 870 PD Lump sum payment (30%) 4 2063 56793 395 328107 418 213 Pension168 31025 536344 526 553783 804 057 TTD23 56118 72294 439 95984 673 559 Totals205 15048 508549 000 702986 687 432

14. Claims per Province April 2012 –March 2013 PROVINCECLAIMS REGISTEREDCLAIMS ADJUDICATED Eastern Cape 276114 Free State 212117 Gauteng (Pretoria Office) 23 20113 092 Gauteng (JHB Office) 750447 Kwazulu-Natal 768462 Limpopo 18992 Mpumalanga 13652 North West 16697 Northern Cape 5332 Western Cape 833431 Other SAP 175 14084 290 TOTAL 201 72499 226

15. Claims Comparison per Provincial Office ProvinceClaims registered 2011/2012 Claims registered 2012/2013 Claims accepted 2011/2012 Claims accepted 2012/2013 Eastern Cape 24,452 276 24,491 114 Free State 3,516 212 3,375 117 Gauteng Pretoria Office 93,407 23 201 103,974 13 092 Gauteng Johannesburg Office 1,685 750 1,332 447 Kwa -Zulu Natal 4,853 768 4,008 462 Limpopo 1,672 189 573 92 Mpumalanga 3,362 136 6,276 52 North West 870 166 1,983 97 Northern Cape 2,561 53 778 32 Western Cape 4,906 833 4,145 431 Other SAP-ICM 23248 175 140 13,647 84 290 Totals164,532 201 724 160,554 99 226

16. STRATEGIC OBJECTIVE:PROVIDING AN EFFICIENT SOCIAL SAFETY NET  A total of 21 SCSF projects were funded and monitored namely, Qholaqhwe, Mangaung; Maokeng; Hope Town; Marydale; Sika Sonke; Mooi River; Bergville; UKZN; Himville; Matatiele; Aliwal North; Leandra; Nkomazi; Nkunzi; Opret; Mamadi; Community Regeneration; Swellendam; Lethabong and Workers World Media Productions.  All these projects have finalised their respective workshops for the first tranche payment by 31 December 2012.  Reviewed compensation benefits by end of financial year. Proposal was signed by the Minister and already gazetted for public comments.

17. STRATEGIC OBJECTIVE:PROVIDING AN EFFICIENT SOCIAL SAFETY NET Medical claims 2012 / 2013 Financial year  A 12 % increase noted in Invoices processed this financial year.  A decrease of 22 % noted in Rand Value this financial year.  Over the last five financial years, the Fund has paid an average of 800 000 invoices per year.  The Fund was experiencing a decrease in payments due to challenges on the implementation of the new IT system. This trend was noted up to Quarter 3,however there were mitigations such as the Medical Backlog project (Electronic processing of invoices), and the Claims backlog project in Quarter 4.  The drop of Rand value is attributed to the project processing a high number of invoices with low monetary value and the controls on the electronic system used during the Backlog Project. 2011/20122012 / 2013 No. paidAmountNo. PaidAmount 824 924R 1 872 583 374. 00934 834R 1 426 189 044. 00

18. STRATEGIC OBJECTIVE: PROVIDE PROFESSIONAL, EFFICIENT AND CLIENT ORIENTATED HUMAN RESOURCE (HRM)  More than 100% of the identified training needs were met against the annual target of 82%. 40 training needs were identified and 62 were addressed, which translates to 117% achievement.  In contributing towards job creation, 111 interns were appointed by the end of 31 st March 2013 against the annual target of 100 set by CF.  The Fund consistently maintained its vacancy rate. The vacancy rate is 2.81% against the 10% vacancy norm.

19. STRATEGIC OBJECTIVE: STRENGTHENING CORPORATE GOVERNANCE (RISK MANAGEMENT)  Out of 142 Fraud and corruption cases cases 86 finalized within 4months which resulted in two medical health care providers convicted and sentenced to three years house arrest and five years suspended for both. they were also ordered to pay back R2,1m and R455,212.60 with 15% interest respectively.  Another 4 Medical health care providers are still on trial for defrauding the Fund the value of R1,359,876.7  7 Ex-employees are also on trial for colluding with Health care providers.  Two Health care providers were on trial by HPCSA and the rest are outstanding. 

20. STRATEGIC OBJECTIVE: INTEGRATION OF CF WITH THE COMPREHENSIVE SOCIAL SECURITY REFORMS (LEGAL SERVICES)  Draft amendments of COIDA, which includes a chapter in Reintegration and Rehabilitation to work, were completed and submitted to the LP&IR branch of the Department of Labour for quality assurance and further consultation.

21. STRATEGIC OBJECTIVE: PROMOTE POLICY ADVOCACY (COMMUNICATION)  Communication Strategy was successfully implemented. -Educational adverts covering employers, employees and beneficiaries ran on national TV (SABC 1,2,3 and Etv), national radio stations in all official languages. -Educational advert covering beneficiaries ran on community newspapers in different languages. Educating them on what services the Fund is offering and what their rights are. - Radio interviews were conducted on community radio stations in different languages educating and responding to enquiries relating to covering all COIDA. -Adverts were ran on Commuta net (train stations and buss stations) covering employees and beneficiaries TO ENSURE MAXIMUM REACH. -

22. . NOTICE TO EMPLOYERS - Advertorial ran on national newspapers informing employers of the deadline and how to submit RETURN OF EARNINGS - Television adverts on SABC 1-3 and etv. - Radio advertorials ran on national radio stations in all official languages. - Alive advertising, adverts for beneficiaries ran on alive screen nationwide from February to March 2013, - On-line advertising ran on news sites from Feb to March 2013, - Billboard advertorials ran on all Gautrain stations from the month of March 2013, - Airport screens advertorials ran from the month of March 2013.

23. IMPACT OF THE RETURN OF EARNINGS ADVERTS  As at 28 February 2013, before the advert, we already had 39 000 employers registered on the ROE Website.  85 000 submissions have been filed successfully on the ROE Website between 1 April to 30 April 2013.  The Call Centre and Walk in Centre online submission statistics as of March to 30 th April: 16,654 calls and 9,822 emails.

24. STRATEGIC OBJECTIVE: IMPROVE FINANCIAL VIABILITY (FINANCE)  R1,6 Billion was collected in total in quarter 4 against the annual target of R1 billion per annum of the debt book as at 31 March 2011.  The implementation of the RoE website in 2012 for online submissions has been successful. For the period until the end of March 2013 94,302 online submissions were received with total revenue of R3,3 billion. In the last two months when the 2012 submissions were opened for submission we have received 82,870 submissions with total revenue of R3,4 billion.  8.10 billion was invoiced by the end of quarter 4 against a target of R5.6bn

25. STRATEGIC OBJECTIVE: IMPROVE FINANCIAL VIABILITY (FINANCE)  The Fund maintained its financial ratio target. The current ratio was 4:1 against a target of 2:1  For the 4 th quarter the Fund received returns on the Compensation Portfolio of 1.39% against a targeted benchmark of 1.24% and on the Pension Portfolio 1.09% against a targeted benchmark of 1.06%.

26. STRATEGIC OBJECTIVE: IMPROVE CORPORATE SUPPORT AND SERVICES / ENHANCE QUALITY AND ACCESS TO COIDA SERVICES AND INFORMATION (ICT)  The Fund’s IT governance framework was finalised and approved.  A Business Continuity Plan was developed and approved.  The call centre infrastructure was upgraded to newer technologies.  The Return of Earnings website went live and is being extensively used by employers to submit returns.  The Fund is in the process of procuring a new IT solution to pilot in the new year.

27. STRATEGIC OBJECTIVE: STRENGTHENING CORPORATE GOVERNANCE (Internal Audit)  Risk-Based 3 year and Annual Audit Plan Drafted approved by Audit Committee on the 11 th June 2012.  Reporting of quarterly reports to the Audit Committee. 4 Audit Committee meetings took place between April 2012 – 31 st December 2012.  As at December 2012, a total of 52% (12 out of 23) of audits were finalised and presented at Audit Committee.  Developed and implemented the internal audit Methodology. Teammate software acquired and the methodology is fully incorporated.  A combined assurance model (IA,RM and AG) was drafted and will be implemented in the new financial year.

28. 28 SOME OF THE KEY CHALLENGES FACING THE COMPENSATION FUND AND HOW WE ARE RESPONDING TO THEM Challenge  Inadequate IT Systems.  Turnaround time in processing of compensation claims.  Backlog in processing claims and payments.  Document management.  Records management system. Intervention  Process automation  Pilot the RMA system.  Initiated a Backlog Project.

29. 29 SOME OF THE KEY CHALLENGES FACING THE COMPENSATION FUND AND HOW WE ARE RESPONDING TO THEM (CONT.) Challenge  Delay and/or non-reporting of accidents  Employer non-compliance Intervention  Include employers in Educational Campaigns  Engage Enforcement Inspectorate

30. 30 SOME OF THE KEY CHALLENGES FACING THE COMPENSATION FUND AND HOW WE ARE RESPONDING TO THEM (CONT.) Challenge  Human capacity constraints Intervention  Full implementation of the new structure, especially by filling critical posts in the area of Finance and the post of Chief of Operations.

31. Auditor-General Report

32. 2009 2010 and 2011 2012 Revenue contributions and assessment debtors Disclaimer Qualification Bank (reconciliations/ suspense accounts /balances) Disclaimer Qualification Cleared Claims incurred Disclaimer Qualification Accounts payable Disclaimer Qualification Cleared Property, plant and equipment Disclaimer Qualification Cleared IFRS 7 Disclaimer Qualification Cleared

33. Audit Qualification 2011/12 Assessment Revenue and Receivables Compensation Fund does not have an adequate system and process in place to ensure that all employers are correctly assessed and billed. Therefore I was unable to verify completeness and accuracy of revenue contributions for the year of R4, 9 billion (2011: R4, 8 billion ) as well as completeness and valuation of assessment debtors of R5, 7 billion (2011:R4, 9 billion. The completeness and valuation of the accrual for assessments not raised totalling R1,5 billion. No further alternative procedures could be performed. Challenges:  Inadequate IT Systems  Capacity and skills shortages  Prior year backlog reduction  Unregistered/untraceable employers  No link between CIPC (CIPRO) and FC  Employer non-compliance  Slow networks

34. Assessment Revenue and Receivables (cont.) Action Plan: Short-Term Improvement on standards and norms Appoint additional managers –new proposed structure Managers to manage- monitor performance more strongly Update employer contact details Accurate Assessment of all received employer ROE Follow up and clear all queries timeously Raising of Estimates for employers who did not return ROE’s ROE project implemented to remove the backlog Implementation of ROE website and online submission

35. Assessment Revenue and Receivables (cont.) Action Plan: Medium - Long term Comparison of CF employer database to UIF or SARS database. Adopt a simpler tariff model in order to standardise tariff rates/Actuarial rates. Appoint payroll auditors

36. Audit Qualification 2011/12 Interest and Penalties on assessment employers I was unable to verify the accuracy and completeness of interest and penalties for late submissions of return of earning’s and late payment of assessment due to interest and penalties incorrectly charged to assessment debtors. The entity’s records and system did not permit the application of alternative procedures relating to interest on assessment of employers. Consequently I did not obtain all the information and explanations I considered necessary to satisfy myself as to the accuracy and completeness of interest and penalties on assessment employers amounting to R347 million. Action Plan: Short term-Medium term Identify debt collection service provider Ensure proper system configuration Implement moratorium on interest and penalties until such time as system configuration resolved.

37. Audit Qualification 2011/12 Medical claims I was unable to express an opinion on the completeness, accuracy and occurrence of benefits paid. Included in the R2,2 billion disclosed in note 4 of the financial statements is an amount of R43 million relating to permanent disability and medical claims that have been paid but could not be reconciled to the benefits claims listing. The entities lack of internal control processes did not allow the performance of alternative audit procedures to confirm the completeness and accuracy of benefits paid. Action Plan: Short- term Recruit appropriately skilled financial staff Ensure proper system configuration Perform monthly reconciliations Ensure proper management review of reconciliations

38. Matter of Emphasis Material losses Included in Material Losses of R26 million disclosed in note 24 to the financial statements is an amount of R4,8 million relating to (new cases) that were finalised in the current year. The balance of R21,2 million relates to cases reported in the prior year but only finalised in the current year. An amount of R3,1 million relating to these cases was recovered. Action Plan: Short -term Review the Fraud prevention Strategy Review effectiveness of fraud prevention controls Implement the fraud Hotline.

39. Performance Information Presentation of information The reported performance information was deficient in respect of the following criteria: Presentation of information: Performance against predetermined objectives is reported using the National Treasury guideline Usefulness of information Of the total number of planned targets only eight out of twenty two targets were achieved during the year under review. This represents 63.64% (>20%) of total planned targets that were not achieved during the year under review. This was as a result of the Fund not adequately following up on quarterly targets not achieved during the quarterly monitoring reporting process and implementing action plans to address the non achievement. Action Plan: Short-term oStrategic plan – SMART principles adopted in setting objectives oMonthly/ Quarterly reporting of Performance information oIdentify action plans to address non achievement of targets.

40. CF 2012/13 BUDGET ALLOCATION& SPENDING

41. 2013/14 BUDGET AND MTEF ESTIMATES

42. PART B 2013 – 2018 STRATEGIC PLAN AND 2013/14 ANNUAL PERFORMANCE PLAN

43. Issues that were in the plan but not finalised  Enhancement of the Integrated Claims and Financial Management Systems to deal with AG findings. -The systems development which are in progress include MIS, Letters of Good standing, Remittance advices, Electronic Portal).  Implementation of the Revenue Management Strategy. -Marketing the ROE Website to increase employers access and invoicing -Incentives for filling on line and paying within specified period -Source Pay Roll Auditors to enforce compliance  Backlog management (The Rescue Plan: Claims Registration and Adjudication Projects is in progress).  Implementation of the approved Organisational Structure. -The structure is implemented on PERSAL system -Critical posts are being advertised

44. Issues that were in the plan but not finalised (cont.)  Decentralisation of COIDA services to Provinces.  Amendment of COID Act.  COIDA Stakeholder engagement.

45. Priorities for 2013/14  Piloting the RMA system  Engage with the medical service in the bargaining chamber  Full implementation of the organisation structure  Capacitate the Fund in the area of Finance and fill the post of Chief of Operations within the Fund  Decentralisation of COID services  Finalisation of the Turn-around Strategy and the implementation thereof.  The amendment of COIDA  Claims management strategy

46. Strategic Objective: Provide an efficient social safety net Strategic Goals / Outputs Key Performance Indicators 2013/142014/152015/16 1.1 Improvement in compensation Fund claims turn around % of new compensation claims adjudicated within months of registration 80% of new compensatio n claims adjudicated within 2 months of registration 90% of new compensation claims adjudicated within 2 months of registration 1.2 Advocacy of policy to prevent accidents Fund, monitor and evaluate number of projects Fund, monitor and evaluate 12 projects Fund, monitor and evaluate 18 projects in all provinces Fund, monitor and evaluate 18 projects 1.3 Improve compensation benefits Review compensation benefits by end of financial year

47. Strategic Objective: Provide an efficient social safety net Strategic Goals / Outputs Key Performance Indicators 2013/142014/152015/16 2.1 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 90% of medical claims finalised within 2 months of receiving an invoice 100% of medical claims finalised within 2 months of receiving an invoice 2.2 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 10 days 90% medical advice on all medical claims provided within 10 days 100% medical advice on all medical claims provided within 5 days 2.3 Develop a rehabilitation and reintegration policy framework and participate in consultative processes by 2014 Stakeholder consultation and workshops Submission of the draft Policy to the Minister Approval of the draft policy by the Minister 10% Implementation of the rehabilitation and reintegration policy framework

48. Strategic Objective: Provide professional, efficient and client orientated human resource Strategic Goals / OutputsKey Performance Indicators 2013/142014/152015/16 3.195% compliance with the performance management system annually Full compliance and enforcement of the performance management policy 95% compliance and enforcement of the performance management policy 3.2Improve competency levels of CF staff by 82% alignment and implementation of work skills development plan (WSP) BY 2016 % of identified needs addressed as per PDP aligned with WSP 82% of identified needs addressed as per PDP aligned with WSP Implement Internship / Leanership programme 100 Interns 3.3Achieve a conducive working environment by implementing an employee wellness strategy by 2016 Employee wellness strategy implemented annually Implement PILLAR 3Implement PILLAR 4 Maintain all PILLARS

49. Strategic Objective: Provide professional, efficient and client orientated human resource ( Cont.) Strategic Goals / OutputsKey Performance Indicators 2013/142014/152015/16 3.4Implement recruitment and retention strategy through maintenance of 7% vacancy rate by 2016 % vacancy rate maintained annually 7% 3.5Implement Employment Equity Plan by 2016 Eliminate work place discriminatory and social prejudice and achieve realistic target by 2016 40% women employed in Senior Management Service (SMS) 39% youth 3.5% people with disability (PWD) 40% women employed in Senior Management Service (SMS) 40% youth 3.6% people with disability (PWD) 40% women employed in Senior Management Service (SMS) 41% youth 3.7% people with disability (PWD)

50. Strategic Objective: Strengthening corporate governance Strategic Goals / Outputs Key Performance Indicators 2013/142014/152015/16 4.1Full implementation of Minimum Information Security Standard (MISS) by 2016 Full compliance with MISS by 2016 Full Implementation of communication security according to MISS Full Implementation of document security according to MISS Full Implementation of document security according to MISS 4.2Fraud Investigation Prevention and Detection strategy implemented % of cases registered finalised within agreed time frame 100 % of fraud and corruption cases received/detected finalised within 4 months 100 % of fraud and corruption cases received/detected finalised within 3 months Number of risk awareness sessions conducted 4 awareness sessions conducted 4.3Implement 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

51. Strategic Objective: Integration of the Fund with the comprehensive social security reforms Strategic Goals / Outputs Key Performance Indicators 2013/142014/152015/16 5.1Submit 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 Monitor and participate in Consultation process with the stakeholders Monitor submission of the draft Bill to Parliament and 5.2Resolve 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 75% of Application for increased compensation finalised within 60 days of receipt 85% Application for increased compensation finalised within 60 days of receipt 95% Application for increased compensation finalised within 60 days of receipt 5.3Resolve 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 75% of objections finalised within 60 days from the date of receipt from the Review Committee 85% objections finalised within 60 days from the date of receipt from the Review Committee 95% objections finalised within 60 days from the date of receipt from the Review Committee

52. Strategic Objective: Integration of the Fund with the comprehensive social security reforms (Cont.) Strategic Goals / Outputs Key Performance Indicators 2013/142014/152015/16 5.4Resolve 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 15 days 95% of litigation cases resolved within 10 days 5.590% 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

53. Strategic Objective: Promote policy advocacy Strategic Goals / Outputs Key Performance Indicators 2013/142014/152015/16 6.1Implement Communication Strategy/Marketing by 2017 Communication strategy implemented by 2017 Run 3 Media Adverts Run 3 Educational campaigns

54. Strategic Objective: Improve financial viability Strategic Goals / Outputs Key Performance Indicators 2013/142014/152015/16 7.1Eliminate debt book of R5 Billion by 2016 R1 billion per annum of the debt book as at 31 March 2011. R1 billion debt recovered 7.2 Increase revenue by 5% Annually % increase in revenue as compared to previous year 5% increase in revenue as compare to the previous year 5% % increase in revenue as compared to previous year 5% % increase in revenue as compared to previous year 7.3Enforce compliance of COIDA through payroll audits of employer declarations Appointment and management of payroll Appoint payroll auditorsImplement payroll auditsMaintain payroll audits 7.4Development of revised employer assessment model. Fully functional assessment model. Development of revised employer assessment model. Implement new employer assessment model Maintain. 7.5Obtain a clean audit opinion by 2014 Implement all AG recommendations Implement 100 % previous years AG recommendations Obtain and maintain clean audit

55. Strategic Objective: Improve financial viability (Cont.) Strategic Goals / Outputs Key Performance Indicators 2013/142014/152015/16 7.6Improve 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 All payments processed within 30 days of receipt of invoice 7.7Improve asset: liability ratio to 2:1 by 2016 Financial ratio maintained 2:1 Financial ratio maintained 7.8Maximise investment return to above benchmark Receive above the (STEFI) benchmark returns 7.9Allocate 5% of Investment Funds towards SRI initiatives 5% of Investment Funds to be ring- fenced in SRI initiatives R1.5bnR2.6bnR3bn

56. Strategic Objectives: Improve corporate support and services / Enhance quality and access to COIDA services and information Strategic Goals / OutputsKey Performance Indicators 2013/142014/152015/16 8.1To define IT Strategy and implement systems and infrastructure to support business goals by March 2013 CF IT strategy developed, supporting systems and infrastructure implemented Finalisation of the IT Strategy Implement 70% of IT strategy Implement 100% of IT strategy 8.2Implement 100% customer services at all customer touch points % Customer service support provided at all customer service touch points (phone-in, web, walk-in) 80% Customer service support provided at all customer service touch points (phone- in, web, walk-in) 90% Customer service support provided at all customer service touch points (phone-in, web, walk-in) 100% Customer service support provided at all customer service touch points (phone- in, web, walk-in) 8.3Improve customer satisfaction for call centre by 40% of baseline Achieve % increase of customer satisfaction rating on baseline Improve customer satisfaction rating by 15% of baseline Improve customer satisfaction rating by 20% of baseline Improve customer satisfaction rating by 30% of baseline 8.4Finalisation of governance measures and policies within the ICT environment by March 2013 Finalisation of a governance plan and implementation Review and development of ICT Policies Roll out of 50% ICT awareness programme Roll out of 100% ICT awareness programme

57. Strategic Objective: Enhance quality and access to COIDA services and information Strategic Goals / Outputs Key Performance Indicators 2013/142014/152015/16 9.1 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 9.2Annual organisational performance management Quality, relevance and timeliness of performance reports in line with the NT Framework for Performance Information Monitor and evaluate organisational performance to ensure that quarterly, mid- term and annual reports are tabled as per NT Framework

58. Strategic Objective: Enhance quality and access to COIDA services and information (Cont.) Strategic Goals / Outputs Key Performance Indicators 2013/142014/152015/16 9.3Implement change management programme by 2016 Develop and implement organisational wide change management programme by 2016 Implement 40% of the change management programme Implement 70% of the change management programme Implement 100% of the change management programme 9.4Decentralise COIDA services to 9 provinces by 2016 COIDA services decentralised to 9 provinces COIDA services decentralised to 2 provinces COIDA services decentralised to 3 provinces COIDA services decentralised to 4 provinces

59. Strategic Objective: Enhance quality and access to COIDA services and information Strategic Goals / Outputs Key Performance Indicators 2013/142014/152015/16 10.1Coordinate 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 monitoring reports on progress

60. Strategic Objective: Strengthening corporate governance Strategic Goals / Outputs Key Performance Indicators2013/142014/152015/16 11.1Developing and executing a risk based internal audit plan with 100% coverage annually Preparation, approval and implementation of the 3 year risk based internal audit plan and the Annual coverage plan by the Audit Committee Approval and implementation of the 3 year and annual risk based and annual coverage internal audit plan on the 1st April 2013 100% completion of the annual audit plan Approval and implementation of the 3 year and annual risk based and annual coverage internal audit plan on the 1st April 2014 100% completion of the annual audit plan Approval and implementation of the 3 year and annual risk based and annual coverage internal audit plan on the 1st April 2015 100% completion of the annual audit plan Reporting quarterly reports to the Audit Steering Committee 4 quarterly reports to audit steering committees annually Reporting quarterly reports to the Audit Committee 4 quarterly reports to audit committees annually 4 quarterly reports to audit committee annually 4 quarterly reports to audit committees annually

61. Strategic Objective: Strengthening corporate governance (Cont.) Strategic Goals / OutputsKey Performance Indicators 2013/142014/152015/16 11.2 Conform with IIA standards by 2016 (100% compliance) – Develop and implement Internal Audit Methodology, Policies and Procedures % conformance with IIA Standards, Internal Audit Methodology, Policies and Procedures Manuals. 80% Customer Satisfaction Index 85% Customer Satisfaction Index 85% Customer Satisfaction Index General Conformance Assessment by National Treasury. Full Conformance Assessment by National Treasury Full Conformance Assessment by IIASA 11.3Streamline all assurance functions into one enterprise-view by 2014 Combined assurance methodology plan and reports. Approved Combined assurance methodology and plan. Implementation of Combined assurance methodology and plan. Development and Approval of Key Control Assessment Methodology and plan Implementation of Key Control Assessment Methodology and plan 11.4Learning and Growth Implementation of IAT Learnership program Approval and Full Implementation of Internal Audit Technician –IAT Learnership program. Implementation of Internal Audit Technician –IAT Learnership program. Produce qualified Internal Audit Technicians

62. CF EXPECTATIONS OF THE PORTFOLIO COMMITTEE  Support the Amendment of COIDA process.  Provide support, advice and guidance on any initiative that the Fund is undertaking.

63. 63 THANK YOU