Compensation Fund Strategic Plan 2011 - 2016 1 CF Strategic Plan 2011 2016 Presentation to the Portfolio Committee on Labour 29 March 2011 CF Strategic

Compensation Fund Strategic Plan 2011 - 2016 1

CF Strategic Plan 2011 2016Presentation to the Portfolio

Committee on Labour 29 March 2011

Overall AccountabilityCompensation Commissioner: Mr. S.S. Mkhonto


Legislative MandateLegislative Mandate

The Compensation Fund is a Public Entity of the Department of Labour

It is responsible to administer the Compensation for Occupational Injuries and Diseases Act (COIDA) No. 130/1993 as amended by the COIDA 61/1997


Measurable ObjectiveMeasurable 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


Reporting FrameworkReporting FrameworkMINISTER OF LABOUR

COMPENSATION BOARD

DIRECTORGENERAL: LABOUR

COMPENSATION COMMISSIONER

AUDIT COMMITTEE

BOARD SUBCOMMITTEES


CF Strategic Goals 2011 2016CF Strategic Goals 2011 2016 Providing an efficient social safety net. Providing professional, efficient and client

orientated human resource. Strengthening corporate governance. Integration of the Fund with the comprehensive

social security reforms. Promote policy advocacy. Improve financial viability. Improve corporate support and services. Enhance quality and access to COIDA services and information.


2010/11 Strategic Achievements2010/11 Strategic Achievements The Fund processed and paid 446 911 compensation benefits in 2010/11 amounting to R606,310,161, ascompared to 254 019 amounting to R580,475,988 during 2009/10.

The Fund also paid 186 563 medical accounts amounting to R409,111,173, in 2010/11 as compared to 135 829 amounting to R232,933,375 in 2009/10.

Of the above medical accounts, 4 889 were paid via the new bulk loading system at an amount of R4,630,022.51.

Minister approved 7% increase in medical tariffs, and 4.6% increase in compensation benefits plus 90% purchasing power catch up.


2010/11 Strategic Achievements2010/11 Strategic Achievements Draft policy on rehabilitation, reintegration and return to work has been developed. Implementation of the CF Turnaround Strategy. Business processes mapped and reengineered. Organisational structure redesigned in a process of approval. Service delivery model, change management, competency and migration frameworks developed. Decentralised claims processing to 5 Provincial offices. Integrated Claims Management (ICM) and Finance Management systems developed and in a process of being deployed. All senior management positions have been filled and the Fund’s current vacancy rate is at 4.78%.

Collected R431million of debt relating to prior years.


2010/11 Strategic Achievements2010/11 Strategic Achievements Total investment increased by R3.9 billion, from R22,660,354 in 2009/10 to R26,563,700 in 2010/11. Audit qualifications cleared in the following areas: Bank reconciliation and suspense account. Accounts payable. Fixed assets.

Certain COIDA sections to be considered for amendment identified. From a target of 45%, 211 of 273 (77%) Section 91 objections were finalised within 3 months in 2010/11, as compared to finalising 117 of 327 (35.7%) in 2009/10.


2010/11 Strategic Achievements2010/11 Strategic Achievements

Participated and contributed to the Interdepartmental

Task Team (IDTT) and contributed to social security reform proposals.

Communication strategy developed and intensive COIDA educational campaigns are being conducted in Limpopo, Mpumalanga and Eastern Cape.

Risk management strategy developed and implemented. In partnership with specialist organisations, the Fund made significant achievements in dealing with fraud and corruption.


CF STRATEGIC PLAN 2011 2016


Providing an efficient social safety netProviding an efficient social safety net Responsible SubProgramme

KEY OUTPUT Deliverables for 2011/12Performance Indicators

Compensation Increase number of compensation claims finalised: % of new compensation claims finalised.

Contribute to social security reforms: Provide inputs to the Interdepartmental Task Team (IDTT).

Prevent occupational injuries by strengthening civil society: Fund and monitor number of projects per province.

70% finalised within 2 months of registration.

Provide inputs within time frames specified by the IDTT.

9 projects funded and monitored.


Providing an efficient social safety netProviding an efficient social safety net Responsible SubProgramme


Medical Services Improve claims turnaround time: % of new medical claims finalised.

Development and implementation of rehabilitation, reintegration and return to work policy framework: Approved policy framework.

70% finalised within 2 months of receiving invoice.

Policy proposal submitted to Cabinet.


Providing professional, efficient & client orientated HRProviding professional, efficient & client orientated HR Responsible SubProgramme


Human Resource Management

Achieve a conducive working environment: Employee wellness strategy developed and implemented.

Implement recruitment and retention strategy: % vacancy rate maintained.

Develop and implement work skills development plan (WSP): % of identified training needs addressed.

Employee wellness strategy developed and implemented.

10% vacancy rate maintained.

80% needs addressed. 100 Interns by Q4.


Providing professional, efficient & client orientated HRProviding professional, efficient & client orientated HR Responsible SubProgramme


Human Resource Management

Strengthen HR capacity and monitor human performance: % compliance with Performance Management Policy.

Promote sound labour relations: Grievance & Disciplinary cases addressed within days of receipt.

Promote equity in the work place: Implement employment equity plan.

95% compliance.

30 days for grievances. 60 days for disciplinary cases.

Employment equity targets achieved.


Strengthening corporate governanceStrengthening corporate governance Responsible SubProgramme


Risk Management Implement Risk Management strategy: All cases received investigated within months of receipt.

Number of risk prevention and detection campaigns conducted.

Full implementation of Minimum Security System (MISS): Implementation of appraisal reports.

All cases investigated within 6 months.

4 campaigns conducted.

Full compliance with MISS.


Integration of the Fund with comprehensive social security reformsIntegration of the Fund with comprehensive social security reforms Responsible SubProgramme


Legal Services Amendment of COID Act: COIDA Amendment Bill.

Improve turnaround time in dispute settlement: % of Section 91 objections finalised within 3 months.

COIDA amendment bill submitted to cabinet by quarter 4.

50% finalised within 3 months.


Promote policy advocacyPromote policy advocacy

Responsible SubProgramme


Communication Implementation of communication / marketing strategy: Number of educational campaigns conducted.

Production of annual report and related publications: Annual report and related publication produced.

3 Campaigns rollout by Quarter 4.

Publish and table the annual report by Quarter 2.


Improve financial viabilityImprove financial viability Responsible SubProgramme


Finance Increase assessment revenue: % increase as compared to the previous year.

Increase the number of registered employers: % increase as compared to the previous year.

Debt collection: % increase of debt collected.

4% increase as compared to the previous year.






Finance Maintain the Fund as a going concern: Financial ratio maintained.

Maximise investment returns: Receive above the (STEFI) average benchmark returns (12.20%).

Ensure effective asset management: Maintenance of the fixed asset management register.

Greater than 2:1 financial ratio achieved.

Receive above the (STEFI) benchmark returns.

100% Maintenance of the fixed asset management register.




Finance Develop and implement a facilities management programme: Facilities management programme reports.

Develop and implement demand and acquisition management plan: Demand and acquisition program reports.

Full implementation of facilities management programme.

Demand and acquisition plan developed and implemented.


Improve corporate support and servicesImprove corporate support and services Responsible SubProgramme


Information and Communication Technology

Deliver information and communication technology solutions: Deployment of the Integration Claims Management (ICM) system.

Deliver information and communication technology solutions: Deployment of the Financial Management system.

Deployment of the Integration Claims Management (ICM) system.

Deployment of the Financial Management system.


Enhance quality and access to COIDA services and informationEnhance quality and access to COIDA services and information Responsible SubProgramme


Organisational Effectiveness

Organisational transformation:Approved decentralised organisational structure.

Develop and implement quality management system: Quality management system developed.

Implement the decentralised structure to all provinces by quarter 4.

Initiate and implement QMS process.




Organisational Effectiveness

Continuous review and improvement of business processes: Number of process change requests approved according to agreed upon time and effort.

Improved level of client satisfacition: % increase in client satisfaction level achieved.

Number of process change requests approved according to agreed upon time and effort.

60% client satisfaction level achieved.




Programme Management Office

Coordinate all priority projects currently running under the Compensation Fund: Implementation of all CF priority projects within committed project plan / schedule with measurable targets and budget.

Quarterly reports on progress.




Internal Audit To control and coordinate all audit activities of the relevant internal audit department to meet strategic objectives of the department: Approved policies and procedures / methodology for Internal Audit.

Manage the execution of the annual coverage plan and prepare monthly status quo management reports on the activities of the section.

Implement policies and procedures/methodology for the Internal Audit.

Prepare monthly status quo management reports on the activities of the section.




Internal AuditTo control and coordinate all audit activities of the relevant internal audit department to meet strategic objectives of the department:

Submission of quarterly report to the Audit Committee.

Approved Audit Committee reports.


2011/12 Strategic Priorities2011/12 Strategic Priorities

Implementation of the approved organisational structure.

Implementation of the ICM and the FM systems.

Intensify the development and approval of the Rehabilitation, Reintegration and Return to Work Policy Framework.


2011/12 Strategic Priorities2011/12 Strategic Priorities

Amendment of COID Act.

Continue with COIDA educational campaigns to provide guidance on the Fund’s services.

Improve revenue collection.

Job creation, internship, learnership and invest in socially responsible investments.


Investments at the PICInvestments at the PICCompensation fund invest the funds through the Asset manager Public Investment Corporation.

The Fund received 8.98% return on investment from April 2010 to December 2010.

The Fund bought investments from the following companies or organisation as at 31 December 2010


Investments at the PIC (Continued)Investments at the PIC (Continued)


Expenditure2009/102009/10R’000R’000

2010/112010/11R’000R’000

Compensation of Employees

108,428 114,399

Claims 1,665,548 1,927,964

Administrative Expenses 190,933 279,652

Total Expenditure 1,964,909 2,322,015

Summary of financial performance 2009-2011Summary of financial performance 2009-2011


Revenue2009/102009/10R’000R’000

2010/112010/11R’000R’000

Revenue 4,054,786 4,052,470

Investment Income

1,235,295 2,200,233

Total Revenue 5,290,081 6,252,703

Net Surplus 3,325,172 3,930,688

Summary of financial performance 2009-2011Summary of financial performance 2009-2011


Budget Summary for 2011 - 2015Budget Summary for 2011 - 2015

Revenue

Current Budget 2010/11

Approved Budget 2011/12 Forecast 2012/13 Forecast 2013/14 Forecast 2014/15

Assessments 3,452,069,102 3,637,572,851 3,819,451,493 4,010,424,068 4,210,945,272

Interest and Penalties 420,977,125 249,682,206 262,166,316 275,274,632 289,038,364

Investment Income 1,985,461,536 1,756,751,235 1,844,588,796 1,936,818,236 2,033,659,148

Other Income 21,400,000 97,900,338 102,795,355 107,935,123 111,694,855

Total Revenue 5,879,907,763

5,242,542,2

18 6,029,001,960 6,330,452059 6,646,337,639


Budget Summary for 2011 - 2015Budget Summary for 2011 - 2015

Expenditure BudgetCurrent Budget

2010/11Approved Budget

2011/12 Forecast 2012/13 Forecast 2013/14 Forecast 2014/15

Compensation of employees 323,969,025 494,503,077 527,645,777 4,010,424,068 583,391,860

Claims 2,709,284,055 3,808,722,262 4,056,289,209 4,279,385,115 4,493,354,371

Administrative Expenses 580,664,802 474,428,401 413,940,006 422,114,956 443,514,259

Total Goods and Service 3,289,948,857 4,283,150,663 4,470,229,215 4,701,500,072 4,936,868,630

Capital Expenditure 24,353,838 25,349,136 30,538,875 1,500,000 1,000,000

Surplus 2,241,636,043 938,903,754 1,001,588,094 1,071,840,693 1,125,077,148


Thank you

Documents

Compensation Fund Strategic Plan 2011 - 2016 1 CF Strategic Plan 2011 2016 Presentation to the Portfolio Committee on Labour 29 March 2011 CF Strategic