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COMPENSATION FUND STRATEGIC PLAN 2014/15 - 2018/19
Department:LabourREPUBLIC OF SOUTH AFRICA
1
COMPENSATION FUND STRATEGIC PLAN 2014-2015
Department:LabourREPUBLIC OF SOUTH AFRICA
COMPENSATION FUND STRATEGIC PLAN 2014/15 - 2018/19
2
COMPENSATION FUND STRATEGIC PLAN 2014-2015
Organisational Structure
Compensation Commissioner Mr Shadrack Mkhonto
Chief Financial Officer Chief Director Chief Director Director Director Mr Johnny Modiba Corporate Services Operations Risk Management Internal Audit
Mr Tshepo Mokomatsidi Ms Lungisa Matandela Ms Katlego Mocwiri Mrs Boitumelo
Gumbu
Director Director Director Income Organisational Compensation
Ms Ella Ntshabele Effectiveness Mr Basimane Dingaan Mr Simon Nkhabelane
Director Director Human Director Medical Financial Reporting Resources
Mr Pitsi Moloto Management Services Ms Thembi Moleko
Director Director Financial Control Communication and
Stakeholder Management
Ms Lebo Van Wyk Ms Hlonitshwa Mpaka
Acting Business Relationship Manger
(Information Technology) Mr Johan Nel
Director Customer Care Mr Xola Mnene
Director Supply Chain Management Ms Rebecca
Kgantsi
Mr AK Pillay
3
COMPENSATION FUND STRATEGIC PLAN 2014-2015
Official sign-off
S Nkhabelane Director: Organisational Effectiveness
T Mokomatsidi Chief Director: Corporate Services
L Matandela Chief Director: Operations Management J Modiba Chief Financial Officer SS Mkhonto Compensation Commissioner T Lamati Designated Accounting Officer Director-General of the Department of Labour
Honourable SP Holomisa, MP Deputy Minister of the Department of Labour Approved by: Honourable MN Oliphant, MP Executive Authority of the Department of Labour
COMPENSATION FUND STRATEGIC PLAN 2014/15
It is hereby certified that this Strategic Plan:
• Was developed by the management of the Compensation Fund under the leadership and guidance of the Honourable Minister of Labour, MN Oliphant, MP;
• Takes into account all the relevant policies, legislation and other mandates of the Compensation Fund; and
• Accurately reflects the strategic outcome, oriented goals and objectives which the Compensation Fund will endeavour to achieve over the period 2014 to 2019.
Supported by:
TABLE OF CONTENTS
No. Page No.
Organisational Structure 2
Official sign-off 3
Acronyms 5
Foreword by the Minister 7
Commissioner’s Overview 8
Part A: Strategic overview 11
1 Vision 11
2 Mission 11
3 Values 11
4 Legislative and other mandates 11
4.1 Constitutional and Legislative mandates 11
4.2 Relevant court rulings 12
4.3 Planned policy initiatives 12
5 Situational analysis 13
5.1 Performance environment 14
5.2 Organisational environment 15
6 Description of the strategic planning process 16
Part B: Strategic Objectives 19
Part C Links to Other Plans 31
Annexure A - Budget Summary 2014 - 2019 31
Annexure B - Technical Indicators 32
COMPENSATION FUND STRATEGIC PLAN 2014-2015
4
ACRONYMS
Acronym Description Acronym Description Acronym Description
AG Auditor-General
HRM Human Resource PTSD Post Traumatic
Management
Stress Disorder
APP Annual Performance ICD Integrated Client Database
PWD People with
Plan disabilities
BAS Basic Accounting
ICM Integrated Claims
QMS Quality Management
System Management
System
BCEA Basic Conditions of ICT Information and
RAF Road Accident Fund
Employment Act Communication Technology
Business Unit Inspection and Enforcement
Rand Mutual
BUMS Managers (Provincial IES
RMA
Services
Assurance
Deputy Directors)
Commission
CCMA for Conciliation,
ILO International Labour
RME Research Monitoring
Mediation and Organisation
and Evaluation
Arbitration
CC Compensation
INDS Integrated National Disability
ROE Return of Earnings
Commissioner Strategy
CF Compensation Fund
KZN KwaZulu-Natal
SCM Supply Chain
Management
Customer Labour Market Information
Service Delivery
CRM Relationship LMIS&P
SDIP
and Statistics
Improvement Plan
Management
Sheltered
CS Corporate Services LP Limpopo SEF Employment
Factories
CFO Chief Financial LP & IR Labour Policy and Industrial
SMS Senior Management
Officer Relations
Services
COO Chief Operations
LP & IR Labour Policy and Industrial
SOE State Owned
Officer Relations
Enterprises
CIO Chief Information LRA Labour Relations Act
SP Strategic Plan
Officer
Compensation for Short Term Financial
COIDA Occupational Injuries KRA Key Result Area
STEFI
Index
and Diseases
Strengths,
DG Director General
MBDC Medical Billing Document SWOT Weaknesses,
Control
Opportunities and
Threats
Technical Committee
DDG Deputy Director M&E Monitoring and Evaluation
TCOID on Occupational
General Injuries and
Diseases
DEXCOM Departmental MISS Minimum Information
TTD Total Temporary
Executive Committee Security System
Disablement
5
COMPENSATION FUND STRATEGIC PLAN 2014-2015
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Acronym Description Acronym Description Acronym Description
DoL Department of
MOU Memorandum of
UIF Unemployment
Labour Understanding
Insurance Fund
Department of DPSA Public Service and MPU Mpumalanga WC Western Cape
Administration
DWCP Decent Work Country MTSF Medium Term Strategic
WSP Work Place Skills
Programme Framework
Plan
EC Eastern Cape
MTEF Medium Term Expenditure
Framework
EEA Employment Equity NC Northern Cape
Act
National Economic ES Employment Services NEDLAC Development and Labour
Council
ESSA Employment Services NT National Treasury
for South Africa
EPWP Extended Public
OHS Occupational Health and
Works Programme Safety
EXCO Executive Committee PD Permanent Disablement
FEMA Federal Employers PDP Personal Development Plan
Mutual Assurance
FS Free State PES Public Employment Services
Government Public Finance Management
GCIS Communication and
PFMA
Act
Information Services
HO Head Office PMO Project Management Office
Health Professions HPCSA Council of South PPP Public Private Partnership
Africa
COMPENSATION FUND STRATEGIC PLAN 2014-2015
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FOREWORD BY THE MINISTER
It is my privilege and honour to present the 2014 – 2019 Strategic Plan of the Compensation Fund.
This Strategic Plan is intended to serve as a commitment of the Fund in the next five years to improve
its capacity to deliver services. It indicates the strategic objectives and outputs of the Compensation
Fund during the period and enables it to assess achievements and challenges against a set of key
milestones. This plan provides the basis for measuring performance in the delivery of services. This
Strategic Plan will assist in responding to the strategic priorities of government over the next five
years and will focus on the programmes to strengthen social security.
The Compensation Fund has made an unequivocal commitment to improve its operations by
continuing with efforts to fundamentally shift the organisation to become efficient and service oriented.
It is through this Strategic Plan that the Fund would effectively position itself to deliver on its mandate
of providing compensation for occupational injuries, diseases and rehabilitation of workers, and continuously add value to all its clients. In the next five years, the Fund will also be putting efforts to
increase access to its services to those who need them the most.
The achievement of all the outcomes is at the centre of the Fund’s contribution to build a better and
more caring nation. In this regard, we will continue to work hard and deliver in line with the broader
government priorities.
Over the next five years we will put in place mechanisms to ensure that the allocated funds are spent
as planned and in the best interest of our targeted clients.
As we celebrate the 21
st anniversary of our freedom this year and beyond, I commit the
Compensation Fund to continue working to improve the lives of our people and to commit to the
implementation of all the wonderful guides and targets that we have set for the caring people’s
administration. ………………………………………………………………… Honourable MN Oliphant, MP Executive Authority of the Department of Labour
7
COMMISSIONER’S OVERVIEW
Introduction It is with great pleasure to present the Compensation Fund’s Strategic Plan for the period 2014 -
2019. The Strategic Plan is an important tool used to determine the strategic goals and objectives of
an organisation in order to ensure improved services. It is also intended to be an instrument to guide
the manner in which operations are to be conducted and to allow stakeholders to fully understand the
commitments of the Fund for the next five years.
The Strategic Plan is in essence a tool to assist the Fund deliver on its mandate of providing
compensation for occupational injuries, diseases and rehabilitation of workers. This tool will also
assist in facilitating the process of holding the management of the Fund and staff accountable for the
delivery of the strategic goals in the next five years.
This Strategic Plan will also enable the Fund to contribute to the Government and Departmental
priorities whilst at the same time accelerating its efforts to improve the provision of social safety net. The Fund will also put measures to ensure that the allocated resources are utilised as planned. The Strategic Plan will focus more specifically on the following key performance areas:
Protecting vulnerable workers;
Strengthening social protection; and
Strengthening the institutional capacity of the Fund.
Our strategic priorities for the next five years are to:
Providing an efficient social safety net.
Providing professional, efficient and client orientated human resources.
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.
In an endeavour to ensure that the Fund is able to meet the above strategic objectives, a Turnaround
and Modernisation Strategy linked to this Strategic Plan has been developed and approved by the
management of the Compensation Fund. The interventions outlined in this Turnaround and
Modernisation Strategy will lead to more effective utilisation of available resources by the Fund,
improved business processes, policies and procedures, enhanced internal discipline throughout the
organization, improved public confidence and better service delivery.
The objectives of the Turnaround and Modernisation Strategy include:
Empowering employees as a key driver of performance;
Improving social security services;
Develop and implement innovation centred on citizens;
COMPENSATION FUND STRATEGIC PLAN 2014-2015
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Fully embedding risk management and analytics into the organisation and processes;
Actively leveraging external experience and expertise; and
Positioning the organisation as an active contributor to society. The strategic priorities of the Fund are supported by Six Key Pillars of the Turnaround and
Modernisation Strategy which have been identified in order to unlock value and drive the
improvements required. These Six Key Pillars are: a) Transformation and Business Realignment – to drive efficiency and continuous improvement
across key business processes.
b) Revenue Management Transformation – to strengthen the revenue management capability,
develop strategy, drive compliance and improve revenue collection.
c) Claims Management Transformation - to strengthen the claims management capability,
develop strategy and improve claim turnaround times and service delivery.
d) Financial Management Transformation - to improve financial viability and maintain proper
systems on internal control and information management.
e) Human Resource Management – to provide professional, efficient and client oriented
workforce and ensure effective performance management.
f) ICT Transformation - to support the business by providing an enabling environment with
appropriate technology and infrastructure.
Amongst the initiatives to be implemented in the Turnaround and Modernisation Strategy in the next
two years, include, among others the following: -
Establishment of the Project Management Office;
Business process re-engineering;
Finalisation of the placement of staff and resettlement to provinces;
Piloting the RMA System in full with effect from 1 April 2014;
Investing in Socially Responsible Investments;
Establishing a payroll audit function;
Continuing to manage the comprehensive action plan to address the disclaimer opinion; and
Finalisation of the amendments to the COIDA legislation and consultation process with the
relevant stakeholders.
It is envisaged that the above will enhance the future vision of government in strengthening social
protection in order to provide an efficient safety net, especially to vulnerable groups, as well as providing
support to cushion individuals and families during difficult times caused by occupational injuries, diseases
and fatalities. To this end, the Fund will be exploring all avenues to improve accessibility through various
service delivery channels, which include e-mail, labour centres and web. This will be achieved through well-
defined and automated processes, highly motivated and trained people to optimally support the business
purpose.
9
It is my believe that this Strategic Plan as supported by the Turnaround and Modernisation Strategy
effectively positions the Fund to deliver on its stated vision of becoming a world class provider of
sustainable compensation for occupational injuries and diseases, rehabilitation and reintegration
services.
SS Mkhonto Compensation Commissioner
COMPENSATION FUND STRATEGIC PLAN 2014-2015
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PART A: STRATEGIC OVERVIEW
1. Our Vision
1.1. To be a world class provider of sustainable compensation for occupational
injuries and diseases, rehabilitation and reintegration services.
2. Our Mission
To provide efficient, quality, client- centric and accessible COID services.
To sustain financial viability.
To ensure an organisation which takes care of the needs of its staff for
effective service delivery.
3. Our Values
3.1 We shall at all times adhere to and live the Batho Pele Principles
4. Legislative and other Policy Mandates
4.1 Constitutional and Legislative Mandates
COMPENSATION FUND STRATEGIC PLAN 2014-2015
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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. 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.
The Fund generates its revenue from levies paid by employers, which consists mainly of annual assessments
paid by registered employers on a basis of a percentage or fixed rate of the annual earnings of their employees.
The COID Act, however, makes provision for a minimum assessment to ensure that the assessment is not less
than the administration costs incurred.
The operations of the Compensation Fund are also affected by the following legislation:
• Occupational Health and Safety Act, 1993
• NEDLAC Act, 1994
• Labour Relations Act, 1995, as amended
• Basic Conditions of Employment Act, 1997, as amended
• Employment Equity Act, 1998
• Skills Development Act 1998 as amended
• Unemployment Insurance Act, 2001 as amended
• Unemployment Insurance Contributions Act, 2002.
4.2 Relevant Court Rulings
Decided Cases Michael Donald Healy vs. Workmen’s Compensation Commissioner (delivered 15 September 2008:
Eastern Cape Division) This was a section 91 (5) appeal, the Appellant appealed against a decision of the first Respondent
(CC) that, as a result of an occupational injury to his knee, he was permanently disabled to an extent
of 18%.
The Court held that the guidelines that the Respondent and his Assessors applied did not adequately
measure the degree of disablement in the circumstances of this case and that an assessment
consistent with schedule 2 of the Compensation for Occupational Injuries and Diseases Act 130 of
1993 was 45% permanent disablement. The appeal was allowed with costs.
Karel Petrus Jooste Mouton vs. The State (delivered: 30/08/2002: Cape of good hope Provincial
Division)
This was an appeal against the decision of the Compensation Fund Tribunal. The Appellant lodged a
claim for chronic adjustment disorder and anxiety, the claim was refused on the basis that the
conditions did not arise out of, or in the course of his employment. The Tribunal confirmed this.
The Court held that the Tribunal overlooked the provisions of Section 65 completely and relied on the
Circular Instruction which is an internal guideline not law.
S Hammond vs. The Compensation Commissioner and the Director-General (Transvaal Provincial
Division: delivered 6/8/2004) This was an appeal against the decision of the Tribunal to reject the Appellant claim on the basis that
it was not work related. The Court found that the Appellant did not meet the requirements of section
65(b) and “I am equally satisfied that the Appellant has failed to prove his case on a balance of
probabilities”, or either he failed to prove his case. The appeal was dismissed with costs.
The effect of these three cases is that the Compensation Fund Circular Instructions are not
legislation, they are just guidelines for internal purposes, therefore not binding to the Courts.
The Fund must then regulate the Circular Instructions.
4.3 Planned Policy Initiatives
In the assessment of some South African policy documents from other government departments, which
provide a framework for rehabilitation of people with disabilities and an adoption of an integrated approach,
Integrated National Disability Strategy (INDS) which also stresses the importance of vocational integration,
it was apparent that there is little focus on linking rehabilitation to return to work policies and programmes.
COMPENSATION FUND STRATEGIC PLAN 2014-2015
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Development of a Rehabilitation, Re-integration and Return-to-work Policy for Injured
and Diseased Workers
5. Situational Analysis
COMPENSATION FUND STRATEGIC PLAN 2014-2015
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In November 2011, the National Planning Commission handed a National Development Plan’s (NDP)
vision 2030 document to the President of the Republic of South Africa. The NDP was welcomed by most
sectors of society as a framework which outlines the kind of a future country which should be realised. The
NDP comes at a time when South Africa is faced with many challenges such as low economic growth
trajectory, unstable labour market, high unemployment rate, increased reliance in social services which
places a strain on the national revenue fund and the changing world economic outlook. In this regard, the
NDP seeks to eliminate poverty and reduce inequality, broaden the capabilities of citizens to take the
opportunities available and change the life of millions of our people, especially the youth.
Furthermore, the NDP states that “At the core of this plan is a focus on capabilities; the capabilities of
people and of our country and of creating the opportunities for both. The capabilities that each person
needs to live life that they desire differs, but must include education and skills, decent accommodation,
nutrition, safe communities, social security, transport and job opportunities. The capabilities that the
country needs to enable citizens to thrive include a capable state, leadership from all sectors of society, a
pact for mutual sacrifice and trust.”
In order for this vision to be successfully implemented, the NDP has proposed that social security reforms
should be undertaken to ensure, among others, the following:
• “Public employment should be expanded to provide work for the unemployed, with a specific focus
on the youth and women. The retirement savings and risk benefit gap should be closed through
reforms, including mandatory contributions, with consideration given to government subsidising
these contributions for low income or periodic workers.
The integration of a number of databases in the social security environment with information from public
employment programmes will enable communities to conduct social audits of government services,
leading to better and more effective targeting of government's social and employment programmes.”
The Compensation Fund has since embarked on a process of developing an integrated and
comprehensive policy framework for rehabilitation, re-integration and return-to-work of injured and
diseased employees.
Aims of the Policy Framework:
• Promotion of return to work and/or functionality for workers who suffered occupational injuries/
diseases. • Re-integration of injured /diseased employees back into the workplace.
• Promotion of functionality through skills development, alternative employment and rehabilitation.
• Relation of a return-to work strategy to compensatory mechanisms.
Progress:
• The Policy Framework was approved by the Minister of Labour.
• The chapter on rehabilitation has been added in the COIDA amendments.
Way Forward:
• Benchmarking rehabilitation and reintegration locally and internationally, while awaiting COID
bill process.
In this regard, the Compensation Fund will continue to identify and participate in schemes or
programmes with other entities whose mandate is to create public employment and assess
investment opportunities which are driven by employment creation. In addition, the Compensation
Fund will continue to support and participate in the initiatives aimed at reforming the current social
security regime with a view to contributing to the 2030 vision of creating a comprehensive system of
social protection. This comprehensive social protection will include social security grants, mandatory
retirement savings, risk benefits such as unemployment, death and disability benefits and voluntary
retirement savings.
In addition, the Compensation Fund has developed a Turnaround and Modernisation Strategy and
which, among others, aims to improve its performance in delivering services to its clients. The
Turnaround and Modernisation Strategy which will be undertaken over a couple of years covering the
period of the strategic plan, aims to ensure that the Compensation Fund in the long term becomes an
efficient and effective machinery of the state in the provision of compensation for occupational injuries
and diseases, rehabilitation and re-integration services. In order to attain this goal, the Compensation
Fund will, among others, introduce new service delivery model through business process re-
engineering, Information and Communication Technology (ICT) system to assist in the processing of
claims and other related functions and conduct a comprehensive skills audit which will inform
strategies to build capability of staff in various areas.
5.1 Performance Delivery Environment 5.1.1 Service Delivery Environment
The Directorate: Compensation is divided into three sub-directorates namely: Claims Registration,
Exempted Employers and Private Employers. The main functions of the Directorate are to register
claims for injured/diseased employees; to adjudicate upon liability of a claim and to pay
compensation. This section of the report will be focusing on the aforementioned areas.
5.1.2 Registration and Processing of Claims
COMPENSATION FUND STRATEGIC PLAN 2014-2015
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The Fund registered a total of 196 509 claims during the financial year, 192 967 were adjudicated (98%)
out of which 129 405 were accepted. Adjudication is the process of determining liability for the Fund, the
process involve accepting liability, repudiating and querying of additional information where no sufficient
information is available to decide upon liability of a claim.
A total number of 325 981 awards to the value amounting to R 480 186 515 were processed. All accident
occurred from the first of October 2011 were registered on a new system (SAP), whereas all claims where
accident occurred before October 2011 were registered on e-claims system.
5.1.3 Compensation Benefits
5.1.4. Temporary Total Disablement, Permanent Disablement and Pension Payments
YEAR NO OF PAYMENTS VALUE OF AMOUNT Monthly Pension
pay-outs
PROCESSED PROCESSED
2008/2009 327 647 630 708 449 526 371 359
2009/2010 340 159 771 801 533 572 023 432
2010/2011 329 109 549 220 271 581 102 286
2011/2012 205 150 549 000 702 735 859 691
2012/2013 325 981 480 186 515 791 291 057
5.1.5 Backlog Project
5.2 Organisational Environment
COMPENSATION FUND STRATEGIC PLAN 2014-2015
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The table below is an illustration of payments processed from 2008 until 2012. It demonstrates the trend/
the movement of payments. If we compare payments processed in 20011/12 and 2012/2013, it is the
obvious that there is a huge improvement in the number and amount of claim paid. One reason for the
increase could be that the system is now stable. In 2012/13 the amount paid has doubled as compared to
the previous years.
In February 2013, the Fund implemented a project to address backlogs relating to claims registration,
adjudication, quality control, legal reviews and PTSD. Thus far the backlog project has yielded the
following results:
• In February 2013 there were 240 000 unregistered new claims. All these claims were
registered and on 30 April 2013 there were only 1 609 new claims which remained
unregistered. Since May all new claims received were registered on the same day. The
benefits of this process is that clients are able to view claim numbers on the website and thus
submit all supporting documents, quoting the correct claim number;
• The Fund is now in a better position to determine liability (adjudicate) on all these new claims
and communicate the outcome to clients; and
• On the Legal reviews and PTSD backlog, the results were that claims could be processed and
placed on the court roll (until November 2013) and responses finalised on the long outstanding
PTSD claims.
The first phase of the implementation of the Migration Framework was completed and 317 contract
workers whose contracts ended on 30 September 2012 were permanently absorbed into the structure.
The Placement Panel consisting of organised labour and management of the Fund was established. The
purpose of the Placement Panel was among others, to ensure and oversee the fairness and consistent
application of the migration and placement process and advise employees of their right to lodge an
objection to any aspect relating to his or her placement or displacement. In addition, preparations for the
implementation of the new organisational structure on the Personnel and Salary Administration (PERSAL)
system were completed.
6. Description of the Strategic Planning Process
COMPENSATION FUND STRATEGIC PLAN 2014-2015
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Capacity building initiatives were implemented during the year under review to improve the skills of
managers and staff in order to assist them in executing their functions and enhance productivity. In
addition, a number of Directors and Deputy Directors were enrolled in the Executive Development
Programme that is offered under the auspices of the National School of Government. Training needs were
identified and implemented in functional and generic courses.
The Public Private Partnership (PPP) contract with Siemens terminated at the end of November 2012.
The Department of Labour has invoked a termination support and handover period clause in the contract,
where Siemens have to provide support and maintenance to the Department for an extended period at a
set price, post the term of the contract. During the month of October 2012, Siemens was wholly acquired
by EOH which is one of the largest IT companies in South Africa. For the remaining period the IT services
were provided by EOH. The Exit and Transfer of the PPP progressed to ensure that all knowledge,
information, intellectual property, assets etc. are transferred back to the Department. During the last
quarter financial year 2013/14, the Fund will be reviewing IT governance processes to prepare for post
PPP contract.
The Strategic Plan guides all other planning processes within the Fund, including the development of the
Medium Term Expenditure Framework (MTEF), Annual Performance Plans, the Annual Budget and
Performance Agreements of Senior Managers, Managers, Supervisors and staff.
The Strategic Plan is reviewed and revised each year in preparation for the submission of inputs for
development of the MTEF. The development and implementation of the Strategic Plan is managed as a
value chain that realises the equal importance and interrelationships between all programmes within the
Fund.
The Compensation Fund Executive Management's convenes two strategic planning and performance
review workshops annually. The June/July workshop evaluates previous financial year performance and
identifies priorities for the budget requirements for the coming MTEF cycle. These are informed by the
Medium Term Strategic Framework (MTSF) and government service delivery outcomes. Programmes
conduct workshops to align strategic plans and translate the strategic plan into operational plans,
determine targets and performance agreements. The Executive Management signs off the following year
draft strategic plan for approval by the Minister in September of the current year. The mid-term review
workshop is conducted in October/ November of the same year, to review and evaluate performance
against mid-year targets.
The process towards developing the strategy was also informed by the Fund's statutory form of an entity (schedule 3: National Public Entity). The Fund conducted a PEST and SWOT analysis to develop its 5 Year Strategic Plan:
POLITICAL ECONOMIC
Political stability Change in legislation and strategy
(NDP’s Vision 2030)
Integration of social security systems
Inflation World economic meltdown
Decreasing tax base
SOCIAL TECHNOLOGICAL Labour unrest Cost of living Poverty alleviation programme Integrated social reform activities
Change in technology
Strengths, Weaknesses, Opportunities Threats (SWOT) Analysis
STRENGTHS WEAKNESES
Monopoly Lack of capacity Financial viability Leadership vacuum Online services Poor internal controls Decentralisation Inadequate IT environment Approved organisational structure Poor organisational culture
Organisational autonomy Paper environment Silo mentality Poor debt collection Negative audit outcomes and publicity Operational inefficiency Internal fraud & corruption Resistance to change
OPPORTUNITIES THREATS
Decentralisation Administration of the Fund (Constitution
section 100) Amendment of COIDA Fraud and corruption Implementation of new system Employer non compliance Successful Implementation of
Turnaround Strategy Business continuity Rehabilitation and Reintegration Policy Centralised IT operations Contribute to social security reform
(IDTT) Negative publicity Organisational autonomy Litigation cases Resistance to change
7. Strategic Outcome Oriented Goal and Government Outcomes
7.1 Medium Term Strategic Framework 2014-2019 and Government Outcomes
Government has agreed on 14 outcomes as a key focus of work, each outcome has a limited number
of measurable high-impact priority outputs and sub-outputs with targets. These 12 Outcomes reflect
government’s mandate and link up with the Medium Term Strategic Framework (MTSF) priorities.
There are two outcomes applicable to the Compensation Fund and these have now been the basis for
COMPENSATION FUND STRATEGIC PLAN 2014-2015
17
Political, Economic, Social, Technological (PEST) Analysis
the development of the Strategic Plan. The two outcomes identified for the Compensation Fund are: • Outcome 4: Decent employment through inclusive growth.
• Outcome 12: An efficient, effective and development oriented public service.
7.2 Strategic Outcomes Oriented Goals Based on the two outcomes discussed above, the Compensation Fund has developed four key
strategic outcome oriented goals. These strategic outcomes oriented goals are strategic priorities
which form the basis of the Compensation Fund’s strategic objectives. The strategic outcomes
identified will be the results of the Fund’s performance as viewed by our beneficiaries and will be the
consequence of achieving the outputs. The following strategic outcomes have been identified:
Strategic Outcome Improve payment of benefits to the beneficiaries of the Fund. Oriented Goal 1
Goal Statement Increase the rate of processing of claims in order to finalise claims within the targeted service levels and turnaround times.
Strategic Outcome Improve the collection of revenue from employers. Oriented Goal 2
Goal Statement Increase revenue collection such that all employers are assessed by 2017.
Strategic Outcome Participate in government initiatives of creating and sustaining decent Oriented Goal 3 employment
Goal Statement Promote rehabilitation, re-integration and return to work of injured and diseased workers and contribute to various schemes designed to decrease unemployment including investing mandated funds in socially responsible investments.
Strategic Outcome Effective administration of the Fund’s operations Oriented Goal 4
Goal Statement Maintain effective systems of internal control as required by the Public Finance Management Act of 1999 (An unqualified audit opinion) and COIDA.
COMPENSATION FUND STRATEGIC PLAN 2014-2015
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PART B: STRATEGIC OBJECTIVES
Government DOL Strategic CF Strategic CF Strategic Objectives Service Delivery Objectives Outcomes Outcomes
Outcome 4: Decent KRA 5: Strengthening Improve payment Providing an efficient social Employment social protection of benefits to the safety net through inclusive beneficiaries of the
Fund. economic growth
Improve the Improve financial viability collection of revenue from employers.
Outcome 12: An KRA 8: Strengthening Effective Provide professional, efficientefficient, effective the institutional administration of the and client orientated human and development capacity of the Fund’s operations resources oriented public Department
Strengthening corporate service and an
governance empowerment and
inclusive citizenship. Improve corporate support and services
3. Strategic Objectives of the Compensation Fund: 2014/15 – 2018/19
The Fund will pursue the following strategic objectives over the next five years:
CF STRATEGIC OBJECTIVES RESPONSIBLE PROGRAMME
1. Strengthening corporate governance. Programme 1: Corporate Management and Executive Support
2. Maintain financial viability Programme 2: Financial Management 3. Providing an efficient social safety net Programme 3: Operations Management
4. Providing professional, efficient and client orientated human resources. Programme 4: Corporate Services
COMPENSATION FUND STRATEGIC PLAN 2014-2015
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1. The Fund will strive to contribute towards the achievement of all Department of Labour's
Strategic Objectives, but will focus more specifically on:
2. Alignment of Government Outcomes, DOL Strategic Objectives (KRA's), CF Strategic
Outcomes and CF Strategic Objectives
• Strategic Objective 5 (KRA 5): Strengthening social protection.
• Strategic Objective 8 (KRA 8): Strengthening the institutional capacity of the Department.
4. PROGRAMME 1: CORPORATE
MANAGEMENT AND EXECUTIVE SUPPORT
4.1 Strategic Objective and Objective Statement
Strategic Objective Strengthening Corporate Governance
Objective statement
Baseline 81% achieved 2013/14
Justification
Links
COMPENSATION FUND STRATEGIC PLAN 2014-2015
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The following areas are classified under this sub-programme for administrative purposes only. Risk
Management, Internal Audit, and the Office of the Commissioner.
Directorate: Internal Audit 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.
Directorate: Risk Management comprises of risk staff that is responsible for pro-active and reactive
implementation of risk management principles. Directorate: Risk Management assesses and mitigates
the identified risks in order to meet the set objective of the Compensation Fund.
Project Management Office and Executive Support: The function of this unit is to create a centralised
hub for all projects and programmes, supervise a portfolio of projects, and support the strategic
objectives within the organisation. The PMO oversees and provides governance for business value
realization throughout the entire application life cycle, this office also ensures that projects fits into the
organization's business strategy and technology roadmap.
Provision of assurance and consulting functions by developing and executing a risk based InternalAudit Plan with 100% coverage annually, thereby contributing to the improvement of governance, riskmanagement and control process
Ensure full compliance with standards set by the Institute of Internal Audit-SA by implementing QualityAssurance Improvement Programs thereby enhancing the impact on the improvement of governance
Ensure improved corporate governance and overall management of the Department to promote publicconfidence in the Department
Ensure that internal audit function provide value adding activities towards accomplishment ofdepartmental objectives
Government Outcome 12: An efficient, effective and development oriented public services and anempowered and inclusive citizenship.DoL Strategic Objective (KRA 8): Strengthening institutional capacity of the DepartmentCF Strategic Objective: Improve corporate support and service
4.2 Programme 1 Annual Targets
Indicator number
Strategic Goals/ Outputs
Key Performance
Target / Deliverables 2014/15 2015/16 2016/17 2017/18 2018/19
1.1 Developing and executing a risk based 3 year rolling and annual internal audit plan with 100% coverage annually
Implementation of a 3 year risk based and annual audit plan, approved by Audit Committee with 100% completion by 31 March
Roll-out (Develop) risk based annual audit plan, for approval by Audit Committee on or before 31st March
Roll-out (Develop) risk based annual audit plan, for approval by Audit Committee on or before 31st March
Roll-out (Develop) risk based annual audit plan, for approval by Audit Committee on or before 31st March
Developing and executing a risk based 3 year rolling and annual internal audit plan with 100% coverage annually
Roll-out (Develop) risk based annual audit plan, for approval by Audit Committee on or before 31st March
100% completion of the annual audit plan by 31 March
100% completion of the annual audit plan by 31 March
100% completion of the annual audit plan by 31 March
100% completion of the annual audit plan by 31 March
100% completion of the annual audit plan by 31 March
Reporting quarterly to Audit Committee
4 Quarterly reports to Audit Committee
4 Quarterly reports to Audit Committee
4 Quarterly reports to Audit Committee
4 Quarterly reports to Audit Committee
4 Quarterly reports to Audit Committee
1.2 Establish an organisational wide Risk Management in line with the Public Sector Risk Management Framework and the National Treasury Financial Management Maturity Capability
Percentage of achievement of the annual targets set out in the Risk Management’s Annual Operational Plan to roll out the Risk Management across the organisation as approved by the Risk Management
To have achieved level 2 maturity in line with the National Treasury Financial Maturity Capability Model
To have achieved level 3 maturity in line with the National Treasury Financial Maturity Capability Model
To have achieved level 4 maturity in line with the National Treasury Financial Maturity Capability Model
To have achieved level 4 maturity in line with the National Treasury Financial Maturity Capability Model
To have achieved level 5 maturity in line with the National Treasury Financial Maturity Capability Model
Strategic Objective Strengthening Corporate Governance
Objective statement Strengthening Risk Management capabilities
Baseline New
Justification To improve and maintain efficient and effective systems of internal control as required in terms of the Public Finance Management Act, 1999 and the Treasury Regulations. (Unqualified Audit Opinion)
Ensure improved corporate governance and overall management of the Department to promote public confidence in the Department
Links Government Outcome 12: An efficient, effective and development oriented public services and an empowered and inclusive citizenship.
Strategic Objective (KRA 8): Strengthening institutional capacity of the Department CF Strategic Objective: Improve corporate support and service
Model by 2018/19
Committee.Number of bi-monthly reports presented to the Risk Management Committee in the financial year
6 reports presented to the Risk Management Committee.
6 reports presented to the Risk Management Committee.
6 reports presented to the Risk Management Committee.
6 reports presented to the Risk Management Committee.
6 reports presented to the Risk Management Committee.
COMPENSATION FUND STRATEGIC PLAN 2014-2015
21
4.3 Risk Register for Programme 1
This Programme conducted risk assessment to identify and mitigate risks that may
negatively affect the achievement of its strategic goals. Risks were developed for
constant risk monitoring and update. The following risks were then identified:
RISK REGISTER
RISK RISK TITLE RESIDUAL PLANNED RESPONSE ACTION (MITIGATING FACTORS) NO. RANKING
1. Non-compliance with Low Establish Ethics Committee applicable rules and Establish an Ethics Management Program Regulations Promotion of fraud awareness (more efforts on fraud prevention than detection) Assessment of the effectiveness of the current Committees
5. PROGRAMME 2: FINANCIAL MANAGEMENT
COMPENSATION FUND STRATEGIC PLAN 2014-2015
22
This programme is managed by the Chief Financial Officer and consists of the following four Directorates: -
Directorate Financial Control is responsible for the accounting and financial management in the areas of
Accounts Payable which includes pensions, compensation, medical and procurement, Fixed Assets
Accounting, Expenditure Accounting, budget management, and bank reconciliation.
Directorate: Financial Reporting is responsible for Reporting to outside stakeholders on the financial
performance of the Fund. This Directorate manages the investment portfolio i.e. management of
performance of the investment portfolio in liaison with Compensation Fund managers at the Public
Investment Corporation (PIC). Financial reporting and control (includes among others, management and
compilation of monthly and annual financial statements).
Directorate: Management Income. Revenue Generation is the main objective of the Income Directorate
and the source of income for the operations of the Fund through registration of employers, rate
determination for all industry classes and sub-classes, preparation, printing and dispatch of Notices of
Assessments annually, raising of assessments, revenue collection and debt management.
Directorate: Supply Chain Management. This Directorate is responsible for Supply Chain Management
(SCM) in accordance with the National Treasury regulations and other relevant legislative prescripts. In
addition, the Directorate is responsible for Infrastructure Management, Document Management, Facility
Management and Auxiliary Services.
5.1 Strategic Objective and Objective Statement: Financial Management
Strategic Objective Maintain financial viability
Objective statement To establish, improve and maintain effective, efficient and transparent systems of financial management
and internal control
Baseline New
Justification Ensure financial management function provides services to its stakeholders to enable them to achieve
their mandates.
Government Outcome 4: Decent employment through inclusive economic growth Outcome 12. DoL
Links Strategic Objective (KRA 3): Protecting vulnerable workers, (KRA 5): Strengthening social protection.
National Treasury Regulations and the Public Finance Management Act of 1999, National Archives Act,
GIAMA. CF Strategic Objective: Improve financial viability.
5.2 Programme 2 Annual Targets
Indi-catornum-ber
Strategic Goals/ Outputs
Key Performance Target / Deliverables 2014/15 2015/16 2016/17 2017/18 2018/19
2.1 Improve Employer Contributions.
8% (i.e. R632 million) increase in employer contributions from R7.9 billion to R8.5 billion by 31 March 2019.
4% i.e. R316 million increase to R8.22 billion.
5% i.e. R395 million increase to R8.295 billion.
6% i.e. R474 million increase to R8.37 billion.
7% i.e. R553 million increase to R8.45 billion.
8% i.e. R632 million increase to R8.53 billion.
2.2 Growth in Investments
18.51% Increase in the value of investments by 31 March 2019.
10% (i.e. R4.15 billion) increase in the value of Investment from R41 billion to R45.15 billion by, 31 March 2015.
12.22% (i.e. R5.01 billion) increase in the value of Investment from R41 billion to R46.01 billion by 31 March 2016.
14.32% (i.e. R5.87 billion) increase in the value of Investment from R41 billion to R46.87 billion by 31 March 2017.
16.41% (i.e. R6.73 billion) increase in the value of Investment from R41 billion to R47.73 billion by 31 March 2018.
18.51% (i.e. R7.59 billion) Increase in the value of investments from R41 billion to R48.59 by 31 March 2019.
2.3 Review Assessment Model.
Implementation of the approved Assessment Model by 2019
Develop a new Assessment Model by 31 December
Roll out the new Assessment Model in all CF operations by 31 March 2017.
Roll out the new Assessment Model in all CF
Analyse the impact of the new Assessment Model by 31
Implement the recommendations made in the assessment model impact analysis report
COMPENSATION FUND STRATEGIC PLAN 2014-2015
23
2014. operations by 31 March 2017.
March 2018 by 31 March 2019
2.4 Improve Audit Opinion
100% (i.e. 95) of matters affecting the AGSA audit report for the 2013/14 audit cycle cleared by 31 March 2019.
Approved Plans to address 100% (i.e. 95) of matters affecting the AGSA audit report for the 2013/14 audit cycle.
25.26% (24) of matters affecting the AGSA audit report for the 2013/14 audit cycle cleared by 31 March 2016.
50.53% (48) of matters affecting the AGSA audit report for the 2013/14 audit cycle cleared by 31 March 2017
75.79% (72) of matters affecting the AGSA audit report for the 2013/14 audit cycle cleared by 31 March 2018
100% (95) of matters affecting the AGSA audit report for the 2013/14 audit cycle cleared by 31 March 2019.
5.3 Risk Register for Programme 2
This Programme conducted risk assessment to identify and mitigate risks that may negatively affect
the achievement of its strategic goals. Risks were developed for constant risk monitoring and update.
The following risks were then identified:
RISK REGISTER
RISK RISK TITLE RESIDUAL PLANNED RESPONSE ACTION (MITIGATING FACTORS) NO. RANKING
1. Failing to provide services Medium Electronic submission of claims (Switch houses) within agreed turnaround Web submission Time Monthly assessments of employers Full roll out of the decentralisation of functions to the Province Upgrading of operational and financial systems Case management implementation to monitor accuracy of information submitted (Potential Fraudulent claims) To refine current policies and procedure manuals
2. Non-compliance with Low Promotion of fraud awareness (more efforts on fraud prevention applicable rules and than detection) Regulations Assessment of the effectiveness of the current Committees Revise the roles and responsibilities of the Board Secretariat
3. Assessment avoidance by Medium Increase capacity in the revenue processing Employers Improve performance management in revenue processing Electronic submission of Return of Earnings (ROE) Increase compliance by conducting payroll audit of employers return of earnings Exception reporting
4. Poor budgeting process Medium Budgeting workshops to take place Introduce development and completion of Demand and Procurement management plans that will inform the budgeting process.
6. PROGRAMME 3: OPERATIONS MANAGEMENT
COMPENSATION FUND STRATEGIC PLAN 2014-2015
24
Purpose: Provide an effective safety net through the registration, processing and payment medical
claims resulting from occupational injuries and diseases, and monitoring of compliance with COIDA
legislation
Directorate: Compensation Benefits is responsible for registering, adjudicating and processing of
compensation benefits comprising loss of earnings-Temporary Total Disablement (TTD); Permanent
Disablement (PD), including pension as well as benefits for the surviving dependants in fatal injuries. The
Directorate also monitor compliance with COIDA by Exempted Employers as well as monitoring
employers on reporting of accidents generally, through preliminary investigations and advise on levying
of penalties for late reporting or non-reporting of accidents.
6.1 Strategic Objective and Objective Statement:
CF Strategic Objective: Providing an efficient social safety net
Objective statement To Provide quality compensation benefits to employees and dependents for occupational injuries and diseases within prescribed time frames
Baseline New
Justification Ensure efficient and effective COIDA service (compensation to employees and dependents for occupational injuries and diseases)
Links
COMPENSATION FUND STRATEGIC PLAN 2014-2015
25
Directorate: Medical Services is to provide an effective safety net through the registration, processing
and payment of medical invoices resulting from occupational injuries and diseases, and monitoring of
compliance with COIDA legislation. The Directorate consists of two units; viz. Medical Payments and
Medical Services (Medical Officers and Nurses). Medical Payments is a unit responsible for payment of
all medical expenses incurred by employees who are injured on duty or who contract occupational
diseases.
Directorate: Legal Services provides legal support, legal administration and advice in the
implementation of the COIDA and relevant legislation associated with the Compensation Fund. The
strategic goal of this unit is to contribute to legislative reforms and provide an effective legal support to the
Fund by advising on legal matters, addressing the entire current backlog in respect of the objections and
application for increased compensation lodged in terms of sections 91 and 56 of the COIDA respectively
and drafting of legislation.
Directorate: Customer Care is responsible to support all components of the Fund to deliver COID
services and Information to the clients in line with Batho Pele principles.
Government Outcome 4: Decent employment through inclusive economic growth. DoL StrategicObjective (KRA 3): Protecting vulnerable workers, (KRA 5): Strengthening social protection. CFProgrammes and sub programmes, Inspection and enforcement services, Government Pensionadministration agency, ICD and social security reforms in other department IES, Department ofMinerals and Mutual associations.
6.2 Programme 3 Annual Targets
26
Indi-catorber
Strategic Goals/ Outputs
Key Performance
Target / Deliverables 2014/15 2015/16 2016/17 2017/18 2018/19
3.1 To increase the number of registered and adjudicated claims by 2019
% increase in the registration of claims received in comparison to the previous financial year
10% increase in the number of registered claims received in comparison to the previous financial year (2013/14 baseline: 310710)
10% increase in the number of registered claims received in comparison to the previous financial year
10% increase in the number of
registered in comparison to the previous financial year
10% increase in the number of registered claims received in comparison to the previous financial year
10% increase in the number of registered claims received in comparison to the previous financial year
% increase in the number of adjudicated claims in comparison to the previous financial year
10 % increase in the number of adjudicated claims in comparison to the previous financial year (2013/14 baseline: 260 253)
10 % increase in the number of adjudicated claims in comparison to the previous financial year
10 % increase in the number of adjudicated claims in comparison to the previous financial year
10 % increase in the number of adjudicated claims in comparison to the previous financial year
10 % increase in the number of adjudicated claims in comparison to the previous financial year
3.2 To increase the number of approved medical invoices for payment by 2019
% increase in the number of approved medical invoices for payment in comparison to the previous financial year
30% increase in the number of approved medical invoices in comparison to the previous financial year (2013/14 baseline: 684169 )
30% increase in the number of approved medical invoices in comparison to the previous financial year
30%
increase in the number of approved medical invoices in comparison to the previous financial year
30%
increase in the number of approved medical invoices in comparison to the previous financial year
30%
increase in the number of approved medical invoices in comparison to the previous financial year
3.3
To increase the number of approved compensation benefits for payment by 2019
% increase in the number of compensation benefits approved in comparison to the previous financial year
10%
increase in the number of compensationbenefits approved for payment in comparison to the previous financial year (2013/14 baseline: 304 234)
10%
increase in the number of compensationbenefits approved for payment in comparison to the previous financial year
10%
increase in the number of compensationbenefits approved for payment in comparison to the previous financial year
10%
increase in the number of compensationbenefits approved for payment in comparison to the previous financial year
10% increase in the number of compensationbenefits approved for payment in comparison to the previous financial year
3.4
Improved rate of processing compensation benefits and medical claims by 2019
% of registered compensation claims adjudicated within 60 working days
N/A
85% of registered compensation claims adjudicated with 60 working days
90% of registered compensationclaims adjudicated with 60 working days
95% of registered compensationclaims adjudicated with 60 working days
100% of registered compensationclaims adjudicated with 60 working days
% of medical claims finalised
85% of medical claims finalised
85% of medical claims finalised
90% of medical
100% of medical
100% of medical
within 60 working days of receiving invoice
within 60 working days of receiving invoice
within 60 working days of receiving invoice
claims finalised within 60 working days of receiving invoice
claims finalised within 60 working days of receiving invoice
claims finalised within 60 working days of receiving invoice
6.3 Risk Register for Programme 3
This Programme conducted risk assessment to identify and mitigate risks that may negatively affect
the achievement of its strategic goals. Risks were developed for constant risk monitoring and
update. The following risks were then identified:
RISK RISK TITLE RESIDUAL PLANNED RESPONSE ACTION (MITIGATING FACTORS)
NO. RANKING
1. Inadequate monitoring of service High 1. HRM to educate line managers about performance
delivery in Provincial offices. management
Poor Performance Management. 2. HRM provide support
3. COO to provide smart performance agreements for all
directorates
4. MIS reports will facilitate close supervision.
2. Poor service delivery. High 1. Electronic submission of claims (web submissions, bulk
Failing to provide services within
upload, switch houses)
agreed turnaround time 2. Full roll out of Decentralisation of functions to the
provinces
3. Upgrading of operational systems
4. Review existing policies/ develop new ones for new
processes to support new claims processes
5. Retraining of staff
3. Decentralisation. High 1. Full implementation of Organisational structure -resources Readiness of provinces 2 .Buy COIDA buildings 3. Develop proper Decentralisation Strategy
4. Regulatory / Non Compliance. High 1. Stakeholder education
Poor enforcement of COIDA 2. Employ COIDA dedicated inspectors
3. Provide processes and policies to empower inspectors
5. Governance/Ethics. High 1. Improve service and access
Unethical behaviour by clients, 2. Self-service/ kiosks
sometimes colluding with staff 3. Client education
4. Case management
5. Fully functional risk and fraud unit
6. Extend fraud awareness campaigns to external
stakeholders
6. Ineffective Information Technology High 1. Governance structures in place to perform oversight
deliverable. responsibility on IT deliverables.
Inability for IT to deliver the required
services to business.
7. Insufficient capacity/ scare skills Medium 1. Revisit Organisatinal structure once fully implemented
2. Implement OSD prescripts in applicable areas
COMPENSATION FUND STRATEGIC PLAN 2014-2015
27
3.5 To increase compensation benefits to be paid to
employees and dependents annually
Reviewed Compensation benefits for annual adjustments
Annual review of compensationbenefits for adjustments
Annual review of compensationbenefits for adjustments
Annual review of compensationbenefits for adjustments
Annual review of compensationbenefits adjustments
Annual review of compensationbenefits for annual adjustments
7. PROGRAMME 4: CORPORATE SERVICES
7.1 Strategic Objective and Objective Statement: Human Resource Management
Strategic Objective Provide professional, efficient and client orientated human resource
Objective statement Provide human resource support to line functions
Baseline
Justification
Links
COMPENSATION FUND STRATEGIC PLAN 2014-2015
28
Programme Purpose: Provide human resource management, communications, organisational
development and organisational performance monitoring and Information and Communications
Technology services to the Compensation Fund.
Corporate Services that includes:
Directorate: Human Resource Management ensures optimum and efficient utilisation and
development of Human Capital and to provide an advisory service on matters pertaining to,
transformation management, individual performance management, Sound Employee Relations,
Employee health & wellness, as well as effective and efficient recruitment, selection and placement
services.
Directorate: Organisation Effectiveness ensures that matters relating to organisational development
and organisational performance monitoring are dealt with.
Directorate: Communication disseminates and improves access to information about the
Compensation Fund.
Directorate: Information and Communications Technology (ICT) attends to the Compensation
Fund's technological and infrastructural needs to enhance service delivery.
• 54.5% (6 out of 11 employees at Senior Management Service level) women are employed in SeniorManagement Service (SMS) as on 31 March 2013;
• The vacancy rate in the Fund is currently standing at 23% following the implementation of thenew organisational structure with effect from 01 April 2013 (160 posts are vacant out of totalestablishment of 690) as on 31 January 2014
To provide a strategic and administrative Human Resources support service to the whole of the Compensation Fund with a view to enabling it to deliver on its mandate.
Government Outcome 12: An efficient, effective and development oriented public services and anempowered and inclusive citizenship Outcome 12.
CF Strategic Objective 8 : Provide professional, efficient and client oriented human resource.
50% representation of women in SMS links: Cabinet decision and DPSA's guidelines
7.2 Programme 4 Annual Targets
Indicator number
Strategic Goals/ Outputs
Key Performance
Target / Deliverables 2014/15 2015/16 2016/17 2017/18 2018/19
4.1 Achieve a vacancy rate at CF Head Office of below 10% by 2019
% of vacancies at CF Head Office
10% 9.5% of vacancies at CF Head Office
9% of vacancies at CF Head Office
8.5% of vacancies at CF Head Office
8% of vacancies at CF Head Office
7.3 Risk Register for Programme 4 This Programme conducted risk assessment to identify and mitigate risks that may
negatively affect the achievement of its strategic goals. Risks were developed for
constant risk monitoring and update. The following risks were then identified:
STRATEGIC RISK REGISTER
RISK RISK TITLE RESIDUAL PLANNED RESPONSE ACTION (MITIGATING FACTORS)NO. RANKING
1. HR strategies and plans not aligned High To start influencing the strategic direction of HR within the fund by: to CF goals/objectives
• Reviewing HR delegations
• Performing job evaluations
2. Lack of self image (brand) High • Interaction with the Department of Labour to seek permission for establishment of CF website • Media strategy soon to be presented to EXCO • Stakeholder relations policy in draft • Branding policy in draft
3. Lack of integrated IT strategy Extreme • Plans to develop an IT strategy
8. RESOURCE CONSIDERATIONS (BUDGET) 8.1 Budget Process:
COMPENSATION FUND STRATEGIC PLAN 2014-2015
29
As part of ensuring that a Zero-based budget approach is properly followed in preparing an annual budget
for the fund, the following procedures were followed:
• Budget inputs were received, analysed and consolidated from all individual Directorates within
the Fund.
• The analysed and consolidated budget inputs were submitted to the Chief Financial Officer for
review and recommendation. • The Chief Financial Officer recommended to the Commissioner. (Accounting Authority)
• The Accounting Authority (Commissioner) signed-off the Budget Submission, and sent to the
Accounting Officer (DG) of Department of Labour.
• The Director-General recommended and submitted the budget submission to the Minister of
Labour for approval.
9. EXPENDITURE TRENDS PER ECONOMIC
CLASSIFICATIONS: 9.1 Medium Term Expenditure Estimates: 2011/12 2012/13 2013/14 2014/15 2015/16 2016/17 2017/18
Expenditure Expenditure Current Approved Forecast Forecast Forecast Budget Budget
Compensation
R 211 973 000
R 336 506 000
R 430 145 069
R 580 860 310
R 636 042 039
R 683 745 192
R728,188,630 of Employees
9.2 CF Budget per Programme:
Compensation Fund Programme Summary
CF Current 2014-15 MTEF PROJECTIONS PROGRAMMES Budget 2013- Approved 14 Allocation
2015-16 2016-17 2017-18 2018-19
Projections Projections Projections Projections
5 816 591 5 300 807 5 567 475 5 837 033 6 113 375 6 299 507
Programme: 1 22 626 57 200 60 059 62 462 65 585 68 865
Corporate Management
Programme: 2 363 087 221 523 232 599 241 903 253 998 261 618
Financial Management
Programme: 3 4 695 499 4 178 963 4 389 538 4 611 979 4 827 068 4 973 104
Operations Management
Programme: 4 735 380 843 122 885 278 920 690 966 724 995 920
Corporate Services
COMPENSATION FUND STRATEGIC PLAN 2014-2015
30
• The Compensation of Employees budget for the 2013/14 financial year was prepared
based on the new and implemented organisational structure.
• The implementation of the new organisational structure has caused an increase on total staff
budget, this is due to new additional posts on the structure, which are addressing the
decentralisation project needs.
• The increase between the 2013/14 and 2014/15 approved budget is mainly due to the
decentralisation project and the implementation of the organisational structure.
R(’000)
PART C: LINK TO OTHER PLANS
No. Project name Programme Project Outputs Estimated project
Expenditure to
Project duration
description/ type cost date
of structure
Total new and replacement assets
1. Procurement CF Buying of office Office buildings R500 million
Apr 2014 Mar 2015
buildings space acquired for decentralisation.
2. Installation of Installation of air air conditioners R 10 million
Apr 2014 Mar 2015
HVAC conditioners installed
Total maintenance and None repairs
3. Landscaping of CF CF CF garden Garden R1 million None
Apr 2014 Mar 2015
garden landscaping landscaped/ rehabilitated
ANNEXURE A: BUDGET SUMMARY 2014– 2019
Expenditure Budget
Approved Budget
Forecast 2015/16
Forecast 2016/17
Forecast 2017/18
Forecast 2018/19
Compensation of Employees R 580,860 R 636,042 R 683,745 R 728 ,189 R 754,226
Goods and Services R 4,712,747 R 4,923,909 R 5,145,426 R 5,376,970 R 5,589,688 Claims R 4,104,205 R 4,288,059 R 4,481,022 R 4,682,668 R 4,901,453 Administrative Expenditure R 608,542 R 635,850 R 664,404 R 694,302 R 688,235
Capital Expenditure R 7,200 R 7,524 R 7,863 R 8,216 R 8,431
Total Expenditure Budget
R 5,300,807
R 5,567,475
R 5,837,034
R 6,113,375
R 6,352,345
Revenue Budget
Approved Budget 2012/13
Forecast 2013/14
Forecast 2014/15
Forecast 2015/16
Forecast 2016/17
Assessments R 6,873,000 R 7,285,380 R 7,722,503 R 8,185,853 R 8,330,653
Other Income R 6,111,972 R 6,478,690 R 6,867,410 R 7,279,456 R 7,345,980
Total Revenue R12,984,972 R 13,764,070 R 14,589,913 R15,465,309 R 15,676,633
Net Surplus R 7,684,165 R 8,196,595 R 8,752,879 R 9,351,934 R 9,324,288
COMPENSATION FUND STRATEGIC PLAN 2014-2015
31
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nn
ed
au
dits
a
re n
ot
co
mp
lete
d o
r if
Ad
hoc
ass
ignm
ents
a
re r
equ
este
d
by
ma
na
ge
me
nt
Ch
ief A
udit
Exe
cutiv
e-
(Directo
r:
Inte
rnal A
ud
it)
1.1
.
Re
po
rtin
g
qua
rterly
to
Au
dit
Co
mm
itte
e
To
re
po
rt o
n a
q
ua
rterly
b
asis
to
Au
dit
Co
mm
ittee
Inte
rnal
Au
dit
is
requ
ire
d t
o
repo
rt
pro
gre
ss
aga
inst
the
p
lan t
o it
s
fun
ctio
na
l str
uctu
re
(Au
dit
Co
mm
ittee
) o
n a
q
ua
rterly
basis
Qu
art
erly
Au
dit
Co
mm
itte
e
repo
rts
Nu
mb
er
of
repo
rts
pre
sente
d-
Qu
art
erly
Lim
itatio
n
due
to
au
dit
co
mm
ittee
m
eetin
gs n
ot
held
Ou
tpu
t N
on-
cu
mu
lativ
e
Qu
art
erly
Co
ntin
uo
us
fro
m
pre
vio
us
years
Ma
inta
in
Inte
rnal A
ud
it
1.2
.
Pe
rce
nta
ge o
f a
ch
ieve
me
nt
of
the
an
nua
l
To
de
term
ine
th
e p
erc
en
tag
e
of
ach
ieve
me
nt
Ma
turity
of
risk
ma
na
ge
me
nt
in th
e
Su
mm
ary
p
rog
ress
re
po
rt
N/A
N
/A
Ou
tpu
t/
Ou
tco
me
N/A
Q
uart
erly
Ne
w
indic
ato
r H
igh
er
Ch
ief R
isk
Offic
er
(Directo
r: R
isk
Ma
na
ge
me
nt)
COMPENSATION FUND STRATEGIC PLAN 2014-2015
32
PR
OG
RA
MM
E 1
: C
OR
PO
RA
TE
MA
NA
GE
ME
NT
AN
D E
XE
CU
TIV
E S
UP
PO
RT
T
itle
(K
ey
Pe
rfo
rma
nc
e
Ind
icato
r)
De
fin
itio
n
P
urp
os
e /
Im
po
rtan
ce
Da
ta S
ou
rce
C
alc
ula
tio
n
Me
tho
d
Da
ta
Lim
ita
tio
ns
Ty
pe
of
ind
icato
r
Ca
lcu
lati
on
T
yp
e
Re
po
rtin
gC
ycle
New
In
dic
ato
r
De
sir
ed
p
erf
orm
an
ce)
Re
sp
on
sib
ilit
y
targ
ets
se
t ou
t in
the
Ris
k M
ana
ge
me
nt
An
nu
al
Op
era
tion
al
Pla
n t
o r
oll
ou
t th
e R
isk
Ma
na
ge
me
nt
acro
ss t
he
o
rga
nis
atio
n a
s
app
rove
d b
y th
e
Ris
k M
ana
ge
me
nt
Co
mm
itte
e.
of
the
ann
ua
lly
targ
ets
se
t ou
t in
the
Ris
k M
ana
ge
me
nt
An
nu
al
Op
era
tion
al
Pla
n t
o r
oll
ou
t th
e R
isk
Ma
na
ge
me
nt
acro
ss t
he
o
rga
nis
atio
n
as a
ppro
ve
d
by
the
Ris
k M
ana
ge
me
nt
Co
mm
ittee
.
org
an
isa
tion
1.2
. N
um
be
r o
f
bi-m
on
thly
m
onth
ly
repo
rts
pre
sen
ted
to
the
Ris
k M
ana
ge
me
nt
Co
mm
itte
e in
th
e fin
an
cia
l ye
ar
Bi-m
onth
ly
repo
rts
pre
sente
d t
o
the
Ris
k M
ana
ge
me
nt
Co
mm
ittee
in
the
fin
an
cia
l ye
ar
Ma
turity
of
risk
ma
na
ge
me
nt
in th
e
org
an
isa
tion
Ris
k M
ana
ge
me
nt
Co
mm
itte
e
Pa
ck
N/A
N
/A
Ou
tpu
t/
Ou
tco
me
N/A
Q
uart
erly
Ne
w
indic
ato
r H
igh
er
Ch
ief R
isk
Offic
er
(Directo
r: R
isk
Ma
na
ge
me
nt)
PR
OG
RA
MM
E 2
: F
INA
NC
IAL
MA
NA
GE
ME
NT
2.1
. 8
% (
i.e.
R6
32
mill
ion
) in
cre
ase
in
em
plo
yer
co
ntr
ibutio
ns
fro
m R
7.9
bill
ion
to R
8.5
bill
ion
by
31
Ma
rch
2
01
9.
To
me
asu
re
the
em
plo
yer
co
ntr
ibutio
ns.
Th
e C
OID
Act
als
o m
ake
s p
rovis
ion f
or
a
min
imu
m
ass
ess
me
nt
to
be le
vie
d.
To
me
asu
re
the
nu
mb
er
of
em
plo
yers
co
ntr
ibutio
ns
bill
ed a
nd
reven
ue
co
llecte
d.
SA
P F
I R
eve
nu
e
Ba
lance
b
rou
ght
forw
ard
of
co
ntr
ibutio
ns
ma
de
by
em
plo
yers
.
Th
is is
a le
ga
l re
qu
ire
me
nt
(sectio
n 8
0 o
f C
OID
A.
Co
mp
lian
ce
e
nfo
rce
me
nt
imp
lem
ente
d
at
IES
p
rovin
cia
l str
uctu
res.
Ou
tpu
t C
um
ula
tive
Qu
art
erly
Ne
w
indic
ato
r P
erf
orm
ance
hig
he
r th
an
targ
ete
d is
d
esira
ble
Dire
cto
rate
In
co
me
2.2
8
.51
%
Incr
ease
in t
he
va
lue o
f in
ve
stm
ents
by
31 M
arc
h 2
01
9.
To
me
asu
re
gro
wth
in th
e
Co
mp
en
satio
n
Fu
nd
an
d
Pe
nsio
n F
un
d
Po
rtfo
lios.
To
incre
ase
th
e v
alu
e o
f in
ve
stm
ents
m
ade
by
the
F
und
so
as t
o
su
pp
lem
ent
Qua
rte
rly
repo
rts.
% in
cre
ase
in
ve
stm
ents
fr
om
b
ase
line
.
Sys
tem
ch
alle
ng
es
lack
of
pro
jectio
n
mo
de
l.
Ou
tpu
t C
um
ula
tive
Q
uart
erly
N
ew
in
dic
ato
r H
igh
er
tha
n
targ
et.
R
ep
ort
ing
Dire
cto
rate
COMPENSATION FUND STRATEGIC PLAN 2014-2015
33
Ma
na
ge
me
nt
Fin
an
cia
l
PR
OG
RA
MM
E 2
: F
INA
NC
IAL
MA
NA
GE
ME
NT
Tit
le (
Ke
y
Pe
rfo
rma
nc
e
Ind
icato
r)
De
fin
itio
n
P
urp
os
e /
Im
po
rtan
ce
Da
ta S
ou
rce
C
alc
ula
tio
n
Me
tho
d
Da
ta
Lim
ita
tio
ns
Ty
pe
of
ind
icato
r
Ca
lcu
lati
on
T
yp
e
Re
po
rtin
gC
ycle
New
In
dic
ato
r
De
sir
ed
p
erf
orm
an
ce)
Re
sp
on
sib
ilit
y
the
o
pe
ratio
na
l a
nd
CO
IDA
re
qu
ire
me
nt.
2.
3 Im
plem
enta
tion
o
f th
e a
pp
rove
d
Assess
me
nt
Mo
de
l by
20
19
It is
a p
olic
y o
n
em
plo
yer
cla
ssifi
ca
tion
and
ra
ting
str
uctu
re
To
co
me
up
with
a n
ew
, sim
plif
ied
ass
ess
me
nt
rate
str
uctu
re
Qu
art
erly
Re
po
rts o
n
the
ro
ll-o
ut
of
the
mo
de
l
Indu
str
y re
sea
rch
.
Diff
ere
nt
mo
de
ls u
se
d
in d
iffe
ren
t co
un
trie
s.
Ou
tpu
ts
No
n-
Cu
mu
lativ
eQ
uart
erly
N
ew
in
dic
ato
r H
igh
er
tha
n
targ
et.
D
ire
cto
rate
In
co
me
.
2.4
1
00%
(i.e
. 9
3)
of
ma
tte
rs
affe
ctin
g t
he
A
GS
A a
udit
repo
rt fo
r th
e
201
3/1
4 a
ud
it cyc
le c
leare
d b
y 3
1 M
arc
h 2
01
9.
Imp
rove
d a
ud
it o
pin
ion
issu
ed
b
y th
e A
GS
A
fro
m t
he
cu
rre
nt
dis
cla
ime
r a
ud
it o
pin
ion
b
y ad
dre
ssin
g
the
95
(1
00%
) m
atte
rs r
ais
ed
in t
he
201
3/1
4
aud
it re
po
rt b
y 3
1 M
arc
h
201
9.
To
ach
ieve
cle
an
aud
it re
po
rt.
Mo
nth
ly
Da
sh
bo
ard
of
reso
lve
d
findin
gs f
rom
th
e A
GS
A a
nd
Ye
arly
AG
SA
a
ud
it re
po
rts
issu
ed
in J
uly
o
f ea
ch
ye
ar.
To
tal n
um
ber
of
find
ings
less t
ota
l u
nre
so
lve
d
findin
gs,
equ
als
the
n
um
ber
of
reso
lve
d
findin
gs
Sys
tem
ch
alle
ng
es,
Ca
pa
city
C
on
str
ain
s,
neg
ativ
e
peo
ple
cu
lture
, le
ad
ers
hip
ch
alle
ng
es
an
d
Str
uctu
ral
De
ficie
ncie
s,
lack
of
pro
jectio
n
mo
de
l.
Ou
tpu
t C
um
ula
tive
Q
uart
erly
Ne
w
indic
ato
r H
igh
er
tha
n
the
ta
rge
t.
Ch
ief F
inancia
l O
ffic
er
COMPENSATION FUND STRATEGIC PLAN 2014-2015
34
COMPENSATION FUND STRATEGIC PLAN 2014-2015
35
PR
OG
RA
MM
E 3
: O
PE
RA
TIO
NS
MA
NA
GE
ME
NT
T
itle
(K
ey
Pe
rfo
rma
nc
e
Ind
icato
r)
De
fin
itio
n
P
urp
os
e /
Im
po
rtan
ce
Da
ta S
ou
rce
C
alc
ula
tio
n
Me
tho
d
Da
ta
Lim
ita
tio
ns
Ty
pe
of
ind
icato
r
Ca
lcu
lati
on
T
yp
e
Re
po
rtin
gC
ycle
New
In
dic
ato
r
De
sir
ed
p
erf
orm
an
ce)
R
es
po
ns
ibil
ity
fro
m t
he
b
ase
line
3.1
(A
)
% in
cre
ase
in
the
re
gis
tra
tion
o
f c
laim
s
rece
ive
d in
co
mp
ariso
n to
th
e p
revio
us
finan
cia
l ye
ar
To
de
term
ine
th
e %
incr
ease
in
the
num
ber
of
regis
tere
d
cla
ims
rece
ive
d in
co
mp
ariso
n to
th
e p
revio
us
finan
cia
l ye
ar
Th
e
indic
ato
r is
inte
nd
ed
to
sh
ow
th
e
incre
ase
in
th
e n
um
be
r o
f a
dju
dic
ate
d
cla
ims w
ith
an
inte
ntio
n
of
sh
ow
ing
10%
im
pro
ve
me
nt
ea
ch
ye
ar
Sta
tistic
al
info
rma
tion
th
at sh
ou
ld b
e
derive
d fro
m
the
sys
tem
Da
ta f
orm
U
me
hlu
ko
sys
tem
m
easu
rin
g
vo
lum
e a
nd
p
erio
d.
Th
e
ca
lcu
latio
n is
th
e b
ase
line
of
adju
dic
ate
d
cla
ims f
rom
th
e p
revio
us
finan
cia
l ye
ar
plu
s 1
0%
an
nu
al
incre
ase
fr
om
the
b
ase
line
Qu
alit
y o
f d
ata
(err
ors
, m
issin
g
info
rma
tion
)
Me
asure
s
outp
ut
C
um
ula
tive
Mo
nth
ly,
Qu
art
erly,
A
nn
ually
Ne
w
indic
ato
r
Pe
rform
ance
hig
he
r th
an t
he
ta
rge
t is
d
esira
ble
, lo
we
r p
erf
orm
ance
is
not
de
sira
ble
CD
: O
pera
tion
s
D:C
om
pe
nsa
tio
n b
ene
fits
3.1
(B
)
% in
cre
ase
in
the
nu
mb
er
of
adju
dic
ate
d
cla
ims in
co
mp
ariso
n to
th
e p
revio
us
finan
cia
l ye
ar
To
de
term
ine
th
e %
incr
ease
in
the
num
ber
of
ad
judic
ate
d
cla
im in
co
mp
ariso
n to
th
e p
revio
us
finan
cia
l ye
ar.
Ad
judic
atio
n
refe
rs t
o a
p
roce
ss w
here
th
e e
ach
cla
im
is c
hecke
d f
or
in o
rder
to
dete
rmin
e
wh
eth
er
the
C
F a
cce
pts
L
iabili
ty
Th
e
indic
ato
r is
in
tend
ed
to
d
ete
rmin
e
the
ra
te a
t w
hic
h th
e
vo
lum
es o
f in
vo
ices a
re
app
rove
d
with
an
im
pro
ve
me
nt
of
30
%
each
ye
ar.
T
he
indic
ato
r d
efin
es t
he
vo
lum
es o
f in
vo
ices
wh
ere
the
y h
ave
been
ch
ecke
d f
or
Sta
tistic
al
info
rma
tion
th
at sh
ou
ld b
e
derive
d fro
m
the
sys
tem
Extr
actio
n o
f d
ata
fro
m t
he
U
me
hlu
ko
sys
tem
m
easu
rin
g
vo
lum
e.
Ca
lcu
latio
n is
b
ase
d o
n the
p
revio
us
finan
cia
l ye
ars
a
pp
rove
d
me
dic
al
invo
ices y
ear
b
ase
line
plu
s
30 %
an
nu
al
incre
ase
fr
om
the
b
ase
line
Qu
alit
y o
f d
ata
,
Me
asure
s
outp
ut
C
um
ula
tive
M
onth
ly,
Qu
art
erly,
A
nn
ually
Ne
w
Indic
ato
r
Pe
rform
ance
hig
he
r th
an t
he
ta
rge
t is
d
esira
ble
, lo
we
r p
erf
orm
ance
is
not
de
sira
ble
CD
: O
pera
tion
s
D:M
edic
al
Se
rvic
es
PR
OG
RA
MM
E 3
: O
PE
RA
TIO
NS
MA
NA
GE
ME
NT
T
itle
(K
ey
Pe
rfo
rma
nc
e
Ind
icato
r)
De
fin
itio
n
P
urp
os
e /
Im
po
rtan
ce
Da
ta S
ou
rce
C
alc
ula
tio
n
Me
tho
d
Da
ta
Lim
ita
tio
ns
Ty
pe
of
ind
icato
r
Ca
lcu
lati
on
T
yp
e
Re
po
rtin
gC
ycle
New
In
dic
ato
r
De
sir
ed
p
erf
orm
an
ce)
Re
sp
on
sib
ilit
y
3.2
% in
cre
ase
in
the
nu
mb
er
of
app
rove
d
me
dic
al
invo
ices f
or
paym
ent
in
co
mp
ariso
n to
th
e p
revio
us
finan
cia
l ye
ar
To
de
term
ine
th
e %
incr
ease
in
the
num
ber
of
me
dic
al
invo
ices
app
rove
d f
or
paym
ent
in
co
mp
ariso
n to
th
e p
revio
us
finan
cia
l ye
ar.
Th
e
indic
ato
r is
in
tend
ed
to
d
ete
rmin
e
the
ra
te a
t w
hic
h th
e
vo
lum
es o
f in
vo
ices a
re
app
rove
d
with
an
im
pro
ve
me
nt
of
30
%
each
ye
ar.
T
he
indic
ato
r d
efin
es t
he
vo
lum
es o
f in
vo
ices
wh
ere
the
y h
ave
been
ch
ecke
d f
or
co
rrectn
ess
looki
ng
at
the
Sta
tistic
al
info
rma
tion
th
at sh
ou
ld b
e
derive
d fro
m
the
sys
tem
Extr
actio
n o
f d
ata
fro
m t
he
U
me
hlu
ko
sys
tem
m
easu
rin
g
vo
lum
e.
Ca
lcu
latio
n is
b
ase
d o
n the
p
revio
us
finan
cia
l ye
ars
a
pp
rove
d
me
dic
al
invo
ices y
ear
b
ase
line
plu
s
30 %
an
nu
al
incre
ase
fr
om
the
b
ase
line
Qu
alit
y o
f d
ata
, M
easure
s
outp
ut
Cu
mu
lativ
e
Mo
nth
ly,
Qu
art
erly,
A
nn
ually
Ne
w
Indic
ato
r P
erf
orm
ance
hig
he
r th
an t
he
ta
rge
t is
d
esira
ble
, lo
we
r p
erf
orm
ance
is
not
de
sira
ble
CD
: O
pera
tion
s D
:Me
dic
al
Se
rvic
es
COMPENSATION FUND STRATEGIC PLAN 2014-2015
36
PR
OG
RA
MM
E 3
: O
PE
RA
TIO
NS
MA
NA
GE
ME
NT
T
itle
(K
ey
Pe
rfo
rma
nc
e
Ind
icato
r)
De
fin
itio
n
P
urp
os
e /
Im
po
rtan
ce
Da
ta S
ou
rce
C
alc
ula
tio
n
Me
tho
d
Da
ta
Lim
ita
tio
ns
Ty
pe
of
ind
icato
r
Ca
lcu
lati
on
T
yp
e
Re
po
rtin
gC
ycle
New
In
dic
ato
r
De
sir
ed
p
erf
orm
an
ce)
Re
sp
on
sib
ilit
y
co
rrectn
ess
of
do
cto
rs
pra
ctic
e
num
bers
, co
rrectn
ess
of
tariff
co
des a
nd
wh
eth
er
it is
fo
r a
co
rrect
cla
im a
nd
th
ere
after
the
invo
ice
is
au
tho
rise
d
for
pa
yme
nt
COMPENSATION FUND STRATEGIC PLAN 2014-2015
37
3.3
.
% incre
ase
in
th
e
num
be
r of
com
pe
nsatio
n
ben
efits
app
rove
d
in
com
pa
riso
n t
o t
he
pre
vio
us f
inanci
al
yea
r
To
de
term
ine
the
%
incr
ease in
the
n
um
be
r of
com
pe
nsatio
n
ben
efits
a
pp
rove
d f
or
paym
ent
Incre
ase in
vo
lum
es o
f a
pp
rove
d
com
pe
nsatio
n
ben
efits
for
paym
ent
purp
ose
s
A
pp
rove
d
defin
es th
e
pro
ce
ss o
f che
ckin
g the
cla
im f
or
corr
ect
ness
e
.g. th
e c
laim
m
ust
have a
n
em
plo
yers
a
ccid
ent
notific
atio
n,
valid
docto
rs
rep
ort
, d
ocum
en
t com
ple
ted
corr
ect
ly,
valid
cla
im n
um
ber,
lia
bili
ty
acc
epte
d a
nd
the
reaft
er
it is
a
uth
orise
d fo
r p
aym
ent
1)
Aud
ite
d
a
nn
ua
l b
en
efits
a
pp
rove
d in
th
e p
revi
ou
s fin
an
cia
l ye
ar.
2)
Sta
tistic
al
info
rmatio
n
tha
t sh
ou
ld
be d
erive
d
from
th
e
sys
tem
Ext
ract
ion o
f d
ata
fo
rm
Um
ehlu
ko
sys
tem
m
easu
rin
g
volu
me a
nd
p
erio
d.
T
he
calc
ula
tion
is
based
on
th
e
aud
ited
fig
ure
fr
om
p
revi
ou
s fin
ancia
l ye
ar
app
rove
d
com
pe
nsatio
n
ben
efits
plu
s
10%
a
nnu
al
incre
ase fro
m
the
base
line
Qua
lity
of
data
(e
rro
rs,
mis
sin
g
info
rmatio
n)
Mea
sure
s
outp
ut
C
um
ula
tive
M
on
thly
, Q
ua
rte
rly,
A
nn
ua
lly
Ne
w
Ind
icato
r
Pe
rfo
rma
nce
hig
he
r th
an
th
e t
arg
et is
d
esirab
le,
low
er
perf
orm
ance
is
not
desirab
le
CD
: O
pe
ratio
ns
D
:Com
pen
satio
n
ben
efits
and
3.4
. (A
)
% o
f re
gis
tere
d
com
pe
nsa
tion
cla
ims
ad
judic
ate
d w
ithin
60
w
ork
ing
da
ys
Imp
lem
en
ta-
tio
n o
f C
OID
A
an
d th
e r
ate
of
a
dju
dic
atin
g
com
pe
nsa
tion
cl
aim
s b
en
efits
To
de
term
ine
th
e r
ate
of
a
ccep
tance
o
f lia
bili
ty f
or
p
aym
en
t of
co
mp
en
sa-
tio
n c
laim
s to
C
om
pe
nsa
tion
F
un
d b
en
efi-
ci
aries.
Sta
tistic
al
info
rma
tion
d
erived
fro
m
the
Um
eh
luko
syste
m
Pe
rce
nta
ge
of
d
iffe
ren
t be
n-
efit
s a
dju
dic
at-
ed
ou
t of cl
aim
s
rece
ive
d.
Ma
nu
al
pro
cess
ing
o
f cl
aim
s
Ou
tput
N
on-
cum
ula
tive
Q
ua
rte
rly
N
o
Imp
rove
me
nt
of be
ne
fits
a
nd
tu
rnaro
und
tim
es
in
pro
cess
ing
of
cla
ims
Direct
ora
te:
Co
mp
en
satio
n
3.4
. (B
)
% o
f m
ed
ica
l cla
ims
finalis
ed
with
in 6
0
wo
rkin
g d
ays
of
receiv
ing
invo
ice
Nu
mb
er
of
med
ica
l in
voic
es
finaliz
ed
re
fers
to
invo
ice
s re
ject
ed
or
To
me
asu
re th
e
turn
aro
und
tim
es
an
d
nu
mb
er
of
med
ica
l p
aym
en
ts o
f
Sta
tistic
al
info
rma
tion
d
erived
fro
m
the
Um
eh
luko
syste
m
To
tal
n
um
ber
of
me
dic
al
invoic
es
finaliz
ed
with
in
60
wo
rkin
g
da
ys
O
utp
ut
N
on-
cum
ula
tive
Q
ua
rte
rly
N
o
Imp
rove
d
turn
aro
und
tim
es
in
pro
cess
ing
of
med
ica
l cla
ims
Direct
ora
te:
Co
mp
en
satio
n
Qu
alit
y o
f d
ata
(e
rro
rs,
mis
sin
g
info
rma
tion
)
Qu
alit
y o
f d
ata
(e
rro
rs,
mis
sin
g
info
rma
tion
)
COMPENSATION FUND STRATEGIC PLAN 2014-2015
38
invoic
es
acc
ep
ted
fo
r p
aym
en
t w
ithin
6
0 w
ork
ing
d
ays
cla
ims
3.5
. To
re
vie
w t
he
com
pe
nsatio
n
ben
efits
to b
e p
aid
to
inju
red
em
plo
yees/
dis
ea
sed
and
dep
end
en
ts
ann
ua
lly
Co
nst
itute
s th
e n
um
be
r of
sta
ges ,
pro
ject
s,
polic
ies,
str
ate
gie
s
pro
cess
es
tha
t w
ill h
ave
to b
e
put
in p
lace
to
re
vie
w
com
pe
nsatio
n
ben
efits
It is
in
tend
ed
to s
ho
w t
he
d
efin
ed
sta
ge
s th
at
will
take
pla
ce in
ord
er
to im
ple
me
nt
the
re
hab
ilita
tio
n
an
d
inte
gra
tion
pro
gra
mm
e
Info
rma
tion
colle
cted
fr
om
th
e
rep
ort
s o
n
ben
chm
ark
s a
nd
be
st
pra
ctis
es
Man
ual
rep
ort
s
Qua
lity
of
info
rmatio
n
Mea
sure
s
outp
ut
No
n-
cum
ula
tive
M
on
thly
, Q
ua
rte
rly,
An
nua
lly
Ne
w
Ind
icato
r P
erf
orm
ance
hig
he
r th
an
th
e t
arg
et is
d
esirab
le,
low
er
perf
orm
ance
is
not
desirab
le
CD
: O
pe
ratio
ns
D:L
eg
al
COMPENSATION FUND STRATEGIC PLAN 2014-2015
39
PR
OG
RA
MM
E4:
CO
RP
OR
AT
E S
ER
VIC
ES
4
.1 %
of
vacancie
s a
t C
F H
ea
d O
ffic
e
To d
ete
rmin
e
the
% o
f va
can
cies.
T
he a
vera
ge
va
can
cy r
ate
in
resp
ect
of
fun
de
d p
ost
s to
at m
ost
1
0%
.
To m
easure
th
e r
ate
of
fillin
g
vacan
cies
within
the
p
resc
rib
ed
perio
d o
f si
x m
onth
s a
nd
th
e
main
tena
nce
of
the 1
0%
va
can
cy r
ate
.
PE
RS
AL
Re
port
To
tal num
ber
of
vaca
nci
es
in t
he
CF
HQ
o
ver
tota
l n
um
be
r of
app
rove
d
fun
de
d p
ost
s in
CF
HQ
on
ly
E.g
. Tota
l n
um
be
r of
vaca
nci
es
in
the
Fu
nd
=
115
to
tal num
be
r o
f ap
pro
ved
fu
nde
d p
ost
s in
CF
HQ
on
ly
= 6
90
In
ord
er
to
ach
ieve
the
ta
rge
t of 1
0%
va
can
cy r
ate
b
y th
e e
nd o
f
31 M
arc
h
201
5,
the C
F
No
Outc
om
e
Cu
mula
tive
Qua
rte
rly
No
low
er
D:
HR
M
Vaca
ncy
L
eve
ls s
hou
ld
be 6
9 P
osts
, th
ere
fore
10
%
will
re
pre
sent
69/6
90 p
ost
s.
40
NOTES
COMPENSATION FUND STRATEGIC PLAN 2014-2015
Telephone 0860 105 350
Street AddressCompensation HouseCnr Hamilton and Soutpansberg StreetPretoria
Postal AddressPO Box 955Pretoria0001
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