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COMPENSATION FUND STRATEGIC PLAN 2014/15 - 2018/19

Department:LabourREPUBLIC OF SOUTH AFRICA

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COMPENSATION FUND STRATEGIC PLAN 2014-2015

Department:LabourREPUBLIC OF SOUTH AFRICA

COMPENSATION FUND STRATEGIC PLAN 2014/15 - 2018/19

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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

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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


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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

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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


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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

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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;


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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.

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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


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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


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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.


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Development of a Rehabilitation, Re-integration and Return-to-work Policy for Injured

and Diseased Workers

5. Situational Analysis


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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


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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


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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


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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


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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.


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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


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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


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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



Developing and executing a risk based 3 year rolling and annual internal audit plan with 100% coverage annually


100% completion of the annual audit plan by 31 March





Reporting quarterly 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





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.






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


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.


Indi-catornum-ber


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.





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.



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


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.


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


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


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.


26

Indi-catorber


Key Performance


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



% 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




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%


30%


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%


10%


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



% 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



claims finalised within 60 working days of receiving invoice




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


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 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


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


Indicator number


Key Performance


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:


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


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


31

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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


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


34


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


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


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.

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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

)


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

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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


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


Telephone 0860 105 350

Street AddressCompensation HouseCnr Hamilton and Soutpansberg StreetPretoria

Postal AddressPO Box 955Pretoria0001

www.labour.gov.za

strategic plan - 33358 - welcome to the south african ... · 2 compensation fund strategic plan...

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