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Annual Performance Plan2018/19

Annual Performance Plan 2018/19 I Compensation Fund 1

ANNUAL PERFORMANCE PLAN

2018/19

COMPENSATION FUND

2

Compensation Fund I WORKING FOR YOU

Annual Performance Plan 2018/19 I Compensation Fund

TABLE OF CONTENTS

FOREWORD BY THE MINISTER 3

ACCOUNTING OFFICER’S STATEMENT 4

OFFICIAL SIGN-OFF 6

LIST OF ACRONYMS 8

ORGANISATIONAL STRUCTURE 9

PART A: STRATEGIC OVERVIEW 12

1. UPDATED SITUATIONAL ANALYSIS 12

2. REVISIONS OF LEGISLATIVE AND OTHER MANDATES 14

3. OVERVIEW OF 2018/19 BUDGET AND MTEF ESTIMATES 16

PART B: PROGRAMMES AND SUB-PROGRAMME PLANS 20

PROGRAMME 1: ADMINISTRATION 20

PROGRAMME 2: COID SERVICES 26

PROGRAMME 3: MEDICAL BENEFITS 32

PROGRAMME 4: ORTHOTIC AND REHABILITATION 38

PART C: LINKS TO OTHER PLANS 44

ANNEXURE D 45

1. Vision 45

2. Mission 45

3. Values 45

4. Strategic orientated goals 45

ANNEXURE E 46

ANNEXURE F 54


FOREWORD BY THE MINISTER One of the key occupations of the Department of Labour (DoL) is

to promote opportunities for women and men to obtain decent

and productive work that is characterised by conditions of freedom,

equity, security and dignity, the International Labour Organisation

(ILO) defines these fundamental principles as “Decent Work”. In this

formulation, the protection of workers against work-related sickness,

disease and injury, as embodied in the Bill of Rights in our Constitution

is an essential element of security and continues to be a high priority

for this government.

Mistakes, accidents, oversights, injuries, no matter how skilled and

careful, can happen even in the safest workplaces. They usually

occur when least expected and inadvertently cause harm to workers

especially to those who are the most vulnerable and who work in

precarious work environments. According to ILO estimates, each

year two million men and women die from work-related diseases

and accidents – a death toll averaging some 5, 000 workers a day.

The socio-economic damage of these incidents and fatalities on

workers and their families, as well as the entire society, has reached

the levels where all of us need to join hands in finding solutions and

real partnerships going forward.

The 2018/19 Compensation Fund’s Annual Performance Plan (APP), is by and large a reflection of our resolve to ensure that we

play our part in insuring that the Fund contributes to the attainment of “Decent Work” from occupational injuries and diseases

perspective. To this end the Fund will be implementing its revised organisational structure which is geared towards improving

performance in general and rehabilitation and the return to work programme in particular.

Vocational rehabilitation will be one of the key focus areas, wherein workers who cannot return to work because of injuries or

diseases sustained at a workplace, will be reskilled based on their current capabilities in order to enhance their re-absorption back

in the labour market.

This Plan is also designed to lift the overall quality of work and impact of the Compensation Fund in order to improve the lives

of all those that we serve. I look forward to an effective and efficient implementation of this Plan, and I am confident that with

dedication and commitments, nothing is impossible.

We are here to serve; providing the best service delivery possible to our people is the end, the Annual Performance Plan is the

means.

_________________________

Ms MN Oliphant, MP

Executive Authority of the Department of Labour

4



ACCOUNTING OFFICER’S STATEMENT I am pleased to present the Compensation Fund’s Annual

Performance Plan for 2018/2019 that covers the organisational

renewal and priorities which must be achieved in the financial year.

The Annual Performance Plan is based on five priorities, namely:

building capacity to act truly as a vanguard for the protection of

vulnerable workers and their families, ensuring that work places

are safe from injuries and diseases; fast-tracking the improvement

of service delivery; eradicating backlog; improving stakeholder

relations, implementing rehabilitation and reintegration programme

and amending the Compensation for Occupational Injuries and

Diseases (COID) aimed at broadening the scope of coverage so as to

include domestic workers.

The Policy’s priorities are also to strengthen the core business and

provide avenues to fulfil the goals on the National Development Plan

(NDP) and the Medium Term Strategic Framework and advancing

outcome 4 and outcome 13 aimed at improving the lives of

vulnerable employed South Africans. Improved internal capacity and

morale is a recipe for improved performance.

During the 2017/18 Financial Year, the Compensation Fund has

made significant progress in addressing backlog, improving relations

with key and strategic stakeholders, setting up internal control measures and addressing key health and safety issues that affect

vulnerable employees in a workplace. Processing of claims also improved significantly. Compared to the 90% of registered claims

which were adjudicated within 60 working days of receipt during the 2016/17 Financial Year, 97% of the registered claims were

adjudicated within 60 working days of receipt by the end of December of the 2017/18 Financial Year.

Amongst the issues which are the focus by the Fund over the medium term is to continuously improve access to social insurance

for the working age population with the aim of preventing or alleviating poverty and providing protection against vulnerability. It

is on this basis that the Fund is working together with the Inspections and Enforcement Services of the Department of Labour to

ensure that intense inspections are conducted within workplaces.

Working towards impact

In the year 2018/2019, the Compensation Fund will continue to ensure that its strategic investments are aimed at broadening

coverage of services to all employees of the Republic of South Africa. This will be done through investment in human capacity

development, improvement of technological infrastructure, investments on social security programmes, and building capacity in

the provinces.

In response to the service delivery challenges, the Fund is continuously investing on strengthening its provincial processing

centres, to ensure an improved registration, adjudication and processing of all qualifying claims within reasonable turnaround

times. Improvement on turn-around times in delivering quality services is key. In order for this to be realised, the Fund has budgeted

R11 billion for the 2018/2019 financial year, capacitated its key and strategic programmes by reviewing its organisational structure

and standard operating procedures.

Given the budget pressures, it cannot be business as usual. Increased efficiency and productivity in every corner of the

Compensation Fund is mandatory to get the best value from the income generated from employers. We have a choice; we can

choose to focus on the impossibilities of it all, or we can choose to see the opportunities. In the words of Dr Nelson Mandela, “Let

our choices reflect our hopes and not our fears”. And in our case, we choose that latter.


I want to take this opportunity to thank the Minister and Deputy Minister of Labour for their leadership and support in my plan of

turning the Compensation Fund around and improving service delivery.

Conclusion

The pace and magnitude of outcry for improving service delivery is currently racing ahead beyond our control and manifests

in threats to the Compensation Fund. There is an urgent need for the holistic assurance of discipline and dedication from the

employees of the Fund to shape the performance environment and facilitate progress towards sustainable and improved service

delivery.

Simply put, if social development is a goal of the country, prevention of injury on duty, occupational diseases and/or fatalities that

occurs in a workplace provides boundary conditions and economic growth, as they always say that “A productive employee is a

happy and healthy employee”.

Transforming the Compensation Fund has taken great effort, but with everyone in unison, greater heights can be achieved.

I believe that this Annual Performance Plan will go a long way in ensuring that the Compensation Fund achieves its stated

objectives and fulfilling its mandate.

___________________

Mr. T.M. Lamati

Director-General

Department of Labour

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OFFICIAL SIGN-OFFIt is hereby certified that this Annual Performance Plan:

• Was developed by the management of the Compensation Fund under the guidance of the Minister of Labour, Ms MN

Oliphant, MP.

• Takes into account all the relevant policies, legislation and other mandates for which the Compensation Fund is responsible

and was prepared in line with the Compensation Fund Strategic Plan.

• Accurately reflects the performance targets which the Compensation Fund will endeavour to achieve over the period

2018/19.

M.J. Ledwaba

Director: SPPM&E Signature:

T. Headbush

Chief Operations Officer:

Signature:

N. Qamata

Chief Director: Corporate Services

Signature:

M. Ruiters

Chief Director: COID Services

Signature:


J. Modiba

Chief Financial Officer Signature:

V. Mafata

Compensation Commissioner Signature:

T. Lamati

Director-General of Labour Signature:

S.P. Holomisa, MP

Deputy Minister Signature:

Approved by:

M.N. Oliphant, MP

Executive Authority

Signature:

8



LIST OF ACRONYMS

ACRONYM DESCRIPTION

AGSA Auditor-General of South Africa

APP Annual Performance Plan

CD Chief Director

CF Compensation Fund

CPI Consumer Price Index

COIDA Compensation for Occupational Injuries and Diseases Act

D Director

DOL Department of Labour

GDP Gross domestic Product

TTD Temporary Total Disablement

IES Inspection and Enforcement Services

KRA Key Result Area

MTEF Medium Term Expenditure Framework

MP Member of Parliament

N/A Not Applicable

ROE Return of Earnings

TTD Temporary Total Disablement

PA Pensions Administrators


ORGANISATIONAL STRUCTURE

Compensation Commissioner: Mr. V. Mafata

Acting Chief Director: Medical Benefits:

Ms. M Ruiters

Chief Director: Orthotics, LAP and

Rehabilitation Services:

Vacant

Chief Director:

COID Services

Ms. M Ruiters

Chief Director: Financial

Management Mr. J Modiba

Chief Director:

Corporate Services

Ms. N Qamata

Chief Operations

Officer: Mr. T

Headbush

Director: Executive Support:

Vacant

Director: Internal Audit Ms. B Gumbu

Acting Director: Risk Management Ms. K Lebepe

Director: Anti-Corruption and

Integrity Management Ms. K Lebepe

10




PART ASTRATEGIC OVERVIEW

12



PART A: STRATEGIC OVERVIEWThe South African labour administration system recognises that labour market flexibility for competitiveness of enterprises should be balanced with the promotion and protection of the basic rights of workers and with provision of adequate social safety nets to protect vulnerable workers.

Despite the introduction of progressive labour and employment policy reforms and programmes, the labour market is still characterised by high levels of unemployment and under-employment, inequality and discrimination, violation of employment standards and fundamental rights at work, and unacceptably high levels of workplace incidents and injuries.

1. UPDATED SITUATIONAL ANALYSIS

1.1. PERFORMANCE DELIVERY ENVIRONMENT

The Fund’s delivery environment is affected by many external environmental factors. Some of the challenges from this environment are as follows:

• The first challenge is:

The World Bank has lowered its estimates for South Africa’s economic growth between 2017 and 2019. It said South Africa’s economy, which grew by 0.5% in 2016 (2017 Budget Review), would not show much improvement with 0.6% growth in 2017 and 1.1% in 2018, before showing more gains in 2019 of 2%. The projections for 2017 and 2018 are 0.5 and 0.7 percentage points less respectively than its January 2017 figures

The figures paint a far gloomier picture than the South African Reserve Bank’s (SARB) latest economic projections. It said on 25 May that it had revised growth projections down to 1.0% (2017), 1.5% (2018) and 1.7% (2019).

These figures were lower than the official growth projections revealed in the 2017 Budget Review, which expected growth figures of 1.3% (2017), 2% (2018) and 2.2% (2019).

The SARB’s reasoning for the lower projections were due to “the expected impact of the sovereign credit ratings downgrade on domestic private sector gross fixed capital formation in particular”.

The World Bank agreed, saying a “deterioration of investor confidence in South Africa amid two recent sovereign rating downgrades to sub investment grade” have impacted its economic growth. These will have a negative effect on the Funds ability to grow the investment portfolio. As a result of the slow growth, many businesses will be negatively affected. This will in return impact on the Funds investment growth as the Fund will in all probability receive less revenue from business. DoL will continue to implement measures to ensure that employers are submitting (Return of Earnings ) ROE’s to the Fund.

• The second challenge relates to:

Poverty alleviation programs designed to promote employment and strengthen protection of social security are overwhelmed by the current South African’s unemployment rate which according to the Statistic SA 1st Quarter Labour Survey 2017:

“The growth in employment by 144 000, was offset by the growth in the number of job-seekers by 433 000 driving the unemployment rate to 27,7% in the first quarter (Q1) of 2017. This is the highest unemployment rate observed since September 2003.

The growth in employment was observed in all industries except agriculture, trade and services. The biggest growth was observed in manufacturing (62 000), finance & other business services (49 000) and Mining (26 000). Mining grew for the first time in Q1:2017 after declining for four successive quarters. Furthermore, employment grew in all provinces quarter to quarter except in Eastern Cape and Limpopo. All metros registered growth in employment except Nelson Mandela Bay, Mangaung and City of Johannesburg which remained virtually unchanged.

There were approximately 500 000 extra people in employment in Q1:2017 compared to the same period last year. The year-on-year employment growth was driven by manufacturing (145 000), construction (143 000) and finance (152 000).

Of the 433 000 people who joined the ranks of the unemployed, approximately 58% were young people aged 15-34 years increasing the youth unemployment rate by 1,6 percentage points to 38,6%. The proportion of those in short term unemployment


(i.e. those who have been looking for work for less than a year) increased by 2,4 percentage points to 34,2% a further indication that these were young people who joined the labour force at the beginning of the year.

Unemployment rate remained high among those with education level of less than matric at 33,1% which is 5,4 percentage points higher than the national average. While the unemployment rate among graduates remained at 7,3%.

Unemployment rate increased or remained virtually unchanged in all provinces except Northern Cape. The biggest increase in unemployment rate was observed in Eastern Cape which increased by 3.8 percentage points to 32,2%.

The expanded unemployment which includes those who wanted to work but did not look for work increased by 391 000 people, resulting in an increase of 0,8 of a percentage point in the expanded unemployment rate to 36,4%. This is approximately 9,3 million people who did not have work but wanted to work in Q1:2017.

The above mentioned should be seen together with the outcomes of the StatSA Poverty Survey published on 22 August. The report states the following:

“Despite the general decline in Poverty between 2006 and 2011, poverty levels in South Africa rose in 2015. When applying the upper-bound poverty line ( R992 per person per month)in 2015 prices), we see that more than one out of every two South African were poor in 2015, with the poverty headcount increasing to 55,5% from a series low of 53,2% in 2011. This translates into over 30,4 million South Africans living in poverty in 2015. While the recent increase in headcount is unfortunate, we are still better off compared to the country’s poverty situation a decade earlier when it was estimated that two out of every three people (66,6% or roughly 31,6 million) people were living below the upper-bound poverty line in 2006”.

There is a need to ensure compliance by employers on COID services and the Fund is working with the Inspections and Enforcement Services (IES) in this regard by creating awareness on safety in the workplaces.

• The third challenge is:

New technological innovations will have impact on the labour market as many of the jobs will become automated. This might have a negative impact on the labour market as many jobs might become redundant resulting in an increase in the unemployment rate. Training of employers and CF employees on Umehluko will continue to ensure an improvement in the delivery of services.

• The fourth challenge relates to:

Lack of Safety Compliance by the Mining Industry and other industries to the Occupational Health and Safety Amendment Act gives rise to the high injury and fatalities in the labour market. There is a need to ensure compliance by employers on COID services and the Fund is working with the Inspections and Enforcement Services (IES) in this regard by creating awareness on safety in the workplaces.

• The fifth challenge is:

Inadequate instruments for constant performance monitoring and evaluation of labour market policies and programmes to determine their impact on the economy:

- Stakeholder participation and strategic partnerships in programme delivery, monitoring and feedback is inadequate, despite our strong culture of social dialogue in policy development.

- Planning processes are to some extent not well co-ordinated between strategic departments on related socio-economic development programmes.

- Our appreciation and use of modern information and communication technology systems to manage data and information is inadequate.

1.2 OVERVIEW OF THE ORGANISATIONAL ENVIRONMENT

The Compensation Fund plays a significant role in terms of providing social security to employees. However, the Fund is impacted by various challenges which impedes on its mandate and strategic objectives.

The following strengths and weaknesses have been identified in the CF Environment:

Strengths

• CF Strategic Plan 2015/16-2019/20

• Continuous implementation of the CF Action plan

14



• Collective and participatory planning process by CF management including Provincial Offices

• Revised organisational structure which is being implemented

• Contribution to Outcome 13

• Improving employer compliance and revenue generation(CF-Filling)

• Staff skill development (through bursaries and other initiatives)

Weakness

• The ever changing economic landscape which has the prospects to affect the investment by the Fund. The Fund appointed Actuaries to ensure informed investments are done through the Public Investment Corporation (PIC).

• All identified and/or suspected fraudulent activities are dealt with through both internal processes and law enforcement agencies.

• Systems not responsive to effective and efficient service delivery. The Fund is in the process of procuring systems that will ensure service delivery including the turnaround times is improved. This includes a system wherein employers will perform self-registration and declarations.

• Ability to attract and retain critical skill, e.g. Medical Practitioners. The Fund reviewed job profiles for required critical skill to ensure ability to compete with already established departments requiring similar skill set. The Fund further partnered with the South African Institute of Chartered Accountants (SAICA) wherein the Fund invested in the training of critical skills.

Further to this, the following key issues have been identified related to the Fund’s Organisational Environment:

• The Fund’s Head Office vacancy rate was at 23.2% at the end of December 2017. This can be attributed to the fact that due to implementation of the revised CF structure, new posts are being created which will be filled in due course.

• The Fund is in process of addressing the Audit Findings from the Auditor General of South Africa ( AGSA) Audit Report of 2016/17. In order to address the audit findings the Fund developed an AGSA Audit Action Plan and being monitored on a continuous basis.

• The Fund is continuing with the implementation of the revised Structure. As part of the process the programme structure has been revised. The revised Programme structure contains the following 4 Programmes which are reflected in the 2018/19 APP:

- Programme 1: ADMINISTRATION

- Programme 2: COID SERVICES

- Programme 3: MEDICAL BENEFITS

- Programme 4: ORTHOTIC AND REHABILITATION

• The Fund has paid 100% of approved benefits within five working days by 31 December 2017.

• 97% (142 666 claims finalised out of the 147 529 received) of claims received was adjudicated within 60 workings of receipts (end of December 2017).

• 94% of medical invoices received (568 311 invoices were received and 536 899 was finalised within 60 workings of receipts (end of December 2017).

2. REVISIONS OF LEGISLATIVE AND OTHER MANDATES

2.1. CONSTITUTIONAL MANDATE

The mandate of the Compensation Fund is derived from Section 27 (1) (c) of the Constitution of the Republic of South Africa. In terms of this Act, specifically the mentioned Section, all South Africans have a right to social security. The Compensation Fund is mandated to provide social security to all injured and diseased employees


2.2. LEGISLATIVE MANDATE

The Compensation Fund is a Schedule 3A Public Entity (These entities are normally extensions of a public entity with the mandate to fulfil a specific economic or social responsibility of government. They rely on government funding and public money, either by means of a transfer from the Revenue Fund or through statutory money. As such, these entities have the least autonomy.) of the Department of Labour. The Fund administers the Occupational Injuries and Diseases Act No 130/1993 as amended by the COIDA 61/1997. The main objective of the Act is to provide compensation for disablement caused by occupational injuries or diseases sustained or contracted by employees, or for death resulting from injuries or diseases, and provide for matters connected therewith.

The Fund generates its revenue from levies paid by employers and this consists 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 the assessment is not less than the administration costs incurred.

The operations of the Fund are also informed by the following legislations:

• Constitution of the Republic of South Africa, 1996, as amended;

• Occupational Health and Safety Act, 1993;

• National Economic Development and Labour Council Act (NEDLAC), 1994;

• Labour Relations Act, 1995, as amended;

• Basic Conditions of Employment Act, 1997, as amended

• Employment Equity Act, 1998, as amended;

• Skills Development Act 1998, as amended;

• Unemployment Insurance Act, 2001, as amended;

• Unemployment Insurance Contributions Act, 2002;

• Employment Services Act, 2014;

• Public Finance Management Act, 1999, as amended;

• Public Service Act, 1994, as amended;

• Broad Based Black Economic Empowerment Act, 2003;

• Preferential Procurement Policy Framework Act, 2000;

• Prevention and Combating of Corrupt Activities Act, 2004;

• Promotion of Access to Information Act, 2000;

• Promotion of Administrative Justice Act, 2000; and

• Promotion of Equality and Elimination of Unfair Discrimination Act, 2000.

I would like to take this opportunity to thank the Minister, the Deputy Minister, the Director- General and the Compensation Fund Board for their leadership and support as well as the Compensation Fund employees for their dedication in ensuring that we meet the Fund’s mandate.

_______________________________

Mr. V. Mafata

Compensation Commissioner

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3. OVERVIEW OF 2018/19 BUDGET AND MTEF ESTIMATES

3.1 EXPENDITURE ESTIMATES

Compensation Fund:

ProgrammeAudited outcomes

Adjusted ap-propriation

Medium-term expenditure

2014/15 (R ‘000)

2015/16 (R ‘000)

2016/17 (R ‘000)

2017/18 (R ‘000)

2018/(R’ 000)

2019/20 (R ‘000)

2020/21 (R ‘000)

Programme 1: ADMINISTRATION 984 503 821 534 983 480 1 431 175 2 022 981 2 124 130 2 230 337

Programme 2: COID SERVICES 6 038 562 8 510 520 5 590 621 7 810 777 5 903 137 6 198 294 6 508 209

Programme 3: MEDICAL BENEFITS 22 523 31 979 47 440 65 101 3 106 697 3 187 761 3 338 753

Programme 4: ORTHOTIC AND REHABILITATION

- - - - 2 450 2 550 2 677

Subtotal 7 045 588 9 364 033 6 621 541 9 307 053 11 035 265 11 512 735 12 079 976

Direct charges against Revenue

Total

Change to budget estimate

Economic Classification

Current Payments

Compensation of employees 410 076 501 302 636 375 653 450 843 370 885 539 929 816

Goods and services of which: 577 570 937 636 315 195 854 052 1 085 113 1 139 368 1 196 337

Communication 37 470 13 347 16 208 25 086 18 340 19 257 20 220

Computer services 40 669 109 618 75 584 95 575 222 333 233 449 245 122

Consultants, contractors and special services

38 606 441 774 25 994 148 687 208 064 218 467 229 391

Inventory 11 597 4 028 3 673 15 967 15 513 16 289 17 103

Maintenance repair and running cost 2 722 3 572 6 952 8 458 23 013 24 163 25 371

Operating leases 89 965 78 799 78 270 85 952 153 445 161 118 169 173

Travel and subsistence 62 501 34 052 30 412 44 476 51 049 53 602 56 282

Advertising and Legal services 43 560 40 633 40 305 75 990 77 178 81 038 85 089

Other (Administrative expenditure Items not provided for in the template)

250 480 211 813 37 797 353 861 316 178 331 985 348 586

Depreciation and Acc Amortisation 21 120 12 350 41 850 22 946 112 000 117 600 123 480

Interest and rent on land - - -

Financial transactions in assets and liabilities

- - -

Transfers and subsidies to: 6 030 049 7 909 975 5 526 309 7 775 060 8 912 531 9 358 158 9 826 066

Provinces and municipalities - - -

Departmental agencies and accounts - - -

Universities and technikons - - -

Public corporations and private enterprises

- - -

Foreign governments and international organisations

- - -

Non-profit institutions - - -

Households/ Compensation benefits 6 030 049 7 909 975 5 526 309 7 775 060 8 912 531 9 358 158 9 826 066

Payments for capital assets 6 773 2 770 101 812 24 491 82 251 12 070 4 278

Buildings and other fixed structures - - -

Machinery and equipment 6 773 2 770 101 812 15 491 67 251 9 070 2 778

Cultivated assets - - - - - - -


ProgrammeAudited outcomes

Adjusted ap-propriation

Medium-term expenditure

2014/15 (R ‘000)

2015/16 (R ‘000)

2016/17 (R ‘000)

2017/18 (R ‘000)

2018/(R’ 000)

2019/20 (R ‘000)

2020/21 (R ‘000)

Software and other intangible assets - - - 9 000 15 000 3 000 1 500

Land and subsoil assets of which: Capitalised compensation

- - - - - - -

Total 7 045 588 9 364 033 6 621 541 9 307 053 11 035 265 11 512 735 12 079 976

3.2. RELATING EXPENDITURE TRENDS TO STRATEGIC GOALS

The Compensation Fund recorded a total spending of R 6 621 541 billion for the 2016/17 financial year against a total approved

budget of R 8 240 388, which represent a 20% under spending for 2016/17 financial year. The following were the main cost drivers

for the recorded 2016/17 budget spending:

• Compensation of Employees: The total spending for the 2016/17 is, R 636 375 million.

• Goods and Services: The total spending for the 2016/17 is, R 357 045 million.

• Capital Expenditure: The total spending for the 2016/17 is, R 101 812 million.

• Benefits paid: The total spending for the 2016/17 is, R 5 526 309 billion.

The total approved Compensation Fund budget allocation for 2017/18 financial year is, R 9 307 053 billion, with the following

major sub-allocations:

• Compensation of Employees: , R 653 450 million

• Goods and Services: , R 854 052 million

• Capital Expenditure: R 24 491 million

• Benefits paid: R 7 775 060 billion

Compensation of Employees:

The Fund has spent a total of R 636 million on Compensation of Employees over the 2016/17 financial year, which recorded 100%

spending.

The total approved Compensation of Employees budget for the 2017/18 financial year is R 653 million, which includes the newly

approved functional structure implemented in October 2017/18 financial year.

Goods and Services:

The Fund has spent a total amount of R 357 million for the 2016/17 financial year on Goods and Services; this includes the

organisational administrative expenditure and all the consultation fees. The 2017/18 approved budget for Goods and Services,

amounts to R 854 million.

Capital Expenditure:

The Compensation Fund spent a total amount of R 102 for the 2016/17 financial year; this is mainly due the procurement of office

furniture and the office equipment.

The total Capital Expenditure Budget amounts to R 24 million, for the 2017/18 financial year. The major part of the budget will be

utilised on the Compensation Fund’s relocation project to the new building.

18



Strategic objectives of the Compensation Fund

Strategic objective 1 Provide effective and efficient client oriented support services.

Objective statement 1 To provide value adding services to clients through Human Resources, Risk Management, Financial

Services and Audit Services.

Strategic objective 2 Provide faster, reliable and accessible COID services by 2020.

Objective statement 2.1 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.

Objective statement 2.2 To process compensation benefits and medical expenses for injured and diseased workers and

promote rehabilitation, re-integration and return to work policy for injured and diseased workers.


PART BPROGRAMMES AND

SUB-PROGRAMME PLANS

20



PART B: PROGRAMMES AND SUB-PROGRAMME PLANS

4. PROGRAMME 1: ADMINISTRATION

4.1. PROGRAMME PURPOSE

The purpose of the programme is to provide an effective and efficient client oriented support services to the Fund/entity.

PROGRAMME DESCRIPTION:

• Compensation Commissioner: To compensate workers and or their family members for occupational injuries and

diseases sustained by the worker while on duty.

• Executive Support: To provide executive and administrative support of the Office of the Commissioner.

• Internal Audit: To provide an independent and objective assurance service..

• Risk Management: To provide risk and integrity management services .

• Anti-Corruption and Integrity Management: To provide anti-corruption and integrity management services.

• Office of the Chief Operations Officer: To strategically oversee the management of operations services.

• Chief Financial Officer: To provide financial management services. .

• Corporate Services: To provide corporate services..

STRATEGIC OBJECTIVES

Strategic objective 1 Provide effective and efficient client oriented support services.

Objective statement 1.1 To provide value adding services to clients through Human Resources, Risk Management, Financial

Services and Audit Services.

Baseline • R33 billion proceeds from investments.

• 70% achievement of the audit plan (based on the average of 2013/14-81% and 2014/15 - 61%.

• Risk management Maturity level 2.


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le

vel i

ncre

ased

to 5

by

31 M

arch

202

0.

The

Fund

’s ris

k m

anag

emen

t mat

urity

le

vel i

ncre

ased

to 5

.5

by 3

1 M

arch

202

1.

Inte

rnal

Aud

it

Prov

ide

an e

ffect

ive

and

effici

ent c

lient

or

ient

ed s

uppo

rt

serv

ices

.

61%

of t

he p

lan

impl

emen

ted

by

31 M

arch

201

5 (2

2 pr

ojec

ts).

70.4

5% (3

1/44

) of t

he

proj

ect p

lan

wer

e im

plem

ente

d by

31

Mar

ch 2

016.

78%

of p

roje

cts

wer

e ex

ecut

ed d

urin

g th

e fin

anci

al y

ear (

36/4

6).

80%

of p

roje

cts

on th

e ris

k ba

sed

audi

t pla

n im

plem

ente

d an

nual

ly

by 3

1 M

arch

201

8.

85%

of p

roje

cts

on

the

risk

base

d pl

an

impl

emen

ted

by 3

1 M

arch

201

9.

90%

of p

roje

cts

on

the

risk

base

d pl

an

impl

emen

ted

by 3

1 M

arch

202

0.

90%

of p

roje

cts

on

the

risk

base

d pl

an

impl

emen

ted

by 3

1 M

arch

202

1.

Fina

ncia

l Man

agem

ent

Prov

ide

an e

ffect

ive

and

effici

ent c

lient

or

ient

ed s

uppo

rt

serv

ices

.

49.7

bill

ion

in

inve

stm

ents

.4.

02%

gro

wth

was

ac

hiev

ed

[The

Inve

stm

ents

as

at

1 A

pril

2015

am

ount

ed

to R

49.

7 bi

llion

and

th

e cl

osin

g ba

lanc

e as

at 3

1 M

arch

201

6 am

ount

ed to

R 5

1 bi

llion

.]

Inve

stm

ent p

ortfo

lio

retu

rn =

7.3

% fo

r the

ye

ar to

Mar

ch 2

017

com

pare

d to

8.2

8%

targ

et re

turn

.

Inve

stm

ent r

etur

n at

a

rate

of C

PI+

2% a

t 31

Mar

ch 2

018.

Inve

stm

ent r

etur

n at

a

rate

of C

PI+

2% a

t 31

Mar

ch 2

019.

Inve

stm

ent r

etur

n at

a

rate

of C

PI+

2% a

t 31

Mar

ch 2

020.

Inve

stm

ent r

etur

n at

a

rate

of C

PI+

2% a

t 31

Mar

ch 2

021.

22



4.3.

PR

OG

RAM

ME

PERF

ORM

AN

CE IN

DIC

ATO

RS A

ND

AN

NU

AL

TARG

ETS

FOR

2018

-201

9

Indi

cato

r nu

mbe

rSt

rate

gic

obje

ctiv

e

Key

pe

rfor

man

ce

indi

cato

rs

Aud

ited/

act

ual p

erfo

rman

ceEs

timat

ed

perf

orm

ance

Med

ium

-ter

m ta

rget

s

2014

/15

2015

/16

2016

/17

2017

/18

2018

/19

2019

/20

2020

/202

1Ri

sk M

anag

emen

t

1.1

Prov

ide

effec

tive

and

effici

ent c

lient

or

ient

ed s

uppo

rt

serv

ices

.

The

Fund

’s ris

k m

anag

emen

t m

atur

ity le

vel

incr

ease

d to

4 b

y 31

Mar

ch 2

019.

Ach

ieve

risk

m

anag

emen

t m

atur

ity le

vel 2

.

The

Fund

’s ris

k m

anag

emen

t m

atur

ity le

vel

incr

ease

d an

nual

ly

to 3

by

31 M

arch

20

16.

The

Fund

’s ris

k m

anag

emen

t m

atur

ity le

vel

incr

ease

d to

3.5

by

31 M

arch

201

7.

The

Fund

’s ris

k m

anag

emen

t m

atur

ity le

vel

incr

ease

d to

3.7

by

31 M

arch

201

8.

The

Fund

’s ris

k m

anag

emen

t m

atur

ity le

vel

incr

ease

d to

4 b

y 31

Mar

ch 2

019.

The

Fund

’s ris

k m

anag

emen

t m

atur

ity le

vel

incr

ease

d to

5 b

y 31

Mar

ch 2

020.

The

Fund

’s ris

k m

anag

emen

t m

atur

ity le

vel

incr

ease

d to

5.5

by

31 M

arch

202

1.

Inte

rnal

Aud

it

1.2

Prov

ide

effec

tive

and

effici

ent c

lient

or

ient

ed s

uppo

rt

serv

ices

.

Perc

enta

ge

impl

emen

tatio

n of

the

appr

oved

an

nual

risk

-bas

ed

audi

t pla

n.

61%

of t

he p

lan

impl

emen

ted

by

31 M

arch

201

5 (2

2 pr

ojec

ts).

70.4

5% (3

1/44

) of

the

proj

ect

plan

wer

e im

plem

ente

d by

31

Mar

ch 2

016.

78%

of p

roje

cts

wer

e ex

ecut

ed

durin

g th

e fin

anci

al y

ear

(36/

46).

80%

of p

roje

cts

on th

e ris

k ba

sed

audi

t pla

n im

plem

ente

d an

nual

ly b

y 31

M

arch

201

8.

85%

of p

roje

cts

on

the

risk

base

d pl

an

impl

emen

ted

by

31 M

arch

201

9.

90%

of p

roje

cts

on

the

risk

base

d pl

an

impl

emen

ted

by

31 M

arch

202

0.

90%

of p

roje

cts

on

the

risk

base

d pl

an

impl

emen

ted

by

31 M

arch

202

1.

Fina

ncia

l Man

agem

ent

1.3

Prov

ide

effec

tive

and

effici

ent c

lient

or

ient

ed s

uppo

rt

serv

ices

.

Perc

enta

ge a

nnua

l in

crea

se o

n in

vest

men

t ret

urns

by

31

Mar

ch o

f the

cu

rren

t fina

ncia

l ye

ar c

ompa

red

to th

e pr

evio

us

finan

cial

yea

r.

R49.

7 bi

llion

in

inve

stm

ents

.4.

02%

gro

wth

was

ac

hiev

ed

[The

Inve

stm

ents

as

at 1

Apr

il 20

15

amou

nted

to

R 49

.7 b

illio

n an

d th

e cl

osin

g ba

lanc

e as

at

31 M

arch

201

6 am

ount

ed to

R 5

1 bi

llion

. ]

Inve

stm

ent

port

folio

retu

rn

= 7

.3%

for t

he

year

to M

arch

20

17 c

ompa

red

to 8

.28%

targ

et

retu

rn.

Inve

stm

ent r

etur

n at

a ra

te o

f CPI

+2%

at

31

Mar

ch 2

018.

Inve

stm

ent r

etur

n at

a ra

te o

f CPI

+2%

at

31

Mar

ch 2

019.

Inve

stm

ent r

etur

n at

a ra

te o

f CPI

+2%

at

31

Mar

ch 2

020.

Inve

stm

ent r

etur

n at

a ra

te o

f CPI

+2%

at

31

Mar

ch 2

021.


4.4.

Q

UA

RTER

LY T

ARG

ETS

FOR

2018

-201

9

Indi

cato

r nu

mbe

rSt

rate

gic

obje

ctiv

eKe

y pe

rfor

man

ce

indi

cato

rsRe

port

ing

peri

odA

nnua

l tar

get

2018

-201

9Q

uart

erly

targ

ets

Budg

et e

stim

ate

(R’0

00)

1st

2nd

3rd

4th

Risk

Man

agem

ent

1.1

Prov

ide

effec

tive

and

effici

ent

clie

nt o

rient

ed

supp

ort s

ervi

ces.

The

Fund

’s ris

k m

anag

emen

t m

atur

ity le

vel

incr

ease

d to

4 b

y 31

Mar

ch 2

019.

Ann

ual

The

Fund

’s ris

k m

anag

emen

t m

atur

ity le

vel

incr

ease

d to

4 b

y 31

M

arch

201

9.

--

-Th

e Fu

nd’s

risk

man

agem

ent

mat

urity

leve

l in

crea

sed

to 4

by

31 M

arch

201

9.

R 21

969

Inte

rnal

Aud

it

1.2

Prov

ide

effec

tive

and

effici

ent

clie

nt o

rient

ed

supp

ort s

ervi

ces.

Perc

enta

ge

impl

emen

tatio

n of

the

appr

oved

an

nual

risk

-bas

ed

audi

t pla

n.

Qua

rter

ly85

% o

f pro

ject

s on

th

e ris

k ba

sed

plan

im

plem

ente

d by

31

Mar

ch 2

019.

15 %

45 %

60%

85%

R 3

787

Fina

ncia

l Man

agem

ent

1.3

Prov

ide

effec

tive

and

effici

ent

clie

nt o

rient

ed

supp

ort s

ervi

ces.

Perc

enta

ge

annu

al in

crea

se

on in

vest

men

t re

turn

s by

31

Mar

ch o

f the

cu

rren

t fina

ncia

l ye

ar c

ompa

red

to th

e pr

evio

us

finan

cial

yea

r.

Ann

ual

Inve

stm

ent r

etur

n at

a

rate

of C

PI+

2% a

t 31

Mar

ch 2

019.

--

-In

vest

men

t ret

urn

at a

rate

of C

PI+

2%

by 3

1 M

arch

201

9.

R 22

5 21

6

24



4.5. RECONCILING PERFORMANCE TARGETS WITH THE BUDGET AND MTEF

COMPENSATION FUND PROGRAMMES EXPENDITURE OUTCOME

ADJUSTED APPRO-

PRIATION2020-2021 Budget Forecasts

2014/15 (R ‘000)

2015/16 (R ‘000)

2016/17 (R 000)

2017/18 (R ‘000)

2018/19 (R ‘000)

2019/20 (R ‘000)

2020/21 (R ‘000)

Programme 1: Administration 984 503 821 534 983 480 1 431 175 2 022 981 2 124 130 2 230 337

Compensation Commissioner 11 032 8 941 9 852 35 334 30 904 32 449 34 073

CD: Chief Financial Officer 19 537 20 428 13 798 366 372 225 216 236 477 248 300

CD: Corporate Services 953 845 791 726 959 830 923 494 1 439 460 1 511 433 1 587 005

CD: Chief Operating Officer 89 439 730 105 975 327 401 343 771 360 959

Total 984 503 821 534 983 480 1 431 175 2 022 981 2 124 130 2 230 337Change to 2005 budget estimate

1 Payable as from 1 April 2005. Salary: R Car allowance: R


Economic classificationCurrent payments 1 431 175 2 022 981 2 124 130 2 230 337Compensation of Employees 445 774 494 193 636 375 653 450 843 370 885 539 929 816

Compensation Benefits - - - -

Goods and Services of which: 517 926 312 965 219 059 730 288 985 360 1 108 921 1 172 763

Communication 23 580 24 287 25 016 25 086 26 089 27 133 28 490

Computer services 89 840 92 535 65 430 95 575 99 398 103 374 108 543


139 764 44 795 43 276 148 687 154 635 160 820 168 861

Inventory 15 008 15 457 15 922 15 967 16 606 17 271 18 133

Maintenance repair and running cost 7 950 8 188 8 434 8 458 8 796 9 148 9 604

Operating leases 120 413 24 045 24 766 128 100 133 224 138 553 145 481


Investment Expenditure 75 199 56 100 7 783 80 000 83 200 86 528 90 854

Other 4 366 4 497 4 632 183 939 417 157 517 989 552 286

Depreciation and Amortisation 14 030 12 350 26 234 22 946 112 000 117 600 123 480

Interest and rent on land


Transfers and subsidies to: Provinces and municipalities

Departmental agencies and accounts

Universities and technikons



Non-profit institutions

Households







ADJUSTED APPRO-

PRIATION2020-2021 Budget Forecasts

2014/15 (R ‘000)

2015/16 (R ‘000)

2016/17 (R 000)

2017/18 (R ‘000)

2018/19 (R ‘000)

2019/20 (R ‘000)

2020/21 (R ‘000)



Households

Payments for capital assets 6 773 2 026 101 812 24 491 82 251 12 070 4 278Buildings and other fixed structures

Machinery and equipment 6 773 2 026 101 812 24 491 82 251 12 070 4 278

Cultivated assets

Software and other intangible assets


Total 984 503 821 534 983 480 1 431 175 2 022 981 2 124 130 2 230 337

PERFORMANCE AND EXPENDITURE TRENDS

The total spending for Programme 1: Administration for the 2016/17 amounted to R 983 million, this is inclusive of the entire

Compensation Fund staff costs, assets and Information and Communication Technology (ICT) related costs.

The 2017/18 approved budget for Programme 1, total to R 1 431 billion. The huge increase in Programme 1 budget is due to the

newly increased organisational structure and the Fund’s relocation project to the new building, planned for the 2017/18 financial

year.

26



5. PROGRAMME 2: COID SERVICES


To administer compensation claims, medical adjudication, accounts and customer care


• Compensation Benefits: To monitor compensation benefits services.

• Employer Services: To provide registration and assessment services of employers

• Treasury, investment and actuarial services: To provide strategic management of the Fund’s treasury, investment and

actuarial services.

STRATEGIC OBJECTIVE

Strategic Objective 2 Provide faster, reliable and accessible COID Services by 2020

Objective statement 2.1 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.

Baseline • All claims were paid within 45 days.

• 481 853 employers assessed

• 60 working days to process claims for payment


5.2.

ST

RATE

GIC

OBJ

ECTI

VE

AN

NU

AL

TARG

ETS

2018

-201

9

Stra

tegi

c O

bjec

tive

Aud

ited/

Act

ual P

erfo

rman

ceEs

timat

ed

Perf

orm

ance

Med

ium

-ter

m T

arge

ts

2014

/15

2015

/16

2016

/17

2017

/18

2018

/19

2019

/20

2020

/202

1Pr

ovid

e fa

ster

, re

liabl

e an

d ac

cess

ible

CO

ID S

ervi

ces

by 2

020

N/A

95%

of c

laim

s pa

id

with

in 5

wor

king

day

s

(R3,

706

billi

on o

ut o

f R3

.905

)

100%

of a

ppro

ved

bene

fits

paid

with

in

5 w

orki

ng d

ays

by 3

1 M

arch

201

7

(R 4

.3 b

illio

n w

as p

aid

with

in 5

wor

king

day

s.)

95%

of a

ppro

ved

bene

fits

paid

with

in 5

w

orki

ng d

ays

year

ly

98%

of a

ppro

ved

bene

fits

paid

with

in 5

w

orki

ng d

ays

year

ly

100%

of a

ppro

ved

bene

fits

paid

with

in 5

w

orki

ng d

ays

year

ly

100%

of a

ppro

ved

bene

fits

paid

with

in 5

w

orki

ng d

ays

year

ly

481

853

regi

ster

ed

(act

ive)

em

ploy

ers

as a

t 31

Mar

ch 2

018.

46%

of a

ctiv

e em

ploy

ers

wer

e as

sess

ed

95%

of t

he a

nnua

l ta

rget

was

ach

ieve

d

[268

218

act

ive

empl

oyer

s as

sess

ed /

28

3 68

5 (6

0% o

f the

to

tal a

ctiv

e em

ploy

ers

on d

atab

ank=

472

808

an

nual

targ

et *

100)

]

75 %

of a

ctiv

e re

gist

ered

em

ploy

ers

asse

ssed

ann

ually

75%

of a

ctiv

e re

gist

ered

em

ploy

ers

asse

ssed

an

nual

ly b

y 31

Mar

ch

2019

90 %

of a

ctiv

e re

gist

ered

em

ploy

ers

asse

ssed

ann

ually

by

31

Mar

ch 2

020

90 %

of a

ctiv

e re

gist

ered

em

ploy

ers

asse

ssed

ann

ually

by

31

Mar

ch 2

021

N/A

76%

77 9

16 o

ut o

f 103

055

clai

ms

adju

dica

ted

wer

e ad

judi

cate

d w

ithin

60

wor

king

day

s

90%

of t

he re

gist

ered

co

mpe

nsat

ion

clai

ms

wer

e ad

judi

cate

d w

ithin

60

wor

king

day

s

(A to

tal o

f 130

800

co

mpe

nsat

ion

of th

e 14

5 92

2 re

ceiv

ed d

urin

g th

e fin

anci

al y

ear w

ere

adju

dica

ted

with

in 6

0 w

orki

ng d

ays)

.

85%

of c

laim

s ad

judi

cate

d w

ithin

60

wor

king

day

s of

rece

ipt

90%

of c

laim

s ad

judi

cate

d w

ithin

40

wor

king

day

s of

rece

ipt

90%

of c

laim

s ad

judi

cate

d w

ithin

30

wor

king

day

s of

rece

ipt

90%

of c

laim

s ad

judi

cate

d w

ithin

30

wor

king

day

s of

rece

ipt

28



5.3.

PR

OG

RAM

ME

PERF

ORM

AN

CE IN

DIC

ATO

RS A

ND

AN

NU

AL

TARG

ETS

FOR

2018

-201

9

Indi

cato

r nu

mbe

rSt

rate

gic

Obj

ectiv

eKe

y Pe

rfor

man

ce

Indi

cato

rsA

udite

d/ A

ctua

l Per

form

ance

Estim

ated

Pe

rfor

man

ceM

ediu

m-t

erm

Tar

gets

2014

/15

2015

/16

2016

/17

2017

/18

2018

/19

2019

/20

2020

/202

12.

1Pr

ovid

e fa

ster

, re

liabl

e an

d ac

cess

ible

CO

ID S

ervi

ces

by 2

020

Perc

enta

ge o

f ap

prov

ed b

enefi

ts

paid

with

in 5

w

orki

ng d

ays

N/A

95%

of c

laim

s pa

id

with

in 5

wor

king

da

ys

(R3,

706

billi

on o

ut

of R

3.90

5)

100%

of a

ppro

ved

bene

fits

paid

w

ithin

5 w

orki

ng

days

by

31 M

arch

20

17

(R 4

.3 b

illio

n w

as

paid

with

in 5

w

orki

ng d

ays.)

95%

of a

ppro

ved

bene

fits

paid

w

ithin

5 w

orki

ng

days

yea

rly

98%

of a

ppro

ved

bene

fits

paid

w

ithin

5 w

orki

ng

days

yea

rly

100%

of a

ppro

ved

bene

fits

paid

w

ithin

5 w

orki

ng

days

yea

rly

100%

of a

ppro

ved

bene

fits

paid

w

ithin

5 w

orki

ng

days

yea

rly

2.2

Prov

ide

fast

er,

relia

ble

and

acce

ssib

le

COID

Ser

vice

s by

202

0

Perc

enta

ge o

f ac

tive

regi

ster

ed

empl

oyer

s as

sess

ed a

nnua

lly

by 3

1 M

arch

201

9 (e

xcl e

xem

pted

em

ploy

ers)

481

853

regi

ster

ed

(act

ive)

em

ploy

ers

as a

t 31

Mar

ch

2018

.

46%

of a

ctiv

e em

ploy

ers

wer

e as

sess

ed

95%

of t

he

annu

al ta

rget

was

ac

hiev

ed

[268

218

act

ive

empl

oyer

s as

sess

ed /

283

685

(6

0% o

f the

tota

l ac

tive

empl

oyer

s on

dat

aban

k= 4

72

808

annu

al ta

rget

*1

00)]

75 %

of a

ctiv

e re

gist

ered

em

ploy

ers

asse

ssed

ann

ually

75%

of a

ctiv

e re

gist

ered

em

ploy

ers

asse

ssed

ann

ually

by

31

Mar

ch 2

019

90 %

of a

ctiv

e re

gist

ered

em

ploy

ers

asse

ssed

ann

ually

by

31

Mar

ch 2

020

90 %

of a

ctiv

e re

gist

ered

em

ploy

ers

asse

ssed

ann

ually

by

31

Mar

ch 2

021

2.3

Prov

ide

fast

er,

relia

ble

and

acce

ssib

le

COID

Ser

vice

s by

202

0

Perc

enta

ge o

f cl

aim

s ad

judi

cate

d w

ithin

40

wor

king

da

ys o

f rec

eipt

N/A

76%

77 9

16 o

ut o

f 10

3055

cla

ims

adju

dica

ted

wer

e ad

judi

cate

d w

ithin

60

wor

king

day

s

90%

of t

he

regi

ster

ed

com

pens

atio

n cl

aim

s w

ere

adju

dica

ted

with

in

60 w

orki

ng d

ays

(A to

tal o

f

130

800

com

pens

atio

n of

the

145

922

rece

ived

dur

ing

the

finan

cial

yea

r w

ere

adju

dica

ted

with

in 6

0 w

orki

ng

days

).

85%

of c

laim

s ad

judi

cate

d w

ithin

60

wor

king

day

s of

re

ceip

t

90%

of c

laim

s ad

judi

cate

d w

ithin

40

wor

king

day

s of

re

ceip

t

90%

of c

laim

s ad

judi

cate

d w

ithin

30

wor

king

day

s of

re

ceip

t

90%

of c

laim

s ad

judi

cate

d w

ithin

30

wor

king

day

s of

re

ceip

t


5.4.

Q

UA

RTER

LY T

ARG

ETS

FOR

2018

-201

9

Indi

cato

r nu

mbe

rSt

rate

gic

Obj

ectiv

eKe

y Pe

rfor

man

ce

Indi

cato

rsRe

port

ing

Peri

odA

nnua

l Tar

get

2018

-201

9Q

uart

erly

Tar

gets

Budg

et e

stim

ate

(R’0

00)

1st

2nd

3rd

4th

2.1

Prov

ide

fast

er,

relia

ble

and

acce

ssib

le C

OID

Se

rvic

es b

y 20

20

Perc

enta

ge o

f ap

prov

ed b

enefi

ts

paid

with

in 5

w

orki

ng d

ays

Qua

rter

ly98

% o

f app

rove

d be

nefit

s pa

id

with

in 5

wor

king

da

ys y

early

98%

of a

ppro

ved

bene

fits

paid

w

ithin

5 w

orki

ng

days

yea

rly

98%

of a

ppro

ved

bene

fits

paid

w

ithin

5 w

orki

ng

days

yea

rly

98%

of a

ppro

ved

bene

fits

paid

with

in

5 w

orki

ng d

ays

year

ly

98%

of a

ppro

ved

bene

fits

paid

with

in

5 w

orki

ng d

ays

year

ly

R 6

508

209

2.2

Prov

ide

fast

er,

relia

ble

and

acce

ssib

le C

OID

Se

rvic

es b

y 20

20

Perc

enta

ge o

f ac

tive

regi

ster

ed

empl

oyer

s as

sess

ed a

nnua

lly

by 3

1 M

arch

201

9 (e

xcl e

xem

pted

em

ploy

ers)

Qua

rter

ly75

% o

f act

ive

regi

ster

ed

empl

oyer

s as

sess

ed a

nnua

lly

by 3

1 M

arch

201

9

40%

55

%

65%

75

%

2.3

Prov

ide

fast

er,

relia

ble

and

acce

ssib

le C

OID

Se

rvic

es b

y 20

20

Perc

enta

ge o

f cl

aim

s ad

judi

cate

d w

ithin

40

wor

king

da

ys o

f rec

eipt

Qua

rter

ly90

% o

f cla

ims

adju

dica

ted

with

in

40 w

orki

ng d

ays

of

rece

ipt

90%

of c

laim

s ad

judi

cate

d w

ithin

40

wor

king

day

s of

re

ceip

t

90%

of c

laim

s ad

judi

cate

d w

ithin

40

wor

king

day

s of

re

ceip

t

90%

of c

laim

s ad

judi

cate

d w

ithin

40

wor

king

day

s of

re

ceip

t

90%

of c

laim

s ad

judi

cate

d w

ithin

40

wor

king

day

s of

re

ceip

t

30





ADJUSTED APPROPRIATION

2020-2021 Budget Forecasts

2014/15 (R Million)

2015/16 (R Million)

2016/17 (R Million)

2017/18 (R Million)

2018/19 (R Million)

2019/20 (R Million)

2020/21 (R Million)

Programme 2: COID SERVICES

6 038 562 8 510 520 5 590 621 7 810 777 5 903 137 6 198 294 6 508 209

CD: COID Services 6 038 562 8 510 520 5 590 621 7 810 777 5 839 240 6 131 202 6 437 762

CD: Provincial Operations - - - - 63 897 67 092 70 447

Total 6 038 562 8 510 520 5 590 621 7 810 777 5 903 137 6 198 294 6 508 209Change to 2005 budget estimate



Economic classification

Current payments 6 038 562 8 510 520 5 590 621 7 810 777 5 903 137 6 198 294 6 508 209Compensation of Employees - - - - - - -

Compensation Benefits 6 033 809 7 952 904 5 526 309 7 775 060 5 882 747 6 147 471 6 454 845

Goods and Services of which: 4 753 557 616 64 312 35 717 20 390 50 823 53 364

Communication

Computer services


2 853 59 980 3 945 4 378 4 372 4 569 4 797

Inventory 4 509 4 712 4 948

Maintenance repair and running cost

Operating leases

Travel and subsistence 1 900 3 500 367 1 339 1 457 1 523 1 599

Debt Collectors - 494 136 60 000 30 000 - - -

Other (Investment Management fees) - 10 052 40 019 42 020









Households







Households





2014/15 (R Million)

2015/16 (R Million)

2016/17 (R Million)

2017/18 (R Million)

2018/19 (R Million)

2019/20 (R Million)

2020/21 (R Million)

Payments for capital assets Buildings and other fixed structures

Machinery and equipment

Cultivated assets



Total 6 038 562 8 510 520 5 590 621 7 810 777 5 903 137 6 198 294 6 508 209


Programme 2: COID Services, recorded a total spending of R 5 591 billion for the 2016/17 financial year, the major part of the

expenditure under this programme is for the benefits paid for the period under review. The programme recorded a spending of

63% for the 2016/17; the 37% under spending was mainly due to finalised and not yet paid claims.

The 2017/18 approved budget for Programme 2, amounts to 7.8 billion. This programme has been restructured on the new

organisational structure, as from the 2018/19 financial year, it will cater only for Compensation benefits excluding Medical benefits.

32



6. PROGRAMME 3: MEDICAL BENEFITS


To provide strategic support and medical expertise to claims processing.


• Medical Services: To provide research and best practice standards regarding occupational diseases and injuries to support

the Fund’s compensation and assessment services.

• Medical Claims: To manage the adjudication of the medical claims and the processing of medical accounts.


Strategic objective 2 Provide faster, reliable and accessible COID Services by 2020

Objective statement 2 To process compensation benefits and medical expenses for injured and diseased workers and


Baseline No baseline


6.2.

ST

RATE

GIC

OBJ

ECTI

VE

AN

NU

AL

TARG

ETS

2018

-201

9

Stra

tegi

c O

bjec

tive

Aud

ited/

Act

ual P

erfo

rman

ceEs

timat

ed P

erfo

rman

ceM

ediu

m-t

erm

Tar

gets

2014

/15

2015

/16

2016

/17

2017

/18

2018

/19

2019

/20

2020

/21

Prov

ide

fast

er,

relia

ble

and

acce

ssib

le C

OID

Se

rvic

es b

y 20

20

N/A

97%

512

976

out o

f 529

785

m

edic

al in

voic

es a

ppro

ved

for p

aym

ent w

ithin

60

wor

king

day

s

89%

of t

he m

edic

al c

laim

s w

ere

final

ised

with

in 6

0 w

orki

ng d

ays

of re

ceiv

ing

invo

ice

(A to

tal o

f 612

960

m

edic

al c

laim

s of

the

686

385

rece

ived

dur

ing

the

finan

cial

yea

r wer

e fin

alis

ed w

ithin

60

wor

king

da

ys)

85%

of m

edic

al in

voic

es

final

ised

with

in 6

0 w

orki

ng d

ays

of re

ceip

t

85%

of m

edic

al

invo

ices

fina

lised

w

ithin

60

wor

king

da

ys o

f rec

eipt

85%

of m

edic

al

invo

ices

fina

lised

w

ithin

40

wor

king

da

ys o

f rec

eipt

85%

of m

edic

al

invo

ices

fina

lised

w

ithin

30

wor

king

da

ys o

f rec

eipt

N/A

N/A

N/A

Resp

ond

to 8

5%

of re

ceiv

ed p

re-

auth

oris

atio

n re

ques

t w

ithin

10

wor

king

day

s

85%

of p

re-

auth

oris

atio

ns

resp

onde

d to

with

in

10 w

orki

ng d

ays

on

prev

ious

ly fi

nalis

ed

case

s

85%

of p

re-

auth

oris

atio

ns

resp

onde

d to

with

in

10 w

orki

ng d

ays

on

prev

ious

ly fi

nalis

ed

case

s

85%

of p

re-

auth

oris

atio

ns

resp

onde

d to

with

in

10 w

orki

ng d

ays

on

prev

ious

ly fi

nalis

ed

case

s

34



6.3.

PR

OG

RAM

ME

PERF

ORM

AN

CE IN

DIC

ATO

RS A

ND

AN

NU

AL

TARG

ETS

FOR

2018

-201

9

Indi

cato

r nu

mbe

rSt

rate

gic

Obj

ectiv

eKe

y Pe

rfor

man

ce

Indi

cato

rsA

udite

d/ A

ctua

l Per

form

ance

Estim

ated

Pe

rfor

man

ceM

ediu

m-t

erm

Tar

gets

2014

/15

2015

/16

2016

/17

2017

/18

2018

/19

2019

/20

2020

/21

3.1

Prov

ide

fast

er,

relia

ble

and

acce

ssib

le C

OID

Se

rvic

es b

y 20

20

Perc

enta

ge o

f med

ical

in

voic

es fi

nalis

ed w

ithin

60

wor

king

day

s of

re

ceip

t

N/A

97%

512

976

out o

f 52

9 78

5 m

edic

al

invo

ices

app

rove

d fo

r pay

men

t with

in

60 w

orki

ng d

ays

89%

of t

he

med

ical

cla

ims

wer

e fin

alis

ed

with

in 6

0 w

orki

ng

days

of r

ecei

ving

in

voic

e

(A to

tal o

f

612

960

med

ical

cl

aim

s of

the

686

385

rece

ived

du

ring

the

finan

cial

yea

r wer

e fin

alis

ed w

ithin

60

wor

king

day

s)

85%

of m

edic

al

invo

ices

fina

lised

w

ithin

60

wor

king

da

ys o

f rec

eipt

85%

of m

edic

al

invo

ices

fina

lised

w

ithin

60

wor

king

da

ys o

f rec

eipt

85%

of m

edic

al

invo

ices

fina

lised

w

ithin

40

wor

king

da

ys o

f rec

eipt

85%

of m

edic

al

invo

ices

fina

lised

w

ithin

30

wor

king

da

ys o

f rec

eipt

3.2

Perc

enta

ge o

f pre

-au

thor

isat

ions

resp

onde

d to

with

in 1

0 w

orki

ng d

ays

on p

revi

ousl

y fin

alis

ed

case

s

N/A

N/A

N/A

Resp

ond

to

85%

of r

ecei

ved

pre-

auth

oris

atio

n re

ques

t with

in 1

0 w

orki

ng d

ays

85%

of p

re-

auth

oris

atio

ns

resp

onde

d to

w

ithin

10

wor

king

da

ys o

n pr

evio

usly

fin

alis

ed c

ases

85%

of p

re-

auth

oris

atio

ns

resp

onde

d to

w

ithin

10

wor

king

da

ys o

n pr

evio

usly

fin

alis

ed c

ases

85%

of p

re-

auth

oris

atio

ns

resp

onde

d to

w

ithin

10

wor

king

da

ys o

n pr

evio

usly

fin

alis

ed c

ases


6.4.

Q

UA

RTER

LY T

ARG

ETS

FOR

2018

-201

9

Indi

cato

r nu

mbe

rSt

rate

gic

Obj

ectiv

eKe

y Pe

rfor

man

ce

Indi

cato

rsRe

port

ing

Peri

odA

nnua

l Tar

get

2018

-201

9Q

uart

erly

Tar

gets

Budg

et e

stim

ate

(R’0

00)

1st

2nd

3rd

4th

3.1

Prov

ide

fast

er, r

elia

ble

and

acce

ssib

le C

OID

Se

rvic

es b

y 20

20

Perc

enta

ge o

f m

edic

al in

voic

es

final

ised

with

in 6

0 w

orki

ng d

ays

of

rece

ipt

Qua

rter

ly85

% o

f med

ical

in

voic

es fi

nalis

ed

with

in 6

0 w

orki

ng

days

of r

ecei

pt

85%

of m

edic

al

invo

ices

fina

lised

w

ithin

60

wor

king

da

ys o

f rec

eipt

85%

of m

edic

al

invo

ices

fina

lised

w

ithin

60

wor

king

da

ys o

f rec

eipt

85%

of m

edic

al

invo

ices

fin

alis

ed w

ithin

60

wor

king

da

ys o

f rec

eipt

85%

of m

edic

al

invo

ices

fina

lised

w

ithin

60

wor

king

da

ys o

f rec

eipt

R 3

338

753

3.2

Perc

enta

ge o

f pr

e-au

thor

isat

ions

re

spon

ded

to w

ithin

10

wor

king

day

s on

pr

evio

usly

fina

lised

ca

ses

Qua

rter

ly85

% o

f pre

- au

thor

isat

ions

re

spon

ded

to

with

in 1

0 w

orki

ng

days

on

prev

ious

ly

final

ised

cas

es

85%

of p

re-

auth

oris

atio

ns

resp

onde

d to

w

ithin

10

wor

king

da

ys o

n pr

evio

usly

fin

alis

ed c

ases

85%

of p

re-

auth

oris

atio

ns

resp

onde

d to

with

in 1

0 w

orki

ng d

ays

on p

revi

ousl

y fin

alis

ed c

ases

85%

of p

re-

auth

oris

atio

ns

resp

onde

d to

with

in 1

0 w

orki

ng d

ays

on p

revi

ousl

y fin

alis

ed c

ases

85%

of p

re-

auth

oris

atio

ns

resp

onde

d to

w

ithin

10

wor

king

da

ys o

n pr

evio

usly

fin

alis

ed c

ases

36







2014/15 (R ‘000)

2015/16 (R ‘000)

2016/17 (R 000)

2017/18 (R ‘000)

2018/19 (R ‘000)

2019/20 (R ‘000)

2020/21 (R ‘000)

Programme 3:

MEDICAL BENEFITS

22 523 31 979 47 440 65 101 3 106 697 3 187 761 3 338 753

CD: Medical Benefits 22 523 31 979 47 440 65 101 3 106 697 3 187 761 3 338 753

Total 22 523 31 979 47 440 65 101 3 106 697 3 187 761 3 338 753Change to 2005 budget estimate



Economic classificationCurrent payments 22 523 31 979 47 440 65 101 3 106 697 3 187 761 3 338 753Compensation of Employees - - - - - - -

Compensation Benefits - - - - 3 100 000 3 180 000 3 307 200

Goods and Services of which: 22 523 31 979 47 440 65 101 6 697 7 761 31 553

Communication 6 700 7 900 9 980 4 165 - - -

Computer services - - - -


16 - - 15 000

Inventory 542 - - -

Maintenance repair and running cost - - - -

Operating leases 157 - - -


Agency and support/ Outsourced services 11 290 14 000 22 890 4 726

Other 2 000 2 679 6 222 5 0442









Households







Households





2014/15 (R ‘000)

2015/16 (R ‘000)

2016/17 (R 000)

2017/18 (R ‘000)

2018/19 (R ‘000)

2019/20 (R ‘000)

2020/21 (R ‘000)

Payments for capital assets Buildings and other fixed structures


Cultivated assets



Total 22 523 31 979 47 440 65 101 3 106 697 3 187 761 3 338 753


Programme 3 consists of an administrative budget for Provincial Offices, and recorded a total of R 47 million spending for the

2016/17 financial year. The 2017/18 approved budget allocation for Programme 3, is R 65 million.

38



7. PROGRAMME 4: ORTHOTIC AND REHABILITATION

7.1 PROGRAMME PURPOSE

To provide support in the Orthotic and Rehabilitation Services of the Fund.


Labour Activation Programmes: To provide strategic leadership and guidance on the implementation of the labour activation

programmes.

Orthotics and Prosthetic: To manage and advise on the Orthotics and Prosthetic Services.

Rehabilitation and Re-integration: To develop, implement and monitor a rehabilitation programme for injured employees and

advise the Compensation Fund on all matters pertaining to the rehabilitation of injured employees.


Strategic Objective 2 Provide faster, reliable and accessible COID Services by 2020

Objective statement To process compensation benefits and medical expenses for injured and diseased workers and


Baseline No baseline


7.2.

ST

RATE

GIC

OBJ

ECTI

VE

AN

NU

AL

TARG

ETS

2018

-201

9

Stra

tegi

c O

bjec

tive

Aud

ited/

Act

ual P

erfo

rman

ceEs

timat

ed P

erfo

rman

ceM

ediu

m-t

erm

Tar

gets

2014

/15

2015

/16

2016

/17

2017

/18

2018

/19

2019

/20

2020

/21

Prov

ide

fast

er,

relia

ble

and

acce

ssib

le C

OID

Se

rvic

es b

y 20

20

N/A

N/A

N/A

85%

of r

eque

sts

rece

ived

for P

rost

hesi

s an

d as

sist

ive

devi

ces

adju

dica

ted

with

in 1

5 w

orki

ng d

ays

85%

of c

ompl

iant

as

sist

ive

devi

ces

requ

ests

resp

onde

d to

w

ithin

15

wor

king

day

s of

rece

ipt

85%

of c

ompl

iant

of

assi

stiv

e de

vice

s re

ques

ts

resp

onde

d to

with

in 1

5 w

orki

ng d

ays

of re

ceip

t

85%

of c

ompl

iant

as

sist

ive

devi

ces

requ

ests

re

spon

ded

to w

ithin

15

wor

king

day

s of

rece

ipt

7.3.

P

ROG

RAM

ME

PERF

ORM

AN

CE IN

DIC

ATO

RS A

ND

AN

NU

AL

TARG

ETS

FOR

2018

-201

9

Indi

cato

r nu

mbe

rSt

rate

gic

Obj

ectiv

eKe

y Pe

rfor

man

ce

Indi

cato

rsA

udite

d/ A

ctua

l Per

form

ance

Estim

ated

Per

form

ance

Med

ium

-ter

m T

arge

ts

2014

/15

2015

/16

2016

/17

2017

/18

2018

/19

2019

/20

2020

/21

4.1

Prov

ide

fast

er, r

elia

ble

and

acce

ssib

le C

OID

Se

rvic

es b

y 20

20

Perc

enta

ge o

f co

mpl

iant

requ

ests

fo

r ass

istiv

e de

vice

s re

spon

ded

to w

ithin

15

wor

king

day

s of

rece

ipt

N/A

N/A

N/A

85%

of r

eque

sts

rece

ived

fo

r Pro

sthe

sis

and

assi

stiv

e de

vice

s ad

judi

cate

d w

ithin

15

wor

king

day

s

85%

of c

ompl

iant

as

sist

ive

devi

ces

requ

ests

re

spon

ded

to w

ithin

15

wor

king

day

s of

re

ceip

t

85%

of c

ompl

iant

of

ass

istiv

e de

vice

s re

ques

ts

resp

onde

d to

with

in 1

5 w

orki

ng d

ays

of

rece

ipt

85%

of c

ompl

iant

as

sist

ive

devi

ces

requ

ests

re

spon

ded

to w

ithin

15

wor

king

day

s of

re

ceip

t

7.4.

Q

UA

RTER

LY T

ARG

ETS

FOR

2018

-201

9

Indi

cato

r nu

mbe

rSt

rate

gic

Obj

ectiv

eKe

y Pe

rfor

man

ce

Indi

cato

rsRe

port

ing

Peri

odA

nnua

l Tar

get

2018

-201

9Q

uart

erly

Tar

gets

Budg

et e

stim

ate

(R’0

00)

1st

2nd

3rd

4th

4.1

Prov

ide

fast

er, r

elia

ble

and

acce

ssib

le C

OID

Se

rvic

es b

y 20

20

Perc

enta

ge o

f co

mpl

iant

requ

ests

fo

r ass

istiv

e de

vice

s re

spon

ded

to w

ithin

15

wor

king

day

s of

re

ceip

t

Qua

rter

ly85

% o

f com

plia

nt

assi

stiv

e de

vice

s re

ques

ts re

spon

ded

to w

ithin

15

wor

king

day

s of

re

ceip

t

85%

of c

ompl

iant

as

sist

ive

devi

ces

requ

ests

resp

onde

d to

with

in 1

5 w

orki

ng d

ays

of

rece

ipt

85%

of c

ompl

iant

as

sist

ive

devi

ces

requ

ests

re

spon

ded

to

with

in 1

5 w

orki

ng

days

of r

ecei

pt

85%

of

com

plia

nt

assi

stiv

e de

vice

s re

ques

ts

resp

onde

d to

with

in 1

5 w

orki

ng d

ays

of

rece

ipt

85%

of c

ompl

iant

as

sist

ive

devi

ces

requ

ests

resp

onde

d to

with

in 1

5 w

orki

ng d

ays

of

rece

ipt

R 2

677

40







2014/15 (R ‘000)

2015/16 (R ‘000)

2016/17 (R 000)

2017/18 (R ‘000)

2018/19 (R ‘000)

2019/20 (R ‘000)

2020/21 (R ‘000)

Programme 4:

ORTHOTIC AND MEDICAL REHABILITATION

- - - - 2 450 2 550 2 677

CD: Orthotic, LAP and Rehabilitation - - - - 2 450 2 550 2 677

Total 2 450 2 550 2 677Change to 2005 budget estimate



Economic classificationCurrent payments 2 450 2 550 2 677Compensation of Employees - - -

Compensation Benefits - - -

Goods and Services of which: 2 450 2 550 2 677

Communication 56 59 61

Computer services - - -


2 180 2 267 2 382

Inventory 34 35 36

Maintenance repair and running cost - - -

Operating leases - - -

Travel and subsistence 180 188 198

Interest and rent on land - - -


- - -

Transfers and subsidies to: - - -Provinces and municipalities






Households







Households

Payments for capital assets

Buildings and other fixed structures





2014/15 (R ‘000)

2015/16 (R ‘000)

2016/17 (R 000)

2017/18 (R ‘000)

2018/19 (R ‘000)

2019/20 (R ‘000)

2020/21 (R ‘000)


Cultivated assets



Total - - - - 2 450 2 550 2 677


There is no historic financial performance data on Programme 4. This is a new programme as a result of the newly approved

functional structure. The only financial information provided is budget estimates for the 2018-2021 MTEF period.

42




PART C: LINKS TO OTHER PLANS

PART CLINKS TO OTHER PLANS

44



PART

C: L

INK

S TO

OTH

ER P

LAN

S Li

nks

to th

e lo

ng-t

erm

infr

astr

uctu

re a

nd o

ther

cap

ital p

lans

No.

Proj

ect n

ame

Prog

ram

me

PRO

JECT

DES

CRIP

TIO

N /

TYPE

OF

STRU

CTU

REO

UTP

UTS

ESTI

MAT

ED

PRO

JECT

CO

STEX

PEN

DIT

URE

TO

DAT

EPR

OJE

CT D

URA

TIO

N

New

and

repl

acem

ent a

sset

s ( R

)

01Le

asin

g of

Offi

ce A

ccom

mod

atio

n fo

r CF

CF

Leas

ing

of o

ffice

acc

omm

odat

ion

thro

ugh

PIC

. Lea

seho

ld Im

prov

emen

ts

to th

e le

ased

bui

ldin

g

Offi

ce A

ccom

mod

atio

n ac

quire

d fo

r CF

R200

mill

ion

Wor

k In

Pro

gres

sA

pril

2017

Mar

ch 2

019

02A

cqui

sitio

n of

Bui

ldin

gs in

Pr

ovin

ces

CF

Offi

ce s

pace

for D

ecen

tral

ised

(P

rovi

nces

) offi

ces

Offi

ce a

ccom

mod

atio

n ac

quire

d fo

r de

cent

ralis

ed o

ffice

s

R 50

0 m

illio

nTh

roug

h PI

C

Man

date

Apr

il 20

18M

arch

202

0

03Re

plac

emen

t of O

ffice

Fur

nitu

re

and

othe

r Equ

ipm

ent

CF

Supp

ly a

nd In

stal

l Offi

ce F

urni

ture

and

ot

her E

quip

men

t for

CF

New

Offi

ce fu

rnitu

re

and

equi

pmen

t for

all

CF

Offi

cial

s

R35

mill

ion

Wor

k In

Pro

gres

sA

pril

2017

Mar

ch 2

019

Tota

l new

and

repl

acem

ent a

sset

s03

Mai

nten

ance

and

repa

irs (

R)

02M

aint

enan

ce a

nd R

epai

rs o

f Bis

ho

Build

ing

CF

Stre

ngth

en th

e bu

ildin

g ro

of s

truc

ture

(w

ater

proo

fing)

and

in th

e bu

ildin

g

Mai

ntai

n an

d Re

plac

e m

ajor

par

ts o

f th

e Ba

ckup

Gen

erat

or

Wel

l mai

ntai

ned

build

ing

R 5

mill

ion

Non

eA

pril

2018

Mar

ch 2

019

Tota

l mai

nten

ance

and

repa

irs02

Reha

bilit

atio

n, re

nova

tions

and

refu

rbis

hmen

ts (R

)

01Re

furb

ishm

ent o

f Com

pens

atio

n H

ouse

CF

Stre

ngth

enin

g St

ruct

ural

str

uctu

re o

f th

e bu

ildin

g an

d bu

ildin

g re

nova

tions

Wel

l mai

ntai

ned

and

stru

ctur

ed

Com

pens

atio

n H

ouse

bu

ildin

g

R 20

0 m

illio

nN

one

Apr

il 20

18M

arch

202

0

02Re

inst

atem

ent o

f lea

sed

build

ings

CF

Rest

orat

ion

of th

e Le

ased

Bui

ldin

g to

its

orig

inal

sta

te b

efor

e re

loca

tion.

Rest

ored

leas

ed b

uild

ing

to it

s no

rmal

sta

teR

2 m

illio

nN

one

Apr

il 20

18M

arch

201

9

Tota

l reh

abili

tatio

n, re

nova

tions

and

refu

rbis

hmen

ts (R

))02


ANNEXURE D

1. VISION

To be a world class provider of sustainable compensation for occupational injuries and diseases, rehabilitation and reintegration

services.

2. MISSION

• To provide efficient, quality, client-centric and accessible COID services.

• To sustain financial viability.

• To ensure an organisation that takes care of the needs of its staff for effective service delivery.

3. VALUES

We shall at all times adhere to and live the Batho Pele Principles

4. STRATEGIC ORIENTATED GOALS

ALIGNMENT OF GOVERNMENT OUTCOMES, DOL STRATEGIC OBJECTIVES (KRA’S), CF STRATEGIC OUTCOMES AND CF STRATEGIC OBJECTIVES

Government

Service Delivery

Outcomes

DOL Strategic Objectives CF Strategic Outcomes CF Strategic Objectives

Outcome 4: Decent Employment through inclusive economic growth

Objective (KRA 3): Protecting vulnerable workers,

Strengthening of Social Security through compensating for occupational injuries and diseases

Provide faster, reliable and accessible COID Services by 2020

KRA 5: Strengthening social protectionOutcome 13: A comprehensive,

responsive and sustainable social protection system

Outcome 12: An efficient, effective and development oriented public service

KRA 8: Strengthening the institutional capacity of the Department

Strengthening the institutional capacity of the Fund

Provide an effective and efficient client oriented support services.

46



AN

NEX

URE

ETE

CHN

ICA

L IN

DIC

ATO

R D

ESCR

IPTI

ON

S (T

IDs)

PRO

GRA

MM

E 1:

AD

MIN

ISTR

ATIO

NTi

tle (K

PI)

Defi

nitio

n Pu

rpos

e /

impo

rtan

ceD

ata

sour

ceCa

lcul

atio

n m

etho

dD

ata

lim

itatio

nsTy

pe o

f in

dica

tor

Calc

ulat

ion

type

Repo

r-

ting

cycl

eN

ew

indi

cato

rD

esire

d

perf

orm

ance

)Re

spon

si-

bilit

y

Risk

Man

agem

ent

The

Fund

’s ris

k m

an-

agem

ent

mat

urity

leve

l in

crea

sed

to 4

by

31

Mar

ch

2018

The

KPI i

s a

mea

surin

g to

ol o

f the

ann

ual

mile

ston

es w

hich

ne

ed to

be

achi

eved

in

ord

er to

att

ain

the

desi

red

mat

urity

leve

l by

201

8/20

19

The

KPI w

ill

show

the

mile

ston

es

achi

eved

in

purs

uit o

f the

de

sire

d ris

k m

atur

ity le

vel

1) C

ompe

nsat

ion

Fund

’s m

atur

ity

self-

asse

ssm

ent

repo

rt a

t the

end

fin

anci

al y

ear.

Mat

urity

sel

f-ass

essm

ent t

o be

don

e us

ing

the

CF

self-

asse

ssm

ent m

odel

The

follo

win

g as

sess

men

t crit

eria

that

co

nstit

utes

that

des

ired

mat

urity

leve

l:

Leve

l 3 :

Cont

rol

At t

his

leve

l, in

stitu

tion-

wid

e ris

k as

-se

ssm

ents

hav

e be

en c

ompl

eted

and

th

e ne

cess

ary

inst

itutio

nal c

apac

ity

and

stru

ctur

es to

sup

port

risk

man

-ag

emen

t are

in p

lace

. Ris

k m

anag

e-m

ent p

roce

sses

, pra

ctic

es a

nd s

yste

ms

satis

fy a

ll le

gisl

ativ

e re

quire

men

ts a

t th

is s

tage

but

hav

e lim

ited

influ

ence

on

the

cont

rol e

nviro

nmen

t. Ri

sk

man

agem

ent p

ract

ices

add

litt

le v

alue

in

the

inst

itutio

n. R

isk

asse

ssm

ents

ge

nera

te e

xces

sive

dat

a th

at p

rovi

de

limite

d in

telli

genc

e w

ith re

gard

to

deci

sion

mak

ing.

Dep

ende

ncy

on in

tern

al

syst

ems

(DO

L C

itrix

, in

tern

et

expl

orer

, CF

self-

as-

sess

men

t m

odel

)

Out

put

Cum

ulat

ive

Ann

ual

No

The

aim

is to

en

sure

that

th

e Fu

nd’s

risk

man

agem

ent

mat

urity

leve

l in

crea

sed

to 4

by

the

end

of th

e fin

anci

al y

ear

Dire

ctor

: Ris

k M

anag

emen

t

Leve

l 4: I

nfor

mat

ion

Risk

man

agem

ent i

s fir

mly

em

bedd

ed

in th

e in

stitu

tion.

Met

rics

to m

easu

re

the

valu

e-ad

ded

of ri

sk m

anag

emen

t ar

e in

pla

ce. A

ggre

gate

d ris

k m

an-

agem

ent i

nfor

mat

ion

is c

ircul

ated

to

rele

vant

offi

cial

s an

d ov

ersi

ght s

truc

-tu

res

as a

mat

ter o

f rou

tine.

Met

rics

are

in p

lace

to m

easu

re a

nd m

onito

r th

e va

lue

of a

dd o

f ris

k m

anag

emen

t. Ri

sks

prov

ide

inte

llige

nce

with

rega

rd

to d

ecis

ion

mak

ing.


PRO

GRA

MM

E 1:

AD

MIN

ISTR

ATIO

NTi

tle (K

PI)

Defi

nitio

n Pu

rpos

e /

impo

rtan

ceD

ata

sour

ceCa

lcul

atio

n m

etho

dD

ata

lim

itatio

nsTy

pe o

f in

dica

tor

Calc

ulat

ion

type

Repo

r-

ting

cycl

eN

ew

indi

cato

rD

esire

d

perf

orm

ance

)Re

spon

si-

bilit

y

Inte

rnal

Aud

it

Perc

enta

ge

impl

emen

-ta

tion

of th

e ap

prov

ed

annu

al ri

sk-

base

d au

dit

plan

This

indi

cato

r is

an in

dica

tion

of

the

perc

enta

ge o

f pr

ojec

ts e

xecu

ted

on

the

appr

oved

ann

ual

risk

base

d au

dit p

lan,

in

clud

ing

addi

tiona

l ad

hoc

pro

ject

s

App

rove

d ris

k-ba

sed

audi

t pla

n re

fers

to

the

annu

al a

udit

plan

co

mpr

isin

g of

the

audi

t pro

ject

s to

be

exec

uted

dur

ing

the

year

whi

ch h

as b

een

sign

ed-o

ff ap

prov

ed

by A

udit

Com

mitt

ee

The

per-

form

ance

m

easu

res

the

impl

emen

-ta

tion

of th

e ap

prov

ed a

n-nu

al ri

sk-b

ased

au

dit p

lan

Sum

mar

y ta

ble

of

com

plet

ed p

roj-

ects

as

per t

he

plan

, inc

ludi

ng

addi

tiona

l ad

hoc

proj

ects

.

Com

plet

ed A

udit

repo

rt a

nd/o

r ac-

know

ledg

emen

t of

repo

rt s

igne

d-off

by

dele

gate

d offi

cial

Num

erat

or: N

umbe

r of A

udit

Proj

ects

co

mpl

eted

to d

ate

Den

omin

ator

: Num

ber o

f app

rove

d pr

ojec

t for

the

year

.

Calc

ulat

ion:

Perc

enta

ge im

plem

enta

tion

of th

e ap

prov

ed a

nnua

l ris

k-ba

sed

audi

t pla

n =

Num

erat

or d

ivid

ed b

y D

enom

inat

or

mul

tiplie

d by

100

.

* Th

e qu

arte

rly p

erfo

rman

ce is

mea

-su

red

as c

umul

ativ

e e.

g. T

he q

uart

er

3 ou

tput

is c

alcu

late

d by

add

ing

Q1+

Q2+

Q3

outp

uts

toge

ther

1) M

an-

agem

ent

avai

labi

lity

and

co-o

p-er

atio

n

Aud

it co

m-

mitt

ees

not

held

Out

put

Cum

ulat

ive

Qua

rter

lyN

oTh

e ai

m is

to e

n-su

re th

at 8

5% o

f pr

ojec

ts o

n th

e ris

k ba

sed

plan

ar

e im

plem

ent-

ed b

y 31

Mar

ch

2019

Chi

ef A

udit

Exec

utiv

e-

(Dire

ctor

: In

tern

al

Aud

it)

Fina

ncia

l man

agem

ent

Perc

enta

ge

annu

al

incr

ease

on

inve

stm

ent

retu

rns

by

31 M

arch

of

the

curr

ent

finan

cial

yea

r co

mpa

red

to

the

prev

ious

fin

anci

al y

ear

This

indi

cato

r in

dica

tes

that

on

an

annu

al b

asis

the

Fund

sh

ould

rece

ive

the

inve

stm

ent r

etur

ns o

f C

PI (a

s pe

r (St

atsS

A)

plus

2%

. Thi

s w

ill

ensu

re th

at th

e Fu

nd

is m

ore

profi

tabl

e

Inve

stm

ent r

etur

n fo

r cu

rren

t fina

ncia

l yea

r is

the

tota

l inc

ome

resu

lting

from

inve

st-

men

ts a

nd in

clud

es

divi

dend

s, in

tere

st

and

capi

tal g

ains

or

loss

es.

The

per-

form

ance

m

easu

res

the

retu

rns

in

inve

stm

ent

1. T

he a

nnua

l CPI

as

per

the

Stat

sSA

pu

blic

atio

ns a

s at

31

Mar

ch o

f the

cu

rren

t fina

ncia

l ye

ar

The

PIC

repo

rt fo

r 31

Mar

ch o

f the

cu

rren

t fina

ncia

l ye

ar

Num

erat

or:

Tota

l ret

urn

for c

urre

nt fi

nanc

ial y

ear

Den

omin

ator

: tot

al in

vest

men

t ba

lanc

e at

the

end

of th

e pr

evio

us

finan

cial

yea

r

Calc

ulat

ion:

Perc

enta

ge a

nnua

l inc

reas

e on

in

vest

men

t ret

urns

by

31 M

arch

of t

he

curr

ent fi

nanc

ial y

ear c

ompa

red

to th

e pr

evio

us fi

nanc

ial y

ear

= N

umer

ator

div

ided

by

Den

omin

ator

m

ultip

lied

by 1

00

% in

vest

men

t ret

urn

is c

ompa

red

to

Ann

ual t

arge

t (C

PI+

2%)

If %

retu

rn is

equ

al/m

ore

than

ann

ual

targ

et, i

t mea

ns th

e an

nual

targ

et h

as

been

ach

ieve

d/ e

xcee

ded,

if le

ss th

an

the

annu

al ta

rget

, the

ann

ual t

arge

t ha

s no

t bee

n ac

hiev

ed

Del

ays

in th

e pu

blic

atio

n of

the

CPI

Re

port

Out

put

Cum

ulat

ive

Ann

ual

No

The

aim

is to

en-

sure

that

ther

e is

an

nual

incr

ease

of

CPI

+2%

on

inve

stm

ent

retu

rns

of th

e cu

rren

t fina

ncia

l ye

ar c

ompa

red

to th

e pr

evio

us

finan

cial

yea

r 20

19

Chi

ef F

inan

-ci

al O

ffice

r

48



PRO

GRA

MM

E 2:

CO

ID S

ERVI

CES

Title

(KPI

)D

efini

tion

Purp

ose

/ Im

port

ance

Dat

a So

urce

Calc

ulat

ion

Met

hod

Dat

a

Lim

itatio

nsTy

pe o

f in

dica

tor

Calc

ulat

ion

Type

Repo

rtin

g Cy

cle

New

In

dica

tor

Des

ired

perf

orm

ance

)Re

spon

sibi

lit

2.1.

Per

cent

age

of a

ppro

ved

bene

fits

paid

w

ithin

5 w

ork-

ing

days

This

indi

cato

r ind

icat

es

the

amou

nt (R

ands

and

Ce

nts)

of b

enefi

ts p

aid

as

a pe

rcen

tage

of a

ll be

n-efi

t cla

ims

and

med

ical

in

voic

es, a

ppro

ved

by

Ope

ratio

ns fo

r pay

men

t to

be

paid

in fu

ll w

ithin

5

wor

king

day

s of

rece

ipt

in F

inan

ce.

App

rove

d be

nefit

s pa

id re

fers

to: F

inan

cial

Co

ntro

l pay

s on

ly fo

r the

ap

prov

ed c

laim

s an

d ap

prov

ed m

edic

al in

voi-

ces

i.e. w

here

Ope

ratio

ns

auth

oris

es F

inan

cial

Co

ntro

l to

pay

App

rova

l dat

e re

fers

to

the

date

whe

n O

pera

-tio

ns a

ppro

ves

the

clai

m

for p

aym

ent.

The

date

pai

d re

fers

to

the

date

whe

n th

e cl

aim

pa

ymen

t is

refle

cted

in

the

CF

bank

acc

ount

as

bei

ng p

aid

to th

e cl

aim

ant

The

perf

orm

ance

m

easu

res

the

effec

tiven

ess

of

proc

esse

s en

surin

g ap

prov

ed b

enefi

ts

(Ran

ds a

nd C

ents

) ar

e pa

id w

ithin

a

spec

ific

turn

-ar

ound

tim

e, a

nd

also

the

degr

ee to

w

hich

the

notio

n of

acc

ess

as p

er

ND

P an

d O

utco

me

13 is

fulfi

lled

The

data

sou

rce

will

be

Um

ehlu

ko

whi

ch is

Com

p-Ca

re a

nd F

in-C

are

whi

ch in

terf

aces

in

to A

bilit

y, th

e re

port

s fro

m b

oth

syst

ems

are

stor

ed

for s

ome

time

and

late

r the

y ph

ased

ou

t. Fi

nanc

ial

Cont

rol e

nsur

es

that

the

repo

rts

are

save

d on

the

Y-dr

ive

Num

erat

or: T

otal

num

ber

of b

enefi

ts (R

) pai

d w

ithin

5

wor

king

day

s

Den

omin

ator

: Tot

al

num

ber o

f ben

efits

(R)

appr

oved

for p

aym

ent

Calc

ulat

ion:

Perc

enta

ge o

f app

rove

d be

nefit

s pa

id w

ithin

5

wor

king

day

s= N

omin

a-to

r div

ided

by

Den

omi-

nato

r mul

tiplie

d by

100

NB

All

clai

ms

subm

itted

by

Ope

ratio

ns to

Fin

ance

m

ust b

e pa

id w

ithin

5

wor

king

day

s

If op

erat

ions

app

rove

d 10

cl

aim

s at

the

valu

e of

R10

00

0. F

inan

ce w

ill p

ay

R10

000,

whe

n th

e ba

nk

acce

pts

the

paym

ent

file,

CF

bank

acc

ount

will

re

flect

exp

endi

ture

of

R10

000.

.* Th

e qu

arte

rly p

erfo

r-m

ance

is m

easu

red

as

cum

ulat

ive

e.g.

The

qua

r-te

r 3 o

utpu

t is

calc

ulat

ed

by a

ddin

g Q

1+Q

2+Q

3 cl

aim

s pa

id to

geth

er.

1) In

adeq

uate

IC

T In

frast

ruct

ure.

2)

Ineff

ectiv

e fin

anci

al s

yste

m

capa

bilit

ies.

Out

com

e w

ith s

pe-

cific

focu

s on

acc

ess

(spe

cif-

ical

ly

outc

ome

13)

Cum

ulat

ive

Qua

rter

lyN

oTh

e ai

m is

to

ensu

re th

at 9

8 %

of a

ppro

ved

bene

fits

are

paid

with

in 5

w

orki

ng d

ays

Chi

ef F

inan

-ci

al O

ffice

r


PRO

GRA

MM

E 2:

CO

ID S

ERVI

CES

Title

(KPI

)D

efini

tion

Purp

ose

/ Im

port

ance

Dat

a So

urce

Calc

ulat

ion

Met

hod

Dat

a

Lim

itatio

nsTy

pe o

f in

dica

tor

Calc

ulat

ion

Type

Repo

rtin

g Cy

cle

New

In

dica

tor

Des

ired

perf

orm

ance

)Re

spon

sibi

lit

2.2.

Per

cent

age

of a

ctiv

e re

gis-

tere

d em

ploy

-er

s as

sess

ed

annu

ally

by

31

Mar

ch 2

019

(exc

l exe

mpt

ed

empl

oyer

s)

This

indi

cato

r mea

sure

s th

e pe

rcen

tage

of

empl

oyer

s co

ntrib

utio

ns

bille

d

Act

ive

regi

ster

ed e

m-

ploy

ers

are

empl

oyer

s w

ho’s

profi

le s

tatu

s is

op

en o

n th

e Co

mpe

nsa-

tion

Fund

’s (C

F) d

atab

ase

and

the

late

st re

turn

of

earn

ings

has

bee

n ge

n-er

ated

(It e

xclu

des

new

re

gist

ered

em

ploy

ers

in th

e cu

rren

t fina

ncia

l ye

ar)

Ass

ess

mea

ns to

de-

term

ine

liabi

lity

of th

e em

ploy

er in

term

s of

CO

IDA

.

Exem

pted

em

ploy

ers

are

All

Nat

iona

l Dep

art-

men

ts, A

ll Pr

ovin

cial

D

epar

tmen

ts, M

utua

l A

ssoc

iatio

ns a

nd M

unic

i-pa

litie

s ex

empt

ed b

y th

e D

irect

or- G

ener

al fr

om

payi

ng a

sses

smen

ts to

C

F. Ex

empt

ed e

mpl

oyer

s ar

e ch

arge

d ad

min

istr

a-tio

n fe

es fo

r han

dlin

g th

eir c

laim

s ac

cord

ing

to

sect

ion

88 o

f CO

IDA

.

The

info

rmat

ion

enab

le C

F to

kee

p tr

ack

of th

e re

ve-

nue

gene

rate

d an

d to

ass

ess

the

leve

l of

com

plia

nce

to

COID

A b

y re

gis-

tere

d em

ploy

ers

The

perf

orm

ance

m

easu

res

wha

t pe

rcen

tage

of

regi

ster

ed a

ctiv

e em

ploy

ers

are

asse

ssed

with

in

a ye

ar

SAP

FI(F

SCD

)N

umer

ator

: num

ber o

f ac

tive

regi

ster

ed e

mpl

oy-

ers

asse

ssed

to d

ate

Den

omin

ator

: Num

ber o

f ac

tive

regi

ster

ed e

mpl

oy-

ers

as 3

1 M

arch

201

8

Calc

ulat

ion:

Perc

enta

ge o

f act

ive

regi

ster

ed e

mpl

oyer

s as

sess

ed a

nnua

lly b

y 31

Mar

ch 2

019

(exc

l ex

empt

ed e

mpl

oyer

s) =

N

umer

ator

div

ided

by

Den

omin

ator

mul

tiplie

d by

100

.

NB:

if o

ne e

mpl

oyer

su

bmits

four

retu

rn o

f ea

rnin

gs a

nd a

sses

sed,

it

will

be

trea

ted

as o

ne

empl

oyer

.

This

is a

lega

l re

quire

men

t (s

ectio

n 80

,82

and

83) C

OID

A

Som

e Em

ploy

ers

are

not s

ubm

it-tin

g RO

E’s

to th

e Fu

nd w

hich

im-

pact

s ne

gativ

ely

on th

e Fu

nds

abili

ty to

ach

ieve

th

e ta

rget

s

The

deno

min

a-to

r will

onl

y be

kn

own

at th

e en

d of

the

2017

/18

finan

cial

yea

r as

the

empl

oyer

da

taba

se is

con

-tin

uous

ly b

eing

up

date

d.

Out

put

Cum

ulat

ive

Qua

rter

lyN

oTh

e ai

m is

to

ensu

re th

at 7

5 %

of a

ctiv

e re

g-is

tere

d em

ploy

-er

s ar

e as

sess

ed

annu

ally

Chi

ef D

i-re

ctor

: CO

ID

Serv

ices

50



PRO

GRA

MM

E 2:

CO

ID S

ERVI

CES

Title

(KPI

)D

efini

tion

Purp

ose

/ Im

port

ance

Dat

a So

urce

Calc

ulat

ion

Met

hod

Dat

a

Lim

itatio

nsTy

pe o

f in

dica

tor

Calc

ulat

ion

Type

Repo

rtin

g Cy

cle

New

In

dica

tor

Des

ired

perf

orm

ance

)Re

spon

sibi

lit

2.3.

Per

cent

age

of c

laim

s ad

ju-

dica

ted

with

in

40 w

orki

ng

days

of r

ecei

pt

This

indi

cato

r mea

sure

s th

e im

plem

enta

tion

of C

OID

A a

nd th

e pe

r-ce

ntag

e of

adj

udic

ated

cl

aim

s w

ithin

a s

peci

fied

time.

(the

turn

arou

nd

time)

Cla

ims

refe

r to

all c

laim

s (a

ckno

wle

dged

onl

ine

and

inte

rnal

ly c

aptu

red)

re

gist

ered

with

Com

pen-

satio

n Fu

nd.

Adj

udic

atio

n re

fers

to

a pr

oces

s of

cha

ngin

g a

clai

m s

tatu

s fro

m u

nde-

cide

d to

acc

epte

d, n

ot

acce

pted

, rep

udia

ted

40 d

ays

of re

ceip

t re

fers

to a

dat

e a

clai

m is

ac

know

ledg

ed o

nlin

e or

da

te c

aptu

red

inte

rnal

ly

in th

e cu

rren

t fina

ncia

l ye

ar u

ntil

the

clai

m h

as

been

adj

udic

ated

.

It ex

clud

es c

ompe

nsa-

tion

clai

ms

regi

ster

ed

in th

e pr

evio

us fi

nanc

ial

year

.

The

turn

-aro

und

time

is m

easu

red

from

the

date

of r

ecei

pt o

f a

clai

m [e

lect

roni

cally

and

m

anua

lly (s

tam

ped-

as

per t

he n

orm

s an

d st

an-

dard

s)] u

ntil

the

date

it is

ad

judi

cate

d.

The

perf

orm

ance

m

easu

res

how

ef-

fect

ivel

y cl

aim

s ar

e ad

judi

cate

d an

d al

so th

e de

gree

to

whi

ch th

e no

tion

of a

cces

s as

per

N

DP

and

Out

com

e 13

is fu

lfille

d

Syst

ems

gene

rate

d re

port

Num

erat

or: N

umbe

r of

clai

ms

adju

dica

ted

with

in

40 w

orki

ng d

ays

Den

omin

ator

: Num

ber

of c

laim

s re

ceiv

ed in

the

curr

ent fi

nanc

ial y

ear

Calc

ulat

ion:

Perc

enta

ge o

f rec

eive

d co

mpe

nsat

ion

clai

ms

ad-

judi

cate

d w

ithin

40

wor

k-in

g da

ys=

Num

erat

or

divi

ded

by D

enom

inat

or

mul

tiplie

d by

100

* Th

e qu

arte

rly p

erfo

r-m

ance

is m

easu

red

as

cum

ulat

ive

e.g.

The

qua

r-te

r 3 o

utpu

t is

calc

ulat

ed

by a

ddin

g Q

1+Q

2+Q

3 ou

tput

s to

geth

er

Syst

ems

gene

rate

d re

port

asc

erta

inin

g th

e to

tal n

umbe

r of c

ompe

n-sa

tion

clai

ms

adju

dica

ted

with

in a

turn

arou

nd ti

me

Inad

equa

te IC

T in

frast

ruct

ure

Out

com

e w

ith s

pe-

cific

focu

s on

acc

ess

(spe

cif-

ical

ly

outc

ome

13)

Cum

ulat

ive

Qua

rter

ly

No

The

aim

is to

en

sure

that

90

% o

f cla

ims

ad-

judi

cate

d w

ithin

40

wor

king

day

s of

rece

ipt

Chi

ef D

irect

or

COID

Ser

vice

s


PRO

GRA

MM

E 3:

MED

ICA

L BE

NEF

ITS

Title

(Key

Pe

rfor

man

ce

Indi

cato

r)

Defi

nitio

n Pu

rpos

e /

Impo

rtan

ceD

ata

Sour

ceCa

lcul

atio

n M

etho

dD

ata

Li

mita

tions

Type

of

indi

cato

rCa

lcul

atio

n Ty

peRe

port

ing

Cycl

eN

ew

Indi

cato

rD

esire

d

perf

orm

ance

)Re

spon

sibi

lity

3.1.

Per

cent

age

of m

edic

al

invo

ices

fina

l-is

ed w

ithin

60

wor

king

day

s of

rece

ipt

This

indi

cato

r mea

sure

s th

e pe

rcen

tage

of m

ed-

ical

invo

ices

fina

lised

w

ithin

60

wor

king

day

s.

Med

ical

invo

ices

refe

rs to

al

l inv

oice

s re

ceiv

ed fr

om

Med

ical

Ser

vice

Pro

vide

rs

[ele

ctro

nica

lly o

r man

u-al

ly (s

tam

ped-

as p

er th

e no

rms

and

stan

dard

s)]

whi

ch s

houl

d be

acc

om-

pani

ed b

y al

l rel

evan

t m

edic

al d

ocum

ents

Fina

lised

refe

rs to

in

voic

es re

ject

ed, s

ent

to fi

nanc

e, p

aym

ent r

e-qu

este

d, p

aid,

reco

ncile

d an

d va

lidat

ed w

ithin

tu

rnar

ound

tim

e.

60 w

orki

ng d

ays

of re

-ce

ipt r

efer

s to

a m

edic

al

invo

ice

from

an

acce

pted

cl

aim

(whe

re th

e st

atus

is

“lia

bilit

y ac

cept

ed”)

rece

ived

in th

e cu

rren

t fin

anci

al y

ear.

The

turn

-aro

und

time

is

mea

sure

d fro

m th

e da

te

of re

ceip

t of m

edic

al

invo

ices

(man

ually

and

el

ectr

onic

ally

) unt

il th

e m

edic

al in

voic

e is

fin

alis

ed.

It e

xclu

des

med

ical

in

voic

es re

ceiv

ed in

the

prev

ious

fina

ncia

l yea

r.

The

perf

orm

ance

in

dica

tor m

easu

res

how

effe

ctiv

ely

the

Fund

is p

roce

ssin

g m

edic

al in

voic

es

and

final

isin

g th

em w

ithin

a

spec

ified

tim

e an

d al

so th

e de

gree

to

whi

ch th

e no

tion

of a

cces

s as

per

N

DP

and

Out

com

e 13

is fu

lfille

d

Syst

ems

gene

rate

d re

port

(Um

ehlu

ko

Repo

rts)

Num

erat

or: N

umbe

r of

med

ical

cla

ims

final

ised

w

ithin

60

wor

king

day

s

Den

omin

ator

: All

med

-ic

al in

voic

es re

ceiv

ed

in th

e fin

anci

al y

ear t

o da

te

Calc

ulat

ion:

Perc

enta

ge o

f med

ical

in

voic

es fi

nalis

ed w

ithin

60

wor

king

day

s of

re

ceip

t = N

omin

ator

di-

vide

d by

Den

omin

ator

m

ultip

lied

by 1

00

*The

qua

rter

ly p

erfo

r-m

ance

is m

easu

red

as c

umul

ativ

e e.

g. T

he

quar

ter 3

out

put i

s ca

lcul

ated

by

addi

ng

Q1+

Q2+

Q3

outp

uts

toge

ther

Syst

ems

gene

rate

d re

port

asc

erta

inin

g th

e to

tal n

umbe

r of m

edic

al

invo

ices

app

rove

d fo

r pa

ymen

t with

in a

turn

-ar

ound

tim

e

Inad

equa

te IC

T in

frast

ruct

ure

Out

com

e w

ith s

peci

fic

focu

s on

ac

cess

(s

peci

fical

ly

outc

ome

13)

Cum

ulat

ive

Qua

rter

ly

No

The

aim

is to

en

sure

that

85

% m

edic

al

invo

ices

are

fin

alis

ed w

ithin

60

wor

king

da

ys o

f rec

eipt

Chi

ef D

irect

or:

Med

ical

Ben

efits

52



PRO

GRA

MM

E 3:

MED

ICA

L BE

NEF

ITS

Title

(Key

Pe

rfor

man

ce

Indi

cato

r)

Defi

nitio

n Pu

rpos

e /

Impo

rtan

ceD

ata

Sour

ceCa

lcul

atio

n M

etho

dD

ata

Li

mita

tions

Type

of

indi

cato

rCa

lcul

atio

n Ty

peRe

port

ing

Cycl

eN

ew

Indi

cato

rD

esire

d

perf

orm

ance

)Re

spon

sibi

lity

3.2.

Per

cent

age

of p

re-a

u-th

oris

atio

ns

resp

onde

d to

with

in 1

0 w

orki

ng d

ays

on p

revi

ousl

y fin

alis

ed c

ases

This

indi

cato

r mea

-su

res

the

perc

enta

ge

of p

re-a

utho

risat

ion

requ

ests

resp

onde

d to

w

ithin

a s

peci

fic tu

rn-

arou

nd

Affe

cted

are

pre

viou

sly

final

ised

cas

es (c

laim

s w

here

the

max

imum

m

edic

al im

prov

emen

t ha

s be

en a

chie

ved,

a

final

med

ical

repo

rt h

as

been

pro

vide

d an

d fin

al

deci

sion

has

bee

n m

ade)

(o

nly

pre-

auth

oris

atio

n re

ceiv

ed d

urin

g th

e cu

rren

t fina

ncia

l yea

r)

Resp

ond:

Ref

ers

to a

pr

oces

s of

app

rovi

ng o

r re

ject

ing

Rece

ived

- Re

fers

to th

e da

te s

tam

ped

as d

ate

rece

ived

on

the

requ

est.

(thi

s w

ill b

e by

fax/

em

ail/

wal

k-in

’s) (M

anua

l or

ele

ctro

nica

lly)

Pre-

auth

oris

atio

n: re

fers

to

aut

horis

atio

n m

edic

al

proc

edur

e/tr

eatm

ent,

hosp

italis

atio

n, c

hron

ic

med

icat

ions

/ co

nsum

-ab

les

10 w

orki

ng d

ays:

Star

ts fr

om th

e da

te

the

pre-

auth

oris

atio

n re

ques

t is

rece

ived

in

the

syst

em (Y

-Driv

e)

and

ends

on

the

date

re

spon

ded

to.

The

perf

orm

ance

m

easu

res

how

eff

ectiv

ely

clie

nts

requ

estin

g pr

e-au

-th

oris

atio

ns o

n pr

evio

usly

fina

lised

ca

ses

are

assi

sted

by

the

Fund

and

al

so th

e de

gree

to

whi

ch th

e no

tion

of a

cces

s as

per

N

DP

and

Out

com

e 13

is fu

lfille

d

Man

ual

cons

olid

ated

sp

read

shee

t on

Y-d

rive

Num

erat

or: N

umbe

r of

pre

-aut

horis

atio

n re

spon

ded

to w

ithin

10

day

s on

pre

viou

sly

final

ised

cas

es

Den

omin

ator

:

All

pre-

auth

oris

atio

ns

on p

revi

ousl

y fin

alis

ed

case

s re

ceiv

ed to

dat

e

Calc

ulat

ion:

Per

cent

-ag

e of

pre

-aut

horis

atio

n re

spon

ded

to w

ithin

10

wor

king

day

s on

pre

-vi

ousl

y fin

alis

ed c

ases

=

Nom

inat

or d

ivid

ed b

y D

enom

inat

or m

ultip

lied

by 1

00

* Th

e qu

arte

rly p

er-

form

ance

is m

easu

red

as c

umul

ativ

e e.

g. T

he

quar

ter 3

out

put i

s ca

lcul

ated

by

addi

ng

Q1+

Q2+

Q3

outp

uts

toge

ther

Syst

ems

gene

rate

d re

port

asc

erta

inin

g th

e to

tal n

umbe

r of p

re-a

u-th

oris

atio

n re

ques

ts

resp

onde

d w

ithin

a

turn

arou

nd ti

me

Man

ual s

prea

d-sh

eet c

an b

e m

anip

ulat

ed

Out

com

e w

ith s

peci

fic

focu

s on

ac

cess

(s

peci

fical

ly

outc

ome

13)

Cum

ulat

ive

Qua

rter

ly

No

The

aim

is to

en

sure

that

85

% o

f pre

-au-

thor

isat

ions

ar

e re

spon

ded

to w

ithin

10

wor

king

day

s on

pre

viou

sly

final

ised

cas

es

CD

:

Ort

hotic

s, LA

P an

d Re

habi

lita-

tion

Serv

ices


PRO

GRA

MM

E 4:

ORT

HO

TICS

AN

D R

EHA

BILI

TATI

ON

Title

(Key

Pe

rfor

man

ce

Indi

cato

r)

Defi

nitio

n Pu

rpos

e /

Impo

rtan

ceD

ata

Sour

ceCa

lcul

atio

n M

etho

dD

ata

Lim

ita-

tions

Type

of

indi

cato

rCa

lcul

atio

n Ty

peRe

port

ing

Cycl

eN

ew In

di-

cato

rD

esire

d pe

r-fo

rman

ce)

Resp

onsi

bilit

y

4.1.

Per

cent

age

of c

ompl

iant

re

ques

ts fo

r as

sist

ive

devi

c-es

resp

onde

d to

with

in 1

5 w

orki

ng d

ays

of re

ceip

t

The

indi

cato

r mea

sure

s th

e pe

rcen

tage

of c

om-

plia

nt a

ssis

tive

devi

ces

requ

ests

resp

onde

d to

w

ithin

15

wor

king

day

s (it

exc

lude

s re

ques

ts

rece

ived

in th

e pr

evio

us

finan

cial

yea

r.)

Com

plia

nt: v

alid

requ

ests

Requ

est r

ecei

ve

refe

rs to

the

date

st

ampe

d on

the

requ

est

as d

ate

rece

ived

( by

fax/

em

ail/

wal

k-in

’s)

Resp

onde

d to

: ref

ers

to

appr

oved

or r

ejec

ted

Ass

istiv

e de

vice

s : t

his

refe

rs to

pro

sthe

tics;

orth

otic

s; he

arin

g ai

ds;

visu

al a

ids;

whe

elch

airs

; co

mm

unic

atio

n ai

ds

and

asso

ciat

ed c

onsu

m-

able

s

15 W

orki

ng d

ays

com

men

ces

on th

e da

y w

hen

the

requ

est i

s re

ceiv

ed a

nd e

nds

whe

n th

e re

ques

t has

bee

n re

spon

ded

to

The

perf

orm

ance

m

easu

res

how

eff

ectiv

ely

clie

nts

requ

estin

g as

sist

ive

devi

ces

or p

rost

hesi

s ar

e as

sist

ed b

y th

e Fu

nd a

nd a

lso

the

degr

ee to

whi

ch

the

notio

n of

ac

cess

as

per N

DP

and

Out

com

e 13

is

fulfi

lled.

Sign

ed-o

ff M

anua

l Sp

read

she

ets

from

the

Prov

ince

s

Num

erat

or:

Num

ber c

ompl

iant

as-

sist

ive

devi

ces

requ

ests

re

spon

ded

to w

ithin

15

wor

king

day

s

Den

omin

ator

:

Num

ber c

ompl

iant

re

ques

ts re

ceiv

ed in

the

finan

cial

yea

r

Calc

ulat

ion:

Perc

enta

ge o

f com

pli-

ant r

eque

sts

for a

ssis

tive

devi

ces

resp

onde

d to

w

ithin

15

wor

king

day

s of

rece

ipt =

Nom

inat

or d

ivid

ed b

y D

enom

inat

or m

ultip

lied

by 1

00

* Th

e qu

arte

rly p

er-

form

ance

is m

easu

red

as c

umul

ativ

e e.

g. T

he

quar

ter 3

out

put i

s ca

lcul

ated

by

addi

ng

Q1+

Q2+

Q3

outp

uts

toge

ther

Man

u-al

spr

eads

heet

ca

n be

man

ip-

ulat

ed

Out

com

e w

ith s

peci

fic

focu

s on

ac

cess

(s

peci

fical

ly

outc

ome

13)

Cum

ulat

ive

Qua

rter

lyN

oTh

e ai

m is

to

ensu

re th

at

85%

of c

om-

plia

nt a

ssis

tive

devi

ces

re-

ques

ts re

ceiv

ed

are

resp

onde

d to

with

in 1

5 w

orki

ng d

ays

Chi

ef D

irect

or

Ort

hotic

s, LA

P an

d Re

habi

lita-

tion

Serv

ices

54



ANNEXURE F: REVISION OF THE CF 5 YEAR STRATEGIC PLAN 2015/16-2019/20Reason for revision:

The Treasury framework for Strategic planning and Annual Performance Plans allows for the revision of the 5 year Strategic Plan

for the following reasons:

“A Strategic Plan may be changed during the five-year period that it covers. However, such changes should be limited to revisions

related to significant policy shifts or changes in the service-delivery environment. The relevant institution does this by issuing an

amendment to the existing plan, which may be published as an annexure to the Annual Performance Plan, or by issuing a revised

Strategic Plan.

In taking the above into consideration the Fund has implemented a revised the Compensation Fund Structure. This will result in a

significant shift in how the Fund delivers services. As a result of the revision of the structure, the Fund was also required to revise

CF Programmes structure. The resulting changes will not impact on the indicators and targets set in the current 5 year plan.

The following changes are therefore made in the Compensation Fund 5 year Strategic Plan 2015/16-2019/20:

• the current 5 year indicators and targets being moved to newly created programmes and;

• the revision of the Programme Purposes and Description


Table 1: Changes to the 5 year strategic plan 2015/16-2019/20

EXISTING 5 YEAR PLAN REVISED 5 YEAR PLAN1. PROGRAMME 1: ADMINISTRATION PROGRAMME 1: ADMINISTRATION1.1 Programme Purpose and descriptionPROGRAMME PURPOSE

The purpose of the programme is to provide an effective and efficient client oriented support services to the entity


The most important reason for the existence of the Directorates: Risk Management and Internal Audit is to assist the Compensation Fund in fulfilling its mandate and responsibilities for corporate governance and financial management, internal control, risk management systems and the internal and external audit functions.

The Directorate: Internal Audit provides independent, objective assurance and consulting services, designed to add value and improve the effectiveness of systems of governance, risk management and control processes within the Fund.

The Directorate: Risk Management supports the Compensation Fund to improve its performance, and this is embedded in a sound control environment by proactively identifying risks before they materialise so that mitigation strategies may be planned and executed as required in the day to day management of the business to minimise adverse impacts that could affect the Fund from achieving its objectives. In addition, security breaches are investigated and reported to the relevant authorities.

The Chief Directorate: Financial Management offers financial support to the operations and day to day running of the Fund. The Chief Directorate must ensure that:

• Revenue is generated timeously;

• Debt is recovered timely;

• All beneficiaries are paid on time; and

• All suppliers are paid within 30 days.

• To ensure that Supply Chain Management (SCM) processes are followed when procuring goods and services and that reconciliations are done monthly and that monthly, quarterly and yearly reports (budget against expenditure and financial statements) are submitted to the relevant stakeholders timeously.

• Revenue collected is invested in portfolios through the PIC.

• The Compensation Fund has sufficient security services.

PROGRAMME PURPOSE

The purpose of the programme is to provide an effective and efficient client oriented support services to the entity


• Compensation Commissioner: To compensate workers and or their family members for occupational injuries and diseases sustained by the worker whilst on duty.

• Executive Support: To provide executive and administrative in support of the Office of the Commissioner.

• Internal Audit: To provide an independent and objective assurance service in the Fund.

• Risk Management: To provide risk and integrity management services.

• Anti-Corruption and Integrity Management: To provide anti-corruption and integrity management services.

• Office of the Chief Operations Officer: To strategically oversee the management of operations services.

• Chief Financial Officer: To provide financial management services to the Fund.

• Corporate Services: To provide corporate services to the Fund.

56



EXISTING 5 YEAR PLAN REVISED 5 YEAR PLAN1. PROGRAMME 1: ADMINISTRATION PROGRAMME 1: ADMINISTRATION1.2 Indicators and targetsIndicators:

1. % increase in revenue generation annually

2. % of active employers assessed annually

3. % implementation of the risk based audit plan annually

4. Annual improvement of the risk management maturity levels

Targets:

1. Investment grow at a rate of CPI+2% annually

2. 95% of active employers assed annually

3. 90% implementation of the risk based audit plan

4. Risk Management Maturity level 5 embedded in the Fund

Indicators:

1. % increase in revenue generation annually

2. % implementation of the risk based audit plan annually

3. Annual improvement of the risk management maturity levels

Targets:

1. Investment grow at a rate of CPI+2% annually

2. 90% implementation of the risk based audit plan

3. Risk Management Maturity level 5 embedded in the Fund

EXISTING 5 YEAR PLAN REVISED 5 YEAR PLAN2. PROGRAMME 2: COMPENSATION FOR OCCUPATIONAL INJURIES AND DISEASES ACT (1993) OPERATIONS

PROGRAMME 2: COID SERVICES

2.1 Programme Purpose and descriptionPROGRAMME PURPOSE

Provide an effective safety net through the registration, processing and payment of medical claims resulting from occupational injuries and diseases, and monitoring of compliance with COIDA legislation.


The Directorate: Compensation Benefits is responsible for development and coordination of policy and procedures regarding benefits; review compensation benefits; manage and evaluate the impact of strengthening Civic Society Fund (CSF); Training of provinces, manage and communicate with the compensation benefits stakeholders.

The Directorate: Medical Services develop policies and procedures on medical services; manage decentralised medical services in provinces; manage the compensation process with necessary medical expertise providing appropriate medical advice and expertise.

The 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.

The Directorate: Client Service is responsible to support all components of the Fund to deliver COID services and information to the clients in line with Batho Pele Principles. The Directorate is responsible for the receipt of customer enquiries at the Call Centre and Walk-In Centre .

PROGRAMME PURPOSE

To administer compensation claims, medical adjudication, accounts and customer care.


Compensation Benefits: To monitor compensation benefits services.

Employer services: To provide registration and assessment services. of employers

Treasury, investment and actuarial services: To provide strategic management of the Fund’s treasury, investment and actuarial services.


EXISTING 5 YEAR PLAN REVISED 5 YEAR PLAN2. PROGRAMME 2: COMPENSATION FOR OCCUPATIONAL INJURIES AND DISEASES ACT (1993) OPERATIONS

PROGRAMME 2: COID SERVICES

2.2 Indicators and targetsIndicator:

% of COID benefits paid within the stipulated timeframes annually

Target

100% of approved COID benefits paid within 5 working days

Indicator:

1. % of COID benefits paid within the stipulated timeframes annually.

2. 95% of active employers assessed annually.

3. % of registered compensation claims adjudicated within the stipulated time frames annually.

Target

1. 100% of approved COID benefits paid within 5 working days.

2. 95% of active employers assessed annually.

3. 90% of registered claims adjudicated within 30 working days.

EXISTING 5 YEAR PLAN REVISED 5 YEAR PLAN3. PROGRAMME 3: PROVINCIAL OPERATIONS: COMPENSATION FOR OCCUPATIONAL INJURIES AND DISEASES ACT (1993)

PROGRAMME 3: MEDICAL BENEFITS

3.1 Programme Purpose and descriptionPROGRAMME PURPOSE

Provide an effective safety net through the registration, processing and payment of medical claims resulting from occupational injuries and diseases, and monitoring of compliance with COIDA legislation.

PROGRAMME DESCRIPTION

All Provinces are responsible for the provision of the following services within their scope of work:

Compensation Benefits: 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 is responsible for authorising payments of all benefits including medical expenses. 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.

Medical Services: medical advice and medical opinion to all stakeholders. The Directorate is responsible for preauthorisation for medical treatment and the rehabilitation and reintegration programme

PROGRAMME PURPOSE

To provide strategic support and medical expertise to claims processing.

PROGRAMME DESCRIPTION

Medical Services: To provide research and best practice standards regarding occupational diseases and injuries to support the Fund’s compensation and assessment services.

Medical claims: To manage the adjudication of the medical claims and the processing of medical accounts.

58



EXISTING 5 YEAR PLAN REVISED 5 YEAR PLAN3. PROGRAMME 3: PROVINCIAL OPERATIONS: COMPENSATION FOR OCCUPATIONAL INJURIES AND DISEASES ACT (1993)

PROGRAMME 3: MEDICAL BENEFITS

Legal Services: 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.

3.2 Indicators and targetsIndicator:

% of registered compensation claims adjudicated within the stipulated time frames annually.

Target:

90% of registered claims adjudicated within 30 working days.

No targets

EXISTING 5 YEAR PLAN REVISED 5 YEAR PLAN4. PROGRAMME 4: Not in the existing 5 year Strategic Plan PROGRAMME 4: ORTHOTIC AND REHABILITATION

SERVICES4.1 Programme Purpose and description

N/A PROGRAMME PURPOSE:

To provide support in the Orthotic and Rehabilitation services for the Fund

Programme description

Labour Activation Programmes: To provide strategic leadership and guidance on the implementation of the labour activation programmes.

Orthotics and Prosthetic: To manage and advise on the Orthotics and Prosthetic services.

Rehabilitation and Re-integration: To develop, implement and monitor a rehabilitation programme for injured employees and advise the Compensation Fund on all matters pertaining to the rehabilitation of injured employees.

4.2 Indicators and targetsN/A No targets

Telephone0860 105 350

Street AddressCompensation House Cnr Hamilton and Soutpansberg StreetPretoria

Postal AddressP.O. Box 955Pretoria0001www.labour.gov.za

ISBN: 978-0-621-46225-8

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