Overview of Compensation Fund Presentation to Portfolio Committee
The Compensation Fund presentation to the Portfolio Committee outlines the fund's mandate, vision, mission, and strategic plan for the Medium-Term Strategic Framework (MTSF) 2020/2021-2024/2025. It covers key aspects such as social security provision, financial viability, and service delivery. The Fund aligns with government priorities, focusing on creating a capable, ethical, and developmental state, economic transformation, and consolidating the social wage. The impact statement emphasizes sustainable control environments, ethical principles, and reliable services for beneficiaries.
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COMPENSATION FUND PRESENTATION TO THE PORTFOLIO COMMITTEE 7 MAY 2021 1
CONTENTS 1. INTRODUCTION (SLIDES 4 5) 2. STRATEGIC PLAN FOR THE MTSF 2020/2021 2024/2025 (SLIDES 7 12) 3. ANNUAL PERFORMANCE PLAN FOR THE FINANCIAL YEAR 2021/22 (SLIDES 14 33) 4. BUDGET OVER THE MTSF 2020/2021 2024/2025 (SLIDES 35 42) 2
Introduction 2024/04/16 3
INTRODUCTION: THE MANDATE OF THE CF 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. Legislative Mandate The Compensation Fund is established in terms of section 15 of the Compensation for Occupational Injuries and Diseases Act as amended. The main objective of the Act is to provide compensation for disablement caused by occupational injuries or diseases sustained or contracted by employees or for death resulting from such injuries or diseases and provide for matters connected therewith. 4
VISION AND MISSION VISION To be a world class provider of sustainable compensation for occupational injuries and diseases, rehabilitation and reintegration services MISSION TheMission of the Compensation Fund is to: Provide efficient, quality, client centric and accessible COID service Sustain financial viability Ensure an organisation which takes care of the needs of its staff for effective service delivery 2024/04/16 5
Strategic Plan MTSF 2020/2021 2024/2025 2024/04/16 6
LINK TO GOVERNMENT PRIORITIES The Compensation Fund is responding to the three Medium Term Strategic Framework (MTSF) Priorities to deliver on its vision and to help realise the objectives of the National Development Plan (NDP) 2030 over its five- year term. The Priorities are; i) Priority 1: Capable, Ethical and Developmental State; ii) Priority 2: Economic Transformation and Job Creation; and iii) Priority 4: Consolidating the Social Wage through Reliable and Basic Services. Impact statement 1. Sound and sustainable control environment, transformed financial sector, enhanced institutional capacity to deliver and improved accessibility and visibility of COID services 2. Sustainable Compensation Fund based on ethical principles 3. Ethical, effective, efficient, accessible and cost effective compensation of beneficiaries 4. Reliable, efficient and cost effective medical benefits system 5. Efficient, effective and reliable rehabilitation and return to work services for the promotion of rights of injured workers with disabilities 7
ALIGNMENT OF THE CF PRIORITIES TO THE MEDIUM TERM STRATEGIC FRAMEWORK (MTSF) 8
ALIGNMENT OF THE CF PRIORITIES TO THE MEDIUM TERM STRATEGIC FRAMEWORK (MTSF) 9
ALIGNMENT OF THE CF PRIORITIES TO THE MEDIUM TERM STRATEGIC FRAMEWORK (MTSF) MTSF Priorities MTSF Target MTSF Outcome CF Priority Implementation of the comprehensive social protection system by 2024 Comprehensive social security coverage; efficient and effective Priority 5: To improve operational efficiency through process reengineering and technological innovation Priority 4: Consolidating the Social Wage through Reliable and Basic Services Priority 2: To ensure that appropriate benefits are delivered to Intended Beneficiaries, efficiently and at a reasonable cost Priority 3: Contribute to employment and economic growth through rehabilitation and re-integration. 10
STRATEGIC PRIORITIES AND OUTCOME INDICATORS 3 4 2 1 Contribute to employment and economic growth through rehabilitation andre-integration Improve operational efficiency through processreengineering and technological innovation. Ensure appropriate benefits are deliveredto intended beneficiaries, efficiently and at a reasonable cost. Improve the system of internal control andmaintain financial soundness Improved assessment on the return of earnings Contribute to transformation of the financial sector through Assets managed by Black Asset Managers Integrated claims management System (ICMS) implemented Improved finalisation of compensation benefits (claim turnaround rate) Increased assets Rehabilitation and reintegration of injured workers Number of jobs created through the Presidential Comprehensive Employment interventions Improved implementation of stringent controls audit outcome through Youth Performance by Mutuals monitored and evaluated Wasteful eliminated and fruitless expenditure Number of decent jobs created through job summit initiatives Reduced irregular expenditure Percentage incidents of corruption in the Fund resolution of reported 5 6 Develop the capacity of the Fund to deliver according to its mandate Embed ethical culture and zero tolerance to fraud and corruption Improved ethical culture within the Fund Improved Human Resource Capacity Resolution of reported incidents of corruption in the Fund (investigation turnaround)
STRATEGIC PRIORITIES AND FIVE YEAR MTSF TARGETS 3 4 2 1 Contribute to employment and economic growth through rehabilitation andre-integration Improve operational efficiency through process reengineering and technological innovation. Ensure appropriate benefits are deliveredto intended beneficiaries, efficiently and at a reasonable cost. Improve the system of internal control andmaintain financial soundness 95% of received return of earnings assessed 20% of Assets managed by Black Asset Managers. Support the implementation of the integrated claims management system by 31 March 2023 95% of compensation claims adjudicated 10% increase in assets per annum 100% compensation benefits paid within 5 300 Number of jobs created through the Presidential Comprehensive Employment interventions by 31 March 2025 working day Youth Unqualified audit opinion obtained by 31 March 2024 95% of medical benefits finalized 100% elimination of wasteful and fruitless expenditure by 31 March 2024 90% of severely Injured workers enrolled into programmes 7000 Number of decent jobs created through job summit initiatives by March 2025 rehabilitation 75% reduction of irregular expenditure by 31 March 2024 Service Agreements signed with the Mutuals and fully implemented. Percentage incidents of corruption in the Fund resolution of reported 6 Embed ethical culture and zero tolerance to fraud and corruption 5 Develop the capacity of the Fund to deliver according to its mandate 80% resolution of reported incidents of corruption by 31 March 2025 Established ethics committees and adhere to terms of reference 8% vacancy rate by March 2025 100% implementation of the visibility and accessibility Programme by 31 March 2025.
Annual Performance Plan Financial Year 2021/22 2024/04/16 13
PROGRAMME 1: ADMINISTRATION Outcomes, Outputs, Performance Indicators and Targets Outcome Output Output Indicator Annual Target Estimated Performance 2020/21 Audited /Actual Performance MTEF Period 2017/18 2018/19 2019/20 2021/22 2022/23 2023/24 2024/25 More decent Small and Funds N/A N/A N/A PIC mandate R200 million R250 million R250 R300 jobs created Medium allocated to has not been million million and Enterprises Small and reviewed sustained, supported Medium with youth, Enterprises Decent jobs Number of N/A N/A N/A 1000 1500 2000 2000 women and created decent jobs persons with created disabilities through job prioritised summit initiatives (Investment activities) 14
PROGRAMME 1: ADMINISTRATION Outcomes, Outputs, Performance Indicators and Targets Outcome Output Output Indicator Annual Target Estimated Performance 2020/21 Audited /Actual Performance MTEF Period 2021/22 2022/23 2017/18 2018/19 2019/20 2023/24 2024/25 Organisati Assets Percentage increase R67,3 billion R70,3 R69,8 10% 10% 10% 10% 23% onal increased in total assets per billion billion financial annum viability Improved audit Percentage reduction in Disclaimer Disclaimer Disclaimer 12.77% 75% Qualified Unqualifi Unqualified maintaine outcome matters affecting the ed audit d through stringent audit opinion opinion controls and obtained by implementation 31 March by all Programme 2024 Heads. R452,299 Wasteful and Percentage of wasteful R445 647 R492,258 16,15% 50% 75% 100% 100% million fruitless and fruitless million million increase expenditure expenditure reduced reduced R769,138 Reduced Percentage of irregular R764 481 R770,284 2.47% 25% 45% 75% 75% million irregular expenditure reduced million million Increase expenditure 15
PROGRAMME 1: ADMINISTRATION Outcomes, Outputs, Performance Indicators and Targets Outcome Output Output Indicator Annual Target Estimated Performance 2020/21 Audited /Actual Performance MTEF Period 2017/18 2018/19 2019/20 2021/22 2022/23 2023/24 2024/25 Improved Implementatio Percentage N/A N/A N/A (40%) (60%) (90%) (100%) accessibility n of Visibility implementatio *30% *20% *30% *10% and visibility and n of Implementa Implement Implem Implem of COID Accessibility programmes tion of ation of entation entatio 18% services Strategy for in the programme programme of n of the Fund approved s in the s in the program progra visibility and approved approved mes in mmes accessibility visibility visibility the in the strategy. and and approve approve accessibility accessibilit d d strategy. y strategy. visibility visibility and and accessib accessib ility ility strategy. strategy . 16
PROGRAMME 1: ADMINISTRATION Outcomes, Outputs, Performance Indicators and Targets Outcome Output Output Indicator Annual Target Estimated Performance 2020/21 Audited /Actual Performance MTEF Period 2017/18 2018/19 2019/20 2021/22 2022/23 2023/24 2024/2 5 Programme Reported Percentage of N/A N/A N/A 45% 65% 70% 75% 80% to prevent fraud cases reported cases and fight reduced investigated Functional Implement N/A N/A N/A The Social and Conduct Developmen Develop Monit corruption in Ethics ethics Ethics annual t and ment oring the Fund committee managemen steering ethics risk implementat and and implemented t Committee assessment ion of the impleme report Programme established ethics ntation ing of strategy of the trends ethics plan 17
PROGRAMME 1: ADMINISTRATION Outcomes, Outputs, Performance Indicators and Targets Outcome Output Output Indicator Annual Target Estimated Performance 2020/21 Audited /Actual Performance MTEF Period 2017/18 2018/19 2019/20 2021/22 2022/23 2023/24 2024/25 Strengthene Vacancies Percentage N/A N/A N/A 16.52% 9.9% 9% 8.9% 8% d reduced reduction in institutional vacancy rate capacity of the Fund Improved The Mutuals Number of N/A N/A N/A 3 Quarterly 4 quarterly 4 quarterly 4 4 monitoring performance quarterly and reports reports reports quarterly quarterly and monitored annual reports submitted and 1 and 1 reports report evaluation on monitored annual annual and 1 s and 1 oversight of performance of report report annual annual the Mutuals report report Mutuals reporting to the Fund * Target is stated as non-cumulative only covers the work done in the current financial year. The target in brackets is the cumulative year on year progress 18
PROGRAMME 1: ADMINISTRATION Output Indicators: Annual and Quarterly Targets Output Indicators Annual Target Q1 Q2 Q3 Q4 Funds allocated to Small and R200 million - - - R200 million Medium Enterprises Number of decent jobs created 1000 - - - 1000 through job summit initiatives (Investment activities) Percentage increase in total assets 10% - - - 10% per annum Percentage reduction in matters 75% - - - 75% affecting the audit opinion Percentage of wasteful and 50% - - - 50% fruitless expenditure reduced 2024/04/16 19
PROGRAMME 1: ADMINISTRATION Output Indicators: Annual and Quarterly Targets Output Indicators Annual Target Q1 Q2 Q3 Q4 Percentage of irregular 25% - - - 25% expenditure reduced Percentage implementation (40%) (25%) (30%) (35%) (40%) of programmes in the *30% *15% *20% *25% *30% approved visibility and Implementation of accessibility strategy. programmes in the approved visibility and accessibility strategy Percentage of reported 65% - - - 65% of cases investigated reported cases investigated 2024/04/16 20
PROGRAMME 1: ADMINISTRATION Output Indicators: Annual and Quarterly Targets Output Indicators Annual Target Q1 Q2 Q3 Q4 Implement ethics Conduct - - - Conduct annual management Programme annual ethics ethics risk risk assessment assessment Percentage reduction in 9.9% 15% 13.3% 11.6% 9.9% vacancy rate Number of quarterly and 4 quarterly 01 01 01 01 quarterly annual reports on monitored quarterly quarterly quarterly report and 1 reports and 1 performance of Mutuals report report Annual report annual report report reporting to the Fund. *Target is stated as non-cumulative only covers the work done in the current financial year. The target in brackets is the cumulative year on year progress 2024/04/16 21
PROGRAMME 2: COID SERVICES Outcomes, Outputs, Performance Indicators and Targets Outcome Output Output Indicator Annual Target Estimated Performanc e 2020/21 Audited /Actual Performance MTEF Period 2017/18 2018/19 2019/20 2021/22 2022/23 2023/24 2024/25 Percentag Revenue Assessment 45% of the 55% (219 050 52% 98% 85% 87.5% 90% 95% e of generation of the annual target of 401 536) of [204 264 There are a total received increased Return of was achieved. active (ROE s of 459 229 Active return of Earning [172 703 active registered assessed registered earnings received employers employers / 207 206 Employers in assessed assessed/ 386 assessed (ROE s Compensation annually. 083. (75% of annually received) Fund database. the total active ] Of the total registered registered, 238 employers on 824 were the databank = Assessed in 386 083/514 2019/20 777*100)]. Financial Year. 22
PROGRAMME 2: COID SERVICES Outcomes, Outputs, Performance Indicators and Targets Outcome Output Output Indicator Annual Target Estimated Performance 2020/21 65% Audited /Actual Performance MTEF Period 2017/18 2018/19 2019/20 2021/22 2022/23 2023/24 2024/25 Percentag Claim Claims 95% (175 624 94% (146 664 83% 85% of 90% of 90% of 90% of Of the 72 e of claims registration adjudicat of the 184 100) of 156 223) of 851 88 of claims claims claims claims 792 received requirements ed registered claims 102 773 received received receive receive received, adjudicate reviewed and compensation adjudicated claims adjudicate adjudicated d d 47 365 d within 30 turnaround claims were within 40 were d within within 10 adjudic adjudic were working times for adjudicated working days of adjudicate 30 working ated ated adjudicated days payment of within 60 receipt. d within working days within within 5 within 30 benefits working days. 30 days 10 working working reduced working working days days days of days receipt 23
PROGRAMME 2: COID SERVICES Outcomes, Outputs, Performance Indicators and Targets Outcome Output Output Indicator Audited /Actual Performance Annual Target Estimated Performanc e 2020/21 MTEF Period 2017/18 2018/19 2019/20 2021/22 2022/23 2023/24 2024/25 Percentage Claim Benefits 100% (R3.6 98% (R 80% 82.9% 90% 90% 90% 90% of approved registration paid billion) of 3,864,064,683. The total Of the R3 benefits requirement approved 41 of amount 251 130 paid within s reviewed benefits paid R approved to 284.19 5 working and within 5 3,962,853,774. be paid Benefits days turnaround working days. 76) of approved towards approved, times for benefits paid benefits was R2 693 484 payment of within 5 R 3 369 370 922.49 was benefits working days, 476 paid within reduced yearly. However, 5 workings the amount days) paid within 5 working days was R 2 694 112 194 24
PROGRAMME 2: COID SERVICES Output Indicators: Annual and Quarterly Targets Output Indicators Percentage of received Annual Target Q1 Q2 Q3 Q4 85% - - - 85% return of earnings assessed annually. Percentage of claims 85% of claims 85% 85% 85% 85% received adjudicated received within 30 working days adjudicated within 30 working days Percentage of approved 90% 90% 90% 90% 90% benefits paid within 5 working days 2024/04/16 25
PROGRAMME 3: MEDICAL BENEFITS Outcomes, Outputs, Performance Indicators and Targets Outcome Output Output Indicator Annual Target Estimated Performanc e 2020/21 Audited /Actual Performance MTEF Period 2017/18 2018/19 2019/20 2021/22 2022/23 2023/24 2024/25 Percenta Access Specialised 79% (1 93% (1 539 97% 92% 90% of 90% of 95% of 95% of PROGRAMME 3: MEDICAL BENEFITS ge of 488) of the of 1 657) of to Medical (1 983 of Of the 3 requests requests requests requests request medical Interventio 1 894 pre- 2 041) 880 for pre- for pre- for pre- for pre- for pre- services ns pre- received authorisatio pre- requests, authorisa authorisa authorisat authorisa authorisat increase authorised preauthori ns authorisati 3 583 tion tion ion tion ions of d sation responded ons were of of of of Specialis requests to within 10 responded authorise Specialise Specialise Specialised Specialised ed were working to within d within d Medical d Medical Medical Medical Medical responded days on 10 10 Interventi Interventi Interventio Interventio Interventi to within previously working working ons ons ns finalised ns ons 10 working finalised days. days finalised finalised within 10 finalised finalised days cases. within 10 within 10 working within 10 within 10 working working days of working 26 working days of days of receipt days of days of receipt receipt receipt receipt
PROGRAMME 3: MEDICAL BENEFITS Outcomes, Outputs, Performance Indicators and Targets Outcome Output Output Indicator Annual Target Estimated Performance 2020/21 72% Audited /Actual Performance MTEF Period 2021/22 PROGRAMME 3: MEDICAL BENEFITS 2017/18 2018/19 Percentag 93% (699 93% (867 2019/20 2022/23 2023/24 2024/25 Access Medical 69% 80% of 90% of 90% of 90% of Of the 503 e of to invoices 441 of 751 381 of 934 accepted accepted accepted accepte (358 449 of 553 medical accepted medical finalised 364) 742) of medical medical medical d 519 830) of invoices medical services medical medical invoices invoices invoices medical medical received, 360 invoices increase invoices invoices finalised finalised finalised invoices invoices 241 were finalised d received finalised within 40 within 30 within 20 finalised finalised finalised within 40 were within 60 working working working within within 40 within 60 working finalised working days of days of days of 15 working workings days of within 60 days of receipt receipt receipt working days of days receipt. working receipt. days of receipt. days of receipt 27 receipt. 36
PROGRAMME 3: MEDICAL BENEFITS Output Indicators: Annual and Quarterly Targets Output Indicators Annual Target Q1 Q2 Q3 Q4 Percentage of request 90% of requests for 90% 90% 90% 90% for pre-authorisation of pre-authorisation of Specialised Medical Specialised Medical Interventions finalised Interventions finalised within 10 working days within 10 working days of receipt of receipt Percentage of accepted 85% of accepted 85% 85% 85% 85% medical invoices finalised medical invoices within 40 working days of finalised within 40 receipt. working days of receipt 2024/04/16 28
PROGRAMME 4: ORTHOTIC AND REHABILITATION SERVICES Outcomes, Outputs, Performance Indicators and Targets Outcome Output Output Indicator Annual Target Estimated Performance 2020/21 Audited /Actual Performance MTEF Period 2017/18 2018/19 2019/20 2021/22 2022/23 2023/24 2024/25 Percentag Rehabilitati Requests for 75% (983 of 1 93% (1079 of 85% (877 of 87% 85% 90% 95% 95% e of on and assistive 307) of 1160) of 1 031) of Of the 831 requests reintegratio devices requests compliant compliant requests for n finalised to received for assistive assistive received, 727 assistive Programme promote prosthetic and devices devices were finalised devices s accessibility assistive requests requests within 15 finalised implemente of home, devices responded to responded to workings days within 15 d which community responded to within 15 within 15 working promote the and work within 15 working days working days days rights of environments working days of receipt. of receipt. injured workers with disabilities 29
PROGRAMME 4: ORTHOTIC AND REHABILITATION SERVICES Outcomes, Outputs, Performance Indicators and Targets Outcome Output Output Indicator Annual Target Estimated Performance 2020/21 Audited /Actual Performance MTEF Period 2017/18 2018/19 2019/20 2021/22 2022/23 2023/24 2024/25 Number of Rehabilitati Eligible Post- N/A N/A N/A 366 (1145) (2040) (2960) (4000) learners on and School *779 *895 *920 *1040 funded reintegratio Education annually at n and Training Post School Programme (PSET) Education s students and training implemente funded to institutions d which improve the promote the prospect of rights of employment injured workers with disabilities 30
PROGRAMME 4: ORTHOTIC AND REHABILITATION SERVICES Outcomes, Outputs, Performance Indicators and Targets Outcome Output Output Indicator Annual Target Estimated Performance 2020/21 Audited /Actual Performance MTEF Period 2017/18 2018/19 2019/20 2021/22 2022/23 2023/24 2024/25 Number of Rehabilitation Persons with N/A N/A N/A 27 Persons 200 (400) (700) (1000) Persons with and Disabilities with *200 *300 *300 Disabilities funded reintegration funded to disabilities annually for Programmes promote were enrolled Vocational implemented access to Rehabilitation which education and Programme promote the prospects of rights of employment injured workers with disabilities 31
PROGRAMME 4: ORTHOTIC AND REHABILITATION SERVICES Output Indicators: Annual and Quarterly Targets Output Indicators Annual Target Q1 Q2 Q3 Q4 Percentage of requests for 85% 85% 85% 85% 85% assistive devices finalised within 15 working days Number of learners funded (1149) - - - (1149) annually at Post School *779 *779 Education and training institutions 2024/04/16 32
PROGRAMME 4: ORTHOTIC AND REHABILITATION SERVICES Output Indicators: Annual and Quarterly Targets Output Indicators Annual Target Q1 Q2 Q3 Q4 Number of Persons with 200 - - - 200 Disabilities funded annually for Vocational Rehabilitation Programme *Target is stated as non-cumulative only covers the work done in the current financial year. The target in brackets is the cumulative year on year progress 2024/04/16 33
BUDGET MTSF 2021/2022 2023/2024 2024/04/16 34
INCOME AND EXPENDITURE REVENUE EXPENDITURE CF MTEF 2021-2024 Budget Forecast CF MTEF 2021-2024 Budget Forecast Financial Perfomance Data Financial Perfomance Data 2021/22 Budget Estimates 2022-23 Forecasts 2023-24 Forecasts 2021/22 Budget Estimates Economic Classification 2022-23 Forecasts 2023-24 Forecasts Economic Classification EXECUTIVE SUMMARY EXECUTIVE SUMMARY Revenue R'000 9 826 027 250 911 164 340 481 791 4 147 564 35 602 2 161 638 2 296 686 R'000 10 278 024 1 320 724 169 270 496 245 4 271 991 6 944 1 488 35 974 2 226 487 2 365 586 R'000 10 750 813 1 373 553 176 041 516 095 4 442 871 37 413 2 315 547 2 460 210 Revenue from Assessments Revenue from Interest and penalties Interest earned on bank accounts Dividends received Interest earned on investments Administrative contributions by employers Rental income Other Revenue Profit/(loss) on disposal of assets Fair value adjustments Acturial gains/losses Expenditure R'000 R'000 R'000 Compensation of Employees Goods and Services Claims/benefits Capital Expenditure Depreciation & Amortisation Finance Costs Impairment loss Total Expenditure 956 289 1 040 106 6 079 800 40 170 61 800 3 653 252 1 950 000 13 781 417 961 966 1 117 660 6 262 194 41 375 64 890 3 762 850 2 008 500 14 219 435 971 601 1 140 013 6 387 438 42 203 68 135 3 838 107 2 048 670 14 496 166 6 741 1 445 7 221 1 548 - - - Total Revenue 19 372 744 21 172 734 22 081 311 35
BUDGET NOTES Budget inputs do not include: the effects of the COIDA Amendment Bill which will increase benefits costs The effects of the new Employer Classification Model which will reduce revenue Investment Income and Fairvalue Adjustments included in Revenue assume a positive economic growth 37
Thank You 38
