Annual Performance Plan 2018/19
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Annual Performance Plan 2018/19
ANNUAL PERFORMANCE PLAN
2018/19
COMPENSATION FUND
Annual Performance Plan 2018/19 I Compensation Fund 1
Compensation Fund I WORKING FOR YOU 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 2 Annual Performance Plan 2018/19 I Compensation Fund
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
Annual Performance Plan 2018/19 I Compensation Fund 3Compensation Fund I WORKING FOR YOU
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.
4 Annual Performance Plan 2018/19 I Compensation FundI 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 Annual Performance Plan 2018/19 I Compensation Fund 5
Compensation Fund I WORKING FOR YOU
OFFICIAL SIGN-OFF
It 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: Signature:
COID Services
6 Annual Performance Plan 2018/19 I Compensation FundJ. 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: Annual Performance Plan 2018/19 I Compensation Fund 7
Compensation Fund I WORKING FOR YOU 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 8 Annual Performance Plan 2018/19 I Compensation Fund
ORGANISATIONAL STRUCTURE
Compensation Commissioner:
Mr. V. Mafata
Director: Internal Audit
Ms. B Gumbu
Acting Director: Risk
Management
Ms. K Lebepe
Director:
Anti-Corruption and
Integrity Management
Ms. K Lebepe
Chief Director:
Acting Chief Chief Chief Chief Chief
Orthotics, Director:
Director: Director: Director: Director: Operations
LAP and Executive
Medical COID Financial Corporate Officer:
Rehabilitation Support:
Benefits: Services Management Services Mr. T
Services: Vacant
Ms. M Ruiters Ms. M Ruiters Mr. J Modiba Ms. N Qamata Headbush
Vacant
Annual Performance Plan 2018/19 I Compensation Fund 9Compensation Fund I WORKING FOR YOU 10 Annual Performance Plan 2018/19 I Compensation Fund
PART A
STRATEGIC OVERVIEW
Annual Performance Plan 2018/19 I Compensation Fund 11Compensation Fund I WORKING FOR YOU
PART A: STRATEGIC OVERVIEW
The 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
12 Annual Performance Plan 2018/19 I Compensation Fund(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
Annual Performance Plan 2018/19 I Compensation Fund 13Compensation Fund I WORKING FOR YOU
• 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
14 Annual Performance Plan 2018/19 I Compensation Fund2.2. 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 Annual Performance Plan 2018/19 I Compensation Fund 15
Compensation Fund I WORKING FOR YOU
3. OVERVIEW OF 2018/19 BUDGET AND MTEF ESTIMATES
3.1 EXPENDITURE ESTIMATES
Compensation Fund:
Adjusted ap-
Audited outcomes Medium-term expenditure
propriation
Programme
2014/15 2015/16 2016/17 2017/18 2018/(R’ 2019/20 2020/21
(R ‘000) (R ‘000) (R ‘000) (R ‘000) 000) (R ‘000) (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 - - - - 2 450 2 550 2 677
REHABILITATION
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 38 606 441 774 25 994 148 687 208 064 218 467 229 391
services
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 250 480 211 813 37 797 353 861 316 178 331 985 348 586
Items not provided for in the template)
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 - - - - - - -
16 Annual Performance Plan 2018/19 I Compensation FundAdjusted ap-
Audited outcomes Medium-term expenditure
propriation
Programme
2014/15 2015/16 2016/17 2017/18 2018/(R’ 2019/20 2020/21
(R ‘000) (R ‘000) (R ‘000) (R ‘000) 000) (R ‘000) (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.
Annual Performance Plan 2018/19 I Compensation Fund 17Compensation Fund I WORKING FOR YOU
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.
18 Annual Performance Plan 2018/19 I Compensation FundPART B
PROGRAMMES AND
SUB-PROGRAMME PLANS
Annual Performance Plan 2018/19 I Compensation Fund 19Compensation Fund I WORKING FOR YOU
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.
20 Annual Performance Plan 2018/19 I Compensation Fund4.2. STRATEGIC OBJECTIVE ANNUAL TARGET FOR 2018-2019
Estimated
Audited/ Actual Performance Medium-term Targets
Strategic Objective Performance
2014/15 2015/16 2016/17 2017/18 2018/19 2019/20 2020/2021
Risk Management
Provide effective Achieve risk The Fund’s risk The Fund’s risk The Fund’s risk The Fund’s risk The Fund’s risk The Fund’s risk
and efficient client management maturity management maturity management maturity management maturity management maturity management maturity management maturity
oriented support level 2. level increased level increased to 3.5 level increased to 3.7 level increased to 4 by level increased to 5 by level increased to 5.5
services. annually to 3 by 31 by 31 March 2017. by 31 March 2018. 31 March 2019. 31 March 2020. by 31 March 2021.
March 2016.
Internal Audit
Provide an effective 61% of the plan 70.45% (31/44) of the 78% of projects were 80% of projects on the 85% of projects on 90% of projects on 90% of projects on
and efficient client implemented by project plan were executed during the risk based audit plan the risk based plan the risk based plan the risk based plan
Annual Performance Plan 2018/19 I Compensation Fund
oriented support 31 March 2015 (22 implemented by 31 financial year (36/46). implemented annually implemented by 31 implemented by 31 implemented by 31
services. projects). March 2016. by 31 March 2018. March 2019. March 2020. March 2021.
Financial Management
Provide an effective 49.7 billion in 4.02% growth was Investment portfolio Investment return at Investment return at Investment return at Investment return at
and efficient client investments. achieved return = 7.3% for the a rate of CPI+2% at 31 a rate of CPI+2% at 31 a rate of CPI+2% at 31 a rate of CPI+2% at 31
oriented support [The Investments as at year to March 2017 March 2018. March 2019. March 2020. March 2021.
services. 1 April 2015 amounted compared to 8.28%
to R 49.7 billion and target return.
the closing balance
as at 31 March 2016
amounted to R 51
billion.]
214.3. PROGRAMME PERFORMANCE INDICATORS AND ANNUAL TARGETS FOR 2018-2019
22
Key Estimated
Indicator Strategic Audited/ actual performance Medium-term targets
performance performance
number objective
indicators 2014/15 2015/16 2016/17 2017/18 2018/19 2019/20 2020/2021
Risk Management
1.1 Provide effective The Fund’s risk Achieve risk The Fund’s risk The Fund’s risk The Fund’s risk The Fund’s risk The Fund’s risk The Fund’s risk
and efficient client management management management management management management management management
oriented support maturity level maturity level 2. maturity level maturity level maturity level maturity level maturity level maturity level
services. increased to 4 by increased annually increased to 3.5 by increased to 3.7 by increased to 4 by increased to 5 by increased to 5.5 by
31 March 2019. to 3 by 31 March 31 March 2017. 31 March 2018. 31 March 2019. 31 March 2020. 31 March 2021.
Compensation Fund I WORKING FOR YOU
2016.
Internal Audit
1.2 Provide effective Percentage 61% of the plan 70.45% (31/44) 78% of projects 80% of projects 85% of projects on 90% of projects on 90% of projects on
and efficient client implementation implemented by of the project were executed on the risk the risk based plan the risk based plan the risk based plan
oriented support of the approved 31 March 2015 (22 plan were during the based audit plan implemented by implemented by implemented by
services. annual risk-based projects). implemented by financial year implemented 31 March 2019. 31 March 2020. 31 March 2021.
audit plan. 31 March 2016. (36/46). annually by 31
March 2018.
Financial Management
1.3 Provide effective Percentage annual R49.7 billion in 4.02% growth was Investment Investment return Investment return Investment return Investment return
and efficient client increase on investments. achieved portfolio return at a rate of CPI+2% at a rate of CPI+2% at a rate of CPI+2% at a rate of CPI+2%
oriented support investment returns [The Investments = 7.3% for the at 31 March 2018. at 31 March 2019. at 31 March 2020. at 31 March 2021.
services. by 31 March of the as at 1 April 2015 year to March
current financial amounted to 2017 compared
year compared R 49.7 billion to 8.28% target
to the previous and the closing return.
financial year. balance as at
31 March 2016
amounted to R 51
billion. ]
Annual Performance Plan 2018/19 I Compensation Fund4.4. QUARTERLY TARGETS FOR 2018-2019
Indicator Strategic Key performance Reporting Annual target Quarterly targets Budget estimate
number objective indicators period 2018-2019 1st 2nd 3rd 4th (R’000)
Risk Management
1.1 Provide effective The Fund’s risk Annual The Fund’s risk - - - The Fund’s risk R 21 969
and efficient management management management
client oriented maturity level maturity level maturity level
support services. increased to 4 by increased to 4 by 31 increased to 4 by
31 March 2019. March 2019. 31 March 2019.
Internal Audit
1.2 Provide effective Percentage Quarterly 85% of projects on 15 % 45 % 60% 85% R 3 787
and efficient implementation the risk based plan
client oriented of the approved implemented by 31
Annual Performance Plan 2018/19 I Compensation Fund
support services. annual risk-based March 2019.
audit plan.
Financial Management
1.3 Provide effective Percentage Annual Investment return at - - - Investment return R 225 216
and efficient annual increase a rate of CPI+2% at at a rate of CPI+2%
client oriented on investment 31 March 2019. by 31 March 2019.
support services. returns by 31
March of the
current financial
year compared
to the previous
financial year.
23Compensation Fund I WORKING FOR YOU
4.5. RECONCILING PERFORMANCE TARGETS WITH THE BUDGET AND MTEF
ADJUSTED
EXPENDITURE OUTCOME APPRO- 2020-2021 Budget Forecasts
COMPENSATION FUND PROGRAMMES PRIATION
2014/15 2015/16 2016/17 2017/18 2018/19 2019/20 2020/21
(R ‘000) (R ‘000) (R 000) (R ‘000) (R ‘000) (R ‘000) (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 2 230 337
Change to 2005 budget estimate
1 Payable as from 1 April 2005.
Salary: R Car allowance: R
2 Payable as from 1 April 2005.
Salary: R Car allowance: R
Economic classification
Current payments 1 431 175 2 022 981 2 124 130 2 230 337
Compensation 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
Consultants, contractors and special 139 764 44 795 43 276 148 687 154 635 160 820 168 861
services
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
Travel and subsistence 41 806 43 061 23 800 44 476 46 255 48 105 50 511
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
Financial transactions in assets and
liabilities
Transfers and subsidies to:
Provinces and municipalities
Departmental agencies and accounts
Universities and technikons
Public corporations and private
enterprises
Foreign governments and international
organisations
Non-profit institutions
Households
Transfers and subsidies to:
Provinces and municipalities
Departmental agencies and accounts
Universities and technikons
Public corporations and private
enterprises
24 Annual Performance Plan 2018/19 I Compensation FundADJUSTED
EXPENDITURE OUTCOME APPRO- 2020-2021 Budget Forecasts
COMPENSATION FUND PROGRAMMES PRIATION
2014/15 2015/16 2016/17 2017/18 2018/19 2019/20 2020/21
(R ‘000) (R ‘000) (R 000) (R ‘000) (R ‘000) (R ‘000) (R ‘000)
Foreign governments and international
organisations
Non-profit institutions
Households
Payments for capital assets 6 773 2 026 101 812 24 491 82 251 12 070 4 278
Buildings 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
Land and subsoil assets of which:
Capitalised compensation
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.
Annual Performance Plan 2018/19 I Compensation Fund 25Compensation Fund I WORKING FOR YOU
5. PROGRAMME 2: COID SERVICES
5.1. PROGRAMME PURPOSE
To administer compensation claims, medical adjudication, accounts and customer care
PROGRAMME DESCRIPTION:
• 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
26 Annual Performance Plan 2018/19 I Compensation Fund5.2. STRATEGIC OBJECTIVE ANNUAL TARGETS 2018-2019
Estimated
Strategic Audited/ Actual Performance Medium-term Targets
Performance
Objective
2014/15 2015/16 2016/17 2017/18 2018/19 2019/20 2020/2021
Provide faster, N/A 95% of claims paid 100% of approved 95% of approved 98% of approved 100% of approved 100% of approved
reliable and within 5 working days benefits paid within benefits paid within 5 benefits paid within 5 benefits paid within 5 benefits paid within 5
accessible (R3,706 billion out of 5 working days by 31 working days yearly working days yearly working days yearly working days yearly
COID Services R3.905) March 2017
by 2020 (R 4.3 billion was paid
within 5 working days.)
481 853 registered 46% of active 95% of the annual 75 % of active 75% of active registered 90 % of active 90 % of active
(active) employers as at employers were target was achieved registered employers employers assessed registered employers registered employers
31 March 2018. assessed [268 218 active assessed annually annually by 31 March assessed annually by 31 assessed annually by 31
Annual Performance Plan 2018/19 I Compensation Fund
employers assessed / 2019 March 2020 March 2021
283 685 (60% of the
total active employers
on databank= 472 808
annual target *100)]
N/A 76% 90% of the registered 85% of claims 90% of claims 90% of claims 90% of claims
77 916 out of 103055 compensation claims adjudicated within 60 adjudicated within 40 adjudicated within 30 adjudicated within 30
claims adjudicated were adjudicated working days of receipt working days of receipt working days of receipt working days of receipt
were adjudicated within 60 working days
within 60 working days (A total of 130 800
compensation of the
145 922 received during
the financial year were
adjudicated within 60
working days).
275.3. PROGRAMME PERFORMANCE INDICATORS AND ANNUAL TARGETS FOR 2018-2019
28
Estimated
Indicator Strategic Key Performance Audited/ Actual Performance Medium-term Targets
Performance
number Objective Indicators
2014/15 2015/16 2016/17 2017/18 2018/19 2019/20 2020/2021
2.1 Provide faster, Percentage of N/A 95% of claims paid 100% of approved 95% of approved 98% of approved 100% of approved 100% of approved
reliable and approved benefits within 5 working benefits paid benefits paid benefits paid benefits paid benefits paid
accessible paid within 5 days within 5 working within 5 working within 5 working within 5 working within 5 working
COID Services working days (R3,706 billion out days by 31 March days yearly days yearly days yearly days yearly
by 2020 of R3.905) 2017
(R 4.3 billion was
Compensation Fund I WORKING FOR YOU
paid within 5
working days.)
2.2 Provide faster, Percentage of 481 853 registered 46% of active 95% of the 75 % of active 75% of active 90 % of active 90 % of active
reliable and active registered (active) employers employers were annual target was registered registered registered registered
accessible employers as at 31 March assessed achieved employers employers employers employers
COID Services assessed annually 2018. [268 218 active assessed annually assessed annually assessed annually assessed annually
by 2020 by 31 March 2019 employers by 31 March 2019 by 31 March 2020 by 31 March 2021
(excl exempted assessed / 283 685
employers) (60% of the total
active employers
on databank= 472
808 annual target
*100)]
2.3 Provide faster, Percentage of N/A 76% 90% of the 85% of claims 90% of claims 90% of claims 90% of claims
reliable and claims adjudicated 77 916 out of registered adjudicated within adjudicated within adjudicated within adjudicated within
accessible within 40 working 103055 claims compensation 60 working days of 40 working days of 30 working days of 30 working days of
COID Services days of receipt adjudicated were claims were receipt receipt receipt receipt
by 2020 adjudicated within adjudicated within
60 working days 60 working days
(A total of
130 800
compensation
of the 145 922
received during
the financial year
were adjudicated
within 60 working
days).
Annual Performance Plan 2018/19 I Compensation Fund5.4. QUARTERLY TARGETS FOR 2018-2019
Indicator Strategic Key Performance Reporting Annual Target Quarterly Targets Budget estimate
number Objective Indicators Period 2018-2019 1st 2nd 3rd 4th (R’000)
2.1 Provide faster, Percentage of Quarterly 98% of approved 98% of approved 98% of approved 98% of approved 98% of approved R 6 508 209
reliable and approved benefits benefits paid benefits paid benefits paid benefits paid within benefits paid within
accessible COID paid within 5 within 5 working within 5 working within 5 working 5 working days 5 working days
Services by working days days yearly days yearly days yearly yearly yearly
2020
2.2 Provide faster, Percentage of Quarterly 75% of active 40% 55% 65% 75%
reliable and active registered registered
accessible COID employers employers
Services by assessed annually assessed annually
2020 by 31 March 2019 by 31 March 2019
Annual Performance Plan 2018/19 I Compensation Fund
(excl exempted
employers)
2.3 Provide faster, Percentage of Quarterly 90% of claims 90% of claims 90% of claims 90% of claims 90% of claims
reliable and claims adjudicated adjudicated within adjudicated within adjudicated within adjudicated within adjudicated within
accessible COID within 40 working 40 working days of 40 working days of 40 working days of 40 working days of 40 working days of
Services by days of receipt receipt receipt receipt receipt receipt
2020
29Compensation Fund I WORKING FOR YOU
5.5. RECONCILING PERFORMANCE TARGETS WITH THE BUDGET AND MTEF
ADJUSTED
EXPENDITURE OUTCOME 2020-2021 Budget Forecasts
APPROPRIATION
COMPENSATION FUND PROGRAMMES
2014/15 2015/16 2016/17 2017/18 2018/19 2019/20 2020/21
(R Million) (R Million) (R Million) (R Million) (R Million) (R Million) (R Million)
Programme 2: 6 038 562 8 510 520 5 590 621 7 810 777 5 903 137 6 198 294 6 508 209
COID SERVICES
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 6 508 209
Change to 2005 budget estimate
1 Payable as from 1 April 2005.
Salary: R Car allowance: R
2 Payable as from 1 April 2005.
Salary: R Car allowance: R
Economic classification
Current payments 6 038 562 8 510 520 5 590 621 7 810 777 5 903 137 6 198 294 6 508 209
Compensation 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
Consultants, contractors and special 2 853 59 980 3 945 4 378 4 372 4 569 4 797
services
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
Interest and rent on land
Financial transactions in assets and
liabilities
Transfers and subsidies to:
Provinces and municipalities
Departmental agencies and accounts
Universities and technikons
Public corporations and private enterprises
Foreign governments and international
organisations
Non-profit institutions
Households
Transfers and subsidies to:
Provinces and municipalities
Departmental agencies and accounts
Universities and technikons
Public corporations and private enterprises
Foreign governments and international
organisations
Non-profit institutions
Households
30 Annual Performance Plan 2018/19 I Compensation FundADJUSTED
EXPENDITURE OUTCOME 2020-2021 Budget Forecasts
APPROPRIATION
COMPENSATION FUND PROGRAMMES
2014/15 2015/16 2016/17 2017/18 2018/19 2019/20 2020/21
(R Million) (R Million) (R Million) (R Million) (R Million) (R Million) (R Million)
Payments for capital assets
Buildings and other fixed structures
Machinery and equipment
Cultivated assets
Software and other intangible assets
Land and subsoil assets of which:
Capitalised compensation
Total 6 038 562 8 510 520 5 590 621 7 810 777 5 903 137 6 198 294 6 508 209
PERFORMANCE AND EXPENDITURE TRENDS
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.
Annual Performance Plan 2018/19 I Compensation Fund 31Compensation Fund I WORKING FOR YOU
6. PROGRAMME 3: MEDICAL BENEFITS
6.1. 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.
STRATEGIC OBJECTIVES
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
promote rehabilitation, re-integration and return to work policy for injured and diseased workers.
Baseline No baseline
32 Annual Performance Plan 2018/19 I Compensation Fund6.2. STRATEGIC OBJECTIVE ANNUAL TARGETS 2018-2019
Strategic Audited/ Actual Performance Estimated Performance Medium-term Targets
Objective 2014/15 2015/16 2016/17 2017/18 2018/19 2019/20 2020/21
Provide faster, N/A 97% 89% of the medical claims 85% of medical invoices 85% of medical 85% of medical 85% of medical
reliable and 512 976 out of 529 785 were finalised within 60 finalised within 60 invoices finalised invoices finalised invoices finalised
accessible COID medical invoices approved working days of receiving working days of receipt within 60 working within 40 working within 30 working
Services by 2020 for payment within 60 invoice days of receipt days of receipt days of receipt
working days (A total of 612 960
medical claims of the
686 385 received during
the financial year were
finalised within 60 working
days)
Annual Performance Plan 2018/19 I Compensation Fund
N/A N/A N/A Respond to 85% 85% of pre- 85% of pre- 85% of pre-
of received pre- authorisations authorisations authorisations
authorisation request responded to within responded to within responded to within
within 10 working days 10 working days on 10 working days on 10 working days on
previously finalised previously finalised previously finalised
cases cases cases
336.3. PROGRAMME PERFORMANCE INDICATORS AND ANNUAL TARGETS FOR 2018-2019
34
Estimated
Indicator Strategic Key Performance Audited/ Actual Performance Medium-term Targets
Performance
number Objective Indicators
2014/15 2015/16 2016/17 2017/18 2018/19 2019/20 2020/21
3.1 Provide faster, Percentage of medical N/A 97% 89% of the 85% of medical 85% of medical 85% of medical 85% of medical
reliable and invoices finalised within medical claims invoices finalised invoices finalised invoices finalised invoices finalised
512 976 out of
accessible COID 60 working days of were finalised within 60 working within 60 working within 40 working within 30 working
529 785 medical
Services by 2020 receipt within 60 working days of receipt days of receipt days of receipt days of receipt
invoices approved
days of receiving
for payment within
invoice
Compensation Fund I WORKING FOR YOU
60 working days
(A total of
612 960 medical
claims of the
686 385 received
during the
financial year were
finalised within 60
working days)
3.2 Percentage of pre- N/A N/A N/A Respond to 85% of pre- 85% of pre- 85% of pre-
authorisations responded 85% of received authorisations authorisations authorisations
to within 10 working days pre-authorisation responded to responded to responded to
on previously finalised request within 10 within 10 working within 10 working within 10 working
cases working days days on previously days on previously days on previously
finalised cases finalised cases finalised cases
Annual Performance Plan 2018/19 I Compensation Fund6.4. QUARTERLY TARGETS FOR 2018-2019
Indicator Key Performance Reporting Annual Target Quarterly Targets Budget estimate
Strategic Objective
number Indicators Period 2018-2019 1st 2nd 3rd 4th (R’000)
3.1 Provide faster, reliable Percentage of Quarterly 85% of medical 85% of medical 85% of medical 85% of medical 85% of medical R 3 338 753
and accessible COID medical invoices invoices finalised invoices finalised invoices finalised invoices invoices finalised
Services by 2020 finalised within 60 within 60 working within 60 working within 60 working finalised within within 60 working
working days of days of receipt days of receipt days of receipt 60 working days of receipt
receipt days of receipt
3.2 Percentage of Quarterly 85% of pre- 85% of pre- 85% of pre- 85% of pre- 85% of pre-
pre-authorisations authorisations authorisations authorisations authorisations authorisations
responded to within responded to responded to responded responded responded to
10 working days on within 10 working within 10 working to within 10 to within 10 within 10 working
previously finalised days on previously days on previously working days working days days on previously
Annual Performance Plan 2018/19 I Compensation Fund
cases finalised cases finalised cases on previously on previously finalised cases
finalised cases finalised cases
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