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COMPENSATION FUND PRESENTATION TO THE SELECT COMMITTEE ON ECONOMIC AND BUSINESS DEVELOPMENT

COMPENSATION FUND PRESENTATION TO THE SELECT COMMITTEE ON ECONOMIC AND BUSINESS DEVELOPMENT. 2014.09.16. TABLE OF CONTENTS. Overview and objective of the Compensation Fund Compensation Fund’s Objective, Vision, Mission and Values Service delivery outcomes

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COMPENSATION FUND PRESENTATION TO THE SELECT COMMITTEE ON ECONOMIC AND BUSINESS DEVELOPMENT

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  1. COMPENSATION FUND PRESENTATION TO THE SELECT COMMITTEE ON ECONOMIC AND BUSINESS DEVELOPMENT 2014.09.16

  2. TABLE OF CONTENTS • Overview and objective of the Compensation Fund • Compensation Fund’s Objective, Vision, Mission and Values • Service delivery outcomes • Summary of Performance 2013/2014 Financial Year 5. Progress on the Commitments made in 2013-14 6. Action Plan to Address Negative Audit Opinion in respect of Regulatory and IT Audit 7. Action Plan to Address Negative Audit Opinion in respect of Performance Information 8. Comparison of Claims Registered, Accepted and Repudiated for 2011-2014 9. Production and Statistics: Comparison of Provincial Decentralisation Statistical Report 10. Challenges 11. Priorities 12. The new Claims Management System 13. 2013/14 Budget and MTEF Estimates 14. Expenditure trends per economic classifications 15. Compensation Fund Budget 2014-15 Financial Year

  3. OBJECTIVES, VISION, MISSION AND VALUES OF THE FUND Objective • 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. Our Vision • To be a world class provider of sustainable compensation for occupational injuries and diseases, rehabilitation and reintegration services Our Mission • To provide efficient, quality, client-centric and accessible COID services • To sustain financial viability • To ensure an organisation which takes care of the needs of its staff for effective service delivery Our Values • We shall at all times adhere to and live the Batho Pele Principles Chief Directorate Communication | 2011.00.00

  4. SERVICE DELIVERY OUTCOMES

  5. SUMMARY OF PERFORMANCE FOR 2013/14 FINANCIAL YEARTOTAL PERFORMANCE INDICATORS = 51

  6. PROGRESS ON THE COMMITMENTS MADE IN 2013-2014 Chief Directorate Communication | 2011.00.00

  7. PROGRESS ON THE COMMITMENTS MADE IN 2013-2014 (Cont) Chief Directorate Communication | 2011.00.00

  8. PROGRESS ON THE COMMITMENTS MADE IN 2013-2014 (Cont) Chief Directorate Communication | 2011.00.00

  9. PROGRESS ON THE COMMITMENTS MADE IN 2013-2014 (Cont) Chief Directorate Communication | 2011.00.00

  10. ACTION PLAN TO ADDRESS NEGATIVE AUDIT OPINION IN RESPECT OF FINANCIAL MANAGEMENT

  11. OVERALL MAPPING OF NEGATIVE OUTCOMES PER FOCUS AREAS 2013 - 2014 Note: Compilation of Internal audit findings register in progress . Long term Medium term Short term Chief Directorate Communication | 2011.00.00

  12. HIGH LEVEL PLANS TO ADDRESS AUDIT OPINIONS (DISCLAIMER AND MATTERS OF EMPHASIS)

  13. HIGH LEVEL PLANS TO ADDRESS AUDIT OPINIONS (DISCLAIMER AND MATTERS OF EMPHASIS)

  14. HIGH LEVEL PLANS TO ADDRESS AUDIT OPINIONS (OTHER INTERVENTIONS)

  15. HIGH LEVEL PLANS TO ADDRESS AUDIT OPINIONS (OTHER INTERVENTIONS)

  16. ACTION PLAN TO ADDRESS NEGATIVE AUDIT OPINION IN RESPECT OF PERFORMANCE INFORMATION

  17. PERFORMANCE INFORMATION ACTION PLAN

  18. PERFORMANCE INFORMATION ACTION PLAN (Cont)

  19. PERFORMANCE INFORMATION ACTION PLAN (Cont)

  20. PERFORMANCE INFORMATION ACTION PLAN (Cont)

  21. PERFORMANCE INFORMATION ACTION PLAN (Cont)

  22. PERFORMANCE INFORMATION ACTION PLAN (Cont)

  23. PERFORMANCE INFORMATION ACTION PLAN (Cont)

  24. PERFORMANCE INFORMATION ACTION PLAN (Cont)

  25. COMPARISON OF CLAIMS REGISTERED, ACCEPTED AND REPUDIATED FOR 2011-2014 • The table below gives comparison for the last three financial years. • The number of claims registered has increased and the reasons for these may be improvement in the claims system since its launch in 2011, the backlog elimination projects embarked upon and also partly the positive impact of decentralisation.

  26. COMPARISON OF CLAIMS REGISTERED, ACCEPTED AND REPUDIATED FOR 2011-2014 • The table below gives comparison for the awards processed for payments, for different benefits as indicated in the tables below. • In some claims, different types of benefits were paid in one claim. Table 3: Temporary Total Disability Table 4: Permanent Disability Table 2: Pension Table 5: Constant Attendance Allowance

  27. PRODUCTION AND STATISTICS: COMPARISON OF PROVINCIAL DECENTRALISATION STATISTICAL REPORT • The table below gives the comparison of claims registered in the province from 2011/12 until 2013/14.

  28. CHALLENGES • Inefficient IT Systems. • Turnaround times in processing of compensation claims. • Backlog in processing claims and payments. • Delay and/or non-reporting of accidents. • Human capacity constraints. • Document management. • Records management system. • Engagement with trade unions and the delays in the implementation of the structure. • Centralised IT and post EOH contract. • Non-compliance by stakeholders as a result of incomplete information by employers; delays in the submission of banking details by beneficiaries and employers that fail to submit their annual returns • Fraudulent activities are still negatively affecting the finalisation of employer assessments and the debt book continues to increase. This is due to the fraudulent letters of good standing which were issued, in most cases not in accordance with the Compensation Fund policy.

  29. PRIORITIES FOR 2014/15 Implement a Turnaround and Modernisation Strategy by: • Developing a new Assessment Rate Model • Conduct a scoping exercise on the ICT environment • Establishing the Programme Management and Internal Control Units • Finalising of the decentralisation process including the placement of staff and resettlement to provinces • Investing in Social Responsible Investment as part of the implementation of the Government’s Medium Term Strategic Framework 2014-2019 • Exploring ways to strengthen employer compliance by conducting payroll audits • Implementing a comprehensive plan to address the disclaimer audit opinions • Tabling COID Amendment Bill in Cabinet and Parliament respectively • Improving human resource capacity through recruitment and capacity development • Implementing a new claims management system (see next slide for details)

  30. AMENDMENTS TO THE COIDA The Compensation Fund is in a process of tabling Amendments of the Compensation for Occupational Injuries and Diseases Act, 130 of 1993 (COIDA) amendments to both Cabinet and Parliament. The purpose of amending COIDA is to: • to substitute, insert and repeal certain definitions; • to provide anew for the administration of the Act; • to provide for rehabilitation, re-integration and early return to work of occupationally injured and diseased workers; • to regulate the use of health care services; • to regulate dispute resolution, monitoring and enforcement; and • to provide for matters connected therewith. It is envisaged that the amendments will be tabled in the Cabinet during the week of the 22 September 2014 so as to request permission to take the Bill to NEDLAC as part of public consultation process. Once finalized in the NEDLAC the Bill will then be tabled in Parliament for processing and adoption.

  31. THE NEW CLAIMS MANAGEMENT SYSTEM • The new electronic claims system is called “Umehluko” • Umehluko system went live on the 4th August 2014 • RMA Maintenance and Support services approved through BAC in July 2014. • Service Level Agreement signed. • Switching houses were activated from 25 August 2014. • Umehluko dependencies: • Storage, System network challenges • Alleviation of system slowness

  32. 2013/14 BUDGET AND MTEF ESTIMATES

  33. EXPENDITURE TRENDS PER ECONOMIC CLASSIFICATIONS • Medium Term Expenditure Estimates

  34. PROVINCIAL BUDGET ALLOCATION

  35. Compensation Fund Thank You…

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