Compensation Fund Priorities: 2010 - 2011 Addressing the SONA CF Priorities 2010 - 2011 Presentation to the Portfolio Committee on Labour 17th March 2010 Overall Responsibility: Mr Shadrack Mkhonto Compensation Fund Priorities: 2010 - 2011

Compensation Fund Priorities: 2010 - 2011 Table of Contents Item Topic Slide 1. 2. 3. 4. 5. 6. Legislative Mandate Measurable Objective of the Fund Reporting Framework Strategic Objectives 2010 – 2011 Budget Summary 2010 - 2011 Key Challenges 3 4 5 6-13 14-15 16 Compensation Fund Priorities: 2010 - 2011

Compensation Fund Priorities: 2010 - 2011 Legislative Mandate The Compensation Fund is a Public Entity of the Department of Labour. It is responsible to administer the Compensation for Occupational Injuries and Diseases Act (COIDA) No. 130/1993 as amended by the COIDA 61/1997. Compensation Fund Priorities: 2010 - 2011

Measurable Objective of the Fund “To pay compensation for death or disablement caused by occupational injuries and diseases sustained or contracted by employees, within 90 days of receipt of full documentation” Compensation Fund Priorities: 2010 - 2011

DIRECTOR-GENERAL : LABOUR COMPENSATION COMMISSIONER Reporting Framework MINISTER OF LABOUR COMPENSATION BOARD DIRECTOR-GENERAL : LABOUR COMPENSATION COMMISSIONER AUDIT COMMITTEE BOARD SUB-COMMITTEES Compensation Fund Priorities: 2010 - 2011

Compensation Fund Strategic Objectives 2010 - 2011 Improve the Health Profile of the Nation Strengthening Social Protection 1. Providing an Efficient Social Safety Net:- Increased number of compensation claims finalised. Improve medical claims turnaround time. Development and implementation of Rehabilitation and Reintegration Policy Framework. Contribute to Social Security reforms. Prevent occupational injuries by strengthening the civil society. Compensation Fund Priorities: 2010 - 2011

Compensation Fund Strategic Objectives 2010 - 2011 Strengthening our Skills and HR Base Strengthening the Institutional Capacity of DoL 2. Provide Professional, Efficient and Client Orientated Human Resource:- Achieve a conducive working environment. Implement recruitment and retention strategy. Development and implementation of the Work Skills Development Plan (WSP). Strengthening HR capacity and monitor human performance. Promote sound labour relations. Compensation Fund Priorities: 2010 - 2011

Compensation Fund Strategic Objectives 2010 - 2011 Intensify the Fight against Crime and Corruption Protecting Vulnerable Workers 3. Strengthening Corporate Governance:- Implement Risk Management Strategy. Full implementation of MISS. 4. Integration of the Fund with the Comprehensive Social Security Reforms:- Amendment of the COID Act. Improve turnaround time in dispute settlements. Compensation Fund Priorities: 2010 - 2011

Compensation Fund Strategic Objectives 2010 - 2011 Improve the Health Profile of the Nation Protecting Vulnerable Workers 5. Promote Policy Advocacy Implement Communication/Marketing Strategy. Development and implementation of an effective branding strategy. Production of the Annual Report and related publications. Compensation Fund Priorities: 2010 - 2011

Compensation Fund Strategic Objectives 2010 - 2011 Improve the Health Profile of the Nation Strengthening Social Protection 6. Improve Financial Viability:- Increase assessment revenue. Increase number of registered employers. Debt Collection. Unqualified Audit Report. Increase investment returns. Ensure effective asset management. Compensation Fund Priorities: 2010 - 2011

Compensation Fund Strategic Objectives 2010 - 2011 Building a Developmental State including improvement of Public Services and Strengthening Democratic Institutions Strengthening the Institutional Capacity of the Department 7. Improve Corporate Support and Services:- Deliver information and communication technology solutions. 8. Enhance Quality and Access to COIDA Services and Information:- Organisational transformation. Develop and implement Quality Management Systems. Continuous review and improvement of business processes. Improved level of client satisfaction. Compensation Fund Priorities: 2010 - 2011

Compensation Fund Strategic Objectives 2010 - 2011 Building a Developmental State including improvement of Public Services and Strengthening Democratic Institutions Strengthening the Institutional Capacity of the Department 9. Programme / Project Management:- Management and coordination of CF Priority Projects: Organisational Redesign. Decentralisation of COIDA services to Provinces. Integrated Revenue Generation and Claims. Rehabilitation and Reintegration. Compensation Fund Priorities: 2010 - 2011

Compensation Fund Strategic Objectives 2010 - 2011 Building a Developmental State including improvement of Public Services and Strengthening Democratic Institutions Strengthening the Institutional Capacity of the Department 10. Strategic Management:- Coordinate the implementation of corporate plans. Monitor and evaluate organisational performance. Compensation Fund Priorities: 2010 - 2011

Compensation Fund Priorities: 2010 - 2011 Summary of CF Budget 2009-2011 Expenditure 2009/10 R’million 2010/11 2011/12 Compensation of Employees 347,159,978 323,969,025 380,261,018 Claims 2,153,724,511 2,709,284,055 3,756,203,540 Administrative Expenses 1,094,747,993 581,275,583 659,583,117 Goods and Services 3,248,472,504 3,290,559,638 4,415,786,657 Capital Expenditure 247,400,433 24,353,838 25,349,136 Expenditure Budget 3,843,032,915 3,638,882,500 4,821,396,811 Compensation Fund Priorities: 2010 - 2011

Compensation Fund Priorities: 2010 - 2011 Summary of CF Budget 2009-2011 Revenue 2009/10 R’million 2010/11 2011/12 Assessments -3,337,222,799 -3,452,069,102 -4,073,156,621 Interest and Penalties -229,066,244 -420,977,125 -460,934,836 Investment Income -1,611,698,380 -1,985,461,536 -2,295,193,535 Other Income 13,000,000 -21,400,000 -23,540,000 -5,164,987,423 -5,879,907,763 -6,852,824,992 Net Surplus -1,321,954,509 -2,241,025,262 -2,031,428,181 Compensation Fund Priorities: 2010 - 2011

Compensation Fund Priorities: 2010 - 2011 CF Key Challenges IT Systems. Inadequate debt collection system. Manual processing of claims. Delay and/or non-reporting of accidents. Human capacity constraints. Compensation Fund Priorities: 2010 - 2011

Compensation Fund Priorities: 2010 - 2011 Thank you Compensation Fund Priorities: 2010 - 2011