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

2. 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
Key Challenges 3 4 5
6-13
14-15 16
Compensation Fund Priorities:

3. 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.
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4. 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:

5. 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:

6. 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:

7. 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:

8. 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:

9. 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:

10. 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:

11. 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:

12. 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:

13. 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
Strategic Management:-
Coordinate the implementation of corporate plans.
Monitor and evaluate organisational performance.
Compensation Fund Priorities:

14. Compensation Fund Priorities: 2010 - 2011
Summary of CF Budget
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:

15. Compensation Fund Priorities: 2010 - 2011
Summary of CF Budget
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:

16. 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:

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