1. PORTFOLIO COMMITTE ON LABOUR
THE COMPENSATION FUND
PRESENTATION TO THE
PORTFOLIO COMMITTE ON LABOUR
BUDGET REVIEW PROCESS
07 APRIL 2016 1 1

2. CONTENTS
THE FUND’S ANNUAL PERFORMANCE PLAN FOR THE FINANCIAL YEAR 2016/17
BUDGET

3. THE COMPENSATION FUND
The Fund’s Annual Performance Plan (APP) for the Financial Year 2016/17 3

4. INTRODUCTION
During the development of the Annual Performance Plan (APP) for the Financial Year 2016/17, the following aspects were considered;
The Audit Action Plan emanating from the AGSA Findings during the Financial Years 2013/14 and 2014/15.
The Operational Risk Treatment Actions.
The Internal Audit Reports for the Financial Year 2015/16.
The APP is also informed by the Strategic Plan of the Compensation Fund (CF) which is further informed by the Strategic Objectives of the Department of Labour (DoL), the Minister Of Labour Performance Agreement, the Medium Term Strategic Framework (MTSF) and the National Development Plan (NDP) 2030.

5. Link with Service Delivery Outcomes
Government
Service Delivery
Outcomes
DOL Strategic
Objectives
CF Strategic
CF Strategic Objectives
Outcome 4: Decent
Employment
through inclusive
economic growth
Objective (KRA 3): Protecting vulnerable workers,
Strengthening of Social Security through compensating for occupational injuries and diseases
Provide faster, reliable and accessible COID Services by 2020
Outcome 13: A comprehensive, responsive and sustainable social protection system
KRA 5: Strengthening
social protection
Outcome 12: An
efficient, effective
and development
oriented public
service
KRA 8: Strengthening
the institutional
capacity of the
Department
Strengthening the institutional capacity of the Fund
Provide an effective and efficient client oriented support services.

6. Performance Indicators per Strategic Objective
STRATEGIC OBJECTIVES
Number of Planned Indicators 
Provide faster, reliable and accessible COID Services by 2020 10
Provide an effective and efficient client oriented support services. 8
Total 18

7. Performance Indicators per Programme Budget Structure
PROGRAMMES
Number of Planned Indicators 
Programme 1
Administration 8
Programme 2
Operations Management 5
Programme 3
Provincial Operations:
Total 18

8. Performance Indicators and Quarterly Performance Targets per Programme
THE COMPENSATION FUND
Performance Indicators and Quarterly Performance Targets per Programme 8

9. PROGRAMME 1: ADMINISTRATION
Item  
Strategic objective
Key Performance Indicators
Reportin g Period
Annual Target
2016/17
Quarterly Targets
1st
2nd
3rd
4th
Risk Management
1.1
Provide professional, efficient and client oriented support services.
The Fund risk management maturity improved annually to a level by 31 March 2017
Quarterly
The Fund risk management maturity improved annually to level 3 by 31 March 2017
Target 1
Tested BCP strategy by 30 June 2016
Review 1 strategic risk register by 30 September 2016
Review 6 operational risk registers 31 December 2016
Target 1
6 Risk Monitoring
reports by 31 March 2017 -
Target 2
Review 6 operational risk registers by 30 September 2016
Target 2
Reports 31 December 2016
1 Risk Management training for the Risk Champions by 31 March 2017
Target 3
Review the Risk Appetite and Tolerance Framework by 30 September 2016

10. PROGRAMME 1: ADMINISTRATION continues...
Item  
Strategic objective
Key Performance Indicators
Reporting Period
Annual Target
2016/17
Quarterly Targets
1st
2nd
3rd
4th
Internal Audit
1.2
Provide professional, efficient and client oriented support services. 
A three-year and Annual risk-based internal audit plan approved by 31 March 2017
Annual
Plan approved by the Audit Committee by March 2017
N/A
1.3
Percentage of projects on the risk based audit plan executed annually by 31 March 2017
Quarterly
75% of projects on the risk based audit plan executed annually by 31 March 2017
15% cumulative projects on the risk based audit plan executed by 30 June 2016
45% cumulative projects on the risk based audit plan executed by 30 September 2016
60% cumulative projects on the risk based audit plan executed by 31 December 2016

11. PROGRAMME 1: ADMINISTRATION continues...
Item  
Strategic objective
Key Performance Indicators
Reporting Period
Annual Target
2016/17
Quarterly Targets
1st
2nd
3rd
4th
Financial Management
1.4
Provide professional, efficient and client oriented support services.
Percentage of active registered employers assessed annually by 31 March 2017 (excl exempted employers)
Quarterly
60 % of active registered employers assessed annually
40% of the annual target by 30 June 2016 achieved
75% of the annual target by 30 September 2016 achieved
85% of the annual target by 31 December 2016 achieved
100% of the annual target by 31 March 2017 achieved

12. PROGRAMME 1: ADMINISTRATION continues...
Item  
Strategic objective
Key Performance Indicators
Reporting Period
Annual Target
2016/17
Quarterly Targets
1st
2nd
3rd
4th
Financial Management
1.5
Provide professional, efficient and client oriented support services.
Percentage annual increase on investment income by 31 March of the current financial year compared to the previous financial year
Annual
Investment growth at a rate of CPI+2% annually -
Investment growth at a rate of CPI+2% by 31 March 2017

13. PROGRAMME 1: ADMINISTRATION continues...
Item  
Strategic objective
Key Performance Indicators
Reporting Period
Annual Target
2016/17
Quarterly Targets
1st
2nd
3rd
4th
Financial Management
1.6
Provide professional, efficient and client oriented support services.
No of findings affecting the AGSA audit report as at 31 March 2015 cleared annually by 31 March 2017
Quarterly
78 findings affecting the AGSA audit report as at 31 March 2015 cleared annually by 31 March 2017
19 findings cleared by 30 June 2016
19 findings cleared by 30 September 2016
19 findings cleared by 31 December 2016
21 findings cleared by 31 March 2017
1.7
Percentage of findings affecting the AGSA audit report as at 31 March 2016 cleared annually by 31 March 2017
40% of the findings affecting the AGSA audit report as 31 March 2016 cleared by 31 March 2017 -
25% of the annual target by 30 September 2016
25% of the annual target by 31 December 2016
50% of the annual target by 31 March 2017

14. PROGRAMME 1: ADMINISTRATION continues...
Item  
Strategic objective
Key Performance Indicators
Reportin g Period
Annual Target
2016/17
Quarterly Targets
1st
2nd
3rd
4th
Human Resource Management
1.8
Provide professional, efficient and client oriented support services.
Percentage of vacancies at CF Head Office maintained annually
Quarterly
10% of vacancies at CF Head Office maintained by 31 March 2017
10% of vacancies at CF Head Office maintained by 30 June 2016
10% of vacancies at CF Head Office maintained by 30 September 2016
10% of vacancies at CF Head Office maintained by 31 December 2016

15. PROGRAMME 2: OPERATIONS MANAGEMENT
Item  
Strategic Objective
Key Performance Indicators
Reporting Period
Annual Target
2016/17
Quarterly Targets
1st
2nd
3rd
4th
2.1
Provide faster, reliable and accessible COID Services by 2020
Percentage of Authorised claims paid within 5 working days
Quarterly
100% of authorised claims paid within 5 working days yearly
100% of authorised claims paid within 5 working days

16. PROGRAMME 2: OPERATIONS MANAGEMENT continues...
Item  
Strategic Objective
Key Performance Indicators
Reporting Period
Annual Target
2016/17
Quarterly Targets
1st
2nd
3rd
4th
2.2
Provide faster, reliable and accessible COID Services by 2020
Reviewed Compensation benefits for annual adjustments
Quarterly
Annual review and approval of compensatio n benefits for adjustments by March 2017
Review preliminary actuarial report by 30th June 2016.
Final Compensation benefit submission tabled for approval by the CF Board by 30 September 2016
Submission of the final proposal to the Minister by 31 December 2016
Publishing of the approved compensation benefits in the Government Gazette by 31 March 2017

17. PROGRAMME 2: OPERATIONS MANAGEMENT continues...
Item  
Strategic Objective
Key Performance Indicators
Reporting Period
Annual Target
2016/17
Quarterly Targets
1st
2nd
3rd
4th
2.3
Provide faster, reliable and accessible COID Services by 2020
Reviewed medical Tariffs for annual adjustments
Quarterly
Annual review and approval of medical tariffs for annual adjustment by March 2017
Preliminary report from the actuaries by 30 June 2016
Consultations with medical stakeholders by 30 September 2016
Final medical tariffs submission tabled for approval by the CF Board by 31 December 2016
Publishing approved medical tariffs in the Government Gazette by 31 March 2017

18. PROGRAMME 2: OPERATIONS MANAGEMENT continues...
Item  
Strategic objective
Key Performance Indicators
Reporting Period
Annual Target
2016/17
Quarterly Targets
1st
2nd
3rd
4th
2.4
Provide faster, reliable and accessible COID Services by 2020
Annual improvement in the administration of chronic medication distribution
Quarterly
Chronic medication distribution programme to beneficiaries implemente d by March 2017
Source distributor for chronic medication by 30 September 2016
Implement phase 1 (Piloted Provinces) of the distribution of the chronic medication by 31 December 2016
Implement phase 2 (Full roll-out) of the distribution of the chronic medication by 31 March 2017
1 progress report on the project implementation by 31 March 2017

19. PROGRAMME 2: OPERATIONS MANAGEMENT continues...
Item  
Strategic objective
Key Performance Indicators
Reporting Period
Annual Target
2016/17
Quarterly Targets
1st
2nd
3rd
4th
2.5
Provide faster, reliable and accessible COID Services by 2020
Annual improvement in the management of litigation cases, hearings and objections
Quarterly
Electronic case management system implemented by March 2017 -
Source the Electronic case management system by 30 September 2016
Implement the Electronic case management system by 31 December 2016
1 progress report on the project implementation by 31 March 2017

20. PROGRAMME 3: PROVINCIAL OPERATIONS
Item  
Strategic objective
Key Performance Indicators
Reporting Period
Annual Target
2016/17
Quarterly Targets
1st
2nd
3rd
4th
3.1
Provide faster, reliable and accessible COID Services by 2020
Percentage of the registered claims adjudicated in the current financial year
Quarterly
85% of the registered claims adjudicated in the current financial year
85% of the registered claims adjudicated by 30 June 2016
85% of the registered claims adjudicated by 30 September 2016
85% of the registered claims adjudicated by 31 December 2016
85% of the registered claims adjudicated by 31 March 2017
3.2
Percentage of received compensation benefit claims finalised in the current financial year
85% of received compensation benefits claims finalised in the current financial year
85% of received compensation claims benefits finalised by 30 June 2016
85% of received compensation claims benefits finalised by 30 September 2016
85% of received compensation claims benefits finalised by 31 December 2016
85% of received compensation claims benefits finalised by 31 March 2017

21. PROGRAMME 3: PROVINCIAL OPERATIONS continues…..
Item  
Strategic objective
Key Performance Indicators
Reporting Period
Annual Target
2016/17
Quarterly Targets
1st
2nd
3rd
4th
3.3
Provide faster, reliable and accessible COID Services by 2020
Percentage of approved medical invoices for payment in the current financial year
 Quarterly
85% of finalised medical invoices in the current financial year
85% of finalised medical invoices by 30 June 2016
85% of finalised medical invoices by 30 September 2016
85% of finalised medical invoices by 31 December 2016
85% of finalised medical invoices by 31 March 2017
3.4
Percentage of registered compensation claims adjudicated within 60 working days 
Quarterly
85% of registered compensation claims adjudicated within 60 working days
85% of registered compensation claims adjudicated with 60 working days

22. PROGRAMME 3: PROVINCIAL OPERATIONS continues…..
Item  
Strategic objective
Key Performance Indicators
Reporting Period
Annual Target
2016/17
Quarterly Targets
1st
2nd
3rd
4th
3.5
Provide faster, reliable and accessible COID Services by 2020
Percentage of medical claims finalised within 60 working days of receiving invoice
Quarterly
85% of medical claims finalised within 60 working days of receiving invoice

23. Budget for the Financial Year 2016/17
THE COMPENSATION FUND
Budget for the Financial Year 2016/17 23

24. SUMMARY OF THE MTEF BUDGET 2016-17

25. ADMINISTRATIVE BUDGET PER PROGRAMME

26. COMPENSATION OF EMPLOYEES BUDGET

27. Thank You…