Presentation to the Portfolio Committee on Labour 10 th June 2009 S.S. MKHONTO Compensation Commissioner.

Download Presentation to the Portfolio Committee on Labour 10 th June 2009 S.S. MKHONTO Compensation Commissioner.

Post on 17-Jan-2016

215 views

Category:

Documents

0 download

TRANSCRIPT

  • Presentation to the Portfolio Committee on Labour

    10th June 2009

    S.S. MKHONTO Compensation Commissioner

  • LEGISLATIVE MANDATEThe 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

  • The Fund provides compensation for disablement caused by occupational injuries or diseases sustained or contracted by workers, or for death resulting from such injuries or diseases

    The Fund is financed from levies paid by employers

    The revenue consists mainly of annual assessments paid by registered employers on a basis of a percentage or fixed rate of the annual earnings of their workersBACKGROUND

  • REPORTING FRAMEWORK

  • VISIONTo provide compensation for occupational injuries, diseases and rehabilitation of workers, and deliver continuous value to all stakeholders

  • MISSIONTo develop and implement solutions to provide quality and accessible services according to standards as set in consultation with our stakeholders, whilst maintaining the Funds liquidity

  • STRATEGIC OBJECTIVES To provide an efficient social safety net

    Ensure the financial viability of the Fund

    Effective cash and investments management

    Effect management reforms and restructuring of the Fund

    Enhance quality and access to COIDA services and information

    Ensure effective data and information management

  • ORGANISATIONAL CHALLENGES Inadequate capacity, which result in delays in processing claims

    Lack of electronic submission resulting in large amounts of paper in the organisation

    Outdated and inefficient business processes

    Capacity of the IT service provider and capability to respond to the organisations needs

    Non-existence of the IES case management system for COIDA unreported cases

    Poor enforcement of COIDA

    Non submission and delays in reporting of accidents and submission of information\documents, particularly banking details

  • AUDITOR-GENERAL FINDINGSRevenue Generation and Collection

    Material incorrect assessmentsMaterial incorrect debtors

    Claims Incurred

    A backlog in the scanning of documents Unavailability of supporting documents

    Unexplained Charge arising from the Treasury Function

    Breakdown in internal controls with regard to bank reconciliationsCompleteness and accuracy of investment incomeDisclaimer 2007/8

  • HIGHLIGHTS (2008/9)327 647 compensation benefits paid, total value of R630 million 815 045 medical benefits paid, total value of R1.5 billionR4.4 billion collected from assessments - 15% increase compared to 2007/08.Assets growth from R18.3 billion in 2007/08 to R21.4 billion 2008/09 (17%)70% senior executive management posts filledBusiness process re-engineering and benchmarking completedPolicies finalised and implementedElectronic payments implemented Appointment of Board members finalised and orientation conducted

    Workshop held with stakeholders on Early Return to Work programme

  • LOWLIGHTS 2008/9Policy on Early Return to Work not finalised

    Claims turn-around time still remains a challenge

    Slow progress in the implementation of the integrated claims and revenue management system

    Lack of progress towards decentralisation of services

  • PERFORMANCE PROGRESS COMPENSATION : Payments made directly to employees

    YEARNO OF PAYMENTSAMOUNT PAID2006331 672R 655m2007335 345R 652m2008327 647R 630m

  • NUMBER PAIDNUMBER PAIDCOMPENSATION PAYMENTS

  • MEDICAL PAYMENTS Payments made directly to medical service providers

    YearNumber of paymentsValue 2006 / 07 886 511R 1,430bn2007 / 08 777 320R 1,294bn2008 / 09815 045R 1,544bn

  • MEDICAL PAYMENTS contd.

  • MEDICAL PAYMENTS contd.Payment according to service provided

    Chart3

    0.27

    0.21

    0.18

    0.07

    0.06

    0.05

    0.16

    Pathology 5%

    Orthopaedics 6%

    Physiotherapy 7%

    Diagnostic Radiology 18%

    Private Hospitals 21%

    General Practitioners 27%

    Other specialists 16%

    Sheet1

    27%

    21%

    18%

    7%

    6%

    5%

    16%

    Sheet1

    Other specialists 16%

    General Practitioners 27%

    Private Hospitals 21%

    Diagnostic Radiology 18%

    Physiotherapy 7%

    Orthopaedics 6%

    Pathology 5%

    Sheet2

    Sheet3

  • FINANCIAL INFORMATION

    2007/08R000 2008/09 R000Contributions revenue3,268,5894,462,953

    Investment income 1,349,8152,076,685Other income 15,669 21,228Benefits paid 1,298,4202,894,473Admin 401,429 447,247Surplus/deficit -714,415 1,287,285Investments16,655,425 19,959,023

  • FINANCIAL INFORMATION

    Chart1

    1349815

    2076685

    Investment income

    Investment income (Rm)

    2007/81,349,815

    2008/9 2,076,685

    Sheet1

    Mar-08Aug-072008/09 R000

    R000

    Investment income13498152076685

    Other income1566921228

    Benefits paid12984202894473

    Admin401429447247

    Surplus/deficit-7144151349815

    Investments1665542519959023

    Sheet1

    0

    0

    Investment income

    Investment income (Rm)

    2008/9 2,076,685

    2007/81,349,815

    Sheet2

    0

    0

    Other income

    Other income (Rm)

    2008/9 21,228

    2007/815,669

    Sheet3

    0

    0

    Benefits paid

    Benefits paid (Rm)

    2008/9 2,894,473

    2007/8 1,298,420

    0

    0

    Admin

    Administration (Rm)

    2007/8401,429

    2008/9447,247

    0

    0

    Surplus/deficit

    Surplus /deficit (Rm)

    2008/91,349,815

    2007/8 -714,415

    0

    0

    Investments

    Investments (Rm)

    2008/9 19,959,023

    2007/8 16,655,425

    Chart2

    15669

    21228

    Other income

    Other income (Rm)

    2007/815,669

    2008/9 21,228

    Sheet1

    Mar-08Aug-072008/09 R000

    R000

    Investment income13498152076685

    Other income1566921228

    Benefits paid12984202894473

    Admin401429447247

    Surplus/deficit-7144151349815

    Investments1665542519959023

    Sheet1

    0

    0

    Investment income

    Investment income (Rm)

    2008/9 2,076,685

    2007/81,349,815

    Sheet2

    0

    0

    Other income

    Other income (Rm)

    2008/9 21,228

    2007/815,669

    Sheet3

    0

    0

    Benefits paid

    Benefits paid (Rm)

    2008/9 2,894,473

    2007/8 1,298,420

    0

    0

    Admin

    Administration (Rm)

    2007/8401,429

    2008/9447,247

    0

    0

    Surplus/deficit

    Surplus /deficit (Rm)

    2008/91,349,815

    2007/8 -714,415

    0

    0

    Investments

    Investments (Rm)

    2008/9 19,959,023

    2007/8 16,655,425

    Chart3

    1298420

    2894473

    Benefits paid

    Benefits paid (Rm)

    2007/8 1,298,420

    2008/9 2,894,473

    Sheet1

    Mar-08Aug-072008/09 R000

    R000

    Investment income13498152076685

    Other income1566921228

    Benefits paid12984202894473

    Admin401429447247

    Surplus/deficit-7144151349815

    Investments1665542519959023

    Sheet1

    0

    0

    Investment income

    Investment income (Rm)

    2008/9 2,076,685

    2007/81,349,815

    Sheet2

    0

    0

    Other income

    Other income (Rm)

    2008/9 21,228

    2007/815,669

    Sheet3

    0

    0

    Benefits paid

    Benefits paid (Rm)

    2008/9 2,894,473

    2007/8 1,298,420

    0

    0

    Admin

    Administration (Rm)

    2007/8401,429

    2008/9447,247

    0

    0

    Surplus/deficit

    Surplus /deficit (Rm)

    2008/91,349,815

    2007/8 -714,415

    0

    0

    Investments

    Investments (Rm)

    2008/9 19,959,023

    2007/8 16,655,425

    Chart2

    3268589

    4462953

    Contributions Revenue

    Contributions Revenue (Rm)

    2007/8 3,268,589

    2008/9 4,462,953

    Sheet1

    Contributions Revenue32685894462953

    Surplus \ Deficit-7144151287285

    Sheet1

    0

    0

    Contributions Revenue

    Contributions Revenue (R 000)

    2008/9 4,462,953

    2007/8 3,268,589

    Sheet2

    0

    0

    Surplus \ Deficit

    Surplus \ Deficit (R 000)

    2008/9 1,287,285

    2007/8-714,415

    Sheet3

  • FINANCIAL INFORMATION

    Chart1

    -714415

    1287285

    Surplus \ Deficit

    Surplus \ Deficit (Rm)

    2007/8-714,415

    2008/9 1,287,285

    Sheet1

    Contributions Revenue32685894462953

    Surplus \ Deficit-7144151287285

    Sheet1

    0

    0

    Contributions Revenue

    Contributions Revenue (R 000)

    2008/9 4,462,953

    2007/8 3,268,589

    Sheet2

    0

    0

    Surplus \ Deficit

    Surplus \ Deficit (R 000)

    2008/9 1,287,285

    2007/8-714,415

    Sheet3

    Chart5

    401429

    447247

    Admin

    Administration (Rm)

    2008/9447,247

    2007/8401,429

    Sheet1

    Mar-08Aug-072008/09 R000

    R000

    Investment income13498152076685

    Other income1566921228

    Benefits paid12984202894473

    Admin401429447247

    Surplus/deficit-7144151349815

    Investments1665542519959023

    Sheet1

    0

    0

    Investment income

    Investment income (Rm)

    2008/9 2,076,685

    2007/81,349,815

    Sheet2

    0

    0

    Other income

    Other income (Rm)

    2008/9 21,228

    2007/815,669

    Sheet3

    0

    0

    Benefits paid

    Benefits paid (Rm)

    2008/9 2,894,473

    2007/8 1,298,420

    0

    0

    Admin

    Administration (Rm)

    2007/8401,429

    2008/9447,247

    0

    0

    Surplus/deficit

    Surplus /deficit (Rm)

    2008/91,349,815

    2007/8 -714,415

    0

    0

    Investments

    Investments (Rm)

    2008/9 19,959,023

    2007/8 16,655,425

    Chart6

    16655425

    19959023

    Investments

    Investments (Rm)

    2007/8 16,655,425

    2008/9 19,959,023

    Sheet1

    Mar-08Aug-072008/09 R000

    R000

    Investment income13498152076685

    Other income1566921228

    Benefits paid12984202894473

    Admin401429447247

    Surplus/deficit-7144151349815

    Investments1665542519959023

    Sheet1

    0

    0

    Investment income

    Investment income (Rm)

    2008/9 2,076,685

    2007/81,349,815

    Sheet2

    0

    0

    Other income

    Other income (Rm)

    2008/9 21,228

    2007/815,669

    Sheet3

    0

    0

    Benefits paid

    Benefits paid (Rm)

    2008/9 2,894,473

    2007/8 1,298,420

    0

    0

    Admin

    Administration (Rm)

    2007/8401,429

    2008/9447,247

    0

    0

    Surplus/deficit

    Surplus /deficit (Rm)

    2008/91,349,815

    2007/8 -714,415

    0

    0

    Investments

    Investments (Rm)

    2008/9 19,959,023

    2007/8 16,655,425

  • PRIORITIES 2009/10

    Providing an Effective social safety netContinuous review and updating of COIDA policies and regulations Annual review of tariffs, benefits and premiums Improve claims/patient turn-around time Continuous review of business processes Effective Management of Finances and Assets of the FundEnsure budgetary control and monitoring Develop computerised systems for cash and asset management To align procurement and acquisition systems in terms of Supply Chain Management regulations To develop and implement a new integrated financial management systemTo enhance revenue collection mechanisms To strengthen financial management capacity Continuously review the performance of investments to ensure alignment with the funds investment mandate Roll-out the Risk Management Strategy and plans

  • PRIORITIES 2009/10 contd.

    Reform and restructure to enhance competence and performanceTo achieve a conducive working environment with appropriate roles and delegations at all levels To rigorously implement a recruitment and retention strategy for key personnel To develop and implement the Skills Development Plan and provide relevant and targeted training To develop and implement a comprehensive human resources strategy and plan To implement and maintain an effective performance management system Enhance quality and access to COIDA services and informationTo ensure equity of access of COIDA services To develop and implement a comprehensive package of services Increase Service Channels through a CRM Strategy To ensure integrated service delivery Strengthening partnerships with private and public health service provider institutions Implement of Quality Management Systems

  • PRIORITIES 2009/10 contd.

    Ensure qualitative and effective data information managementTo develop and maintain an integrated and effective management information system To develop an effective OHS Information System for accident prevention To develop and implement an Actuarial Database To develop and manage Minimum Information Security Systems(MISS) Ensure effective communication and stakeholder managementImplementation and monitor the communication policy and strategy Development of an effective branding, marketing and promotion strategy and a uniform corporate image Implementation and Monitoring of a media relations strategy Implementation of a public interaction and mobilisation plan incorporating Imbizos Implementation of a public awareness, information and education campaign

Recommended

View more >