PRESENTATION ON THE ACTION PLAN OF THE COMPENSATION FUND

PRESENTATION ON THE ACTION PLAN OF THE COMPENSATION FUND PRESENTATION PREPARED FOR THE PORTFOLIO COMMITTEE ON LABOUR 07 December 2016

CONTENTS • BACKGROUND • OBJECTIVES OF THE ACTION PLAN • PILLARS OF THE ACTION PLAN • SUMMARY PROGRESS • PROGRESS REPORT ON ACTION PLAN • HIGHLIGHTS OF ACTIVITIES • PROGRESS ON CLAIMS PROCESSING

BACKGROUND • The Compensation Fund (the Fund) has been receiving negative spotlight from media and other key stakeholders due to its service delivery record. • In order to restore its reputation and improve the service delivery record, the Fund has developed an Action Plan which will serve as a blue print for the service delivery improvement initiatives • Action Plan was developed by management of the Fund in June 2015 and implementation started on 01 July 2015 • The Action Plan was submitted to the Standing Committee on Public Accounts as resolved during the appearance of the Fund at the committee in June 2015 • The Action Plan is not a replacement for the current Strategic Plan and Annual Performance Plan of the Fund but will enhance the pursuit of the objectives as outlined in these documents.

OBJECTIVES OF THE ACTION PLAN The main objectives of the Action Plan are to put in place basics that will assist in : • Improving the service delivery performance in the Fund • Increasing the efficiency of the Fund‘s overall administration, financial management and operations • Restoring the reputation of the Fund

PILLARS OF THE ACTION PLAN

Summary Progress

PROGRESS – Financial Administration Financial Administration

PROGRESS – Financial Administration • The Revised Assessment Model document is finalised and has been sent to DPME for SEIAS process. Concurrently a consultation process at NEDLAC has commenced • The position paper was developed and adopted as an accounting policy for revenue. This was reflected in the annual financial statements of 2015/16. • The initial ICT intervention to deal with Loading and reduction of assessments has been revised due to further research. An Actuarial model is being developed to achieve the same objective • Employer discounts were calculated and applied against employer account. • Enhancements on key-offs and batch processing has been completed • Data on the correction of the prior years interest and penalties has been extracted and submitted to Internal Audit for quality assurance prior to implementation.

PROGRESS – Financial Administration • Enhancement deployed and implementation is awaiting quality assurance processes from Internal Audit. • The system enhancement to deal with clarification accounts was found not to be possible. The Fund developed a manual process to clear long outstanding reconciliation items in the clarification account. Concurrently system architectural limitations that were causing the problems was rectified on SAP to ensure these reconciling items don’t occur in future. • Due to the sequential reference numbering on SAP the algorithm checks were deemed not necessary. MOU’s signed with the banks and the proposed solution is going through testing with major banks. • I order to improve the process of benefit payments, Ability system module to be decommissioned as a claims payment and reporting module.New licences for SAP FSCD acquired.Integration requirements have been finalised and technical testing on the master data has commenced.

PROGRESS – Financial Administration • R62 million out of the R96 million of unclaimed merit rebates has been identified in SAP FS-CD and cleared to employers. • The automation of Ability System has been de-scoped due to decision to re-implement SAP FSCD

PROGRESS – Customer Focus and Service Delivery Improvement Customer Focus and Service Delivery Improvement

PROGRESS – Customer Focus and Service Delivery Improvement • The Chronic Medication Dispensing service provider has been appointed in Q3 of the financial year and is operational. • Regular monthly meetings are held with Hospitals and other related stakeholders in an effort to improve relations • Meetings between the German DGUV and the Compensation Fund held in November 2015 to discuss the concept of rehabilitation. Outcome of the resolution of the meeting will result in the pilot project for the Rehabilitation. • PTSD panel appointed and has already commenced with the work on dealing with cases and developing policies. • Reorganised query resolutions process has been implemented and we are in the process of filling vacant posts in the call centre.

PROGRESS – Internal Business Process /Administration Internal Business Processes

PROGRESS – Internal Business Process/Administration • The Minister approved the reviewed functional structure to align the core business of registration and benefits . Awaiting final consultation with DPSA as per the directive before implementation. • All 9 provinces have been visited and follow-up visits are taking place monthly to support the decentralisation process and monitor performance • 8 nurses and 1 doctor appointed on session basis to assist with the adjudication of the medical claims, re-openings and pre authorisations. • In order to pay all the vouchers that were still open during migration from SAP ICM, 2287 PD’s to the amount of R15.928.225.74 and 382 Open Voucher TTD’s to the amount of R2.390.951.00 were processed and paid. • The process to appoint medical service personnel is underway and not all provinces have been able to attract the required skills.

PROGRESS – Internal Business Process/Administration • Quality assurance has been done and the results have been implemented in order to improve the systems used for processing and paying claims • There was no suitable service provider. Found for the Hospital Case Management The Request for Bids will be re-advertised after the review of specification in January 2017. • The Fund investigated the possibility of using the SAP CRM system for the Legal Case Management system and no decision has been made as yet pending the Licence renewal.

PROGRESS – People Management People Management

PROGRESS – People Management • The skills audit was conducted and a training plan has been developed to implement corrective action where skills gaps have been identified • The provision of support, training and development interventions, coaching and mentoring will be undertaken as part of the implementation of the recommendations of the Skills Audit project • The Change Management project has been completed, report produced and survival guide for staff with regards to future change interventions has been developed • Performance Management policy is being strictly implemented and all staff have performance agreements and are assessed bi-annually through performance is monitored monthly • Investigations on decentralisation issues conducted and corrective action where possible is being implemented

PROGRESS ON CLAIMS PROCESSING

Thank You… 23

PRESENTATION ON THE ACTION PLAN OF THE COMPENSATION FUND