1.3 Average cost per client contact to provide information and advice 2.1 Average cost to complete a conciliation 2.2 Average cost to complete an arbitration 2.3 Average cost to process a Memorandum of Agreement Changes to Key Performance Indicators (KPIs) in 2014/15 WorkCover WA undertakes regular reviews of its OBM and KPI framework to ensure it provides the most suitable measures to indicate the Agency’s performance. Changes to the OBM for the 2014/15 reporting year were endorsed by the Board on 20 November 2014, approved by the Under Treasurer on 16 December 2014, and noted by the Minister on 5 January 2015. The two changes to the Agency’s KPIs were as follows: Change 1: Key Effectiveness Indicator 1.2 This change involved shortening the title of Effectiveness KPI 1.2 from ‘The proportion of conciliations completed within eight weeks of the date the application for conciliation was accepted’ to ‘The proportion of conciliations completed within eight weeks.’ What this change means Including the words “of the date the application for conciliation was accepted” in the title of the KPI is unnecessary and simply stated part of the methodology used to determine the indicator outcome. No change was made to the methodology of the KPI and the shortened name brings the title more in line with other agency KPIs.
No lost time claims 18,605 Lost time claims 16,957 number of 1–59 days/shifts lost claims 11,600 Total number of long duration claims (60+ days/shifts lost) 5,357 Claim trends From 2009/10 to 2013/14, the annual number of claims lodged in the workers’ compensation scheme of WA decreased from 36,580 to 35,562 (three per cent). In 2011/12, claims peaked at 38,708 and dropped in 2013/14 by eight per cent. The number of long duration claims (claims with 60 or more days/shifts lost) increased over the last five whereas claims with shorter duration and no decreased. Table 14: Claim Trends Lodgement year 2009/10 2010/11 2011/12 2012/13 2013/14 Total number of workers’ compensation claims lodged 36,580 37,710 38,708 37,342 35,562 Total number of no lost time claims lodged 20,119 20,223 20,561 19,428 18,605
and investments At 30 June 2015, were 77 outstanding debtors resulting from fines and penalties awarded under section 170 of the Act, with debts outstanding of $535,518. In 2014/15, the weighted average rate of return on General Account investments was 3.31 per cent. Table 30: Actual results vs budget results Item 2014/15 Target $000 2014/15 Actual $000 Variation $000 Total Revenue (sourced from Statement of Comprehensive Income) 32,281 34,854 2,573 Expenses (sourced from Statement of Comprehensive Income) 26,665 21,566 5,096 Total Equity (sourced from Statement of Financial Position) 83,481 92,716 9,235 Net increase/(decrease) in cash held (sourced from Statement of Cash Flows) 7,273 10,858 3,585 Approved full-time equivalent (FTE) staff level 137.4 135.4 2
Position Name Schedule Period of membership Gross/actual remuneration Presiding member Michelle Reynolds Per meeting Virtue of office N/A Member Lee Per meeting Virtue of office $1080 Member Marcus Cocker Per meeting 01/03/09 to 01/10/16 $910 Member David Bruns Per meeting 01/08/09 to 01/10/16 $739.20 Total $2,729.20 Medical Committee Table 34: Medical Committee Remuneration Position Name Schedule Period of membership remuneration Chair White* (*Michelle Reynolds on secondment to DPC) N/A – Public Service Virtue of Office N/A Member Dr Marcus Adonis Per meeting 15/10/2014 to 14/10/2017 $740 Member Dr Heather Campbell Per meeting 15/10/2014 to 14/10/2017 $370 Member Dr Alan Home Per meeting 15/10/2014 to 14/10/2017 $740 Member Dr Neil Ozanne Per meeting 15/10/2014 to 14/10/2017 $740
Lost-time injury/disease severity rate 0 0 0 0 0 0 % injured workers returned to work within 13 weeks - 100% N/A ** 100% 100% N/A % injured workers returned to work within 26 weeks - 100% N/A ** 100% 100% N/A % managers trained in occupational safety, health and injury management responsibilities 82% 92% 92% 92% 100% 99%
Key Performance Indicators Table 45: WorkCover WA’s Key Performance Indicators for WorkCover WA and their relationship with the agency’s Outcome Based Management Structure Agency Desired Outcome To ensure a workers’ compensation and injury management scheme that is financially viable, contemporary, and integrated whilst providing services that are fair, accessible, timely and cost effective for all participants. Effectiveness Indicators 1.1 The number of non-compliance events identified as a result of a claim on the General Account 1.2 The proportion of conciliations completed within 8 1.3 The proportion of disputes resolved within 6 months Agency Services Scheme Regulation (regulation of workers’ compensation scheme participants for compliance with legislative requirements) Scheme Services (provision of effective and equitable dispute resolution and services to scheme participants) Efficiency Indicators 1.1 Average cost per employer compliance activity 1.2 Average cost per approved and monitored service provider 1.3 Average cost per client contact to provide information and advice 2.1 Average cost to complete a conciliation 2.2 Average cost to complete an arbitration 2.3 Average cost to process a Memorandum of Agreement
Liability for future claims The liability for outstanding claims is measured as the central estimate of the present value of expected future payments against claims incurred at the reporting date, with an additional risk margin to allow for the inherent uncertainty in the central estimate. The expected future payments include those in relation to claims reported but not yet paid, claims incurred but not reported (IBNR), claims incurred but not enough reported (IBNER) and anticipated claims handling costs. Claims handling costs include costs that can be associated directly with individual claims, such as legal and other professional fees, and costs that can only be indirectly associated with individual claims, such as claims administration costs. The expected future payments are discounted to present value using a risk free rate. The effect of an actuarial assessed increase in the outstanding claims liability or changes in the discount rate are included in the ‘Statement of Comprehensive Income’ under ‘Claims expense’. The effect of an actuarial assessed decrease in the outstanding claims liability is included in the ‘Statement of Comprehensive Income’ under ‘Gains’. (p) Superannuation expense Superannuation expense is recognised in the Statement of Comprehensive Income in profit or loss for defined contribution plans, including the concurrent payment of employer contributions to the GSS scheme, as and when the contributions fall due. For defined benefit (the Pension Scheme and the pre-transfer component of the GSS), changes in the defined benefit obligation are recognised in the Statement of Comprehensive Income either in profit or loss, or, other comprehensive income as follows: Profit or loss: current service cost; past service cost; and interest cost. other comprehensive income: actuarial gains and losses. (q) Comparative figures
Average longevity at retirement age (65) for current pensioners (years) Male 22.90 22.80 N/A N/A Female 25.50 25.40 N/A N/A Average longevity at retirement age (65) for current employees (years) Male 22.90 22.80 N/A N/A Female 25.40 25.40 N/A N/A At 30 June 2015, the weighted-average duration of the defined benefit obligation was 13 for Pension Scheme (2014:13 years) and 5 years for Gold State Superannuation Scheme (2014: 6 years). The Pension Scheme and the pre-transfer benefit for the GSS expose the Authority to actuarial risks, such as salary risk, longevity risk and interest rate risk. The sensitivity analyses below have been determined based on reasonably possible changes of the respective assumptions occurring at the end of the reporting period, holding all other assumptions constant. Defined Benefit Obligation Pension Scheme Pre-transfer benefit – Gold State Superannuation Scheme 2015 Increase $000 2014 Decrease $000 2015 Increase $000 2014 Decrease $000 Discount rate (1% movement) (620) 767 (27) 29 Future salary growth (1% movement) N/A N/A 27 (25)
Payables - 863 - - 863 863 863 - - - - 863 - - 863 863 863 - - - - (a) The amount of Receivables excludes GST recoverable from the ATO (statutory receivable) Interest rate sensitivity analysis The following represents a summary of the interest rate sensitivity of the Authority's financial assets and liabilities at the end of the reporting period on the surplus for the period and equity for a 1% change in interest rates. It is assumed that the change in interest rates is held constant throughout the reporting period. Carrying amount -100 basis points +100 basis points 2015 Financial Assets $000 Surplus $000 Equity $000 Surplus $000 Equity $000 Cash and cash equivalents 1,953 (19) (19) 19 19 Restricted cash and cash equivalents 82,678 (826) (826) 826 826 Increase/(Decrease) (845) (845) 845 845