APPROPRIATION ADMINISTRATOR: Ministry of Business, Innovation and Employment

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1 Vote ACC APPROPRIATION MINISTER(S): Minister for ACC (M1) APPROPRIATION ADMINISTRATOR: Ministry of Business, Innovation and Employment RESPONSIBLE MINISTER FOR MINISTRY OF BUSINESS, INNOVATION AND EMPLOYMENT: Minister for Economic Development THE SUPPLEMENTARY ESTIMATES OF APPROPRIATIONS B.7 1

2 Details of Appropriations and Capital Injections Annual and Permanent Appropriations Titles and Scopes of Appropriations by Appropriation Type Departmental Output Expenses Budget Budget Budget Regulatory Services (M1) This appropriation is limited to the management of the residual long-term responsibility related to the Crown's ongoing risks resulting from the introduction of the competitive accident insurance market during 1999/ Departmental Output Expenses Non-Departmental Output Expenses Case Management and Supporting Services (M1) To cover the cost of injury prevention, claim processing, assessment, payment services and case management on the Non-Earners' Account. Case Management and Supporting Services - Treatment Injuries for Non-Earners' (M1) This appropriation is limited to cover the cost of injury prevention, claim lodgement and management, investment management and appropriation setting for claims by non-earners' on the Treatment Injury Account. Public Health Acute Services (M1) To fund public health acute services for claims on the Non-Earners' Account. Public Health Acute Services - Treatment Injuries for Non-Earners' (M1) This appropriation is limited to fund public health acute services for claims by non-earners' on the Treatment Injury Account. Rehabilitation Entitlements and Services (M1) To cover the cost of purchasing medical services, social rehabilitation and elective health care services on the Non-Earners' Account and contracted services. Rehabilitation Entitlements and Services - Treatment Injuries for Non-Earners' (M1) This appropriation is limited to cover the cost of purchasing medical services, social rehabilitation and elective health care services and contracted services for claims by non-earners' on the Treatment Injury Account. 111, ,995 9,107-9, , ,853 1,197-1, , ,593 72,300-72,300 Non-Departmental Output Expenses 930, ,045 Benefits or Related Expenses Compensation Entitlements (M1) This appropriation is limited to the provision of income maintenance, independence allowance, and other compensation payments for claims on the Non-Earners' Account. Compensation Entitlements - Treatment Injuries for Non-Earners' (M1) This appropriation is limited to the provision of income maintenance, independence allowance, and other compensation payments for claims by non-earners' on the Treatment Injury Account. 23,323-23,323 7,134-7,134 Benefits or Related Expenses 30,457-30,457 2 THE SUPPLEMENTARY ESTIMATES OF APPROPRIATIONS B.7

3 Titles and Scopes of Appropriations by Appropriation Type Multi-Category Expenses and Capital Expenditure Budget Budget Budget Policy Advice and Related Outputs MCA (M1) The overarching purpose of this appropriation is to provide policy advice and other support to Ministers in discharging their policy decision-making and other portfolio responsibilities. 2,502-2,502 Departmental Output Expenses Ministerial Services This category is limited to the provision of services to Ministers to enable them to discharge their portfolio (other than policy decision-making) responsibilities. Policy Advice - ACC This category is limited to the provision of advice (including second opinion advice and contributions to policy advice led by other agencies) to support decision-making by Ministers on government policy matters relating to the accident compensation system ,001-2,001 Multi-Category Expenses and Capital Expenditure 2,502-2,502 Annual and Permanent Appropriations 963, ,123 THE SUPPLEMENTARY ESTIMATES OF APPROPRIATIONS B.7 3

4 Supporting Information Part 1 - Vote as a Whole Trends in the Vote Summary of Financial Activity Appropriations Departmental Transactions Non- Departmental Transactions Transactions Output Expenses 930, ,164 Benefits or Related Expenses 30,457 N/A ,457 Borrowing Expenses Other Expenses Capital Expenditure Intelligence and Security Department Expenses and Capital Expenditure Multi-Category Expenses and Capital Expenditure (MCA) - - N/A - - Output Expenses 2, ,502 Other Expenses Capital Expenditure - N/A Appropriations 963, ,123 Crown Revenue and Capital Receipts Tax Revenue - N/A Non-Tax Revenue 500 N/A Capital Receipts - N/A Crown Revenue and Capital Receipts 500 N/A THE SUPPLEMENTARY ESTIMATES OF APPROPRIATIONS B.7

5 Part 2 - Details of Departmental Appropriations Departmental Output Expenses Regulatory Services (M1) This appropriation is limited to the management of the residual long-term responsibility related to the Crown's ongoing risks resulting from the introduction of the competitive accident insurance market during 1999/2000. End of Year Performance Reporting Performance information for this appropriation will be reported by the Ministry of Business, Innovation and Employment in its annual report. THE SUPPLEMENTARY ESTIMATES OF APPROPRIATIONS B.7 5

6 Part 3 - Details of Non-Departmental Appropriations Non- Departmental Output Expenses Case Management and Supporting Services (M1) To cover the cost of injury prevention, claim processing, assessment, payment services and case management on the Non-Earners' Account. This appropriation is intended to achieve a reduction in the incidence and severity of injury to non-earners in New Zealand and a swift return to independence or everyday life for injured non-earners (who are covered by the Scheme) by providing case management and supporting services. How Performance will be Assessed and End of Year Reporting Requirements Performance Measures Number of new entitlement claims per 1,000 population Cover decision timeliness days 1.3 days Average time to commence payment - Less than 11 days Less than 11 days Formal reviews as a percentage of entitlement claims - 2.9% 2.9% Percentage of reviews upheld - 84% 84% Average time to resolution for claims with reviews - 87 days 87 days Average cost per claim (administration costs less investment management and injury prevention costs/active entitlement claims) - $2,572 $2,572 Investment performance after costs relative to benchmark % 0.30% Investment management costs as a proportion of total funds under management % 0.15% Case Management and Supporting Services - Treatment Injuries for Non-Earners' (M1) This appropriation is limited to cover the cost of injury prevention, claim lodgement and management, investment management and appropriation setting for claims by non-earners' on the Treatment Injury Account. 6 THE SUPPLEMENTARY ESTIMATES OF APPROPRIATIONS B.7

7 This appropriation is intended to achieve a reduction in the incidence and severity of treatment injuries to non-earners in New Zealand and a swift return to independence or everyday life for injured non-earners (who are covered by the Scheme), by providing case management and supporting services. How Performance will be Assessed and End of Year Reporting Requirements Performance Measures Number of new entitlement claims per 1,000 population Cover decision timeliness days 1.3 days Average time to commence payment - Less than 11 days Less than 11 days Formal reviews as a percentage of entitlement claims - 2.9% 2.9% Percentage of reviews upheld - 84% 84% Average time to resolution for claims with reviews - 87 days 87 days Average cost per claim (administration costs less investment management and injury prevention costs/active entitlement claims) - $2,572 $2,572 Investment performance after costs relative to benchmark % 0.30% Investment management costs as a proportion of total funds under management % 0.15% Public Health Acute Services (M1) To fund public health acute services for claims on the Non-Earners' Account. This appropriation is intended to achieve a swift return to independence or everyday life by injured nonearners (who are covered by the scheme), by ensuring they receive public health acute services. How Performance will be Assessed and End of Year Reporting Requirements Performance Measures Agreement with Ministry of Health for public health acute services will be signed off no later than the end of the year to which this applies New measure New measure Achieved THE SUPPLEMENTARY ESTIMATES OF APPROPRIATIONS B.7 7

8 Public Health Acute Services - Treatment Injuries for Non-Earners' (M1) This appropriation is limited to fund public health acute services for claims by non-earners' on the Treatment Injury Account. This appropriation is intended to achieve a swift return to independence or everyday life by non-earners injured by treatment injuries (who are covered by the Scheme), by ensuring they receive public health acute services. End of Year Performance Reporting An exemption was granted under s15d(2)(b)(iii) of the Public Finance Act as the amount of this annual appropriation for a non-departmental other expense is less than $5 million. Rehabilitation Entitlements and Services (M1) To cover the cost of purchasing medical services, social rehabilitation and elective health care services on the Non-Earners' Account and contracted services. This appropriation is intended to achieve a swift return to independence or everyday life by injured nonearners (who are covered by the Scheme) by ensuring they receive medical services, social rehabilitation and elective health care services, and contracted services. How Performance will be Assessed and End of Year Reporting Requirements Performance Measures Customer satisfaction - clients - 76% 76% Return to independence for those not in the workforce - 86% 86% Number of long-term clients returned to independence in the past 12 months Percentage of total expenditure paid directly to clients or for services to clients Health dollars per injury - annual growth relative to outstanding claims liability (OCL) assumptions (including 3.5% superimposed inflation) - 2,424 2,424-80% 80% - 0% 0% 8 THE SUPPLEMENTARY ESTIMATES OF APPROPRIATIONS B.7

9 Rehabilitation Entitlements and Services - Treatment Injuries for Non-Earners' (M1) This appropriation is limited to cover the cost of purchasing medical services, social rehabilitation and elective health care services and contracted services for claims by non-earners' on the Treatment Injury Account. This appropriation is intended to achieve a swift return to independence or everyday life by non-earners injured by treatment injuries (who are covered by the Scheme), by ensuring they receive medical services, social rehabilitation and elective health care services, and contracted services. How Performance will be Assessed and End of Year Reporting Requirements Performance Measures Customer satisfaction - clients - 76% 76% Return to independence for those not in the workforce - 86% 86% Number of long-term clients returned to independence in the past 12 months Percentage of total expenditure paid directly to clients or for services to clients Health dollars per injury - annual growth relative to outstanding claims liability (OCL) assumptions (including 3.5% superimposed inflation) - 2,424 2,424-80% 80% - 0% 0% Non- Departmental Benefits or Related Expenses Compensation Entitlements (M1) This appropriation is limited to the provision of income maintenance, independence allowance, and other compensation payments for claims on the Non-Earners' Account. This appropriation is intended to achieve a swift return to independence or everyday life by injured nonearners (who are covered by the Scheme), by ensuring they receive income maintenance, independence allowance, and other compensation entitlements. End of Year Performance Reporting An exemption was granted under s15d(2)(b)(ii) of the Public Finance Act, as additional performance information is unlikely to be informative because this appropriation is solely for income maintenance, independence allowance, and other compensation payments for claims on the Non-Earners' Account. THE SUPPLEMENTARY ESTIMATES OF APPROPRIATIONS B.7 9

10 Compensation Entitlements - Treatment Injuries for Non-Earners' (M1) This appropriation is limited to the provision of income maintenance, independence allowance, and other compensation payments for claims by non-earners' on the Treatment Injury Account. This appropriation is intended to achieve a swift return to independence or everyday life by non-earners injured by treatment injuries (who are covered by the Scheme), by ensuring they receive income maintenance, independence allowance, and other compensation entitlements. End of Year Performance Reporting An exemption was granted under s15d(2)(b)(ii) of the Public Finance Act, as additional performance information is unlikely to be informative because this appropriation is solely for income maintenance, independence allowance, and other compensation payments for claims on the Non-Earners' Account. 10 THE SUPPLEMENTARY ESTIMATES OF APPROPRIATIONS B.7

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