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90
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80
80
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70
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60
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2005
50
50
40
40
30
30
20
20
10
10
0
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0.5
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0.5
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a c c i d e n t c o m p e n s a t i o n c o r p o r a t i o n a n n u a l r e p o r t 2 0 0 5
Constantly changing, changing constantly
acc2249 isbn 0-478-27962-0
printed on paper manufactured in an elemental chlorine free (ecf) process using 20% recycled paper diverted from landfill.
Website: www.acc.co.nz
journey
injury prevention and thinksafe
for sexual abuse (sensitive) claims
This document is a
through the
0800 THINKSAFE
0800 735 566
(0800 844 657)
Fax: (04) 918 7577
changes
employer levies
for treatment injury claims
that have happened over the past 12 months,
0800 222 776
(previously called medical misadventure)
[email address]
0800 735 566
Freefax: 0800 222 003
Fax: (04) 918 7672
future.
and we project happening in the
self-employed levies and cover
preventing fraud
0508 4COVER (0508 426 837)
0800 372 830
[email address]
Freefax: 0800 222 003
acc head offi
ce
environment
The
is changing, but what will
for agents’ and fi
nancial advisors’ queries
(04) 918 7700
Fax: (04) 918 7580
0800 222 991
[email address]
Freefax: 0800 222 003
the offi
ce of the complaints investigator
principles
always remain constant are the
we apply.
for making a claim and requesting help
0800 650 222
0800 101 996
[email address]
[email address]
Fax: (04) 918 7580
highlight
The following pages
examples of how we are
adapting to the constantly changing dynamics of our population.
a g e y e a r s
a g e y e a r s
%
n e w z e a l a n d ’ s p o p u l a t i o n p r o j e c t e d 2 0 5 1
B Y 2 0 5 1 O N E O U T O F E V E R Y F O U R N E W Z E A L A N D E R S W I L L B E O V E R 6 5
4
As part of ACC’s injury prevention
programme, we have been actively
introducing tai chi classes to
people aged over 65.
Tai chi increases strength, balance
and agility and reduces the risk
of falls in older adults.
nearly
in
ONE
New FIVE
Zealanders
will suffer
an
alcohol
use
disorder
The ACC DRUG AND ALCOHOL
CASE MANAGEMENT tool
provides a set of early interventions
to manage claimants whose
rehabilitation from injury is affected
by drug and alcohol misuse.
IN 2003 THE NUMBER OF SMALL-MEDIUM
SIZED ENTERPRISES INCREASED AT ALMOST
DOUBLE THE RATE OF THE PREVIOUS YEAR.
S M A L L - M E D I U M S I Z E D E N T E R P R I S E S = 0 - 1 9 f u l l - t i m e s t a f f
P A C I F I C S H A R E
O F
t h e
W I L L I N C R E A SE
BY 2021
9%
acc has a policy of actively recruiting staff to
mirror new zealand’s cultural mix. staff feel
confident they are responding proactively and
sensitively to claimants’ needs.
acc consistently exceeds
industry benchmarks
and has averaged
across reserves portfolios and
ahead of market benchmarks.
t h e b e t t e r o u r i n c o m e ,
t h e m o r e w e c a n k e e p
l e v i e s low.
A C C A T A G L A N C E
ACC is a Crown entity, set up by the New Zealand
Government to provide comprehensive, 24-hour,
no-fault personal accident cover for all New Zealand
residents. Its performance is overseen by a Board of
Directors appointed by the Minister for ACC.
employers’ account
non-earners’ account
Covers work-related injuries. Funded from levies paid by
Covers all personal injuries to people not in the paid
employers.
workforce: students, benefi ciaries, older people and children.
Net levy income: $475.1 million
Government funded.
Claims liability: $894 million
Net levy income: $535.3 million
Claims liability: $1,866 million
self-employed work account
residual claims account
Covers all personal work-related injury to self-employed.
Covers the continuing cost of work-related injuries from before 1
Funded by their earnings-related levies.
July 1999 and non-work injuries suffered by earners prior to
Net levy income: $93.8 million
1 July 1992. Funded from levies paid by employers and
Claims liability: $245 million
self-employed.
TEXT TO BE SUPPLIED
Net levy income: $200.9 million
earners’ account
Claims liability: $2,544 million
Covers non-work injuries (including at home, and during
motor vehicle account
sport and recreation) to earners and to self-employed.
Covers all personal injuries involving motor vehicles on
Funded from earners’ levies (paid through PAYE), plus
public roads. Funded from petrol excise duty (an average of
self-employed levies based on earnings.
$71 per vehicle) and a levy collected with the motor vehicle
Net levy income: $759.3 million
relicensing fee ($141.10 for a private car).
Claims liability: $1,954 million
Net levy income: $583 million
Claims liability: $3,237 million
medical misadventure account
acc total
Covers injuries from error by health professionals or from
net levy income:
unexpected outcomes of medical or surgical procedures
$2,734.8 million
properly carried out. Funded from Earners’ and Non-Earners’
total claims liability: $11,384 million
Accounts.
Net levy income: $87.4 million
Claims liability: $644 million
In 2004-05, 2,300 staff supported, processed and managed:
ACC also paid for more than:
•
1.6 million claims generated by New Zealanders; in
•
2.3 million general practitioner (GP) visits
ance
•
48 operational units located nationwide.
•
2.6 million physiotherapist visits
a gl
•
2.4 million visits to other treatment providers
t
ACC staff:
•
250,000 rehabilitation services.
c a
•
sent 17,000 letters every day to claimants, levy payers and
ac
health providers
•
answered over 20,000 telephone calls every day.
12
C O N T E N T S
o p e r at i o n a l a n d f i n a n c i a l h i g h l i g h t s
14
f r o m t h e m i n i s t e r
16
f r o m t h e c h a i r
17
f r o m t h e c h i e f e xe c u t i ve
18
c o r p o r at e g ove r n a n c e
20
ACC Board of Directors
22
ACC Executive Team
28
1
i n j u ry p r e ve n t i o n
30
Safer Homes
31
Safer Workplaces
32
Safer Sports
34
Safer Road Use
35
2
r e h a b i l i tat i o n
38
3
c l a i m a n t a n d ot h e r s ta k e h o l d e r s at i s fa c t i o n
44
4
s ta f f s at i s fa c t i o n
50
5
fa i r l e v i e s
56
g lo b a l r e p o r t i n g i n i t i at i ve c o n t e n t i n d e x
58
s tat e m e n t o f s e r v i c e p e r fo r m a n c e
59
Injury Prevention
60
Rehabilitation 64
Claimant and Other Stakeholder Satisfaction
67
Staff Satisfaction
71
Fair Levies
73
i n ve s t m e n t s a n d c l a i m s l i a b i l i t y c ove r
75
f i n a n c i a l s tat e m e n t s
84
Page 2 source: Statistics New Zealand >
Page 4 source: Ministry of Health, The New Zealand Health Strategy >
Page 6 source: Ministry of Economic Development, SMEs in New Zealand
: Structure and Dynamics – 2004, September 2004 >
Page 8 source: Statistics New Zealand >
Page 10 source: ACC
O P E R A T I O N A L A N D
F I N A N C I A L H I G H L I G H T S
We increased injury prevention expenditure to nearly $40 million, with activities in 23 ACC ThinkSafe communities
across New Zealand.
We identifi ed four Safer Rohe (regions) to focus Mäori community injury prevention activities where most needed.
We launched phase three of the Slips, Trips and Falls Campaign.
Tens of thousands of New Zealanders attended our workplace and sports safety courses.
Provider satisfaction levels have risen substantially – general practitioners’ (GPs’) satisfaction rates increased by 13%.
Treatment and rehabilitation expenditure increased by 15% to $1,142 million.
More than 59% of claims are being lodged electronically. This saves time and money while enabling an earlier
response to claimants’ needs.
Our Return to Work initiative was launched to support a faster return to work for injured employees.
We increased expenditure on researching and evaluating initiatives.
The number of long-term claimants (those who have received weekly compensation for more than 12 months)
reduced by 669 to 13,221, and satisfaction levels rose for this group.
statement of fi
nancial performance
for the year ended 30 june 2005
actual
budget actual
2005 2005 2004
$000 $000 $000
Revenue
Levy income
2,734,898
2,681,202
2,654,460
Expenditure
Rehabilitation expenditure
1,153,144
1,129,152
997,505
Compensation expenditure
783,612
822,923
800,369
S
Other operating costs
337,284
354,586
302,272
Total expenditure
2,274,040
2,306,661
2,100,146
Operating surplus
460,858
374,541
554,314
Adjustment to claims liability
(2,036,887)
(598,412)
(169,903)
HIGHLIGHT
Surplus/(defi cit) from underwriting activities
(1,576,029) (223,871) 384,411
Net investment income
776,760
319,514
489,425
Other income
4,915
5,493
2,012
Surplus/(defi cit) before tax
(794,354) 101,136
875,848
REVENUE
AND FINANCIAL
Net levy income has increased by 3% over last year. This is mainly due to more New Zealanders being in work and earning more.
The funds invested achieved a 13.4% return for the reserves portfolio and 6.8% for the cash portfolio.
These returns are ahead of the budgeted return of 5.64%.
TIONAL
OPERA
14
Overall claimant satisfaction was maintained at 80%, and was higher still for both Mäori and Pacifi c peoples.
We initiated closer links with Asian communities.
We introduced a ‘New to ACC’ information pack for new levy payers.
We set average workers’ compensation levies at $0.88 per $100 in wages, despite rising infl ation and other external
fi nancial pressures.
Our ThinkSmall campaign helped lift satisfaction levels among small employer and self-employed levy payers.
We received a Silver level Achievement Award at the prestigious New Zealand Business Excellence Awards. The
Silver level has only ever been achieved by six other New Zealand businesses.
Staff satisfaction continued to increase to record highs, now at 74%.
We launched ACCelerate, a new online learning management system to improve staff training.
We maintained our strong investment performance, with returns again well ahead of industry benchmarks, and
with an investment income of $786 million, $454 million in excess of budget.
statement of fi
nancial position
as at 30 june 2005
actual budget actual
2005 2005 2004
$000 $000 $000
Total
reserves
(4,167,252) (3,274,179) (3,375,041)
Represented by:
Assets
Investments
8,123,010
6,207,834
6,175,958
Other assets
1,311,578
807,344
1,051,986
S
Total assets
9,434,588
7,015,178
7,227,944
Less liabilities
Claims liability
11,384,357
9,945,604
9,347,192
Other payables
2,217,483
343,753
1,255,793
Total liabilities
13,601,840
10,289,357
10,602,985
HIGHLIGHT
Net liabilities
(4,167,252) (3,274,179) (3,375,041)
EXPENDITURE
AND FINANCIAL
Total claim costs have increased by 7.7% over last year due to an increase in treatment cost rates per claim driven by infl ationary
pressures and improvements in contracted services and demand for rehabilitation services refl ecting early intervention
programmes.
TIONAL
The increase in the claims liability is largely due to changing economic factors including a lower interest rate. Higher treatment
and rehabilitation costs due to increased utilisation of benefi ts and increases in costs per claim and a higher provision for claims
OPERA
handling expenses following a review of these costs also had an unfavourable impact on the claims liability.
15
F R O M T H E M I N I S T E R
I wish to express my thanks for the
continuing contribution of ACC staff,
management and the Board to the delivery of
the Government’s policy objectives for injury
prevention, rehabilitation, and compensation
over the past year.
r u t h d y s o n > m i n i s t e r f o r a c c
ACC is charged, through the Injury Prevention,
areas – drownings and fall injuries – ACC plays an
Rehabilitation, and Compensation Act 2001, to minimise
increasingly invaluable role in supporting the lead
the overall incidence and impact of injury in New Zealand
agencies for the Strategy’s national priority areas of
through:
workplace injuries, motor vehicle traffi c crashes, suicide
• establishing injury prevention as a primary function
and deliberate self-harm, and assault.
of the Corporation
It is pleasing to see ACC’s inter-agency activities increasing
• ensuring that where injuries occur, the primary focus
and consolidating through the year, including important
is on rehabilitation, with the goal of rehabilitating
work with the Ministry of Health, Department of Labour,
to restore the claimant’s health, independence and
local government, community organisations, health
participation to the maximum extent practicable
professional bodies and other agencies. Partnerships
• meeting the reasonable expectation of claimants
with employer representatives and unions have been
(highest practicable standard of service and fairness).
strengthened to promote joint participation in injury
An important focus for ACC this year has been
prevention and health protection initiatives. Work has
identifying and addressing barriers to access and
begun to develop appropriate injury prevention strategies
entitlements, particularly for groups including
for work-related gradual process, disease or infection.
Mäori, Pacifi c peoples, Asian peoples and older and
These and similar partnerships are vital to the future
disabled persons. Injury prevention and rehabilitation
health and well-being of all New Zealanders. By working
programmes continue to target high-risk activities
and at-risk groups, with a specifi c focus on assisting
with and supporting government and non-government
claimants to return to work.
agencies, to increase communication and co-ordination
and reduce duplication and gaps, ACC can make the
I welcome the Injury Prevention, Rehabilitation, and
best use of its resources to improve the injury prevention
Compensation Amendment Act (No 2), which took
and rehabilitation outcomes it is seeking to achieve.
effect on 1 July 2005. It makes the ACC scheme simpler
and fairer. The most important amendment means that
In closing, I am pleased to note continued improvement
ER
T
people injured during treatment are now entitled to help
in the level of claimant satisfaction with the service
from ACC without the need to prove that the practitioner
provided by ACC. This is an excellent base to work
MINIS
was at fault, or that the medical injury is rare or severe.
from. It is now up to all staff to ensure they provide ACC
ACC is also a lead agency in the co-ordination and
services in a way that even better meets the needs of
implementation of the New Zealand Injury Prevention
various groups, particularly long-term claimants, so that
Strategy, which outlines a whole-of-Government
the incidence of injury is reduced for all New Zealanders,
FROM THE
approach and priority areas for preventing injuries in
and where injuries occur, people can gain the maximum
16
New Zealand. As well as focusing on its own priority
independence practicable.
F R O M T H E C H A I R
Our 31st year has been a good one for
the Corporation. The general ‘stocktake’
of our 30-year celebrations reminded us
of what we had all achieved, and made
our pathway forward that much clearer.
d a v i d c o l l i n s > c h a i r
This year again saw a record investment by ACC
Most New Zealanders welcome lower interest rates,
in injury prevention. Nearly $40 million was spent
which help stimulate business and free up household
throughout the country – to such good effect we have
income. But for ACC, lower interest rates mean less
increased this to $46 million in the coming year. A
future income from investments. This year the fall in
number of our groundbreaking initiatives are attracting
long-term interest rates was the dominant factor in
international interest, particularly in sports and in falls
increasing our liability by $2 billion.
prevention for the elderly.
There are other factors too. With technological medical
This year we processed record levels of claims – more
advances comes an ability to provide and an expectation
than 1.6 million, or 6,400 every working day – a result
of better care – and we wouldn’t have this any other way.
of offering more care and targeting under-represented
But with the global shortage of healthcare expertise at all
groups to ensure they are aware of the ACC services
levels, keeping and attracting good people to look after
to which they are entitled. Despite increased numbers,
injured New Zealanders is costing more.
we increased our effi ciency in rehabilitation assessment
Despite the growing fi nancial pressures throughout the
turnaround, and the levels of care provided, to return
year, we kept levies stable for our major levy payers. And
the injured person to independence as quickly as
for the coming year, as always, raising levies will be our
practical. Compensation payment timeliness was
last resort. We will continue to reduce our costs as much
also improved.
as we can through increased effi ciencies and streamlining
It has been an important ‘partnership’ year, too,
of services, without compromising the highest level of
as we actively sought to establish and engage with other
service and care for our claimants.
government agencies and claimant, medical provider,
For the year’s excellent results, I can only thank the
caregiver, employer, employee and community groups,
efforts of all ACC staff, starting with our frontliners, who
to improve services and maximise resources. Our
spend every day seeing to the very real needs of their
success can, in some part, be measured in continuing
fellow New Zealanders, through to senior management
record levels of claimant, levy payer and provider
and my fellow Board members and the previous Chair,
satisfaction.
David Caygill. In the coming year we will have a change
Our investments continue to be managed exceptionally
of Chief Executive. Although Garry has a little longer at
well, with a 13.4% return of $786 million, and clearing
the helm, I would like to take the opportunity while he
CHAIR
is still here to thank him for the truly excellent job he
most other investment fund benchmarks by nearly 1%.
has done in the past eight years.
As our investment fund gets larger, the highest level
of fund management becomes increasingly important.
I look forward to working with our new Chief Executive
FROM THE
Good returns are our major buffer against a decline in
Jan White, and the ACC team, to build on these
17
long-term interest rates.
successes over the coming years.
F R O M T H E C H I E F
E X E C U T I V E
In this, my last Annual Report, I
have great pleasure in reporting on a
Corporation in good heart and focused
on its core business and values.
g a r r y w i l s o n > c h i e f e x e c u t i v e
When I fi rst joined ACC I was often button-holed at
While this year our long-term liability rose, this increase
social functions by claimants critical of how ACC dealt
substantially refl ects the fl uctuations of interest rates,
with their claims, and of ACC as a whole. Now, almost
and a worldwide rise in medical expenses and treatment
universally, they are coming up and telling me of the
costs. These are factors outside our control – interest
good experience they had dealing with our staff, with
rates will always fl uctuate, and, while all efforts are
our health providers and with the claims process and
made to reduce costs without sacrifi cing quality of
how pleased they are with the result.
service, medical expenses will rise as new technologies
Over the past eight years we have seen ACC’s strategy
and pharmaceuticals are introduced and willingly
distilled into fi ve key drivers: increased injury
adopted by ACC. ACC’s health providers operate in a
prevention; early, effective rehabilitation; claimant and
world market, and have to pay at appropriate levels to
other stakeholder satisfaction; staff satisfaction; and
retain expert staff.
maintaning fair and equitable levies. These Five Drivers
As we fi ght such external forces, and try to minimise
are now fi rmly embedded into all ACC activity, and the
their effects as much as possible, we can take solace in
results speak for themselves.
the fact that if the Corporation had continued along its
Claimant, staff, provider and levy payer satisfaction with
path of eight years ago, this liability would be at least
ACC continues to rise, in many cases to record highs.
$4 billion to $5 billion higher, and levies would be very
I am delighted with the way we are increasingly
much higher (perhaps even as high as Australia’s!).
engaging with Mäori, Pacifi c and now Asian
Looking to the future, with our recent experience of
communities and with the excellent advice and
doing things well, we can now increase our focus on
assistance we receive from our advisory groups.
doing them better – in injury prevention, in early and
Our dedication to continuous improvement in all areas
effective rehabilitation, in caring for our longer-term
was recognised this year with a coveted Silver level
claimants, in providing fair and equitable levy rates and
Achievement Award at the prestigious New Zealand
in providing fair and fast claims payments.
Business Excellence Awards. ACC achieved the highest
But, of course, we’re not doing it alone. There’s a much
marks of any New Zealand organisation reviewed in the
greater team effort to acknowledge here. Government
past four years.
agencies, employers, unions, health providers and
THE CHIEF EXECUTIVE
These successes are a real achievement for our team – at
welfare groups throughout the country have become
all levels, from frontline staff through to senior managers
increasingly focused on working collectively with ACC,
FROM
– and refl ect how well they are recognising the needs of
to maximise our joint efforts and resources to provide
18
the claimants and reacting appropriately to those needs.
New Zealanders with the best care and support possible.
On behalf of ACC, I would like to thank some groups
I wish her every success in her new role, and hope she
in particular for their contribution. There are the
experiences the great satisfaction that I have enjoyed
many employer groups that have taken on ACC’s
as Chief Executive of ACC over the past eight years.
injury prevention messages so well. Then there are
As I leave ACC there is one fi nal thing I would like
the health service providers, who have helped us
to leave in the mind of the Corporation – we must
provide increasingly better, earlier and more effective
never lose sight of the very real needs of those who
rehabilitation. And the care providers, who have done
are seriously injured.
more and more to help maintain the care, comfort
and independence of severely injured New Zealanders.
It is all too easy to be distracted from the real and
And, of course, I thank the levy payers, who have
ongoing needs of those who will always be dependent
funded the whole process.
on ACC. One singular fact remains: ACC exists
because of and for each and every one of our fellow
And fi nally I must thank Ministers and members from
New Zealanders.
both main political parties on behalf of the Corporation.
Their enthusiastic support of the ACC scheme refl ects
‘Kiwis helping Kiwis’ is at the core of everything we do.
the support of the nation for our unique and ground-
Kia kaha!
breaking seven-day-a-week, no-fault approach to dealing
with injury.
During my time at the helm of ACC, I have been very
ably assisted by a number of Board Directors. During
the course of this year David Caygill stepped down
GARRY WILSON
as Board Chair, and we welcomed David Collins into
the role. I thank them both, and all the Board Directors
over the past eight years for their excellent governance
and support.
When I leave the Corporation in October, I hand
over the reins of ACC management to the new Chief
Executive Dr Jan White. Jan is a highly respected
THE CHIEF EXECUTIVE
member of the health management profession, with six
years as Chief Executive of the Waikato District Health
FROM
Board and its predecessor, Health Waikato Ltd. During
that time she developed an enviable reputation.
19
C O R P O R A T E G O V E R N A N C E
ACC operates under the Injury Prevention,
Rehabilitation, and Compensation Act 2001. It is a
Crown entity for the purposes of the Crown Entities
Act 2004. ACC is exempt from income tax (except
for its subsidiary companies). ACC is managed by
a Board appointed by the Minister for ACC.
The Government sets ACC’s parameters in law, and
we continually incorporate current developments into
acts as a ‘shareholder’ on behalf of all levy payers while
the improvement process. This applies to the work of the
remaining independent of the operation of the various
Board of Directors and the internal Executive Team as
Accounts operated under the ACC scheme. The Minister
well as to questions of fi nancial reporting and disclosure.
has a rarely used ‘power of direction’ under the 2001 Act.
ACC takes the responsibility for good management and
control very seriously. To meet our goal of effi cient,
transparent and sustainable corporate governance,
a c c b o a r d
r e m u n e r a t i o n
i n v e s t m e n t
a u d i t c o m m i t t e e
c o m m i t t e e
c o m m i t t e e
c o d e o f e t h i c s
c o d e o f c o n d u c t
r i s k a n d a s s u r a n c e
•
Financial control health audits
• Effectiveness
audits
e t h i c s h o t l i n e
• Project audits
• Control self-audits
•
Senior management attestation
•
Audit Committee review
D i s c l o s u re C o n t ro l s
I n t e r n a l C o n t ro l O ve r
•
Board of Directors attestation
a n d Pro c e d u re s
F i n a n c i a l Re p o r t i n g
• Business continuity plan
a c c
TE GOVERNANCE
Management’s annual report on effectiveness of internal control over financial reporting based on:
• internal audit evaluation of the efficiency or otherwise of the internal control
•
line management performing self-assessment on the appropriateness and efficiency of their internal control
ORPORA
C
•
the independent auditor’s attestation and report on the management assertions.
The activities provide evidence of effective controls for all ‘relevant assertions’ for all ‘significant accounts and disclosures’.
20
CO R P O R AT E G OV E R N A N C E
The Board selects and appoints the Chief Executive and
monitors the Chief Executive’s performance.
F R A M E WO R K
DELEGATION
THE ACC BOARD
The Board sets and maintains clear policies that
The Board is appointed by the Minister for ACC
defi ne the individual and collective responsibilities
and comprises eight non-executive members. When
of management, the operating structure and lines of
appointing a new member, the Minister is required to
responsibility and delegated authority.
consider the balance of expertise on the Board and to
The Board delegates day-to-day management of ACC
consult with the Chair. Appointments can be for up
to the Chief Executive. With Board oversight, the Chief
to fi ve years, but current practice is for three years.
Executive is responsible for ensuring ACC achieves its
Re-appointment is permissible.
business objectives, including risk management and
The Minister’s formal line of accountability with the
ethical behaviour, and for ensuring that its system of
Corporation is through the Board. Formal reporting to
internal control is functioning effectively and effi ciently.
the Minister is on a quarterly basis. The Minister, Board
Day-to-day operations are managed by senior managers
Chairman and ACC Chief Executive also meet regularly.
led by the Chief Executive.
The ACC Corporate Governance Guidelines set the
The Chief Executive and Board operate under
parameters for the effective functioning of the Board
procedures based on the Committee of Sponsoring
and its committees and establish a common set of
Organisation of the Treadway Commission framework
expectations for the governance of the organisation.
of internal controls.
BOARD RESPONSIBILITIES
ADVICE
The Board is responsible for ensuring that ACC carries
Board members have direct access to the advice and
out its statutory requirements of:
services of external independent professional advisors.
• providing compensation entitlements
• promoting measures to reduce the incidence and
BOARD MEETINGS
severity of personal injury (including occupational
The Board has scheduled monthly meetings, and
disease and treatment injury)
members also meet several times a year to explore
• managing the assets, liabilities and risks for the
specifi c aspects of the business, such as levy setting
various Accounts under the accident compensation
and business planning.
scheme.
Financial results and key performance indicator measures
Each year a Service Agreement is negotiated between
are presented to each meeting by the Chief Executive,
the Board and the Minister. A Statement of Intent is then
together with operational reports from the senior
prepared which includes:
managers. Financial plans, including budgets and
• ACC’s roles and governance structure
forecasts, are regularly discussed at Board meetings.
• the provision of services by ACC
• ACC’s functions in managing each scheme Account
• the relationship between ACC and any subsidiary.
The Board has a formal schedule of matters specifi cally
referred to it for decision, including the approval of
the organisation’s strategy, major capital projects, the
TE GOVERNANCE
adoption of any signifi cant change in accounting policies
or practices and material contracts not in the ordinary
course of business.
ORPORA
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21
A C C B O A R D O F D I R E C T O R S
R A Y P O T R O Z
B R E N D A T A H I
T O R D K J E L L S T R O M
D A V I D C O L L I N S
J A N I C E W R I G H T
E I O N E D G A R
P E T E R N E I L S O N
G R E G O R Y F O R T U I N
DAV I D CO L L I N S
E I O N E D G A R
CHAIR
Appointed 1 November 2002
Appointed 22 November 2004
Eion Edgar was the Chancellor of the University of Otago and
Dr David Collins has been a member of the ACC Board since
the Chairman of Forsyth Barr Group Ltd, New Zealand’s largest
October 2003. He is a Wellington-based Queen’s Counsel and
retail sharebroker and investment banker. Mr Edgar is Chair
honorary member of the Victoria University Faculty of Law. Dr
of the Queenstown Resort College and a Director of a number
Collins was formerly Vice President of the New Zealand Law
of companies. He is President of the New Zealand Olympic
Society and President of the Wellington Medico-Legal Society. He
Committee, President of New Zealand Soccer Inc, Patron of
has held a number of positions in a wide range of organisations.
IHC (Otago), Trustee of the Halberg Trust, Trustee of the Arts
Currently he is a Governor of the World Association of Law and
Foundation of New Zealand, and the Hon Consul for Finland.
Medicine. As a practising lawyer with a strong professional and
Mr Edgar has a wide range of sporting interests in addition to his
academic interest in ACC, Dr Collins brings a wide blend of skills
business interests.
to the Board.
G R E G O RY F O RT U I N
B R E N DA TA H I
Appointed 18 October 2002
DEPUTY CHAIR
Gregory Fortuin is a Company Director with signifi cant experience
Appointed 1 October 2003
in the insurance industry. Mr Fortuin held the position of Race
Relations Conciliator and is a Director of New Zealand Post and
Brenda Tahi has been a member of the ACC Board since November
Kiwibank and the Honorary Consul of the Republic of South
2002. Brenda is a Business Consultant and Company Director.
Africa.
She has held senior management positions in Internal Affairs, the
Offi ce of the Controller and Auditor-General and the Ministry
Mr Fortuin is the Chairman of the Youth Suicide Awareness Trust
of Women’s Affairs as well as management positions in private
and a member of the Board of the New Zealand Prison Fellowship.
enterprise. Ms Tahi is a Director of the Institute of Geological and
Nuclear Sciences and a Member of Nga Pae o te Maramatanga (the
TE GOVERNANCE
National Institute of Mäori Research Excellence).
Ms Tahi is Te Whanau a Ruataupare, of Ngati Porou descent and
also links to Tuhoe.
ORPORA
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22
TO R D K J E L L ST RO M
R AY P OT RO Z
Appointed 4 September 2001
Appointed 14 September 2000
Dr Tord Kjellstrom has a consultancy business in health and
Ray Potroz is a Director of the Union Medical Benefi t Society
environmental research based in Mapua, Nelson, and holds a part-
and CCI NZ Ltd and was previously the National Secretary of
time position at the Australian National University in Canberra.
the New Zealand Dairy Workers’ Union.
He has a Doctor of the Science in Medicine and Master in
Mechanical Engineering and until recently was Professor and
J A N I C E W R I G H T
Chair of Environmental Health at the University of Auckland.
Dr Kjellstrom has extensive local and international academic and
Appointed 11 August 2003
working experience in occupational health and environmental
Dr Jan Wright is a Policy Analyst and Economist based in
health, in which he has published extensively, and in community/
Wellington. Dr Wright has worked in many areas of the
public health and safety. He is a member of several professional
government sector, and has a particular interest in health
and scientifi c associations.
economics. She holds degrees in Physics and Natural Resources,
and a doctorate in Public Policy from Harvard University.
P E T E R N E I L S O N
DAV I D C AYG I L L
Appointed 22 November 2004
(NOT PICTU R ED)
Peter Neilson is Chief Executive of New Zealand Business Council
(CHAIR UNTIL 18 NOVEMBER 2004)
for Sustainable Development. He is a member of the Stakeholder
Appointed to Chair the Board in September 1998, David Caygill
Council of the Waikato Management School. Mr Neilson has
was one of ACC’s longest serving Board members. In 2004 he took
experience as a consultant with ACC in the health sector and
up the position of Deputy Chair of the Commerce Commission,
has worked on a number of projects including strategic and
and is currently also a Director of Infratil Ltd and of Target Pest
business planning. Formerly a Member of Parliament and Minister,
Enterprises, a Board member of the Nurse Maude Association, and
including Minister of Revenue and Associate Minister of Finance
the Chair of Education New Zealand.
and State-Owned Enterprises, Mr Neilson has extensive knowledge
of the public sector, investment and general management.
TE GOVERNANCE
ORPORA
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23
There is a comprehensive system for weekly and
ACC BOARD OF DIRECTORS
Meetings Held: 11
monthly reporting to the Minister, the Board and
meetings
the Executive Team. Budgets are prepared by line
members
attended
$000
management and reviewed by both senior managers and
David Caygill (Chair)
5
24
(term completed 18/11/2004)
the Board. Forecasts are revised as required throughout
the year and compared with budget.
David Collins (Chair)
11
50
Ray Potroz
11
30
The Board, Chief Executive and senior management are
Tord Kjellstrom
7
30
committed to maintaining a real-time control culture
across all areas of operation. This is communicated to all
Brenda Tahi
10
40
employees by way of policies, practice, and procedure
Eion Edgar
9
30
manuals. Key business risks are identifi ed, monitored
Gregory Fortuin
10
30
and controlled. There are clear processes for monitoring
Janice Wright
10
30
the system of internal control and reporting any
Peter Neilson
4
20
signifi cant control failings or weaknesses, together with
(appointed 22/11/2004)
details of corrective action.
The internal control system is evaluated and reviewed by
REMUNERATION
the Chief Executive and the Audit Committee, through
Board members’ remuneration is in accordance with the
the Risk and Assurance Unit. The Unit – working
rates set by the Government.
with the management team – provides frameworks
for ACC activities through absolute risk management,
INDUCTION AND INTEGRITY
the fi nancial control health framework, corporate
On appointment, all Board members are given training and
governance and legislative compliance.
guidance on their duties, responsibilities and liabilities.
They have the opportunity to discuss organisational,
Regular meetings are held between ACC, external
operational and administrative matters with the Chairman,
auditors and the Offi ce of the Controller and Auditor-
the Chief Executive and the Corporate Secretary. If
General.
necessary, more formal training is provided.
The Board – through its Investment Committee
The Crown Entities Act 2004 provides a mechanism for
– formally approves ACC’s investment policy, which
the disclosure of interest and the process that has been
sets appropriate limits to mitigate treasury risks. The
followed. The relevant interests of Board members and
Chief Executive reviews and reports to the Board the
managers are reviewed monthly.
most signifi cant risks facing ACC, their likelihood of
occurrence, potential impact and the control strategies
ACC’s Board has developed its own Code of Practice.
put in place to mitigate these risks.
The Board has undertaken an appraisal of its own
performance against accepted standards and has
ACC’s internal control systems are designed to manage
implemented training and development programmes to
the risks inherent in the process of achieving business
address any shortfalls. As part of induction and ongoing
objectives, but can only provide reasonable and not
training almost all Board members have attended the
absolute assurance against material mis-statement or loss.
Institute of Directors’ director’s training programme.
The Risk and Assurance Unit is reviewed periodically
ACC has a Code of Conduct for its management
by external independent auditors. The most recent
and staff, specifying business standards and ethical
review, carried out in 2003 by Anton van Wyk, the Vice
considerations.
Chairman of the Board of Professional Practices of the
International Institute of Internal Auditors, showed that
TE GOVERNANCE
RISK MANAGEMENT FRAMEWORK
ACC has a high standard of risk management processes
All ACC policies and procedures defi ne the limits
and internal audit capability.
of delegated authority and provide a framework for
ORPORA
C
management to deal with areas of signifi cant risk.
24
INDEMNITY AND INSURANCE
& Young, which includes applying the Auditor-General’s
ACC is provided with protection under the Crown
auditing standards.
Entities Act 2004. ACC also has a comprehensive
The Auditor-General’s statement AG-100 deals with the
insurance programme in place. Insurance needs and
conduct of engagements other than the annual audit
coverage are managed progressively to ensure that ACC’s
undertaken by the auditor.
risk profi le and exposure are at appropriate levels.
AG-100 limits the extent to which auditors such as
Ernst & Young can undertake non-audit work for the
THE SARBANES-OXLEY ACT 2002
entities they audit on behalf of the Auditor-General.
Where applicable, given that ACC is a Crown entity and
Non-audit work is limited to 100% of the audit fee in
not a public listed company, and although not required
any fi nancial year.
by legislation or regulation, ACC voluntarily complies
with the principles of the US Government Sarbanes-
ACC IS AUSTRAL A SIA’S SUPREME RISK
Oxley requirements, based on self-assessment.
MANAGER OF THE YE AR
ACC was recognised at the inaugural Australian
ACC’S STATUS OF COMPLIANCE WITH KEY REQUIREMENTS OF THE
SARBANES-OXLEY ACT AND THE NEW ZEALAND
Risk Management Insurance Association
STOCK EXCHANGE REQUIREMENTS
Conference in Hobart in November 2004, where
key requirements for compliance
complies
it was the winner in the corporate governance
Code of ethics
and compliance category, and also took out the
Corporate governance guidelines
Supreme Risk Manager of the Year award.
Board of Directors composition
Other Board requirements
INTERNATIONAL ACCOUNTING STANDARDS
Other Board committees
Board of Directors training
The International Accounting Standards Board (IASB)
Audit committee mandatory
has developed and continues to develop global
Independent audit committee
International Financial Reporting Standards (IFRS). In
Appointment, compensation and oversight of
August 2003, the Government announced that New
public accounting fi rm
Zealand International Financial Reporting Standards
Pre-approval of auditing and non-auditing services
Auditor reports to audit committees
(NZ IRFS) would be implemented in the Crown
Related party transactions
fi nancial statements as of the year ending 30 June
Engage advisors
2008. A restated balance sheet at 1 July 2006 using
Funding of audit committee
these Standards will be required in order to produce
Audit committee composition
comparative fi nancial statements for 30 June 2007.
Audit committee fi nancial expert
ACC has been closely monitoring IASB decisions and
Risk management
pronouncements to assess the likely impact of these
Audit committee meetings
changes. We anticipate that, while change will be
Executive compensation
required to ACC’s disclosures and the way it presents
Financial reports in accordance with GAAP
its primary fi nancial statements, signifi cant changes
Off balance sheet transactions
are unlikely to be required to the way that it currently
Pro forma fi nancial information
records its investments and fi nancial operations. Refer
Management assessment of internal control
to page 122 for disclosure of the current assessment of
CEO/CFO certifi cations
the impact of adopting NZ IFRS.
Public disclosures
However, recent developments have raised some
signifi cant issues for ACC, particularly in respect of
AUDITOR INDEPENDENCE
IFRS 4 Insurance Contracts, which deal primarily
TE GOVERNANCE
The Auditor-General is by statute the auditor of ACC.
with fi nancial statement recognition and measurement
He has contracted Ernst & Young to undertake the audit
issues for insurance contracts. ACC has a considerable
on his behalf.
ORPORA
long-term claims liability, with a portion unfunded (see
C
Ernst & Young must undertake the audit in accordance
page 81). This liability is currently valued at the central
25
with the contract between the Auditor-General and Ernst
estimate and with no risk margin applied.
IFRS 4 requires an appropriate risk margin to be factored
AUDIT COMMITTEE
Meetings Held: 4
into the claims liability to give a ‘best’ estimate. If this
is signifi cant it will increase the Corporation’s $11.4
meetings
members
status
attended
$000
billion liability. Depending on the fi nal risk margin that
Brenda Tahi (Chair)
B
4
0
we adopt and the way this is managed, it may fl ow on to
David Collins
B
4
0
increased levies.
Tom Davies
S
4
15
There are also issues in using a risk-free rate in
Tord Kjellstrom
B
1
0
determining an appropriate methodology and interest
Peter Neilson
B
2
0
rates to calculate the claims liability. ACC’s claims
Janice Wright
B
4
0
liability has a 40- to 50-year maturity. Risk-free
Non-members
investments in NZ sit at a maximum of ten years.
Movements in these interest rates cause signifi cant
David Caygill
B
1
0
fl uctuations in the liability level.
Garry Wilson
E
3
0
e = acc executive, b = acc board member, s = specialist member
The IASB are committed to revising IFRS 4. Phase II of
the Insurance Standard is likely to be developed beyond
INVESTMENT COMMITTEE
the 2008 deadline for adopting IFRS. It is therefore
likely that ACC will adopt IFRS with minimal impact
This Board sub-committee meets monthly to set risk
initially, awaiting the key valuation issues affecting the
tolerance guidelines and benchmarks, and review the
claims liability to be determined.
investment activity of ACC’s investment portfolios.
The sub-committee controls the policy and procedural
B O A R D S U B - CO M M I T T E E S
operational frameworks for the investment of the
Corporation funds. These frameworks are reviewed and
The Board appoints a number of sub-committees for
updated when required.
specialised fi nancial areas of activity: audit, investment
and remuneration.
INVESTMENT COMMITTEE
Meetings Held: 11
meetings
AUDIT COMMITTEE
members
status
attended
$000
This Board sub-committee meets at least quarterly to
Eion Edgar (Chair)
B
11
0
monitor and review processes, systems and results to
Pat Duignan
S
10
15
help ensure the Board fulfi ls its responsibilities in these
Gregory Fortuin
B
10
0
areas. This includes:
Trevor Janes
S
10
15
• monitoring the Corporation’s reporting processes and
Garry Wilson
E
10
0
internal control systems
Non-members
• reviewing
fi nancial information and the ACC
David Caygill
B
6
0
Annual Report
David Collins
B
5
0
• reviewing and appraising external and internal audits
Brenda Tahi
B
3
0
and auditors
e = acc executive, b = acc board member, s = specialist member
• meeting with ACC’s external auditor,
Ernst & Young, independent of ACC’s senior
REMUNERATION COMMITTEE
management, to ensure there are no unresolved
This Board sub-committee determines the remuneration
TE GOVERNANCE
issues
of the Chief Executive and senior management. The
• reviewing the scope and activities of ACC’s Risk and
sub-committee also approves any proposed organisation-
Assurance Unit
ORPORA
wide remuneration policies. When necessary, the
C
• monitoring the relationship with external auditors
sub-committee takes independent advice on the
26
• monitoring compliance with relevant legislation.
appropriateness of any remuneration policies.
Most of Catalyst’s injury management services are
REMUNERATION COMMITTEE
Meetings Held: 4
supplied direct to employers on the ACC Partnership
meetings
Programme.
members
status
attended
$000
David Caygill (Chair)
B
1
0
Catalyst has its own Board of Directors and separate
term completed 18/11/2004
management structure.
David Collins (Chair)
B
3
0
Ray Potroz
B
4
0
D I S P U T E R E S O LU T I O N S E RV I C E S
Brenda Tahi
B
4
0
L I M I T E D
Non-members
Dispute Resolution Services Limited (DRSL) is a wholly
Garry Wilson
E
4
0
owned subsidiary company, established in 1999 to
e = acc executive, b = acc board member
manage an independent dispute resolution service
within the prescribed statutory framework of ACC
legislation. ACC and DRSL are parties to an agreement
C ATA LYST R I S K M A N AG E M E N T
to provide services, which governs their respective
L I M I T E D
administrative and fi nancial rights and obligations.
Catalyst Risk Management Limited (Catalyst or CRM,
DRSL has its own Board of Directors and separate
and formerly Catalyst Injury Management Limited) is a
management structure. The company engages reviewers
wholly owned subsidiary of ACC, established in 1999 to
to review ACC decisions disputed by claimants, levy
provide a channel for services offered commercially by
payers or health professionals. Reviewers are required
ACC, including:
by law to act independently in conducting reviews.
• injury management – case and claims management
There are legislated timeframes to adhere to and any of
for ACC, the ACC Partnership Programme and
the parties to the process have a right of appeal to the
employers
District Court.
• injury prevention – as part of an integrated health
DRSL is focused on providing impartial, prompt and
and safety consultancy and/or developing injury
professional service to all parties. It provides the dispute
prevention-focused workplace programmes
resolution options of mediation and facilitation, which
• illness management – rehabilitation management to
offer the parties the potential to reach a mutually
organisations with liability arising from causes other
acceptable solution.
than personal injury.
These options are in addition to the review services.
Using these options does not remove the right to review
CATALYST BOARD OF DIRECTORS
Meetings Held: 11
a decision.
meetings
members
status
attended
$000
DRSL BOARD OF DIRECTORS
Meetings Held: 11
Gregory Fortuin (Chair)
D
9
0
meetings
Rob Elvidge
ID
9
15
members
status
attended
$000
Anthony Ractliffe
ID
11
15
Ray Potroz (Chair)
D
11
0
Linda Robertson
ID
10
15
Gavin Adlam
ID
11
15
Garry Wilson
E
11
0
Wendy Davis
ID
9
15
d = director, e = acc executive, id = independent director
Brent Kennerley
ID
10
15
d = director, id = independent director
TE GOVERNANCE
ORPORA
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27
A C C E X E C U T I V E T E A M
The ACC Executive Team, led by the Chief
Executive, is responsible for the leadership and
management of the organisation, and is held
accountable for the achievement of ACC’s outcomes.
j o h n n i c h o l s o n
c h a d pa r a o n e
k e i t h m c l e a
j a c k i e p i v a c
g e r a r d m c g r e e v y
d a r r i n g o u l d i n g
d a v i d r a n k i n
w a r r i c k l a i n g
k e v i n w a l k e r
c a t h y s c o t t
p h i l b u r t
g a r r y w i l s o n
j o h n s a u n d e r s
G A R RY W I L S O N
DA R R I N G O U L D I N G
CHIEF EXECUTIVE
GENERAL MANAGER INJURY PREVENTION
As ACC Chief Executive since September 1997, Garry has overseen
Darrin joined ACC in 1994. Prior to this he worked in the
the Corporation as it has progressed through a radical reappraisal
Treasury on health and ACC policy. Darrin is responsible for the
of its role and signifi cant changes in ACC legislation. Garry was
management of the relationship between ACC and the main levy
previously Chief Executive of the former Northland Regional
payers and injury prevention groups. Darrin has an academic
Health Authority, and led the operational restructuring of New
background in economics.
Zealand Post. He has held a number of directorships. Garry has an
academic background in psychology and economics.
W A R R I C K L A I N G
HEAD OF IT SERVICES
P H I L B U RT
Warrick is responsible for the computer systems delivery for
CHIEF FINANCIAL OFFICER
ACC users. Warrick joined ACC in February 2002 from the Land
Phil is responsible for the fi nance area of ACC including all
Transport Safety Authority, where he worked as IT Operations
fi nancial reporting, budgeting and revenue collection. Before
Manager. Warrick has 20 years of experience in senior roles with a
joining the ACC Finance team in 1998, he held a number
number of IT outsourcing companies. He has a BA in Economics
of fi nance roles at ENZA, Bank of New Zealand and Ernst &
from Victoria University of Wellington.
Whinney. Phil has a BCA from Victoria University of Wellington
and is a member of the Institute of Chartered Accountants.
G E R A R D M C G R E E V Y
TE GOVERNANCE
GENERAL MANAGER REHABILITATION OPERATIONS
Gerard joined ACC in 1991 as General Counsel following
a legal career specialising in public administrative law. Gerard
ORPORA
C
is responsible for managing the ACC nationwide branch
network (including Contact Centres) and its processes of
28
case management and rehabilitation. Gerard retains his role
as ACC’s General Counsel.
K E I T H M C L E A
DAV I D R A N K I N
GENERAL MANAGER RESEARCH AND CORPORATE SERVICES
GENERAL MANAGER HEALTHWISE
Dr McLea joined ACC in 1996. He is responsible for research and
Dr Rankin is responsible for purchasing health services for the
market research programmes, the New Zealand Injury Prevention
1.6 million New Zealanders who sustain accident-related injuries
Strategy, Audit, Fraud, actuarial services, the data warehouse, and
each year. He joined ACC in 1998, after working as Chief Executive
Company Secretariat. Prior to working at ACC, Keith was the Chief
Offi cer of Auckland Adventist Hospital. David holds Masters
Strategic Advisor at the Department of Labour.
degrees in Health Administration and in Public Health from Loma
Linda University in California, a Diploma in Obstetrics from the
J O H N N I C H O L S O N
University of Auckland and an MBChB from the University
of Otago.
GENERAL MANAGER CUSTOMER SERVICE AND IMPROVEMENT
John joined ACC in 2000. He has spent nearly 20 years in
compensation services, in operational and consulting roles. John
J O H N S A U N D E R S
is responsible for providing frontline services to ACC customer
GENERAL MANAGER PEOPLE AND SERVICES
groups as well as support services to other areas of ACC.
John is responsible for human resources management at ACC. John
C H A D PA R AO N E
joined ACC in 1997 from a consulting role in strategic human
resources at The National Bank, and had previously been General
GENERAL MANAGER MÄORI DEVELOPMENT
Manager Human Resources at Trust Bank and BCL, and Director of
AND CUSTOMER ACCESS
Human Resources for KPMG after a 21-year career with IBM.
Chad joined ACC in 2003. He is responsible for ACC’s Mäori
Development and Customer Access Strategy, the co-ordination of
C AT H Y S COT T
service delivery to Mäori and championing initiatives for Mäori and
GENERAL MANAGER STRATEGY AND POLICY
other groups who do not readily seek or receive access to the ACC
scheme (including Pacifi c, Asian, older and disabled people). He
Dr Scott joined ACC in 2001. Before this she was consulting for a
has spent nine years in consulting and management positions in
number of years, primarily in the health sector. Cathy has also held
the health sector, mainly in the areas of information management,
positions in the Department of Prime Minister and Cabinet. Cathy
Mäori development and programme management. Chad belongs to
is responsible for strategic policy advice, Strategy and Corporate
the Te Aupouri and Kai Tahu iwi.
Planning, the Customer Relations Unit, and the relationship
between ACC and other government agencies.
J AC K I E P I VAC
K E V I N W A L K E R
GENERAL MANAGER SPECIALIST REHABILITATION
GENERAL MANAGER BUSINESS TRANSFORMATION
Prior to joining ACC in February 2004 Jackie held a variety
of operational positions in the Department of Social Welfare
Kevin joined ACC in 1998. He held various senior fi nance roles in
TE GOVERNANCE
and Department of Child, Youth and Family Services. Jackie
government departments and the dairy industry prior to joining
is responsible for providing expert advice on rehabilitation,
ACC. Kevin has overall responsibility for the Corporation’s change
occupational medicine and ACC operational policy. She is also
programme and the Investment Team.
ORPORA
responsible for the two specialist operational units of Sensitive
C
Claims and Treatment Injury and Patient Safety.
29
r e h a b i l i t a t i o n
n
s
o
i
t
I N J U R Y P R E V E N T I O N
t
a
c
f
a
f
f
s
s
i
a
t
t
a
i
s
s
f
t
a
c
n
t
a
i
m
o
i
n
a
l
c
n
o
i
f
t
a
n
i r
e
v
l
e
e
r
v
p
i e s
i n j u r y
a s a f e r n e w z e a l a n d
It’s no accident that the primary driver of ACC
performance is injury prevention. When an injury
is prevented, no other intervention is required.
And neither are the pain, suffering and regret.
STRATEGIES TO PREVENT DROWNING AND
N E W Z E A L A N D I N J U RY
INJURY FROM FALLS
P R E V E N T I O N ST R AT E G Y
With considerable stakeholder input, ACC led the
The over-arching framework for the nation’s injury
development of Preventing Injury from Falls: The
prevention activities is the New Zealand Injury
National Strategy 2005-2015 and The Drowning
Prevention Strategy.
Prevention Strategy: Towards a Safer New Zealand
2005-2015. After extensive public and stakeholder
The Strategy identifi es six injury prevention priorities,
consultation, both Strategies were approved by Cabinet
each led by a government agency/organisation: motor
in June 2005.
vehicle traffi c crashes; suicide and deliberate self-harm;
falls; workplace injuries (including occupational
S A F E R CO M M U N I T I E S
diseases); assault; and drowning and near-drowning.
ACC is the leader in two of these areas: falls and
The sustainable reduction of injury rates in New Zealand
drowning. We are also highly active in the other four.
begins in our communities – through the reinforcing
of community values and creating and maintaining
ACC leads and co-ordinates implementation of the
a culture of safety and care. Our 23 ThinkSafe
Strategy and the activities of its three advisory groups:
communities were created to help communities
the Stakeholder Reference Group, the Expert Advisory
understand and share the responsibility and ownership
Panel, and the Government Inter-agency Steering Group.
of injury prevention initiatives.
The 2005-08 Strategy Implementation Plan, developed
with strong input from the Stakeholder Reference
SAFER ROHE
Group and a wide number of government agencies, was
ACC’s Safer Rohe provide added support to high-risk
approved by Cabinet in June.
Mäori communities in their injury prevention activities.
ACC’s Mäori Advisors Te Roopu Manawa Mai and other
Mäori leaders were closely consulted and welcome this
new approach. Four Safer Rohe were selected – Waikato,
South Auckland, Northland and East Coast/Gisborne.
We appointed an injury prevention consultant for
each region to engage and foster relationships with
Mäori groups to help build community capacity, and to
B Y 2 0 5 1 O N E O U T O F E V E R Y F O U R N E W Z E A L A N D E R S W I L L B E O V E R 6 5 .
Y PREVENTION
support targeted interventions. A Homesafety Checklist
was distributed to 42,000 Mäori and Pacifi c peoples’
INJUR
homes in the four regions. There was an almost 50%
30
for our statement of service performance on
injury prevention go to page 60
return rate, giving a sound basis for the development of
SAFER COMMUNITY FOUNDATION OF NEW ZEALAND
focused activities and interventions in the coming year.
The Safer Community Foundation is a new, mostly
ACC-funded organisation that provides World Health
ALCOHOL AND DRUG-RELATED HARM
Organization (WHO) Safe Communities accreditation.
Alcohol misuse contributes to over 22% of injuries
treated in hospital and their ACC costs, and has become
By the end of 2008 the Foundation’s goal is to
an important focus for ACC injury prevention activity.
have 12 WHO Safe Communities, covering 50%
We are working with Police to develop Alco-Link, a
of the population. The Foundation is supporting
nationwide system to identify where offenders had their
New Plymouth to achieve WHO Safe Community
‘last drink’ and enable Police to target poor hosts and
accreditation status in 2005.
establishments.
The Foundation also works with ACC and our
We continue to work with agencies throughout New
ThinkSafe Community Programme to support local
Zealand on a number of community initiatives to reduce
authorities to improve their injury prevention efforts.
alcohol-related harm. We have also commissioned
research into injuries associated with the use of
S A F E R H O M E S
methamphetamine.
SLIPS, TRIPS AND FALLS
FAMILY VIOLENCE
Slips, trips and falls are the largest cause of injuries in
We worked with Te Rito: New Zealand Family
the home and continued to be a major focus for ACC
Violence Prevention Strategy Advisory Group and
throughout the year. Our nationwide campaign included
other stakeholders to identify opportunities to support
an extensive television ad campaign and radio and
the sector in preventing family violence injuries. This
online advertising. Our partnership with PlaceMakers
year we funded family violence providers working
included a householder mail-out, discounted home
with children who have witnessed violence, initiated a
safety hardware and in-store promotions. We are seeking
project to develop personal safety education within early
new partnerships with other agencies such as Housing
childhood education and worked with lead agencies
New Zealand.
to begin the development of a national family violence
public education resource package.
Our two successful community-based programmes to
prevent older adult falls – a modifi ed tai chi class for the
ACC is a member of the Opportunities for All New
more active, and the personalised, home-based Otago
Zealanders: Violence Within Families Taskforce.
Exercise Programme – continued with national roll-out
COMMUNITY VIOLENCE AND SEXUAL VIOLENCE
this year. New Zealand now has the largest national
ACC is a key agency in the Ministry of Justice Safer
integrated and co-ordinated approach to community-
Communities Action Plan to Reduce Community
based older adult falls prevention in the world and is
Violence and Sexual Violence. We are also represented
receiving increasing international recognition.
on the National Taskforce for Community Violence
A hip protector is almost 100% effective in preventing
Reduction group addressing alcohol-related violence.
hip fractures from falls. Our highly successful
Residential Care Hip Protector pilot was improved
SUICIDE PREVENTION
and will be extended this coming year to a further 30
Together with the Ministry of Health, ACC was closely
residential care sites. After assessment, the viability of a
involved with the development of the Draft New
national roll-out will be determined.
Zealand Suicide Prevention Strategy which, for the fi rst
time, addresses suicide prevention across all ages. We
Our highly successful Falls in Under Fives programme
also funded an inter-agency research project to evaluate
was expanded this year, to better target young parents,
Y PREVENTION
the effect of problem-solving therapy on repeat suicide
working parents and fathers, with over 14,000 attending
attempts. This project will now be rolled out to a further
education programmes, and a further 11,000 receiving
INJUR
two sites.
child falls information.
31
eighty-one-year-old molly whitley’s
determination to keep healthy and
active made her the fi
rst winner of
the acc thinksafe medal.
CHILD SAFETY FOR NEW PARENTS
SPHERES OF INFLUENCE
This year we delivered child safety seminars and
This is an important new ACC initiative to encourage
messages to 25,000 new parents. The seminars promote
good corporate citizenship through injury prevention.
active supervision of children and prevention measures
Forty high-performing companies are involved,
such as the use of stair gates. Surveys show a high level
promoting non-work injury prevention messages to
of parental behaviour change after attending.
employees through events such as family safety days,
road safety projects and parenting education seminars.
Other innovative strategies for new parents included:
Auckland Rugby League targeting 3,000 young parents
ACC PARTNERSHIP PROGRAMME
at its clubs; and working with employers to host child
The ACC Partnership Programme, where large
safety seminars for employees.
employers manage their employee injury cover and
claims, now involves over 25% of all employees. The
S A F E R WO R K P L AC E S
Programme was enhanced this year through increasing
the availability of expert advice and ACC training, and
SAFER INDUSTRIES PROGRAMME
strengthening the entry criteria to make the Programme
Safer Industries targets the ten industries with
more robust.
the highest serious injury rates: agriculture, boat
WORKPLACE SAFETY MANAGEMENT PRACTICES
building, construction, fi sh processing, forestry and
wood processing, grocery and supermarkets, health
This programme rewards employers with good health
services and residential care, meat processing, on-hire
and safety systems through discounts on their levies.
employment, and road freight industries.
By 30 June 2005, 1,952 employers were participating
in the programme, including over 500 who joined
The programme brings together industry and employee
during the year.
representatives and other stakeholders to address the
causes of injury. A wide range of initiatives and training
Y PREVENTION
was delivered this year through the programme, which
continues to reduce signifi cantly the frequency and
INJUR
severity of injuries in these high-risk industries.
32
STAY I N G F L E X I B L E W I T H TA I C H I
S A F E R H O M E S
Molly Whitley has a positive attitude towards life and taking control of her own well-being.
Her joy for living has seen her overcome severe back pain and improve her mobility and balance through ACC-modifi ed
tai chi training.
The ACC ThinkSafe Medal was presented to Molly by the Prime Minister at Parliament in September 2004 as part of
Osteoporosis New Zealand’s You Deserve A Medal Awards, which are presented annually to people over 65.
ACC provides support to around 8,000 older adults injured by falls each year, of whom many require ongoing
assistance. Physical activity slows the onset of osteoporosis, improves well-being and prevents falls – the number
one cause of injuries to older people.
WORKPLACE SAFETY EVALUATION
UNIQUE HEALTH AND SAFETY CENTRE FOR TARANAKI
In this year’s programme, our injury prevention
The Taranaki Health, Safety and Environmental
consultants worked closely with over 300 of the poorest
Protection Centre opened in February 2005. A fi rst for
performing employers, responsible for over 17% of
New Zealand, the Centre runs an NZQA-accredited
workplace injury claim numbers and 4.7% of workplace
health and safety programme for workers, school-leavers
entitlement claim costs, to develop and implement
and tertiary students, as well as the wider community.
workplace safety improvement plans.
Taranaki businesses have committed to sending 1,000
fee-paying workers to the Centre each year. This will
HEALTH AND SAFETY TRAINING
make the Centre self-funding so that community groups
This year we launched stage two of the Employee Health
and schools can use it free or for a nominal charge.
and Safety Representative training packages. With the
New Zealand Council of Trade Unions and Business
The Centre is a leading example of community and
New Zealand, ACC has now trained over 10,000 health
multi-agency collaboration to improve workplace safety,
and safety representatives, and over 1,000 supervisors.
and has great support from local government and the
We have also developed customised training for several
tertiary institute, unions and companies. ACC provided
major employers. A stage three package is being
$30,000 start-up funding and helped develop and
developed.
maintain modules for injury prevention and nutrition.
ACC/DEPARTMENT OF LABOUR COLLABORATION
We continued this year to work in close collaboration
with the Department of Labour to co-ordinate our
workplace safety and health programmes, and to
develop the Workplace Health and Safety Strategy.
Y PREVENTION
INJUR
33
“ T H E 1 1 ” P R E V E N T I O N P R O G R A M M E F O R S O C C E R I N J U R I E S
S A F E R S P O R T S
FIFA chose New Zealand as the fi rst country in the world to release “The 11” – the ACC-endorsed soccer injury
prevention programme developed by FIFA’s Medical Research Centre.
Launched in Auckland in March 2005, “The 11” is very much in keeping with ACC’s internationally recognised
SportSmart injury prevention programme. It was this connection, and the unique infrastructure that ACC has in
place for the distribution of sports injury initiatives that convinced FIFA to choose New Zealand.
“The 11” DVD, brochure and resources are available from soccer clubs or 0800 ThinkSafe (0800 844 657).
Soccer is second to rugby for injuries, with over 1,300 moderate-to-serious claims a year. FIFA expects
“The 11” will reduce these injuries by 30%.
S A F E R S P O RTS
action plan for sports injury prevention and feature
several key All Blacks. Mäori, Pacifi c and young rugby
Through our unique series of programmes and resources
players are also targeted in individual initiatives.
and our excellent prevention record, New Zealand is
SIDELINE CONCUSSION CHECKLIST
becoming recognised internationally as a world leader in
many sports injury prevention initiatives.
Since its introduction in June 2003, the ACC Sports
Concussion Programme has been remarkably successful.
ACC SPORTSMART
Its primary tool, a credit-card-sized Sideline Concussion
SportSmart, ACC’s 10-point action plan for preventing
Checklist for coaches and players, is now widely used.
sports injuries, focused again this year on sports with
This year we worked with recreational horse riding,
high injury costs and claims: rugby, netball, soccer,
snow sports and soccer groups on a Checklist for
touch and rugby league. ACC has contracts with each of
those sports.
these sporting bodies, focusing on prevention initiatives
The Checklist was presented at the second International
targeting the most common injuries in each sport.
Symposium on Concussion in Sport, Prague, November
ACC resources are tailored for participants in each
2004. Several major international sporting bodies
sport, and training programmes are in place to ensure
showed interest in using it as the basis for their own
key personnel such as coaches and referees are fully
initiatives, including the International Olympics
SportSmart trained.
Committee, FIFA and the International Rugby Board.
SportSmart was delivered to 20,000 people this year,
‘ARE YOU READY FOR NETBALL?’ CARD
including all 12,000 rugby coaches and referees and
20% of coaches in netball, soccer, touch and league.
Netball New Zealand and ACC teamed up to tackle
injuries in the sport with a new wallet-sized game
ACC RugbySmart is the most extensive of the
preparation guide. The card, launched in April 2005,
SportSmart initiatives, and the most successful, with
provides a warm-up, cool-down and nutrition regime
Y PREVENTION
rugby injuries declining over the past fi ve years and
aimed at reducing netball injuries, which currently cost
very serious injuries almost eradicated. This year’s
around $6 million a year.
INJUR
RugbySmart DVD training video and accompanying
brochure are based around ACC SportSmart’s 10-point
34
soccer is second to rugby
for injuries, with over
1,300 moderate-to-serious
claims a year.
ACC THINKSAFE NZ MASTERS GAMES
international interest is an excellent endorsement of our
More than 7,000 competitors participated in the ACC
successful sports injury prevention programmes.
ThinkSafe NZ Masters Games in Wanganui in February
2005. The Games are New Zealand’s largest annual
S A F E R ROA D U S E
multi-sports event.
Around 43% of all serious injury claims are from crashes
SNOW SAFETY PROGRAMME
on New Zealand roads. It’s more likely to be the drivers,
We built on our successful wrist guard programme this
rather than the roads or cars, who are the problem. We
year with the promotion of other safety equipment such
work closely and urgently with our road safety partners
as helmets, the snow responsibility code, and smart
– Police, Land Transport New Zealand (LTNZ) and
tips for preventing injuries. Promotional material was
Transit New Zealand – to reduce injuries and deaths.
delivered to all snow areas and outlets.
DRINK DRIVE INITIATIVES
WATER SAFETY
Drink and driving are a lethal mix and we continued
Prevention of drowning and near-drowning is one of
extensive collaboration with Police to develop more
our areas of responsibility in the New Zealand Injury
effective campaigns to reduce drink driving.
Prevention Strategy (see page 30).
We worked on a highly successful campaign with
We worked in partnership with Water Safety New
the main breweries to bring road safety messages to
Zealand, focusing again on swimming, boating and
Southland pubs.
fi shing through our RiverSafe, BoatSafe and PoolSafe
DOWN WITH SPEED
programmes. We also supported Maritime New Zealand’s
new ‘Stay on top with the marine forecast’ campaign and
Our ongoing successful deployment of community
continued to support regional and local initiatives.
speed trailers was enhanced through work with LTNZ
on a national ‘appropriate speed’ billboard campaign at
WORLD CONGRESS ON SPORTS INJURY PREVENTION
Y PREVENTION
speeding hotspots. This marks an important shift, from
ACC addressed the fi rst World Congress on Sports
one of Police enforcement to that of driver responsibility,
INJUR
Injury Prevention in Norway in June 2005 with four
and is essential if we are to achieve permanent behaviour
35
oral and four poster presentations. This high level of
change in New Zealand drivers.
YOUNG DRIVER TRAINING
Three months after the Scheme’s launch in July 2004,
Targeted at young probationary drivers and launched in
all 1,000 ACC-funded seats were rented. The demand
2003 by ACC and LTNZ, ‘Practice’ is an interactive CD
underlined the fact that for some parents, money was
that helps learner drivers to receive at least 120 hours’
the only barrier to safe practice. We funded an extra
supervised driving practice. This has the potential to reduce
1,000 seats later in the year.
the crash risk of young drivers by 30%. Uptake this year
ACC also supplied over 700 car seats to Mäori and
has been excellent – reaching 26% of all learner licence
Pacifi c communities through Family Start and the
holders aged 15-19 years.
Manukau Urban Mäori Authority.
The ACC/LTNZ Street Talk road safety training
Safe2Go trained over 1,100 car seat installation
programme continues to provide unlicensed drivers in
technicians last year.
Pacifi c communities with access to culturally oriented
driver and road safety education. Learner-drivers reduce
MOTORCYCLE SAFETY
time on their restricted licences by up to six months by
Motorcyclists have many more accidents per vehicle
successfully completing the course.
than car drivers, and the accidents are often very serious.
Bikers, like drivers, are their own worst enemies and
DRIVER FATIGUE
are directly responsible for most of their accidents. We
Driver fatigue is a possible contributing factor in up to
continue to work with motorcycle distributors, retailers,
29% of injury crashes and 52% of fatal crashes.
trainers and clubs to infl uence rider behaviour through
This year we continued to target three high-risk groups:
tools and information via the web and at point of sale.
young (16-29-year-old) male drivers, older people with
A Competency Based Training and Assessment approach
sleep problems, and shift workers. We added NCEA
to licensing was also trialled. Community projects were
Level 1 unit credits to our sleep and fatigue educational
run throughout the country in partnership with the
resource ‘Wake-Up’. We worked with Age Concern to
Ulysses Club to remind motorists to ‘Look out for Bikes’,
deliver stress and fatigue seminars. Community-based
especially at intersections.
projects included working with Police and schools in
PEDESTRIAN AND CYCLIST SAFETY
Canterbury, large employers of shift workers, and the
Research shows that the greatest gains in safety for
Tongan church community in Auckland. We also set
pedestrians and cyclists come by separating them from
up rest stops in Hawkes Bay, Northland, Christchurch
vehicular traffi c by roading engineering initiatives in
and Dunedin.
urban areas. In our work with Transit New Zealand,
CAR RESTRAINTS
we are focusing on integrating roading improvements
New Zealand has one of the highest transport injury
for pedestrians and cyclists at crash sites identifi ed for
death rates for children in the OECD. Properly used
engineering improvements.
child restraints and safety belts reduce the risk of death
At a community level, we are providing successful
in a vehicle crash by 71% and injury by 67%.
pedestrian and cycle safety case studies to local
Our major initiatives in this area are the Plunket Car
authorities to help mobilise greater action.
Seat Rental Scheme and, with LTNZ, Safe2Go, an
installer training scheme.
The Plunket Car Seat Rental Scheme provides ACC-
funded car seats to parents and caregivers with young
children at a reduced rental and bond. Recipients also
get training on correct installation and use.
Y PREVENTION
INJUR
36
ACC STOP BUS – STOPP ING THE DRUNK DRIVER
S A F E R R O A D S
Using education, breath testing and enforcement through its contract with New Zealand Police, the ACC Stop Bus
programme has been a winner. Injury-causing crashes attributed to alcohol have dramatically reduced – from 18%
when ACC Stop Bus began in 1998, to 12% by 2003. There is now an ACC Stop Bus for every Police district. Each
district is contracted by ACC to do at least 30 site-based hours of breath testing per week.
Last year’s ‘Is This One?’ campaign was rolled out in six more regions. It uses unmarked Police cars in rural areas,
with advertising to increase drivers’ awareness of the risk of being caught and losing their licence. Surveys showed
the campaign caused many drivers to think twice about drink driving. Many reduced the amount they drank if they
were going to drive.
wherever the stop bus is present,
there are marked reductions in
alcohol-related fatalities.
LO O K I N G F O RW A R D
to the specifi c needs of Mäori, Pacifi c and Asian peoples,
working closely with the Pacifi c and Asian Development
In the coming year we will increase spending on injury
Managers.
prevention from $40 million to more than $46 million.
A secondary prevention referral process for claimants at
We will be strengthening partnerships with organisations
high risk of further injuries will be developed.
with a direct interest in lowering injury rates, initially
We will increase research into effective injury prevention
local authorities, District Health Boards and emergency
initiatives and improving scheme access, and will work
Y PREVENTION
services. These partnerships will provide new
with tertiary institutions to develop injury prevention
community networking opportunities.
INJUR
courses.
We will tailor our ThinkSafe Community Programmes
37
r e h a b i l i t a t i o n
n
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i
t
R E H A B I L I T A T I O N
t
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r
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p
i e s
i n j u r y
e f f e c t i v e r e h a b i l i t a t i o n i s a t e a m e f f o r t
The very best outcomes depend on the partnerships we
form, with our claimants and their family or whänau,
with our providers and caregivers, with other agencies
and with employers.
C L A I M A N T PA RT N E R S H I P S
This result refl ects the continual refi ning and
simplifi cation of our claims process at both central
Our most important partnership is with each one of our
and branch levels, ensuring it is well defi ned and
claimants, and with the people closest to them who can
transparent. Improvements this year include:
give them support and encouragement – their family or
• our new process monitoring framework, which
whänau and friends.
enables staff and management to review more
quickly the rehabilitation progress of each claimant
Our case managers and rehabilitation planners
work hard to ensure that all agree to an appropriate
• the block booking of key medical providers by
rehabilitation path, and that the right resources, care and
ACC branches
support are available to achieve the best outcome for our
• the centralisation of all claims approvals and
claimants in the shortest time possible.
payments – from 120 part-time staff in 14 separate
locations in 1998, to the current 20 full-time staff
ELIMINATING DELAYS
in two centres
Timeliness is crucial in reducing the impact, severity and
• emphasis on timeliness in medical and occupational
duration of an injury – the earlier the assessment and
assessor training programmes and all updated
medical intervention, the sooner claimants can begin on
contracts.
the path of recovery.
Improved service and timeliness is also expected from
Our continued focus on this area reduced the average
the increased use of electronic claimant fi les. A successful
time taken to complete initial occupational and medical
pilot to identify ways to streamline the transfer of paper
assessments of claimants.
fi les on claimants into electronic form and to evaluate
electronic archiving technology began in Wellington in
February 2005. Initial assessment has been very positive.
If adopted nationwide it will help ensure archived
claimant records can be retrieved quickly. This
is especially important with injuries that require long-
TION
A
term maintenance such as many dental claims.
REHABILIT
38
for our statement of service performance
on rehabilitation go to page 64
DRUG AND ALCOHOL CASE MANAGEMENT TOOL
and best practice guidelines and a transparent
After a highly successful pilot in Tauranga and Hamilton,
streamlined claimant processing system.
ACC launched a drug and alcohol case management tool
We are working hard to improve channels of
nationwide in September 2004. This resource provides
communication between ACC case managers and
case managers with a set of effective early interventions
medical and care providers and to support actively
for proactively managing claimants whose rehabilitation
all inter-agency co-operation between medical, social
is affected by suspected drug and/or alcohol misuse.
support and welfare groups.
BRANCH-BASED PSYCHOLOGISTS
PROVIDER RELATIONSHIP TEAM
A trial in fi ve Auckland branches of a psychologist
ACC’s Provider Relationship Team, set up in late
advisory service was completed in August 2004. The
2002 to promote better interaction between ACC and
pilot was highly successful and rolled out nationwide.
health providers (such as GPs and physiotherapists),
Case managers in most branches now have ready
has continued with great success. The Team helps to
access to psychologists to help identify and facilitate
resolve issues and deliver ACC’s key messages and
appropriate treatment for claimants with possible
products to providers. This includes educating GPs on
mental health factors that may affect their effective
process issues, co-ordinating best practice education
rehabilitation.
and support initiatives and enhancing the interaction
between providers and ACC case managers.
MÄORI TRADITIONAL HEALING
This year the Team’s ten provider relationship
ACC has three pilots offering the choice of Mäori
managers visited New Zealand’s top 1,000 GPs and 500
traditional healing as part of a claimant’s rehabilitation
physiotherapists at least twice, and helped organise a
– one based in Taranaki and two in Gisborne. Promotion
nationwide series of case manager/GP focus groups.
of this option through iwi and local communities helped
ensure the success of these initiatives.
The Team has helped to increase dramatically GPs’
use of ACC e-transaction systems, which now account
LONG-TERM CLAIMS REDUCTION
for 62% of ACC transactions with this group, and has
This year we reduced the number of long-term weekly
contributed to the great improvement in treatment
compensation entitlement claimants by 669, and
providers’ satisfaction with ACC service. For the
satisfaction levels for this group continued to rise.
claimant, this means more timely payments and swifter
entry to the rehabilitation process.
A number of measures helped to achieve this result,
including the use of multi-disciplinary advisory panels
PROVIDER SATISFACTION
at the six-week, three-month and six-month duration
Over the past two years provider satisfaction has
points. More extensive input from a wider range of
increased remarkably. This is a result of our concerted
professionals provided more robust and effective initial
efforts to work in closer partnership with providers
rehabilitation plans and innovative solutions to long-
– keeping them informed, making processes as easy and
term rehabilitation problems.
accessible as possible, and listening to and acting on
Process changes and more staff in our Contact Centres
their concerns.
ensured we contacted claimants earlier so they received
This year’s ACC Provider Feedback Survey shows 70%
faster service and earlier interventions. Staff training
of providers were satisfi ed (‘satisfi ed’ or ‘very satisfi ed’)
continued to target reducing rehabilitation duration.
with the service received from ACC, up from last year’s
fi gure of 60%.
TION
P ROV I D E R PA RT N E R S H I P S
A
GP INJURY ASSESSMENT REPORTS
Early and effective rehabilitation depends on our
In a promising initiative supported by Pegasus Health
providers having what they need to provide claimants
and South Link Health, ACC completed a GP Injury
REHABILIT
with the best service possible. This includes easy access
Assessment pilot in Christchurch and Timaru. The pilot
39
to information on claimant entitlements, benchmarking
encouraged GPs to carry out a detailed rehabilitation
“i’m continually
impressed by the
resilience of clients and their
families to overcome signifi
cant
injuries and rebuild a new normality.”
assessment when a claimant was off work for over
We also sent 1,000 GPs the British Medical Journal’s best
14 days, ensuring earlier, more appropriate longer-term
practice guide Clinical Evidence. A survey soon after
interventions for the claimant. The initiative was rolled
showed 66% had read the book and since changed their
out in the South Island in October 2004 and, after
clinical practice. Together with PHARMAC, we are now
review, will be released nationwide.
sending Clinical Evidence to all GPs annually.
BEST PRACTICE GUIDELINES
We produced six injury profi le resources for patients,
We continued to develop guidelines for providers
including: Caring for Your Knee Injury; Caring for Your
and claimants for the treatment of common injuries.
Shoulder Injury; and Caring for Your Ankle Sprain.
The guidelines are independently endorsed before
INDIVIDUAL FEEDBACK REPORTS
being published. We support their introduction through
Individual feedback reports use independent assessors
provider education sessions, case studies, provider
to compare individual treatment provider practice with
profi ling and feedback reports, patient guides, provider
best practice. This year we sent reports on shoulder
mentoring and an ‘Adoption of Best Practice Initiatives’
treatments to GPs, physiotherapists, and over 200
programme with independent practitioners’ associations.
chiropractors. The response was very positive. This
This year we added Guidelines for Occupational
initiative has been highly successful in ensuring
Assessors and Clinical Guidelines on Shoulder Injuries
interventions are timely and appropriate and claimants
to our growing clinical practice library. We also published receive the best service possible.
Summary Guidelines on Mäori Cultural Competencies
for Providers to help providers deliver services to Mäori
HOME-BASED REHABILITATION
TION
in a culturally appropriate way. We distributed it to all
Our review this year of home-based rehabilitation
A
treatment and rehabilitation providers and received a
services (attendant care, home help and child care)
very positive response.
alerted us to a number of important issues for both
The Acute Low Back Pain Guide was reprinted and
claimants and providers. The review is being used in the
REHABILIT
Evidence Tables, Case Study and a Reference List were
redevelopment of this service in collaboration with the
40
distributed to GPs, physiotherapists and chiropractors.
Ministry of Health and District Health Boards.
RANDAL SOUTHEE – ACC LIFETIME REHABILITATION PL ANNER
Randal has been an ACC lifetime rehabilitation planner since the role’s
inception two and a half years ago. Based in Wanganui, Randal visits claimants
from New Plymouth to Levin.
“Lifetime rehabilitation planners are crucial to ACC’s delivery of services
to seriously injured claimants. I help claimants identify the goals on their
rehabilitation path, as they move from extreme need and dependence to
capability and independence.
“It’s a very intense and personal job. I feel very privileged to contribute at such
an important time in someone’s life, when such big changes are taking place.”
We are also improving training programmes for home
care providers, to bring them in line with the wider
HE ALTH INNOVATION AW ARDS
initiatives being rolled out by the Tertiary Education
The third annual Health Innovation Awards,
Commission.
announced in June 2005, attracted a record
151 entries.
MINISTRY OF HEALTH PARTNERSHIPS
We worked this year with the Ministry of Health on a
This year’s Supreme Award, and a prize of $15,000,
wide range of issues and projects. These included needs
went to the Healthy Housing Programme, a scheme
assessment for the elderly, clinical services development
to reduce housing-related diseases among families
and emergency and after-hours care. We collaborated
in Housing New Zealand Corporation properties.
on the Sustainable Funding Review, Public Health Acute
The programme has been implemented in more
Funding, the National Air Ambulance Strategy, the
than 2,000 homes in Auckland and Northland, and
Ambulance Communication Project, the Ambulance
has reduced overcrowding and resulted in improved
Standards and Dispatch Protocols.
access to primary healthcare for tenants.
We were involved in the development of Primary Health
This year’s 24 fi nalists included a system to reduce
Organisations, including a review of the Community
medication errors at Starship Children’s Health, text
Nursing Service. We worked on a number of projects
messaging to help young people stop smoking and
with District Health Boards, helping them understand
a streamlined way to treat patients with multiple
our processes, and, with the Ministry of Health, we were
illnesses at Hutt Hospital.
involved with their planning strategies.
Jointly organised by ACC and the Ministry of Health,
and with Telecom New Zealand as the foundation
TION
A
business partner, the Awards are the nation’s leading
event for recognising, promoting and celebrating
the outstanding contribution that dedicated health
professionals make to New Zealanders’ treatment,
REHABILIT
care and recovery.
41
JOHNNY DIXON
One April morning last year, 27-year-old Johnny Dixon was on his way to the shop to buy a pie. Before he got
there, his car was hit by a young driver.
Currently in a private hospital in Havelock North, Johnny’s keen to fi nd a place on his own – a house that ACC
will fi t out to maximise his independence. He wants to fi nd work, and has been accepted into the State Service
Mainstream Employment Programme, which will provide vocational training. He hopes to be a teachers’ aide.
“I’d just really love to work with young children,” he says.
Johnny has also joined the Manawatu wheelchair rugby team. With the national tournament in Auckland
in October, which doubles for the national trials, he has an eye on making the Wheel-Blacks.
SPINAL INJURY VOCATIONAL REHABILITATION
E M P LOY E R PA RT N E R S H I P S
Our pilot for spinal injury vocational rehabilitation
Our partnerships with employer, government agencies
continued to be successful, with 2,312 claimants
and employer groups to support early return to work
undertaking the programme this year compared with last
initiatives are crucial to the welfare and well-being of our
year’s 433. On completion, 56% of participants returned
claimants.
to work and a further 16% were work-ready.
RETURN TO WORK PROJECT
INTERNATIONAL COMPARISONS
Return to Work is a major new ACC initiative launched
The success of our return to work rehabilitation
in September 2004 to promote vocational rehabilitation
initiatives was again highlighted in the annual Heads
to employers. It comprises a range of return-to-work
of Workers’ Compensation Authorities’ report Return
resources so our Account Management Team can support
to Work Monitor, published in May 2005. The
a faster return to work for injured employees.
report surveys injured Australian and New Zealand
Signifi cant work has been done to improve employers’
workers who have had ten or more days of workers’
knowledge of ACC’s Return to Work processes. We sent
compensation.
Return to Work guidelines and tools to the top 2,500
The independent report showed that New Zealand had
employers. Later in the year we also targeted small to
the highest return to work (91%) and durable return to
medium employers and the self-employed.
work (87%) rates of the two countries. Our non-durable
In an agreement with Work and Income, its staff now
help claimants with job searching.
RE PUTEX RATE S ACC IN TOP FIVE
We continued our Employment Maintenance
ACC was given an ‘A’ rating, placing it in the top
TION
Programme, helping to maintain the employee-employer
A
fi ve New Zealand organisations, by Reputex,
relationship in situations where the employer cannot
an independent Australian-based organisation
provide safe work options while the employee recovers.
that provides ‘social responsibility’ ratings for
Australian and New Zealand companies.
REHABILIT
42
johnny has complete
tetraplegia, gets about
in a wheelchair, and is
very, very motivated.
return to work rate (where claimants require further time
LO O K I N G F O RW A R D
off and weekly compensation payments after returning
to work) was comparatively low, at 5%. The Australian
Future improvements to our rehabilitation partnerships
average was 10%.
include: a new, fl exible, web-based Claimant
Management System; a greater focus on secondary
Just over six months after their injury had occurred, only
healthcare providers; and a new Provider Monitoring
9% of ACC claimants interviewed were not working, a
Team to support providers to ensure claimants receive
rate substantially lower than the Australian average of
the best possible service.
14%. Our partial return to work initiatives meant we
had the lowest proportion of injured workers whose sole
We will review and modify our rehabilitation model to
income at that time was weekly compensation.
ensure that it continues to be robust, legislatively aligned,
and continually adopts best practice while refl ecting
Claimants were also asked to rate their insurer –
the individual needs of the claimant. This will include
ACC ranked consistently above all Australian insurers.
looking at the culture of rehabilitation, and seeking to
involve communities.
We will continue to address barriers to rehabilitation for
under-represented groups, in particular Mäori, Pacifi c
and Asian peoples. We will also be working with key
government agencies such as the Ministry of Social
Development to effect these changes, and to improve
return to work outcomes.
New areas for research are: occupational gradual process
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disease or infection; socioeconomic determinants of
A
injury and recovery; and improving key performance
measures.
REHABILIT
43
C L A I M A N T A N D O T H E R
r e h a b i l i t a t i o n
S T A K E H O L D E R
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Claimant and other stakeholder satisfaction rates are
the bottom line for ACC. They tell us whether we are
doing things right, and, if not, are the spur to further
improvement.
C L A I M A N T S AT I S FAC T I O N
Our goal is to achieve parity in satisfaction rates across
all claimant groups, and therefore long-term and serious
After exceptional improvement in overall claimant
injury claimant satisfaction remains an important focus
satisfaction rates over the past two years, we set the goal
for the coming year.
of maintaining a rate of 80-85% until 2007. This year we
achieved this target, with an overall claimant satisfaction
AC C E S S
rate of 80%.
Satisfaction rates for both Mäori and Pacifi c claimants
This year we continued our focus on improving access
ended the year above the overall rate, at 81% and 82%
to ACC services and entitlements for all New Zealanders,
respectively.
through a number of new and ongoing initiatives.
A major focus this year was on long-term claimant
COMMUNITY-BASED ACCESS PILOTS
satisfaction rates, which improved 2% on last year, to
Recent ACC research proved that price is a strong
reach 75%. Allied to this was a 7% improvement in
deterrent for low-income claimants who suffer an injury
seriously injured claimants satisfaction rates, to 68%.
CTION
but do not seek help from a health professional. Even
A
These improvements are largely due to changes we made
when payment was relatively small, such as in co-payment
in branches and Contact Centres earlier in the year,
TISF
for services, the research indicated a 10% increase in
based on our research into longer-term claimants’ needs.
claimant fees is likely to result in a 2% drop in claims.
In response, in April 2005 we began an innovative
series of community-based access pilots throughout
New Zealand. There are fi ve separate initiatives, each
AKEHOLDER SA
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in as many as six locations, investigating and putting in
place innovative ways to encourage people to seek help
for injuries they or their family members have suffered.
THER S
Many initiatives rely on volunteers, while ACC supplies
the infrastructure, training and support.
AND O
A GP and radiology pilot in Dunedin, Nelson, Greater
ANT
Wellington, Wanganui, Rotorua and Whangarei, for
AIM
example, offers cheaper GP visits and free x-rays.
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44
for our statement of service performance
on claimant and stakeholder satisfaction go to page 67
Another initiative, in New Plymouth, South Auckland/
claimants to support their rehabilitation.
Waikato, Rotorua, Opotiki and Otago, uses various
Senior managers continue to consult Te Roopu Manawa
media, community/marae spokespeople and personal
Mai (ACC’s strategic Mäori advisory group), who provide
contacts to ensure ACC messages reach deep into the
an external perspective on plans and development
communities.
activity.
Pamphlets on how to make an ACC claim and advice
The ACC Mäori scholarships programme for Mäori
for people travelling overseas were also sent to all New
students in their fi nal year of study was continued this
Zealand homes.
year as part of the workforce recruitment strategy, and
placements made for two new graduates.
IMPROVING ACCESS FOR MÄORI
Analysis of 2003-04 injury claims revealed that Mäori
Further research is underway exploring issues of
claim at signifi cantly lower rates than the wider
affordability of treatment services, effects of capitation
population. The non-Mäori medical fee claim rate for
in primary care, and monitoring co-payments across
non-earners was 42% higher than the Mäori rate. In
primary care providers.
the combined non-work (motor vehicle, non-earners,
IMPROVING ACCESS FOR PACIFIC PEOPLES
earners, treatment injury) category, the non-Mäori rate
was almost 80% higher.
ACC appointed a National Pacifi c Development Manager,
Taulalo Fiso, in November 2004 to provide leadership
Mäori rates were lower across both genders and all
on Pacifi c activities and priorities and help ensure our
age groups, the greatest differences being Mäori males
services and messages reach Pacifi c communities. Taulalo
aged 5-19 years and Mäori women aged 70+ years.
has signifi cant links with Pacifi c communities and
Similar differences exist for entitlement claims covering
relevant ministries and departments.
moderate to serious injury.
To help us identify and tackle scheme access and injury
We are addressing this issue in a number of initiatives,
prevention barriers for Pacifi c peoples, we funded two
such as our community-based access pilots (see previous
pieces of research which are currently underway.
page). Also, three new Mäori development managers
were appointed to the Mäori Development and Customer
This year we again promoted our services with weekly
Access Division in August 2004. These positions are
advertising and interviews on national Pacifi c radio in
regional and cover the country between them. They
Samoan, Tongan and Niuean. We were involved with the
are responsible for working across all ACC divisions
Pacifi c Business Awards, and with sPACIFICally PACIFIC
to identify and address access barriers and improve
in Wellington visited by young Pacifi c people, their
CTION
outcomes for Mäori.
parents and community leaders.
A
A series of Awareness and Access hui to engage and
We helped sponsor the Auckland Secondary Schools
TISF
inform Mäori communities about ACC services,
Mäori and Pacifi c ASB Bank Cultural Festival in
entitlements and Mäori injury/claiming patterns began
Auckland in March 2005. At this high-profi le event for
around the country in early 2005. Follow-up activities
the Pacifi c community, ACC’s focus was on access and
are already underway.
injury prevention awareness.
AKEHOLDER SA
To raise awareness of the ACC scheme and build support
We continue to work with our external advisory body,
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for Mäori access, we supported a number of initiatives
the Pacifi c Consultancy Group, the Auckland Region
including sponsorship of kapa haka, the Mäori Providers’
Pacifi c Advisory Group, and other external networks to
THER S
Conference, and the Mäori Doctors’ and Nurses’
improve services to Pacifi c communities.
Conferences.
The ACC Pacifi c scholarships programme for Pacifi c
AND O
ACC’s Pae Arahi continued to provide cultural advice
students in their fi nal year of study was continued this
ANT
and ongoing liaison with branches and injury prevention
year as part of the workforce recruitment strategy, and
teams to support and develop local relationships with iwi
placements were made for two new graduates.
AIM
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and Mäori communities and assist where requested with
Mäori
45
claimants. Pae Arahi and case managers visited
PAE ARAHI BOB ARAPATA LOW , QSO, JP
Bob (Ngati Whakaue iwi, Ngati Hurunga Te Rangi hapü) is a Pae Arahi Kaumatua of Te Arawa waka – one of ACC’s nine
regional M -aori cultural advisors. His role is to support and advise on cultural issues between ACC staff (particularly
case managers and injury prevention consultants) and M-aori claimants, communities and organisations.
Bob’s rohe (region) covers Hauraki/Thames and Waiariki ki Taupo – Rotorua, Tauranga, Whakatane, Tokoroa and
Turangi. Bob is bilingual, lectures on te reo and M-aori culture, is a public relations consultant by profession, and writes
books in his spare time.
“To me, the following whakatauäkï (proverb) says it all. ‘He aha te mea nui i tënei ao? Mäku hei kï atu, he tangata,
he tangata, he tangata.’ It not only encapsulates what it is to be M-aori, but is also, I believe, what ACC is all about:
treasuring people for who they are, as individuals and as invaluable members of their communities.”
IMPROVING ACCESS FOR ASIAN PEOPLES
Research on New Zealand Asian health and well-being is
To help ensure New Zealand’s rapidly growing Asian
limited. We have conducted research on access barriers,
communities are aware of their entitlements and know
and are identifying other research opportunities that will
how to access ACC services, we appointed a new ACC
help us improve access and outcomes for Asian claimants
Asian Development Manager, Vivian Cheung, in August
and communities.
2004. Vivian is based primarily in Auckland, but works
IMPROVING ACCESS FOR DISABLED AND OLDER PEOPLE
with Asian communities throughout New Zealand.
This year ACC was involved in the Cabinet-approved
Research such as the Asian Public Health Project 2003
review ‘Long-term Disability Support Services: Achieving
CTION
confi rmed that language, cultural perceptions and
A
Equity of Access and Coherence with the New Zealand
behaviour, and unfamiliarity with the New Zealand
Disability Strategy’. This identifi es the best mechanisms
TISF
healthcare system are the three main barriers for Asian
for providing disability support services, and is the fi rst
people accessing and using health services. Engaging and
step to setting up a common framework for government
supporting Asian communities are essential to encourage
and other agencies.
participation in addressing these access issues.
Increased analysis into claiming patterns and formal
To raise the profi le of the ACC Scheme to these
AKEHOLDER SA
customer service feedback from older people is informing
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communities, we supported the third Asian Forum,
ACC’s focus on this growing customer group.
organised by The Asian Network, where over 150
THER S
participants from government agencies, the Asian
The appointment in June 2005 of a Customer Access
community and non-government organisations met to
Manager, Sandie Waddell, will strengthen our service
discuss Asian initiatives. We also sponsored the inaugural
planning and delivery to both groups.
AND O
Asian Health and Well-being Conference in Auckland.
ANT
ACC also sponsored Asian community events, including
AIM
the Lantern Festival in Auckland and Christchurch,
CL
attended by 60,000 people, and the Chinese New Year
46
celebration in Auckland, attended by 20,000.
-
“he aha te mea nui i tenei ao?
-
-
maku hei ki atu, he tangata, he
tangata, he tangata.”
“what is the greatest
thing on this earth?
my reply: it is people,
people, people.”
L E V Y PAY E R S AT I S FAC T I O N
The levy payer satisfaction rate this year for the top 2,500
progress we are looking to continue through the
employers was 82%, meeting our target of 80-85%.
coming year.
The satisfaction rates for the self-employed and small-
‘NEW TO ACC’ PACKS FOR LEVY PAYERS
to-medium employer levy payers did not meet the year’s
A ‘New to ACC’ information pack was introduced this
set targets: 59% for self-employed (the target was 68%),
year to help new business levy payers better understand
71% for small-medium employers (the target was 74%)
their ACC cover, benefi ts and commitments. The packs
and tax agents (the target was 80%).
CTION
were mailed to 40,000 new employers and 12,000
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This was an area of concern for ACC throughout the year. newly self-employed people. Similar packs were made
TISF
In 2004 we launched the ThinkSmall campaign to help
available through other key business channels, such as
lift this group’s satisfaction levels. The campaign included
accountants and tax agents, and on ACC’s website.
simplifying how we communicate with this group,
supporting new customers by providing information to
help them understand ACC’s services, and extending
NEW-LOOK ACC W EB SITE
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relationships to other key business points of contact such
To improve ease of access to ACC information,
as banks, telecommunication companies and Chambers
www.acc.co.nz underwent a facelift early in the
of Commerce.
THER S
year, with changes to the content, function and
A second ThinkSmall campaign was launched in March
general ‘look and feel’, and quick access to
2005, which included levy payment and incentive
frequently visited pages, the latest news and
AND O
options and provided ACC staff with further information,
promotions. A new design of a more substantial
ANT
tools and customer experience to improve service
ACC website was published on 30 June 2005.
AIM
delivery.
CL
These initiatives were rewarded with a substantial
47
improvement in satisfaction rates in the fourth quarter,
appointed in august 2004 and
based primarily in auckland,
vivian works closely
with asian communities
throughout new zealand.
A SIMPLER, FAIRER ACC SCHEME
TOP AW ARD FOR ACC IN NZ BUSINE SS
The Injury Prevention, Rehabilitation, and Compensation
EXCELLENCE AW ARDS
Amendment Act (No 2), which takes effect on 1 July
2005, clarifi es some provisions in the current Act and
In November 2004, ACC’s dedication to
makes the ACC scheme fairer and simpler.
continuous improvement was recognised with a
coveted Achievement Award – Silver level in the
The Act replaces the medical misadventure provisions
prestigious New Zealand Business Excellence
with new rules under a new Treatment Injury category.
Awards programme. ACC received 536 points,
The new category removes the requirement to fi nd fault,
the highest marks of any organisation in
or prove that a medical injury is rare and severe, before a
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New Zealand reviewed in the past few years.
A
patient is entitled to ACC cover.
Only six New Zealand organisations have
TISF
ACC will also assume a new patient safety role, reporting
previously reached the Silver level against
to the relevant statutory agency when there is a risk of
the globally recognised Baldrige scale which
harm to the public from a type of treatment, equipment,
benchmarks business performance against
medical facility, drug, organisation or practitioner. This
the world’s best.
strengthens the partnership between ACC and the health
The evaluation process consisted of a
AKEHOLDER SA
sector and moves away from the punitive system of
T
fi nding and reporting medical error. It will encourage
comprehensive review by eight independent
a climate of learning when things go wrong, while still
assessors of ACC’s Business Excellence
application, supporting information and a
THER S
protecting public safety.
four-day series of on-site visits by the New
The Act enables us to be more responsive to the needs of
Zealand Business Excellence Foundation
AND O
claimants. It allows us slightly more discretion to provide
evaluation team. A wide cross-section of ACC
certain rehabilitation entitlements. It also provides a
ANT
personnel was interviewed including senior
more equitable basis for calculating weekly compensation
managers, operational and team managers
AIM
for the self-employed and shareholder employees who
CL
and frontline staff.
have received other kinds of employment income in the
48
12 months preceding an injury.
VIVIAN CHEUNG – ACC A SIAN DEVELOPMENT MANAGER
ACC’s new Asian Development Manager Vivian Cheung was one of only 100
young Chinese leaders selected from all over the world to participate in the
‘Young Chinese Leaders Forum’ in Beijing and Hong Kong in 2004.
This Forum is sponsored by the Dragon Foundation, which aims to develop
leadership skills, provide opportunities and ways to participate in community
building and honour outstanding ethnically Chinese youth in different
professions.
This was the fi rst time that a New Zealand representative had attended and
it was a valuable opportunity to understand the development of Chinese
communities from other parts of the world, particularly Canada and Australia
which have similar migration patterns, and to gain information about service
provision and insurance schemes in other parts of the world.
LO O K I N G F O RW A R D
The key to delivering ACC services more effi ciently and
Other new initiatives include: customer service
effectively is increased partnership with stakeholder
training modules for staff; a review of the Code of ACC
organisations and communities. We aim to lead in this
Claimants’ Rights; and innovations in the care of Mäori,
area by being responsive and accessible to claimants and
Pacifi c and Asian peoples, including culturally based
external agencies.
treatment alternatives.
This coming year we will: address fi nancial barriers
Initiatives to simplify and improve the fairness of the
to fair access to treatment; focus on improving the
scheme include: a proposal to simplify entitlements,
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satisfaction rates of the seriously injured and their
including independence allowance, lump sums and
caregivers; and develop more resources for treatment
weekly compensation; a ‘fi rst principles’ review of weekly
TISF
providers.
compensation, including fairer weekly compensation for
seasonal workers; and improving access for people with a
We will focus on improving satisfaction levels for the
work-related gradual process disease or infection.
self-employed and small-to-medium employers. We
will tailor the Return to Work initiative for these groups
and develop incentives for enhanced health and safety
AKEHOLDER SA
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performance. Both are designed to reduce levy rates.
THER S
AND O
ANT
AIM
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49
r e h a b i l i t a t i o n
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a f o c u s o n c u s t o m e r s e r v i c e
Quality staff who are satisfi ed in their work means
quality service and satisfi ed claimants, providers
and levy payers.
ACC is committed to being an employer of choice – to
We closely monitored staff turnover rates throughout
attract and keep high-quality staff in what has become
the year, and undertook a number of key initiatives
a highly competitive New Zealand employment market.
aimed at the retention of staff with expected positive
ACC staff work in a highly supportive environment
results over the coming year.
with active training and incentive programmes that
MÄORI STAFF SATISFACTION
encourage a culture of service, performance and
achievement.
The satisfaction rate for Mäori staff improved 1% this
year to 77%, and continues to exceed overall rates.
S AT I S FAC T I O N A N D R E T E N T I O N
Three regional Mäori staff hui were held in June/July
2004, focusing on improving staff satisfaction for
For the second year running ACC’s overall staff
Mäori staff in ACC and looking at Mäori initiatives and
satisfaction achieved a record high, increasing from 73%
priorities around scheme access, injury prevention and
last year to 74% at 30 June 2005. Our long-term goal of
rehabilitation.
80% or better remains.
A National Mäori Staff Conference was held in
A breakdown of results shows improvements in the
November 2004, focusing on personal and career
rates of staff satisfaction with their jobs, their managers,
development via motivational workshops. The
and with ACC.
Conference also strengthened networking opportunities
Annualised staff turnover was 15.9%, above our target
among staff and the Mäori community and followed
range of 10-15%. Since satisfaction rates continue
through on priorities for Mäori claimants and
to rise, the rising attrition rate must be attributed to
stakeholders.
external factors such as labour market conditions.
Annualised staff turnover for Mäori staff increased
from 13.6% to 16.5% at June 2005. While this is
consistent with a tight New Zealand labour market,
to further motivate and retain high-performing Mäori
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staff, secondments, project work and internal career
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opportunities are being heavily promoted within ACC.
TISF
AFF SA
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50
for our statement of service performance
on staff satisfaction go to page 71
PACIFIC PEOPLES STAFF
T R A I N I N G A N D D E V E LO P M E N T
The satisfaction rate for Pacifi c peoples staff improved to
79%, exceeding the overall staff satisfaction rate.
ACC continues to place a strong focus on the ongoing
development of training materials and programmes in
The annualised staff turnover of Pacifi c peoples was
response to staff needs and business requirements.
20.1%, up from 15%, and well above the target range of
10-15%. This trend was evident earlier in the year and
ACC provided 7,806 training days to 27, 298 participants
meant we increased our focus on initiatives to improve
this year. Weekly training sessions through self-directed
this rate, and to intensify our aim of recruiting Pacifi c
learning continued to be an integral part of business,
staff for areas of high Pacifi c population.
with over 800 staff participating each week. Each
manager has a large discretionary training budget.
This year we welcomed our fi rst Pacifi c Development
Manager, Taulalo Fiso (see page 55), to ensure our
LEARNING MANAGEMENT SYSTEM
services and messages are reaching and benefi ting
This year we launched ACCelerate, a new online learning
Pacifi c communities.
management system to improve administration of
We held fono for Pacifi c staff in Wellington and
training and to launch online learning modules.
Auckland in November and December 2004. Topics
This system increases training capability and
included recruitment and training, co-ordination with
convenience, and enables us to track levels of staff
other Pacifi c staff in government organisations, and
competence quickly and accurately. It has received a very
Pacifi c priorities for ACC.
positive response from staff.
Two further ACC Pacifi c University Student Scholarships
The fi rst learning module – a Health and Safety refresher
were awarded this year in a scheme that has proved
course – was released in September 2004. Since then
successful in recruiting Pacifi c university graduates into
we have launched 24 more modules, with still more in
ACC. The previous year’s Scholarship recipients are
development, including a Sustainable Workplace Action
now working full-time for ACC, having completed their
Plan module.
studies. We promoted the Scholarships and other career
opportunities at Wellington’s sPACIFICally PACIFIC
MANAGEMENT CONFERENCES
careers expo in October.
In October/November 2004, all ACC people managers
attended one of four ‘Amazing Journey’ management
ASIAN STAFF
conferences focusing on leadership and values.
This year we also welcomed our fi rst Asian Development
Manager, Vivian Cheung (see page 49), who is helping
INFOHRM MANAGEMENT TOOL
to ensure ACC services and messages reach our rapidly
In April 2005, we implemented InfoHRM, a new online
growing Asian communities. We have also co-opted a
database for managers to track, measure and compare
number of Asian cultural advisors to support staff who
staff data such as sick leave and turnover. This new tool
work with Asian claimants and organisations.
enhances managers’ knowledge of their staff, and focuses
them on ways to improve leadership and performance.
EQUAL EMPLOYMENT OPPORTUNITY
ACC is committed to providing equal opportunities in
employment. This is refl ected in our core values: valuing
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people and their diversity, integrity, customer service,
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continuous improvement, participation and teamwork.
TISF
Women continue to be well represented in management
at 60.3%, and we have seen a continuing increase in the
number of Mäori, Pacifi c and Asian staff in management
AFF SA
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and frontline roles.
51
REACHING OUT TO THE COMMUNITY
As part of our new trial of a paid Community Service Day, 16 staff
members spent their day painting bedrooms at Ronald McDonald
House, which accommodates the families of children in hospital.
Other staff worked for a day cleaning out and painting a garage for
puppy kennels at the Wellington SPCA.
The trial will run for 12 months before being reviewed for possible
roll-out across ACC.
We are currently reviewing our equal employment
This is one of our key approaches to developing
opportunity performance and initial indications are that
our organisational capacity and the maturity of our
ACC is doing well in this area.
management. It helps us to gain and maintain the highest
levels of organisational effi ciency and integrity so we can
TECHNOLOGY UPGRADES
deliver the best outcomes for claimants, providers, levy
Our new Claims Management System was successfully
payers and our other stakeholders.
begun. This will standardise processes throughout
This year ACC was evaluated for the fi rst time and was
branches, so all customers receive a consistent high level
awarded 536 points and a Silver level, one of only seven
of service.
Silvers ever awarded to a New Zealand organisation, by
A major Microsoft Desktop Upgrade was completed in
the New Zealand Business Excellence Foundation team
early February 2005. This project established a modern
– see also page 48.
desktop computing environment, compatible with
the technology used by the majority of our external
S U STA I N A B L E WO R K P R AC T I C E
partners. It also established a platform to support future
applications such as the Claimant Management System.
We are committed to being a good corporate citizen,
to maintaining a healthy and safe environment for
INTERNATIONAL BENCHMARKING
our employees, and encouraging the same in every
Since 2000, ACC has operated a Corporation-wide
workplace, home and community.
business excellence programme to benchmark rigorously
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against established and detailed international criteria
WORKSAFE PROGRAMME
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based on the Baldrige Foundation Business Excellence
Our WorkSafe health and safety programme supports our
TISF
Framework. Our Business Excellence Unit’s individual
staff’s physical, psychological and emotional safety. All
Category Champions oversee and report on the
staff who work closely with claimants have professional
AFF SA
implementation of Baldrige principles in each of the
supervision to provide support in their work and their
ST
Framework’s seven categories.
professional growth. This is an extremely effective way to
52
not only does the
charity benefi
t,
but acc does too –
through higher staff
morale and a greater
awareness of acc in
the community.
ensure that case management and other work practices
SUSTAINABLE WORKPLACE ACTION PLAN
are safe, effective and ethical and a healthy work/private
Early in the year, we established a sustainability project
life balance is maintained.
team, and developed a Sustainable Workplace Action
An Employee Assistance Programme is also available to
Plan (SWAP) framework for the implementation of
all staff. This provides a short-term intervention problem-
increased sustainable business practices.
solving and counselling service.
SWAP champions were established throughout ACC to
We work closely with staff to reduce injuries in the
help all parts of the business embrace sustainability.
workplace. In the event of an ACC workplace injury, we
ACC became a member of the New Zealand Business
pay the full medical costs. Gradual process claims are
Council for Sustainable Development and the Sustainable
managed proactively, with early warning of pain treated
Business Network. SWAP project team members attended
and ergonomic needs assessed immediately.
the New Zealand Sustainable Business Conference and
This year there were 56 accepted work injuries, of which
related seminars, networking with other organisations
eight resulted in lost time of 416 working days, out of a
undertaking similar initiatives.
total of 83 work injuries lodged.
In January a new role of Sustainability Co-ordinator
In September the Health and Safety refresher module was
was created to develop, promote and manage SWAP
the fi rst training programme delivered through our new
initiatives across ACC.
online system ACCelerate. Over 1,900 staff completed
URS New Zealand was commissioned to prepare a SWAP
this module.
Opportunity Assessment, which included a survey of
TION
C
A
In November 2004 we again achieved tertiary-level
staff that showed a high personal level of sustainability
participation status in the ACC Partnership Programme.
values and aspirations at work and at home.
TISF
The external audit included safety management
There is now excellent awareness and uptake of the
practices (including workplace observations) and injury
SWAP ideas and activities at all levels of ACC. Over the
AFF SA
management (including claims administration and
year the SWAP focus has paid particular attention to
ST
rehabilitation).
recycling, resource effi ciency, paper conservation, and
53
our vehicle fl eet.
“ua ogatasi le futia male umele.
we must be of one mind in this undertaking.”
RECYCLING
GREEN SUPPLIERS
A recycling pilot initiated at our Lower Hutt branch
ACC requires suppliers to provide information on the
achieved an 80% reduction in general waste by recycling
environmental impacts of their products where relevant,
paper, cardboard, glass, tin, aluminium, plastic and food
and to complete an annual independent workplace
waste. We then rolled out this project nationwide.
safety audit.
RESOURCE EFFICIENCY AND PAPER CONSERVATION
VEHICLE FLEET
Paper conservation is encouraged, through using
At a time when climate change is of global concern,
alternative media such as emails and phone calls, and the
we have commissioned a vehicle fl eet effi ciency audit.
use of both sides of paper pages, wherever practicable.
Improvements in fuel effi ciency and fl eet options
were identifi ed to help us to reduce our emissions,
Increased e-transactions with claimants and providers
and a number of other effi ciency initiatives are being
have radically reduced paper usage, mail handling and
investigated. ACC is currently trialling electric/petrol-
delivery and any associated negative environmental
powered vehicles.
impacts. Electronically lodged claims, for example,
increased from 47% to 59% this year. Many millions
of pages of forms are now no longer required. The
implementation of e-transactions has also led to fl at
computer screens being introduced; these screens use
about 30% less power than standard screens.
TION
C
A
Claimants are also encouraged to contact ACC staff by
telephone or email instead of face to face. This saves at
TISF
least 50,000 physical visits a year – most of which would
be by private car.
AFF SA
ST
54
TAULALO FISO – ACC NATIONAL PACIFIC DEVELOPMENT MANAGER
New Zealand-born Samoan Taulalo Fiso grew up in Wellington. After a BA in
Education and an MA (Applied) in Social Work at Victoria University, Taulalo
worked in public sector management and Pacifi c development.
Before taking up his position at ACC in November 2004, he was responsible for the
strategic oversight and management of Pacifi c education in the lower North Island
for the Ministry of Education.
“My family was a big infl uence in my development, particularly my mother who
single-handedly raised eight children when our father passed away when I was
only four.
“Communities are very powerful and important things for us to hold close, to
nurture and grow – family communities, cultural communities, work and sport
communities, and, of course, our national community. My new role at ACC gives
me a great opportunity to contribute to them all.”
LO O K I N G F O RW A R D
Over the coming year we will strengthen our
management capability, champion our successful
Business Excellence programme, enhance our leadership
development programme, and achieve re-accreditation
of our tertiary-level status in the ACC Partnership
Programme.
We aim to increase our cultural capability and capacity
by providing cultural training for staff and increasing
our staff ratio to better refl ect the communities we serve.
Our SWAP framework will be developed throughout
the business, building and supporting sustainable
business practices.
ACC WINS BE ST ANNUAL RE PORT
Last year, for the second year in a row, ACC’s
Annual Report won the Institute of Chartered
TION
C
Accountants of New Zealand Award for the Best
A
Annual Report in the Public Sector Non-Trading
TISF
section.
AFF SA
ST
55
r e h a b i l i t a t i o n
n
s
o
i
t
t
a
c
f
F A I R L E V I E S
a
f
f
s
s
i
a
t
t
a
i
s
s
f
t
a
c
n
t
a
i
m
o
i
n
a
l
c
n
o
i
f
t
a
n
i r
e
v
l
e
e
r
v
p
i e s
i n j u r y
a f a i r g o f o r a l l n e w z e a l a n d e r s
ACC takes care of all injured New Zealanders.
And this means levies are shared by all of us,
so that everyone can receive good quality care
and fair compensation.
LEVY RATES
GOOD INVESTMENT RETURNS FOR THE YEAR
Despite increased costs and liabilities, this year levies
Good investment helps to keep levy rates as low as
remained unchanged for employers and wage earners.
possible. And as we build towards fully funding our
claims liability, the investment performance of our
We reduced the average employers’ levy, which funds
reserves portfolio becomes increasingly important. We
workplace injuries to employees, to $0.88 for every $100
have had an enviable record in this area in recent years,
of payroll. Employers also pay a levy to fund the on-going
consistently exceeding industry benchmarks. This year
costs of pre-1999 injuries. This residual levy has reduced
investment income was $786 million, over double the
from $0.67 for every $100 of payroll when it was fi rst set,
$332 million target and 0.9% ahead of benchmarks.
to $0.33 currently. The total non-work levy, which funds
all non-work injuries to earners, remained at $1.20 for
DECREASED OPERATIONAL COSTS
every $100 of earnings.
Effi ciencies within ACC contributed to the stability of
Average levies for this group have now reduced
levy rates. Our operating costs, injury prevention costs,
or remained the same for the third year running.
and levy collection costs were all under budget this year.
Self-employed people are earning less while injury
TOLERANCE OF FRAUD
treatment costs are rising, causing an average rise of
ACC has zero tolerance of fraud. This year we focused on
3.9% in the Self-Employed levy rate. Income from this
detecting and dealing with instances as early as possible,
account is less than 4% of all levies collected by ACC.
by improving and better integrating investigation
The Motor Vehicle levy increased from last year to $206.93
methods. This year we ran Operation Passport, which
from 1 July 2005. The individual components of the levy
focused on investigating claimants living overseas who
have been more fairly realigned according to injury risk.
should have returned to work. Operation Passport has
generated $4.5 million in prospective savings.
The total estimated savings from ACC’s fraud detection
and prevention activities this year were $35.6 million.
This represents an exceptional return on investment
– $20.75 for every $1 spent, well in excess of the
2004-05 Business Plan target of 6:1.
EVIES
This return is partly due to ACC’s closer collaboration
with treatment providers and with other government
AIR L
F
agencies such as Inland Revenue and the Ministry
56
for our statement of service performance
on fair levies go to page 73
of Social Development. Increasing effi ciencies in data
However, there is mounting pressure on these levy rates.
collection and management of claims with primary
Claimant numbers are growing and levels of care and
health providers and engagement with professional
medical costs are increasing. We are more and more
organisations play an important role.
proactive in prevention, care and rehabilitation. We are
removing barriers to access for New Zealanders who are
The Medical Association helped us to develop Audit
under-represented in our claim statistics. These trends
Protocols, to ensure we use correct processes when
are likely to continue in the medium term. There is also
instigating and carrying out audits and investigations.
new legislation recently passed by Parliament providing
INTERNATIONAL COMPARISONS
for even more extensive services and access.
Comparisons with injury schemes overseas continue to
And more and better care means more cost.
show that ACC provides exceptional value for money.
On the investment front, despite our exceptional
The Heads of Workers’ Compensation Authorities’
track record, long-term planning demands a prudent
annual comparison of workers’ compensation in
outlook, and a large fund risks inevitable exposure
Australia and New Zealand, published in May 2005,
to market forces.
shows that ACC’s rate of $0.91 per $100 of earnings is
by far the lowest average levy rate of any state or territory
ACC fully funds the entire cost of an injury in the year
scheme. The best Australian scheme is Queensland with
it occurs. The estimate of future cost is sensitive to
an average rate 70% higher than ours. ACC’s levy rates
interest rate movements. Long-term interest rates used
rank the lowest in all industries surveyed, except for
to calculate ACC’s long-term liability declined from
‘house construction’, where we are a close second behind
6.5% earlier in the year to 6.2% at the time of levy
Western Australia. ACC also has by far the lowest claim
consultation in September 2004, and have since fallen
frequency per million dollars of earnings at 0.52, almost
to 5.75% at the year’s end.
one third the rate of the best Australian scheme, that
As interest rates fall, ACC’s forecast of future investment
of Victoria.
earnings must reduce. Accounting standards require that
ACC book the required amounts to meet the current and
LO O K I N G F O RW A R D
future costs of injuries that happen during the levy year.
S
If this trend continues, it may compel levy rate rises to
ACC will continue to work hard to ensure that the
compensate. We will be consulting on levy rates based
cost of the scheme and its services are kept at a
on detailed analysis later in the year.
minimum. Our goal is to maintain fair levy rates to
IR LEVIE
2007, targeting a ‘fair’ levy range of $0.90 to $1.10
FA
for the Employers’ Account.
57
GLOBAL REPORTING INITIATIVE CONTENT INDEX
This index is ACC’s fi rst step towards sustainability reporting. As a guide, we used the Global Reporting Initiative (GRI)
– www.globalreporting.org. This content index identifi es the location in this report of various elements of the GRI
Framework.
For more information on ACC’s performance as a good corporate citizen, please read our report ‘Working Towards
Sustainable Development 2005’. You can download this from www.acc.co.nz or ring 0800 101996 to request a hard
copy.
gri reporting element
in this report
Vision and Strategy
- From the Minister p16
Sustainable development vision and strategy; CEO statement
- From the Chair p17
- From the Chief Executive pp18 - 19
- Looking Forward sections p37, p43,
p49, p55, p57
Profi le
- ACC at a glance p12
Organisational profi le; report scope; report profi le
- Board structure p20
- ACC Board of Directors p22
- ACC Executive Team p28
Governance Structure and Management Systems
- ACC at a glance p12
Structure and governance; stakeholder engagement; policies
- Corporate governance pp20 - 29
and management systems
- Financial information pp84 - 128
gri performance indicators
Economic
- ACC at a glance p12
Customers; suppliers; employees; capital; public sector;
- Injury prevention pp30 - 37
indirect economic impacts
- Rehabilitation pp38 - 43
- Fair levies pp56 - 57
- Financial information pp84 - 128
Environmental
Materials; energy; water; biodiversity; emissions; effl uents and
- Sustainable work practices pp52 - 54
wastes; suppliers; products and services; compliance; transport
Social: Labour Practices and Decent Work
- Staff satisfaction p50
INDEX
Employment; labour relations; health and safety; training and
- Equal employment opportunities p51
education; diversity and opportunity
- Sustainable work practice p52
- Staff volunteer days pp52 - 53
ONTENT
Social: Human Rights
- Access pp44 - 46
TIVE C
Strategy and management; non-discrimination; collective
- Green suppliers p54
bargaining; child and forced labour; disciplinary practices;
security practices; indigenous rights
Social: Society
- From the Chief Executive p18
Community; bribery and corruption; political contributions;
- Corporate governance pp20 - 29
competition and pricing
- Injury prevention pp30 - 37
PORTING INITIA
- Fair levies pp56 - 57
RE
Social: Service Responsibility
- Dispute Resolution Services Limited p27
Customer health and safety; products and services; privacy
- Injury prevention pp30 - 37
OBAL
- Rehabilitation pp38 - 43
GL
- Reputex p42
58
- Claimant and other stakeholder satisfaction pp40 - 49
