APP Number

UCLA Procedure 305.1 : Workers' Compensation Rate Additive Program Funding Guidelines

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Issuing Officer: Administrative Vice Chancellor

Responsible Office: Office of Insurance & Risk Management - Look Up Contact Person

Effective Date: July 10, 2006

Supersedes: UCLA Procedure 305.1, dated July 1, 1998, dated 7/01/1998

Revision History: APP History

I. REFERENCES

UCLA Policy 305, Workers' Compensation Rate Additive Program.

II. GENERAL POLICY

It is the policy of the University of California Workers’ Compensation Program to recognize, support and implement safety programs to improve loss control. Programs to be considered for funding from the Workers’ Compensation Rate Additive Accrual Fund must fall within one of the following categories:

Programs directly related to improving loss experience by reducing the frequency and/or severity of claims including, but not limited to, training programs and post claim loss mitigation; or
Programs directly related to the administration of the Workers’ Compensation Program, including but not limited to, the facilitation and supplementation of claims management activities.

Within the context of the programs described above, funds may be used to support staff and/or to purchase equipment and supplies, but may not be used to fund capital improvements.

III. PROCEDURES

A. Funding Proposals for New Programs

RESPONSIBILITY	ACTION
Department	Develops funding proposal containing the following: A prospective plan covering at least a two-year period, including a detailed budget, specific programming goals, and clear definition of how goals are to be accomplished. A description of how progress can be evaluated, both quantitatively and qualitatively, showing direct and positive correlation between program activities and improved loss control, including how funded efforts can reasonably be expected to reduce future Workers’ Compensation costs.
Department	Submits proposal to the Office of Insurance & Risk Management (OIRM) Risk Financial Manager for loss control programs, or the Director of Environment, Health & Safety (EH&S) for loss prevention programs.
OIRM Risk Financial Manager or Director EH&S	Conducts initial review of respective proposal for compliance with Policy 305 and provides feedback to departments on acceptability of proposal for funding based on criteria contained in Policy 305.
OIRM Risk Financial Manager or Director EH&S	Submits proposal to the Rate Additive Committee for further review.
Rate Additive Committee	Reviews program proposals for funding consideration. May request additional information from department for consideration of funding approval.
Rate Additive Committee	Forwards recommendation to the Administrative Vice Chancellor based on compliance with Policy 305 and availability of funds.
Administrative Vice Chancellor	Reviews Committee recommendation and approves or denies program funding request.
OIRM Risk Financial Manger	Notifies requesting department of decision and, if approved, facilitates fund transfer.

B. Preparing Annual Reports for Continuing Programs

RESPONSIBILITY	ACTION
Department	By February of each year, submits to OIRM Risk Financial Manager and Director EH&S a report documenting program activities of the current fiscal year and preliminary budget request for the subsequent year. Report should describe program’s goals, activities, budget, and progress of program. Budget request should associate costs with programmatic goals and activities for the subsequent fiscal year.
OIRM Risk Financial Manager	Condenses report and funding renewal requests from all departments for review by the Rate Additive Committee.
OIRM Risk Financial Manager	Forwards information to Rate AdditiveCommittee.
Rate Additive Committee	Reviews report and funding renewal requests.
Rate Additive Committee	Forwards recommendation to the Administrative Vice Chancellor based on compliance with Policy 305 and availability of funds.
Administrative Vice Chancellor	Reviews Committee recommendation and approves or denies program funding request.
OIRM Risk Financial Manager	Notifies department of decision, and, if approved, facilitates fund transfer.

ISSUING OFFICER
/s/ Morabito, Sam

Administrative Vice Chancellor