Introduction to the Compensation Files

A compensation file is the concept used for a compensation agreement with a unique stakeholder and it’s also the basis for planning the compensation delivery.

The Compensation Files Register is an essential part of the land access and compensation business process as it allows (1) reviewing the compensation packages that were automatically retrieved from the entitlement matrix and based on the assets identified for the stakeholder, (2) adding other manual packages such as resettlement houses or enrolment into livelihood restoration programs, (3) determining the payment scheduled date for the first and potentially subsequent instalments, (4) defining recurring payments duration, (5) reviewing the compensation agreement on a nicely formatted report prior to the actual compensation and (6) attaching a formal evidence of the agreement signed off by the relevant stakeholders.

Several different compensation packages are supported by the land access and compensation module and a key understanding of the packages available in the applicable entitlement matrix coupled with a thorough understanding of the options available with the compensation file register is of the greatest importance for the successful implementation and roll out of this module.

 

How to Work with the Compensation Files Register?

From the application menu, navigate to Modules> Land Access > Compensation > Compensation Files.

  • Preparing the agreement

As well as entering the essential details about the compensation file in the general information tab, you need to confirm the applicable compensation packages in the compensation tab. You also need to confirm the payment start date, frequency and duration for each cash item and in-kind items in the items tab. When all packages have been captured, you may change the status to in progress for the system to automatically schedule the cash instalments and in-kind deliveries for your review. This is based on the parameters provided in the items tab and this can be modified several times until the correct compensation intentions are captured in the deliveries tab.

  • Obtaining the compensation agreement

Once the correct compensation intentions are captured in the deliveries tab, and that you have requested for an agreement to be signed off with the stakeholder, the reports tab helps you printing the details of the planned compensation arrangements. Additional documentation may have to be signed to depending on the legal context of your operations. Once all relevant documents have been signed, you can use the workflow action to approve the agreement. You are then able to attach the evidence of the agreement obtained as well as the agreement date. First payment can now be scheduled via the payment campaign register.

 

What is the Compensation Files Register Workflow?

Status Flow

A compensation file record is normally created automatically by the system. It is the result of the “Complete” action performed via an eligibility record. Upon creation, its status is automatically set to new. The following figure shows how one status flows into the next. However a compensation file record may be added manually when needed to give a stakeholder a manual compensation package which is not linked to an impact inventory.

The status field for a rate table record can have any of the following values:

  • New
  • Indicates that the compensation file has been created and that the applicable packages are being reviewed and adapted.
  • You may make changes to the record, including adding manual compensation packages
  • You are not able to complete payment at this stage.
  • In progress (In progress, Ready for agreement and Waiting for agreement)
  • Indicates that the compensation file is being finalised prior to full approval
  • You may make changes to the record, depending on the sub status. When the status is “In progress – Waiting for agreement” you cannot make changes to the record
  • You are able to start reviewing the payments delivery schedule and plans, and to adjust them if needed
  • In order to start over or to make modifications to fields that are now read-only, you have to reopen the impact inventory and follow the steps once again.
  • You are not able to complete payment at this stage.
  • Approved
  • Indicates that the compensation file and delivery plans have received full approval after an agreement with the stakeholder has been reached
  • In order to start over or to make modifications to fields that are now read-only, you have to reopen the impact inventory and follow the steps once again.
  • You are able to complete payment at this stage.
  • Cancelled
  • Indicates that the compensation file has been cancelled for some reason which is visible in the Action history tab
  • Closed
  • Indicates that the compensation file has been closed most likely because payment has been completed and confirmed.
  • You are not allowed to make changes to the record

Workflow Menu Options

Depending on the status, the workflow menu for a compensation record has the following options:

  • Start progress
  • Applies the rules defined in the items tab and plans for the instalments delivery schedule.
  • This option only appears when the status is new
  • Cancel
  • Sets the status to Cancelled
  • This option only appears when the status is new, in progress
  • Request agreement
  • Sets the status to In progress – waiting for agreement
  • This option only appears when the status is In progress
  • Approve (or Attach agreement)
  • Sets the status to Approved – Payment ready to start
  • This option only appears when the status is in progress – waiting for agreement
  • Reject (or Reopen for modifications)
  • Sets the status to In progress
  • This option only appears when the status is in progress – waiting for agreement

 

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