1. The Compensation Commissioner for Occupational Diseases (CCOD)
11/9/2018
Presentation to
Portfolio Committee on Health
Annual Performance Plan of the CCOD for 2016/17
Barry Kistnasamy, Weitz Botes, Nhlanhla Mtshali, Sam Molautsi, Mishack Maswanganye
7 April 2016

2. Overview
Performance 2015/16
Annual Performance Plan 2016/17
Budget 2016/17

3. Annual Performance Plan (2015/16)
Legislative amendments to the Occupational Diseases in Mines and Works Act, 1973
Governance of the Compensation Commissioner for Occupational Diseases
Provision of decentralised occupational health services
Improve claims administration
Collect revenue
Ensure outreach and awareness activities
Ensure financial sustainability of the Compensation Fund

4. Performance Environment
Support of trade unions, Chamber of Mines (Gold Mining companies), development partners
Governance committees in place and functioning
Functioning Certification Committees
Integration of compensation systems
Global Fund support for One Stop services in neighbouring countries

5. Performance Environment
Preparation of financial reports and actuarial valuation
Process flow mapping of operations
Increased awareness of ex-mineworkers
Involvement of other departments – facilitated by Presidency
Externally – class action on silicosis and Tuberculosis compensation; settlement by 2 mining companies

6. Fraud Prevention strategy Fraud Prevention policy
Policies finalised for submission to Director-General for approval (31 March 2016)
Fraud Prevention strategy
Fraud Prevention policy
Risk Management policy
Risk Management framework
Risk Management strategy
Cash and Investment policy
Related Party policy
Prescription of Debt policy
Chart of Accounts policy

7. Performance
Indicator
Past
Targeted
Actual
% Variance
2012/13
2013/14
2014/15
2015/16
Number of workers and ex-workers in controlled mines and works accessing benefit medical examinations (BMEs) per year
11750
10694
9781
10500
15318
+46%
Number of claimant applications processed by the Certification Committee of the Medical Bureau for Occupational Diseases
4376
4444
6324
8000
7295
-9%
Number of claims paid by the Compensation Commissioner (other than pensioners) per year
1779
3124
1977
3000
1774
-41%

8. Performance
Indicator
Past
Targeted
Actual
% Variance
2012/13
2013/14
2014/15
2015/16
Number of controlled mines and works inspected per year to verify levies payable based on risk shifts worked - 29 58 40 77
+93%
Number of outreach and awareness activities with service providers, unions, employers, workers and ex-workers conducted per year 4 6 8 10 34
+240%
Number of workers in controlled mines and works paid for loss of earnings while undergoing tuberculosis treatment per year
1453
1923
459
750
598
-20%

9. Non-Performance Legacy problems going back many years
Outdated information technology systems and business processes
Lack of staff in legal, actuarial, medical, analytic / epidemiological sciences
Lack of finances
Revenue covers income protection
Voted funds for administration, medical services
Personnel management, work ethos and culture

10. CCOD File Verification Audit
Special project on track & trace; completion of documents for unpaid claimants

11. Age Analysis of Paid Claims
In 2013/14, consolidation of CCOD & MBOD; setting up systems

12. (Compensable Diseases)
MBOD Certifications
(Compensable Diseases)
19 medical doctors appointed by Minister began work in December 2015

13. Country of Claimants TOTAL COUNTRY NOT PAID PAID No. % AMOUNT PAID
SOUTH AFRICA
36,436
38,517
74,953
37.44%
772,498,691
56.12%
LESOTHO
11,337
16,343
27,680
13.83%
336,562,842
24.45%
No Country of Origin on File
47,809
34,743
82,552
41.24%
158,716,152
11.53%
MOZAMBIQUE
4,250
3,869
8,119
4.06%
62,887,681
4.57%
BOTSWANA
1,473
1,666
3,139
1.57%
20,892,565
1.52%
SWAZILAND
1,699
1,160
2,859
1.43%
21,433,487
1.56%
OTHER COUNTRIES
407
469
876
0.44%
3,622,813
0.26%
TOTAL
103,411
96,767
200,178
100.00%
1,376,614,231

14. Compensable Diseases DISEASE NOT PAID PAID No. % AMOUNT PAID SILICOSIS
8,993
24,052
33,045
16.51%
564,888,944
41.03%
TUBERCULOSIS
61,310
47,573
108,883
54.39%
298,047,951
21.65%
ASBESTOS RELATED DISEASES
5,289
8,399
13,688
6.84%
195,060,831
14.17%
OBSTRUCTIVE AIRWAYS DISEASE (OAD)
1,701
3,383
5,084
2.54%
115,934,942
8.42%
PNEUMOCONIOSIS
1,807
9,107
10,914
5.45%
114,514,769
8.32%
No Disease on File
23,725
3,139
26,864
13.42%
54,004,418
3.92%
CANCER
126
207
333
0.17%
12,468,255
0.91%
COAL WORKERS PNEUMOCONIOSIS
298
356
654
0.33%
6,648,017
0.48%
PLATINUM SALTS 22
248
270
0.13%
6,102,326
0.44%
TUBERCULOSIS + SILICOSIS + OAD 57
145
202
0.10%
4,260,268
0.31%
SYSTEMIC SCLEROSIS 32 97
129
0.06%
3,791,936
0.28%
MIXED DUST 51 61
112
891,574
Total
103,411
96,767
200,178
100.00%
1,376,614,231

15. Gender of Unpaid Claimants
NOT PAID
PAID
TOTAL %
AMOUNT
FEMALE
2,854
2,221
5,075
2.54%
36,665,204
2.66%
MALE
84,831
77,418
162,249
81.05%
1,220,135,815
88.63%
No data available
15,726
17,128
32,854
16.41%
119,813,212
8.70%
Total
103,411
96,767
200,178
100.00%
1,376,614,231

16. Missing Documents in Files
(Unpaid Claimants)
DOCUMENT TYPE
NO. %
IDENTIFICATION (IDs, PASSPORTS)
78 203
75.62%
BANK ACCOUNT
97 239
94.03%
RECORD OF SERVICE
63 375
61.28%
ADDRESS
64 970
62.83%
TOTAL UNPAID FILES
100.00%

17. Personnel Distribution (31/3/16)
Designation
Level
No of posts
Filled
Vacant
Commissioner 15 1
Director 13 2
Deputy Directors 12
Assistant Directors 10 3
Senior State Accountants( Finance) 8
Senior State Accountants( Inspector)
Senior Administration Officer
State Accountants 7
Administration Officer 4
Senior Administration Clerks
Personal assistant to the Commissioner
Personal assistant to the Director 6
Senior Administration Clerk
Administration Clerk 5 24 20
Switchboard Operator
Cleaner
Messenger
Total 50 43
+ 2 Managers seconded

18. Personnel Profile (31/3/16)
LEVEL
AFRICAN
COLOURED
INDIAN
WHITE
TOTAL M D F 15 1 13 2 12 10 8 3 1  7 4 6 5 14 18 22 19 24

19. Annual Performance Plan (2016/17)
Integration of compensation systems
Policy and legislative framework (Deputy Ministers of Health, Labour & Mineral Resources)
Development of Legacy Fund
Development of Care Fund
Governance of CCOD
Increase access to benefit medical examinations
New One Stop Facilities (Burgersfort & Kuruman); neighbouring countries (Global Fund)
Mobile facilities (Aurum)
Certification Committees
Training of health professionals

20. Annual Performance Plan (2016/17)
Development of electronic database
Enhanced IT system
Pastel Evolution (financial management & reporting)
Internal to Compensation Commissioner and Medical Bureau
External to Ones Stop Service Centres
Payment of unpaid claimants (Project Ku-Riha)
Legacy claims (tracking & tracing project – IP Capital, TEBA, World Bank)
Fast track process from One Stop Services / current claims
Links to Banks, South African Social Services Agency
Current claimants (process flow mapping)

21. Annual Performance Plan (2016/17)
Collection of revenue (levies)
Actuarial valuation report (June 2016)
Personnel management & systems
Advisory Committee support
Chamber of Mines / Gold Working Group (business process reforms)
Process to deal with TB claims
Process for calculation of lump sum payments
Financial Statements (2010/11; 2011/12)
Preparation of financial statements (process started in October 2015)
Final financial statements (September 2016)

22. Financial Statements Outstanding since 2010/11
Actuarial valuators appointed in Quarter 3 of 2015/16
Actuarial valuation needs quality data (data clean-up and verification to be completed by May 2016)
Actuarial report (June 2016)
Revenue
Reconciliation of register of controlled mines and works
Risk assessment levies
Expenditure
Data verification and clean up of ~ files
Data on paid and unpaid claimant files

23. Financial Statements Accounting system Audit preparation
Pastel Evolution implementation since November 2015
Opening balances loaded
Cashbooks loaded
Audit preparation
Audit team appointed by Auditor General of South Africa in March 2016
Bi-weekly meetings with Finance team and Audit team

24. Budget / Expenditure* Budget (16/17) 28 283 29 285 (1 002) 103.5%
Classification
Budget (15/16)
R ‘000
Expenditure
R ‘000 (15/16)
(Over)/Under %
Budget
(16/17)
Compensation of Employees
28 283
29 285
(1 002)
103.5%
31 461
Goods and services
23 886
14 652
9 234
61.3%
24 037
Transfer Payments
3 363
3 445
(82)
102.4%
3 541
Machinery and equipment
3 112
2 041
1 071
65.6%
2 604
Total
58 644
49 423
9 221
84.3%
61 643
*Covers Medical Bureau for Occupational Diseases as well

25. External Funding 40 700 99 400 One Stop Services 18 000 16 000
Activity
Funding 2015/16
(R’000)
Future Funding Need
Comments
One Stop Services
18 000
16 000
4 One stop Service Centres
File Verification
5 000
2 500
MBOD files
Finance
7 200
14 400
Preparation of financial statements
Track & Trace
500
6 500
Chamber of Mines & World Bank
Certifications
15 doctors
Funding by individual companies; backlog of claimant files
Management support 2
Senior seconded managers
Health inspectors
9 500
Global Fund
Claims management / IT system -
50 000
Payment of outstanding claims; processing backlog at MBOD
Total
40 700
99 400

26. FINANCIAL STATEMENT OF THE COMPENSATION FUND

27. Statement of financial performance % Deviation from target
Revenue
Statement of financial performance
Unaudited amount (’000)
Target (‘000)
Actual (‘000)
% Deviation from target
2012/13
2013/14
2014/15
2015/16
Levy income
4,52%
Interest received
4,81%
Transfers received
2 916
3 062
3 215
3 363
Total revenue
4,61%

28. Statement of financial performance % Deviation from target
Expenditure
Statement of financial performance
Unaudited amount (’000)
Target (‘000)
Actual (‘000)
% Deviation from target
2012/13
2013/14
2014/15
2015/16
Administration costs
7 839
7 724
7 411
7 571
-3,42%
Claims payments including pensioners
63 392
-61,36%
Total expenditure
70 963
-58,72%

29. Statement of financial performance % Deviation from target
Assets
Statement of financial performance
Unaudited amount (’000)
Target (‘000)
Actual (‘000)
% Deviation from target
2012/13
2013/14
2014/15
2015/16
Investments
5,88%
Accounts receivables
3 017
29 578
40 488
27 338
18 508
-32,30%
Cash and cash equivalent
74 618
58 995
60 000
103,92%
Total assets
7,37%

30. Statement of financial performance % Deviation from target
Liabilities
Statement of financial performance
Unaudited amount (’000)
Target (‘000)
Actual (‘000)
% Deviation from target
2012/13
2013/4
2014/15
2015/16
Surplus/(deficit)
-2,52%
Provisions
28,03%
Accounts payable and other payables
4 601
45 753
27 024
19 560
18 635
-4,73%
Total
7,37%

31. Acknowledgement Minister and Deputy Minister of Health
Deputy Minister of Mineral Resources
Director-General, Deputy Director-General Anban Pillay and Chief Financial Officer Ian van der Merwe
Staff of MBOD/CCOD
Advisory Committee and Audit and Risk Committee
Chamber of Mines and Gold Working Group
World Bank

32. Thank You