1. 6/20/11 Presentation to the Portfolio Committee on Health 2011/12 – 2014/15 Strategic Plan and Annual Performance Plan of the Compensation Commissioner for Occupational Diseases (CCOD) 15 JUNE 2011

2. 6/20/11 MANDATE The Compensation Commissioner for Occupational Disease (CCOD) is responsible in terms of the Occupational Diseases in Mines and Works Act (ODMWA) (Act 78 of 1973) for the payment of benefits to active and ex-miners who have been certified to be suffering from lung related diseases as a result of the risk work they have performed in the mines or classified works.

3. 6/20/11 SITUATION ANALYSIS One national office services the whole of South Africa Administration costs are funded by the National Department of Health Persistent audit qualifications Inadequate organizational structure Revenue is mainly levies from mines and works Benefits paid are in the following categories : – Pensioners – Eastern Cape payment( R54million project) – One Sum Benefits: TB First degree Second Degree

4. 6/20/11 TURNAROUND STRATEGY Business process Re-engineering Corporate Governance and Risk Management Capacitate the Fund Amendment of the Act  To ensure that the Act does not burden the administrative processing of claims.  To ensure that the beneficiaries are paid appropriately.  The governance around the Fund is stricter.  To reduce the burden on the state.  To improve revenue management  To reduce turnaround time in the settlement of claims.  Productivity and efficiency improvement through the business process re-engineering.  Reorient CCOD towards its claimants.  Systems enhancement so as to improve efficiencies.  To enhance the internal control environment.  Improved risk management with focus on fraud.  Strengthen corporate governance by capacitating the various committees.  Transforming culture and behaviour of staff to be pro service delivery.  Capacitate the Fund with skilled personnel  Identifying and managing critical skills and refocus training.  Training and to establish accountability at all levels in the organization.

5. Click to edit Master subtitle style 6/20/11 Strategic Plan

6. 6/20/11 INTRODUCTION The strategic plan sets out: The strategic objectives to be attained The strategic goals and the strategic outcomes that will be attained over a three year period.

7. 6/20/11 VISION AND MISSION Vision An accessible and high quality compensation system for occupationally acquired lung related diseases Mission In terms of strengthening the health system’s effectiveness with regards to our overall contribution to population welfare, the Fund has identified a need to improve on the effectiveness and efficiency of the compensation processes for the Fund.

8. 6/20/11 STRATEGIC OUTCOME ORIENTED GOALS The Compensation Commissioner’s strategies have been planned and aligned to the Department of Health’s four priority outputs, where relevant, which are as follows: Increasing life expectancy Decreasing maternal and child mortality Combating HIV and AIDS and decreasing the burden of disease from Tuberculosis Strengthening Health System Effectiveness

9. 6/20/11 STRATEGIC OUTCOME ORIENTED GOALS GOALS OUTCOMES Provision of strategic leadership and management of the Fund Effective governance Improving the relationship with our stakeholders Fruitful working relations with our stakeholders Claimants to be aware of the services rendered by Compensation Commissioner, their rights in respect of those services and the claim process. Increased number of claimants and reduced turnaround period of settling of claims. Enhancing the legislative provisions of the Act so as to improve service delivery. Streamlined service delivery process Improved financial management of the fund, effective revenue management and also enhancement of the administrative management of claims. Sound financial management, reduced turnaround period for settlement of claims and improved governance so as to obtain an unqualified audit opinion

10. 6/20/11 STRATEGIC OBJECTIVES To provide overall management of the Fund To provide strategic direction to the Fund Strategic objectiveObjective Statement To render strategic leadership so as to ensure that the Fund fulfills its mandate Strategic Outcome Effective governance To provide overall management by ensuring proper planning, budget management, allocation of resources, revenue collection and payment of claims. Effective governance

11. 6/20/11 STRATEGIC OBJECTIVES To improve the stakeholder relationship To increase the awareness about the activities of the Fund To enhance the legislative provisions of the Occupational Diseases in Mines and Works Act. Strategic objectiveObjective StatementStrategic Outcome To consult extensively with various stakeholders by organizing consultative forums. Fruitful working relations with our stakeholders To conduct workshops with claimants about the services rendered by the fund, their rights in respect of those services and the claim processes. Increased number of claimants. Reduced turnaround period of settling of claims. To reduce the legislative burden imposed by the Act, which will result in the streamlined functioning of the Fund. Streamlined service delivery process

12. 6/20/11 STRATEGIC OBJECTIVES To improve governance and financial management so as to obtain an unqualified audit opinion Strategic objectiveObjective StatementStrategic Outcome To obtain an unqualified audit opinion through improved governance which is inclusive of risk management and internal controls. Strengthen governance by ensuring proper functioning of the Committees such as Advisory committee, Adjudicating committee, Risk committee and Audit Committee Sound financial management, reduced turnaround period for settlement of claims and improved governance so as to obtain an unqualified audit opinion Business process reengineering so as to improve claims management Capacitating the fund with administrative skills. Reduced turnaround period for settlement of claims

13. 6/20/11 STRATEGIC OBJECTIVES To improve governance and financial management so as to obtain an unqualified audit opinion Strategic objectiveObjective StatementStrategic Outcome To obtain an unqualified audit opinion through proper financial management which is inclusive of risk management and internal controls. Business process reengineering to improve income generated from levies Capacitating the fund with financial skills To enhance the role of the inspectorate function which will ensure completeness of revenue Sound financial management

14. 6/20/11 STRATEGIC RISKS Poor public perception of the Fund Qualified audit report Inability to deliver an effective and efficient service due to lack of capacity and skills Occurrence of fraud by collusion Stakeholders not reaching consensus Low staff morale Inadequate systems that require significant investment Political influence Declining interest rates

15. Click to edit Master subtitle style 6/20/11 Annual Performance Plan

16. 6/20/11 INTRODUCTION The annual performance plan sets out: The strategic objectives to be attained The performance indicators and annual targets to measure CCOD’s performance over the next three years.

17. 6/20/11 PLANNED PERFORMANCE To provide strategic direction and overall management of the Fund To increase the awareness about the activities of the Fund To enhance the legislative provisions of ODMWA To improve governance To improve the stakeholder relationship Performance indicator 2011/ 12 2012/ 13 2013/ 14 Quarterly assessments report No of interactive forums No of workshops Completed review, amendment and implementation of the Act Appointed all committee members 4 Meetings held per terms of reference 6 Completed review and amendment of the Act Meetings held per terms of reference 4 4 4 4 88 Implementation of the amendments of the Act Meetings held per terms of reference 4

18. 6/20/11 REVENUE ESTIMATES (R THOUSANDS) Statement of Financial Performance - Revenue 2011/122012/132013/14 Tax revenue217 346293 418381 443 Non-tax revenue106 779120 352123 963 Transfers received2 7772 9163 100 Total revenue326 902416 686508 506  The current vacancies in the organizational structure will be filled so as to beef up the capacity in the Compensation Commissioner for Occupational Diseases (CCOD).  The enhancement of the IT systems will be funded and implemented which will enable the Fund to improve the revenue management.  The proposed legislative amendments to increase the revenue by declaring more mines controlled will be accepted and implemented.

19. 6/20/11 EXPENDITURE ESTIMATES (R THOUSANDS) CONT. Statement of Financial Performance - Expenses 2011/122012/132013/14 Bank charges275282289 Claims paid including pensioners 110 000115 000120 000 Total expenses110 000115 000120 000 Surplus/(Deficit)216 627301 404388 217  The current vacancies in the organizational structure will be filled so as to beef up the capacity in the Compensation Commissioner for Occupational Diseases (CCOD) which enables the Fund to process more claims.  The enhancement of the IT systems will be funded and implemented which will also enable the Fund to settle more claims.  The increases in the benefits amount are now pegged to the inflation rate.

20. 6/20/11 ASSETS ESTIMATES (R THOUSANDS) CONT. Statement of financial position 2011/122012/132013/14 Investments1 580 7931 683 5051 789 608 Accounts receivables 40 00045 00050 000 Cash and cash equivalent 63 00066 00069 000 Total assets1 683 7931 794 5451 908 608  The investments of the Fund will grow considerably as our revenue will increase and the claims will increase at a lower rate than the rate of increase in revenue.  The revenue base is increased so the accounts receivable relating to the levy income will also increase significantly.

21. 6/20/11 EQUITY & LIAB. ESTIMATES (R THOUSANDS) CONT. Statement of financial position 2011/122012/132013/14 Reserves962 0671 066 7411 183 304 Accounts payable and other payables 721 726727 804725 304 Total equity and liabilities 1 683 7931 794 5451 908 608 The provision for claims payable will remain constant taking into account that the backlog runs over a period exceeding 10 years so it will take a considerable period to make it current.

22. 6/20/11 ADDITIONAL FUNDS RECEIVED FROM NATIONAL DEPARTMENT OF HEALTH Priority focus area2011/122012/132013/14 Enhancement of systems 5 000 0006 000 0007 000 000 The enhancements will the business process reengineering which will reduce the turnaround time of settling claims.

23. 6/20/11 CONCLUSION CCOD strategic plan and APP 2011/12 – 2013/14 aims to achieve the following; Ensure that the claimants are paid accurately, and efficiently. The turnaround time of setting claims is reduced Improved governance Ensure that the benefit amounts are optimal.

24. Click to edit Master subtitle style 6/20/11 THANK YOU