PRESENTATION TO THE SELECT COMMITTEE ON ECONOMIC AND BUSINESS DEVELOPMENT ANNUAL PERFORMANCE REPORT OF THE COMPENSATION FUND FOR THE FINANCIAL YEAR 2016-2017 –

LEGEND Performance Indicator is on track or reflects complete implementation. Target achieved 100% and + Complete Performance Indicator behind schedule. Target not achieved 0 – 99% Complete

THE COMPENSATION FUND OVERALL ANNUAL ACHIEVEMENTS PER STRATEGIC OBJECTIVE AND PER PROGRAMME DURING 2016-2017 FINANCIAL YEAR 3

PERFORMANCE PER STRATEGIC OBJECTIVE PROGRAMMES Planned Indicators Achieved Not Achieved Overall Performance Q1 Q2 Q3 Q4 Provide an effective and efficient client oriented support services 5 6 8 2 1 3 40% 0% 17% 25% Provide faster, reliable and accessible COID Services by 2020 10 4 7 50% 80% 70% OVERALL PERFORMANCE 13 16 18 9 46%

PERFORMANCE PER PROGRAMME PROGRAMMES Planned Indicators Achieved Not Achieved Overall Performance Q1 Q2 Q3 Q4 Programme 1: Administration 5 6 8 2 1 3 40% 0% 17% 25% Programme 2: Operations 4 33% 80% 60% Programme 3: Provincial operations OVERALL PERFORMANCE 13 16 18 9 7 46% 50%

THE COMPENSATION FUND YEAR-ON-YEAR OVERALL PERFORMANCE : 2014/15, 2015/16 AND 2016/17 FINANCIAL YEARS Improved performance Performance Level is almost the same Performance Declined 6

COMPARATIVE ANALYSIS FOR THE COMPENSATION FUND: YEAR ON YEAR DoL APP 2014-15 APP 2015-16 APP 2016-17 TREND Planned targets Overall Achieved % Achieved 2014-2016/17 Provide an effective and efficient client oriented support services Strategic Plan and APP Reviewed 7 3 43% 8 2 25% Provide faster, reliable and accessible COID Services by 2020 10 4 40% 70% Total 20 9 45% 17 41% 18 50%

COMPARATIVE ANALYSIS FOR THE COMPENSATION FUND: YEAR ON YEAR DoL APP 2014-15 APP 2015-16 APP 2016-17 TREND Planned targets Overall Achieved % Achieved 2014-2016/17 Programme 1: Administration Strategic Plan and APP Reviewed 7 3 43% 8 2 25% Programme 2: Compensation for occupational injuries and diseases act (1993) operations 5 1 20% 60% Programme 3: Provincial operations: Compensation for occupational injuries and diseases act (1993) 4 80% Total 20 9 45% 17 41% 18 50%

Key Performance Indicators COMPARISON: ANNUAL PERFORMANCE Strategic Objective: Provide an effective and efficient client oriented support services Programme 1: Administration Key Performance Indicators 2014/15 Annual Target 2014/15 Annual Achievement 2015/16 Annual Target 2015/16 Annual Achievement 2016/17 Annual Target 2016/17 Annual Achievement OVERALL The Fund risk management maturity improved annually to a level by 31 March Not applicable The Fund risk management maturity improved annually to level 3. by 31 March 2016 Achieved The Fund risk management maturity improved annually to level 3 by 31 March 2016 The Fund risk management maturity improved annually to level 3.5 by 31 March 2017  The Fund risk maturity level improved to level 3.5 by 31 March 2017 A three-year and Annual risk-based internal audit plan approved by 31 March Develop risk based annual audit plan (roll-out) for approval by the audit committee on or before 31st March Annual Audit Plan 2015/16 approved by the audit committee Plan approved by 31 March 2016 Plan approved by the Audit Committee by March 2016 Plan approved by the audit committee 31 March 2017 Not achieved  Audit Plan was prepared and presented at the audit committee meeting held on 16 March 2017

Key Performance Indicators COMPARISON: ANNUAL PERFORMANCE Strategic Objective: Provide an effective and efficient client oriented support services Programme 1: Administration Key Performance Indicators 2014/15 Annual Target 2014/15 Annual Achievement 2015/16 Annual Target 2015/16 Annual Achievement 2016/17 Annual Target 2016/17 Annual Achievement OVERALL Percentage of projects on the risk based audit plan executed annually by 31 March 100% completion of the risk management annual operational plan Not achieved 45% of the operational plan was accomplished for semester 2 70% of projects on the risk based audit plan executed annually by 31 March 2017 Achieved 70.45% (31/44) of the project plan were implemented by 31 March 2016 75% of projects on the risk based audit plan executed annually by 31 March 2017  78% of projects was executed during the financial year (36/46) Percentage of active registered employers assessed annually by 31 March (excl exempted employers) 4% i.e. 19183 increase to 498 757 Registered (Active) employers as at 31 March 2015= 481853 (3%) 95% of active registered employers assessed (excl exempted employers) by 31 March 2016 46% of active employers were assessed [208 613 of active employers assessed as at 31 March 2016 60 % of active registered employers assessed annually  95% of the annual target was achieved   [268 218 active employers assessed / 283 685 (60% of the total active employers on databank= 472 808 annual target *100)]

Key Performance Indicators COMPARISON: ANNUAL PERFORMANCE Strategic Objective: Provide an effective and efficient client oriented support services Programme 1: Administration Key Performance Indicators 2014/15 Annual Target 2014/15 Annual Achievement 2015/16 Annual Target 2015/16 Annual Achievement 2016/17 Annual Target 2016/17 Annual Achievement OVERALL Percentage annual increase on investment income by 31 March of the current financial year compared to the previous financial year 10% ( ie 4.15 billion increase at a value of investment from R41 billion to R45.15 billion Achieved The Fund has increased the investment portfolio to R49.7 billion (20% increase) CPI+2% annual increase on investment income by 31March of the 2015/16 financial year compared to the 2014/15 financial year Not achieved 4.02% growth was achieved Investment growth at a rate of CPI+2% annually  Investment portfolio return = 7.17% for the year to March 2017 compared to 8.28% target No of findings affecting the AGSA audit report as at 31 March 2015 cleared annually by 31 March Not applicable 16 matters affecting the AGSA audit report were cleared by 31 March 2016 78 findings affecting the AGSA audit report as at 31 March 2015 cleared annually by 31 March 2017  12 findings were cleared by 31 March 2017

Key Performance Indicators COMPARISON: ANNUAL PERFORMANCE Strategic Objective: Provide an effective and efficient client oriented support services Programme 1: Administration Key Performance Indicators 2014/15 Annual Target 2014/15 Annual Achievement 2015/16 Annual Target 2015/16 Annual Achievement 2016/17 Annual Target 2016/17 Annual Achievement OVERALL Percentage of findings affecting the AGSA audit report as at 31 March 2016 cleared annually by 31 March Not applicable 40% of the findings affecting the AGSA audit report as 31 March 2016 cleared by 31 March 2017 Not achieved  5%  (Of the 56 audit findings, 3 were cleared by 31 March 2017) Percentage of vacancies at CF Head Office maintained annually Maintain 10% vacancies rate 13% vacancy rate 10% of vacancies at CF Head Office and Provinces maintained by 31 March 2016 18% vacancy rate as at 31 March 2016 at CF Head Office and Provinces [Total vacant posts (240)/Total approved posts (1332)%] 10% of vacancies at CF Head Office maintained by 31 March 2017  10.3% of vacancy rate at CF Head Office maintained by 31 March 2017   Of the total 690 posts, 619 were filled while 71 were vacant by end of March 2017.

Key Performance Indicators COMPARISON: ANNUAL PERFORMANCE Strategic Objective: Provide faster, reliable and accessible COID Services by 2020 Programme 2: Operations Key Performance Indicators 2014/15 Annual Target 2014/15 Annual Achievement 2015/16 Annual Target 2015/16 Annual Achievement 2016/17 Annual Target 2016/17 Annual Achievement OVERALL Percentage of approved benefits paid within 5 working days Not applicable 100% of authorised claims paid within 5 working days yearly Not Achieved 95% of claims paid within 5 working days (R3,706 billion out of R3.905) 100% of approved benefits paid within 5 working days yearly Achieved  100% of approved benefits paid within 5 working days by 31 March 2017   (R 4 214 436 147.07 was paid) Reviewed Compensation benefits for annual adjustments Reviewed compensation benefits annually Reviewed compensation benefits were gazetted Annual review off compensation benefits for adjustments by March 2016 Not achieved The proposed benefit increase were submitted on 28 January and published on the 12th of February in the Government Gazette Annual review and approval off compensation benefits for adjustments by March 2017 Approval to publish was received by 31 March 2017 impacting on the publishing

Key Performance Indicators COMPARISON: ANNUAL PERFORMANCE Strategic Objective: Provide faster, reliable and accessible COID Services by 2020 Programme 2: Operations Key Performance Indicators 2014/15 Annual Target 2014/15 Annual Achievement 2015/16 Annual Target 2015/16 Annual Achievement 2016/17 Annual Target 2016/17 Annual Achievement OVERALL Reviewed medical Tariffs for annual adjustments Not applicable Annual review of medical tariffs for annual adjustment by March 2016 Achieved Medical tariffs were reviewed for annual adjustment by 28 March 2016 Annual review and approval of medical tariffs for annual adjustment by March 2017 Medical tariffs were reviewed for annual adjustment by 31 March 2017 Annual improvement in the administration of chronic medication distribution Chronic medication distribution programme to beneficiaries piloted by March 2016 Not achieved The Tender was only advertised during quarter 4. Chronic medication distribution programme to beneficiaries implemented by March 2017 Chronic medication distribution programme to beneficiaries implemented by 31 March 2017 Annual improvement in the management of litigation cases, hearings and objections Electronic case management system piloted by March 2016 Not Achieved Specifications developed Electronic case management system implemented by March 2017 Bidding processes not yet completed

Key Performance Indicators COMPARISON: ANNUAL PERFORMANCE Strategic Objective: Provide faster, reliable and accessible COID Services by 2020 Programme 3: Provincial Operations Key Performance Indicators 2014/15 Annual Target 2014/15 Annual Achievement 2015/16 Annual Target 2015/16 Annual Achievement 2016/17 Annual Target 2016/17 Annual Achievement OVERALL Percentage of the registered claims adjudicated in the current financial year Not Applicable 85% of the registered claims adjudicated in the current financial year Not achieved 80% 103 055 claims out 129 170 of registered claims were adjudicated Achieved  94%   (of the registered 155 427 claims, 145 922 were adjudicated) Percentage of registered compensation claims adjudicated within 60 working days  Not applicable 85% of new registered compensation claims adjudicated within 60 working days 76% 77 916 out of 103055 claims adjudicated were adjudicated within 60 working days 85% of registered compensation claims adjudicated within 60 working days  90% (of the 145 922 claims adjudicated, 130 800 were adjudicated within 60 working days).

CLAIMS REGISTERED AND PROCESSED 2014/15 TO 2016/17 Period Claims Registered Claims Accepted Claims Not Accepted Claims Repudiated Undecided, Outstanding Information 01 April 2014 to 31 March 2015 225,511 309,065   155 N/A 01 April 2015 to 31 March 2016 129,123 135,531 2,805 1 2,807 01 April 2016 to 31 March 2017 155,427 132 718 13 203 9505   2014/15 2015/16 2016/17 Province Registered Adjudicated Gauteng 4,569 80,026 86,482 64,805 58,408 Free State 2,389 4,698 6,044 4,398 4,378 Northern Cape 76,312 2,885 3,491 2,795 2,719 Western Cape 11,437 14,705 16,459 34,998 34,257 Eastern Cape 2,240 3,781 3,566 7,119 6,807 KwaZulu-Natal 4,446 10,477 7,589 15,955 15,147 Mpumalanga 1,202 3,816 3,705 3,801 3,186 North West 2,797 2,844 3,483 4,154 3,981 Limpopo 23,897 5,891 7,583 17,402 17,039 Total 225,511 129,123 138,402 155,427 145,922

PROVINCIAL PERFORMANCE DURING THE 2016/17 FINANCIAL YEAR: Percentage of registered compensation claims adjudicated within 60 working days  Provinces Number of Claims registered Number of Claims adjudicated Percentage adjudicated Number of Claims adjudicated within 60 working day Percentage adjudicated within 60 working days Eastern Cape 7119 6807 96% 5207 76% Free State 4398 4378 100% 4250 97% Gauteng 64805 58408 90% 51298 88% KwaZulu-Natal 15955 15147 95% 13936 92% Limpopo 17402 17039 98% 16049 94% Mpumalanga 3801 3186 84% 2485 78% North West 4154 3981 3705 93% Northern Cape 2795 2719 2513 Western Cape 34998 34257 31357 TOTAL 155427 145922 130800

Key Performance Indicators COMPARISON: ANNUAL PERFORMANCE Strategic Objective: Provide faster, reliable and accessible COID Services by 2020 Programme 3: Provincial Operations Key Performance Indicators 2014/15 Annual Target 2014/15 Annual Achievement 2015/16 Annual Target 2015/16 Annual Achievement 2016/17 Annual Target 2016/17 Annual Achievement OVERALL Percentage of finalised medical invoices in the current financial year Not Applicable 85% of approved medical invoices for payment within the current financial year Not achieved 73% 529 785 approved for payment out of 729 954 invoices received 85% of finalised medical invoices in the current financial year Achieved  92% (of the 747 525 medical invoices received, 686 385 were finalised) Percentage of medical claims finalised within 60 working days of receiving invoice Not applicable 85% of medical claims finalised within 60 working days of receiving invoice 97% 512 976 out of 529 785 medical invoices approved for payment within 60 working days  89%   (of the 686 894 medical claims finalised, 613 430 were finalised within 60 working days)

PROVINCIAL PERFORMANCE DURING THE 2016/17 FINANCIAL YEAR: Percentage of medical claims finalised within 60 working days of receiving invoice   Provinces Number of Medical Invoices received Number of Medical Invoices Approved for payment Percentage of Medical Invoices approved for payment Number of Medical Claims finalised within 60 working day Percentage claims Finalised within 60 working days Eastern Cape 1863 934 50% 438 47% Free State 9361 8501 91% 7307 86% Gauteng 188790 145056 77% 124207 KwaZulu-Natal 18181 14270 78% 11809 83% Limpopo 8737 7512 6333 84% Mpumalanga 12980 10035 8598 North West 6889 5604 81% 5009 89% Northern Cape 1429 668 476 71% Western Cape 36971 33496 29301 87% **CF HQ/Autopay 462324 460818 99% 419952 TOTAL 747525 686894 92% 613430 **CF HQ/Autopay: - The CF HQ still continues to receive invoices. Some of the invoices checked and accompanied by all supporting documents are paid through Autopay.

Key Performance Indicators COMPARISON: ANNUAL PERFORMANCE Strategic Objective: Provide faster, reliable and accessible COID Services by 2020 Programme 3: Provincial Operations Key Performance Indicators 2014/15 Annual Target 2014/15 Annual Achievement 2015/16 Annual Target 2015/16 Annual Achievement 2016/17 Annual Target 2016/17 Annual Achievement OVERALL Percentage of received compensation benefit claims finalised in the current financial year Not Applicable 85% of reported compensation benefits claims finalised in the current financial year Not achieved 80% 103 055 claims out 129 170 of registered claims were adjudicated 85% of received compensation benefits claims finalised in the current financial year  73%   (of the received 28 754 compensation benefits claims, 21 055 were finalised)

THE COMPENSATION FUND CHALLENGES, CORRECTIVE ACTION ON NON ACHEVEMENT OF INDICATORS AND PROGRESS 21

PERFORMANCE CHALLENGES AND REMEDIAL ACTIONS INDICATOR ANNUAL TARGET ACTUAL PERFORMANCE REASON FOR MAJOR VARIANCE CORRECTIVE ACTION IMPLEMENTATION DATE A three-year and Annual risk-based internal audit plan approved by 31 March Plan approved by the audit committee 31 March 2017 Not achieved  Audit Plan was prepared and presented at the audit committee meeting held on 16 March 2017 Annual Audit plan was not approved by the Audit Committee by 31 March 2017 but was approved towards the end of Quarter 1. Audit Plan is presented to the Audit Committee prior to the beginning of the 2017/18 financial year. Q1 of 2017/18 Percentage of active registered employers assessed annually by 31 March (excl exempted employers) 60 % of active registered employers assessed annually  95% of the annual target was achieved   [268 218 active employers assessed / 283 685 (60% of the total active employers on databank= 472 808 annual target *100)] Non Compliance by Employers Partnership with the IES Branch of the Department to improve compliance. Amendment of legislation to strengthen the enforcement provisions in the COIDA law Continuously 9 September 2018

PERFORMANCE CHALLENGES AND REMEDIAL ACTIONS INDICATOR ANNUAL TARGET ACTUAL PERFORMANCE REASON FOR MAJOR VARIANCE CORRECTIVE ACTION IMPLEMENTATION DATE Percentage annual increase on investment income by 31 March of the current financial year compared to the previous financial year Investment growth at a rate of CPI+2% annually Not achieved  Investment portfolio return = 7.17% for the year to March 2017 compared to 8.28% target The unfavourable economic landscape resulted in the expected growth not being achieved Revision of the investment strategy Q1 of 2017/18 No of findings affecting the AGSA audit report as at 31 March 2015 cleared annually by 31 March 78 findings affecting the AGSA audit report as at 31 March 2015 cleared annually by 31 March 2017  12 findings were cleared by 31 March 2017 Addressing findings is taking longer than anticipated due to their nature and extent of the root causes. The Fund opted to shift focus on the root causes. With this approach, it will be easy to address actual problems leading to findings The number of matters affecting the Audit Report have been reduced and the Fund is addressing the historical findings Immediately and progress monitored continuously 9 September 2018

PERFORMANCE CHALLENGES AND REMEDIAL ACTIONS INDICATOR ANNUAL TARGET ACTUAL PERFORMANCE REASON FOR MAJOR VARIANCE CORRECTIVE ACTION IMPLEMENTATION DATE Percentage of findings affecting the AGSA audit report as at 31 March 2016 cleared annually by 31 March 40% of the findings affecting the AGSA audit report as 31 March 2016 cleared by 31 March 2017 Not achieved  5%  (Of the 56 audit findings, 3 were cleared by 31 March 2017) Addressing findings is taking longer than anticipated due to their nature and extent of the root causes. The Fund opted to shift focus on the root causes. With this approach, it will be easy to address actual problems leading to findings The number of matters affecting the Audit Report have been reduced and the Fund is addressing the historical findings Immediately and progress monitored continuously Percentage of vacancies at CF Head Office maintained annually 10% of vacancies at CF Head Office maintained by 31 March 2017  10.3% of vacancy rate at CF Head Office maintained by 31 March 2017   Of the total 690 posts, 619 were filled while 71 were vacant by end of March 2017. Difficulty to attract required specialised skill remains a challenge for the Fund. Action Plan to be developed 9 September 2018

PERFORMANCE CHALLENGES AND REMEDIAL ACTIONS INDICATOR ANNUAL TARGET ACTUAL PERFORMANCE MAJOR REASON FOR VARIANCE CORRECTIVE ACTION IMPLEMENTATION DATE Reviewed Compensation benefits for annual adjustments Annual review and approval off compensation benefits for adjustments by March 2017 Not achieved The Annual review and approval processes not completed by 31 March 2017. The consultation process that resulted into the review took longer than planned. Reviewal and approval for 2018 started earlier to ensure approval prior to the end of the financial year. Q1 of 2017/18 Annual improvement in the management of litigation cases, hearings and objections Electronic case management system implemented by March 2017 Electronic case management system not implemented by March 2017 Mainly due to delays in the implementation of project plans due to prioritisation of other projects. Project has already started and will go live in December 2017. During 2017/18 9 September 2018

PERFORMANCE CHALLENGES AND REMEDIAL ACTIONS INDICATOR ANNUAL TARGET ACTUAL PERFORMANCE REASON FOR MAJOR VARIANCE CORRECTIVE ACTION IMPLEMENTATION DATE Percentage of received compensation benefit claims finalised in the current financial year 85% of received compensation benefits claims finalised in the current financial year Not achieved  73%   (of the received 28 754 compensation benefits claims, 21 055 were finalised) Required System Enhancements to fastrack claims processing A number of System enhancements projects are ongoing. Immediately and progress monitored continuously 9 September 2018

STATISTICAL INFORMATION THE COMPENSATION FUND STATISTICAL INFORMATION 27

INJURIES REGISTERED PER PROVINCE

GENDER

TOP 20 INJURIES

TOP 20 INDUSTRY SECTOR

TOP 20 COMPANIES

FINANCIAL PERFORMANCE THE COMPENSATION FUND FINANCIAL PERFORMANCE 33

FINANCIAL PERFORMANCE

FINANCIAL POSITION

Assessments Revenue (Rand value)

Assessments Revenue (Rand value)   2016 2017 April 2 783 967 865 3 062 863 974 May 2 577 968 245 2 409 538 555 June 271 799 814 430 265 033 July 90 432 060 126 387 014 August 95 825 188 127 945 976 September 81 360 208 68 464 222 October 57 871 509 158 638 434 November 64 381 319 462 184 261 December 15 964 128 565 756 802 January 41 164 842 -96 861 133 February 51 516 349 266 765 101 March 1 434 683 888 1 270 392 764 Total 7 566 935 415 8 852 341 003

Medical Benefits (Rands)

Medical Benefits (Rands)

Compensation Benefits (Rands)

Compensation Benefits (Rands)

Pension (Rands)

Pension(Rands)

Benefits Analysis

Benefits Analysis

Chief Directorate Communication | 2017.00.00 Thank You…