CIAL SE C U R I T Y DOMINICA SOCIAL SECURITY BOARD … · 2017-12-11 · S O C IA L S E C U R I T Y...

Dominica Social Security — “Stemming the Tide of Employer Delinquency to Safeguard Employee Benefits!” 1

SOCIAL SECURITY

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TABLE OF CONTENTS PAGE NO.

Transmittal Letter 3

Board of Directors 4

Investment Committee 5

Corporate Information 6 - 7

2015 in Focus 8

Chairman’s Review 9 - 10

Director’s Report 11 - 33

Index to Financial Statements 34

Auditor’s Report F1

DOMINICA SOCIAL SECURITY BOARDANNUAL REPORT

FOR ThE YEAR ENDED DECEMBER 31, 2015

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2 Dominica Social Security, 2015 Annual Report


Dominica Social Security Telephone:(767)2558311•255-8312 Cnr.Hanover&HillsboroughStreets Fax: (767) 448 5704 P. O. Box 772 Email: [email protected] ROSEAU Website:www.dss.dm CommonwealthofDominica West Indies

LETTER OF TRANSMITTAL

14th June 2016

HonourableRooseveltSkeritt,PrimeMinister&MinisterforFinanceandSocialSecurity,Prime Minister’s Office,Financial Centre,ROSEAU

DearHonourablePrimeMinister,

In accordance with Section 17 (3) of Chapter 31.01 of the revised laws of the Commonwealth of Dominica,IampleasedtosubmittoyouthereportoftheBoardonitsactivitiestogetherwiththeAuditedFinancialStatementsfortheyearended31December2015.

Iam, indeed,grateful to theGovernmentofDominica for itssupport in facilitatingtheworkof theBoard, during the past year and, as we forge ahead in catering to the social protection needs of ourpopulation,IlookforwardtothecontinuedcooperationandsupportofgovernmentandotherstakeholdersinthequesttofurtherstrengthentheSocialSecurityFund.

Yours truly,

……………………………………Anthony JosephChAIRMAN

___________________________________________________________________________

“Dominica Social Security—Maintaining its Position as the Main Pillar of Dominica’s Social Protection System”

Fred Joslyn House

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Mr. Stephen IsidoreMeMber

Mr. Martin CharlesMeMber

Ms. Mandra FaganMeMber

Mr. Eric MarieMeMber

Mr. Dermot SouthwellMeMber

Mr. Anthony JosephChairMan

Ms. Gloria DechausayMeMber

Mrs. Janice Jean-Jacques ThomasDireCtor

Mrs. Bernice JosephMeMber

Ms. Marie-Therese JohnsonDeputy Chairperson

BOARD OF DIRECTORS



Ms. Kimaner JulienMeMber

Mr. Collin BullyMeMber

Mrs. Celia NicholasMeMber

Mr. Rooseworth MillsChairMan

INvESTMENT COMMITTEE

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hEAD OFFICE DoMiniCa soCial seCurityCnr. Hillsborough & Hanover Streets Box 772 , RoseauCommonwealth of Dominica Tel: 1 767 255-8311 / 3Fax: 1 767 448-5704 E-mail [email protected]: www.dss.dm sub offiCeDominica Social Security BaystreetPortsmouthTel: 1 767 255-8350/8351Fax:1 767 445-4962E-mail [email protected]

auDitorsKPB Chartered AccountantsPedro Investments BuildingIndependence Street,P.O. Box 202,RoseauCommonwealth of DominicaTel: 1 767 448-2511 / 2

attorneyHeather Felix-Evans65 King George V StreetRoseauCommonwealth of DominicaTel: 1 767 440 0816

CORPORATE INFORMATION


MANAGEMENTMrs. Janice Jean-Jacques ThomasDireCtor

Mr. Augustus EtienneDeputy DireCtor

Mrs. Missi Henderson Chief finanCial offiCer

Mr. Jefferson Jno.Baptisteinternal auDitor

Mrs. Johanna John-BertrandManager, aCtuarial serviCes & Mis

Ms. Celia M. Delauney legal offiCer

Mr. Bernard HenryManager, CoMplianCe

Mrs. Ignatis MorganaDMinistrator, CoMputer systeMs

Mr. Blaize JonesaDMinistrator, benefits

Ms. Eslyne RynerhuMan resourCe & aDMinistration offiCer

Ms. Jo Ann CharlesaDMinistrator, finanCe & investMents

Mrs. Julietta Joseph-BaptisteoffiCer-in-Charge, Contributions

BOARD OF DIRECTORSMr. Anthony JosephChairperson

Ms. Marie-Therese JohnsonDeputy Chairperson


Mr. Martin CharlesMeMber

Mr. Stephen IsidoreMeMber

Mrs. Bernice JosephMeMber

Mr. Dermot SouthwellMeMber

Ms. Mandra FaganMeMber

Mr. Eric MarieMeMber

Ms. Gloria DechausayMeMber

INvESTMENT COMMITTEEMr. Rooseworth Mills ChairMan

Mrs. Celia NicholasMeMber

Mr. Collin BullyMeMber


Ms. Kimaner JulienMeMber

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% 2015 2014 2013 Change

2015-2014 Short term Awards & Grants 8,460 10,190 8,558 -17.0 Long-term Beneficiaries 6,389 6,129 6,059 4.2 New Claims for Processing 10,190 12,363 11,224 -17.6 New Claims Processed 9,694 12,217 10,631 -20.7 New Claims Paid 9,431 11,089 9,588 -15.0

% 2015 2014 2013 Change

2015-2014 Active Insured Persons 22,052 22,428 22,078 -1.686 Active Employer Population 1,873 1,934 1,999 -3.15

% 2015 2014 2013 Change

2015-2014 Total Income 68.644 64.599 64.181 6.26 Contribution Income ($M) 51.713 47.596 46.851 8.65

Investment Portfolio 356.623 350.270 327.84 1.81 Net Investment Income ($M) 16.370 16.469 16.94 -0.60 Net Yield of Portfolio 4.60% 4.71% 5.20% -0.11

Administrative Cost ($M) 5.92 5.331 5.112 11.05 Admin Cost as a % of Contribution Income

11.4% 11.2% 11% 0.2

Admin Cost as a % of Total Income

8.60% 8.30% 7.90% 3.61

Total Assets ($M) 384.040 376.108 354.76 2.11 Total Fund Reserves ($M) 381.351 373.773 353.03 2.03

Key Performance Ratios 2015 2014 2013 Profit Margin 10.80% 9.50% 12.70% Funding Ratio 6.23 6.39 7.24 Return on Assets 1.94% 1.62% 2.31%

KEY INDICATORS


ChAIRMAN’S REPORTIt is my pleasure to present this report on the activities and operations of the Dominica Social Security for the year 2015, which were pursued under the theme “Stemming the Tide of Employer Delinquency to Safeguard Employee Benefits”. Indeed, it was a year during which the institution continued to foster greater collaborationwith various stakeholders in order to facilitate theeffective fulfillment of its mandate. In particular, and given the low tolerance that the Ministry of Finance has for the non-paymentofstatutoryobligationsbyindividualsandorganizations who are either associated with and/or have been contracted by the Government of Dominica, theinstitutionwasabletorealizeanetreductioninthevalueofoutstandingcontributions.

Notwithstanding, the overall performance of the institution continued to reflect the effect of the changing demographics and the other socio-economic realities currently confronting our small island developing state. For instance, the ageing of the population, coupled with the decline in fertility rates and the emergence of non-communicablediseases, aswell as thepotentiallydevastating impact of climate change, continue to result inbenefitpayoutswhichexceedthelevelofcontribution

income. In such circumstances, the role of investment income is brought into sharper focus as it serves tobolster theFund’sability toadequatelymeet itsbenefitobligationsasandwhentheybecomedue.

At the same time, the lingering effects of the globaleconomic downturn, which began to manifest in2008/9, continue to impede the prospects for optimizing investmentreturns,giventhepaucityintheavailabilityofsuitable investmentopportunities. Asamatterof fact,thepronouncementbythethenGovernoroftheEasternCaribbeanCentralBank(ECCB),SirK.DwightVenner,inMarch2015,forthereductioninthepermissiblelevelsofinterestratesthatbankswithintheCurrencyUnioncouldoffer on savings and deposits was expected to have a debilitating impact on interest income and, thereby,cause further erosion in the average yield that can berealized on the investment portfolio.

Against that background, and in the continuing questto further diversify the investment portfolio, both interms of mitigating against concentration risk and inbetter aligning investment maturities with the times atwhichbenefitobligationsaretobemet,theBoardandManagementeagerlylookforwardtothecommencementof the CARICOM effort for the pooling of investment resources and reserves. Through this initiative, the DSS willbegin toexposeasmallpercentageof itsportfolioto the international market—with the risk of doing sobeingsharedby thevariousSocialSecurity institutionswhich are part of that pool. At the same time, and while remaining vigilant in the overall management of the trust funds which have been entrusted to it, the institutionintends to pursue, in earnest, various initiatives aimed at generating revenue from its holdings in lands.

Thefollowinganalysisofthefinancialsisbutasnapshotof the performance of the institution during the 2015 Financial Year.

FINANCIAL PERFORMANCE REVIEWTotal Income was recorded at $68.644M, compared to $64.599M the previous year. This represented overall growth of 6.3% over the corresponding period last year, with Contributions Income accounting for more than75% of such income. At the same time, total expenses, which amounted to $61.211M, reflected a net increase of

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4.6% over the position ($58.488M) which was registered in 2014. As customary, Benefit expenses continue to makeupmorethan87%oftotalexpenseswiththelong-term (Pension) benefits accounting for 88.5% of suchbenefitexpenses. Thus,asatyearend, the institutionrealized a net income of $7.433M which was 22.0% over that recorded for 2014.

When taken in the context of the prevailing sluggishglobal economic climate, coupledwith thedevastatingblowdealt upon the local economyby thepassageofTropical StormErika, it canbe said that the institutionperformed satisfactorily. In fact, its Net Assets position reached $381.351M, reflecting growth of $7.578M or 2.0% over the position as at the end of the previous year. Net Investments, which amounted to $356.623M, accounted for 93.5% of such Net Assets and the year end Reserves represented 7.2 times the value of current benefit expenses. While these operating results areconsistent with the trend of the last few years and may pointtothefactthattheFundremainedrelativelystableduring 2015, it is envisaged that the ensuing financial year will see some growth in Income as new initiatives come on stream and the rebuilding/reconstructionefforts necessitated by the impact of Tropical StormErikacontinuetotakeroot.

LOOKING FORWARDTheupcomingyear2016,willmarkthe40thAnniversarysincetheestablishmentoftheDominicaSocialSecurityand,astheinstitutioncontinueswithitspubliceducationthrust, the gradual implementation of its program of reforms and the pursuit of new investment initiatives, it is hoped that these will all translate to improvements in the overall position of the Fund. In particular, it is hoped that stakeholders at all levels will continue to grow intheir appreciation for the role and purpose of the Social Security system as well as the part that they are each required to play in facilitating the realization of that purpose for thebenefit of all concerned. Towards thatend,continuedclosecollaborationwiththeGovernmentofDominicawillbecriticalinensuringthattheenvironmentremains conducive for the Board to carry out its mandate in accordance with the legislative provisions.

This can be realized as the Ministry of Finance seesto the timely enactment of necessary legislative amendments and the granting of approval for projects andprogrammesbeingcontemplated,wherethesearedeemed appropriate, and when other Government and/or quasi-government agencies cooperate with the DSS inthepromotionofstakeholderadherencetotherelevantstatutory requirements.

For its part, the Board intends to honour its fiduciary responsibility for providing the required oversight andpolicy direction to the Director and staff as they continue to deliver on the Social Security Promise. In so doing, the Board continues to count on the tradition of their firm resolvetokeepingAdministrativecostswithinacceptablelimits—without compromising the quality of service that customers have come to expect and, dare I say, may even demand, of their Social Security.

Management and staff are expected to remain vigilant in the execution of their respective duties which they must, at all times, perform with the utmost degree of confidentiality and professionalism and always in the sole bestinterestofthepersonswhomtheorganizationwasmeant to serve. Thus, they must endeavour to ensure that theclaimantsofvariousbenefitsreceivetheirfairbenefitsin a timely manner, and that every effort is expended in the collection of all amounts that are due to the Fund.

In the case of those who have an obligation to paycontributions,eitheronbehalfoftheiremployeesand/oron their own account (employers, self-employed persons andvoluntarycontributors) theymustensure thatsuchcontributionsarepaidinatimelymanner.Failuretodosomay lead to serious challenges inmaking goodonamounts which have fallen past due, not to mention the likely adverse effects that such non-payment ofcontributionsmayhaveonthefuturebenefitentitlementof insured persons—whether in terms of their actual qualification for benefit and/or the quantum of benefitthat they may otherwise qualify for.


CONCLUSIONI wish, on behalf of the Board of Directors, toacknowledgewithgratitudethecontributionsofallofourstakeholders towards the realization of the institution’saccomplishments during the course of 2015. I especially want to convey profound appreciation to the Ministry of Financeand,byextension,theGovernmentofDominica,fortheirguidanceandsupportinaidingtheworkoftheBoard.CommendationsarealsobeingextendedtothemanagementandstaffoftheDSSfortheirtrackrecordof commitment, dedication and loyalty to the mission of the organization. The Board is convinced that, with such a cadre of dedicated and loyal staff, the noble

missionofthisaugustinstitutionisbeingwellserved;andthis is borne out by the satisfactionwhich is generallyexpressedbypersonsaccessingservicesattheSocialSecurity office.Last, but by no means least, I herebyconveyapersonalwordofthankstomycolleagueBoardMembers,Membersof InvestmentCommitteeandanyother private individuals who—in one way or the other—might have allowed the institution to benefit from theirprofessional expertise and, thereby, made it possiblefor the institution to effectively fulfill its mandate for yet another year.

Once again, heartfelt thanks to everyone, and God’sspeed!

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DIRECTOR’S REPORTThe performance of the Institution during 2015 was comparable to that of the last few years, despite theshocks sustained during the last quarter of 2015 as aresultoftheclosureorinterruptionofsomebusinessesdue to the impact of Tropical Storm Erika upon theiroperations.

Notwithstanding the challenges, we continued to pay benefits ina timelymannerwhilealsostrivingtocurtailthe cost of administration.

% Change2015 2014 2013 2015-2014

Contributions 51.713 47.596 46.851 8.65Investment Income 16.370 16.470 16.940 -0.61Other Income 0.561 0.533 0.390 5.25

Total Income 68.644 64.599 64.181 6.26

Benefits Expenses 53.290 51.007 48.790 4.48Administrative 5.920 5.331 5.112 11.05Assets Impairment 2.000 2.150 2.100 -6.98

Total Expenses 61.210 58.488 56.002 4.65

Net Income 7.433 6.111 8.178 21.63

Investment Portfolio 356.623 350.270 327.836 1.81Net Assets 381.351 373.773 353.031 2.03

FINANCIAL HIGHLIGHTS

INCOME STATEMENT Amount (In $Million)

FINANCIAL REVIEW


INCOMEFor the year under review, the institution recorded growth of 6.3% in Total Income--having generated an amount of $68.644M, as compared to $64.599M at the end of 2014. Atthelevelof$51.713M,Contributionsincomeaccountedfor75.3%ofTotalIncomewithInvestmentIncomemaking

up 24% or $16.370M. While there was a marginal decline of 0.6% in Investment Income, Contributions Incomegrewby8.6%--i.e.from$47.596Min2014to$51.713Min 2015--and Other Income registered a 5.3% increase.

TOTAL INCOME 2013-2015

2013 2014 2015 Contributions 46.851 47.596 51.713 Investment Income 16.940 16.470 16.370 Other Income 0.390 0.533 0.561 Total 64.181 64.599 68.644

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EXPENSESIn terms of total expenses, the institution registered an increase of 4.7%, moving from $58.488M in 2014 to $61.211M in 2015. Benefit Expenses accounted for 87.1% of such Total Expenses; with both Benefitand Administrative Expenses reflecting increases. Meanwhile, and consistent with the trend over the last

few years, Benefit Expenses surpassed ContributionIncome in 2015—recording a shortfall of $1.577M or 3.0%. As an aggregate, however, Total Income exceeded TotalExpensesby12.1%and,.assuch,theNetIncomerealized for the year was $7.433M;, indicating a 22%increase over the level recorded in 2014.

TOTAL EXPENSES VS TOTAL INCOME (2011-2015)

YEAR TOTAL EXPENDITURE TOTAL INCOME $M $M

2011 51.954 59.556 2012 53.045 60.569 2013 56.002 64.181 2014 58.488 64.593 2015 61.210 68.657


Management continues to demonstrate discipline in the expending of monies for purposes of administration andhasmaintained the trendwherebysuchexpenses

accounted for just under 10% of Total Expenses while the actuarial limit achieved for 2015 was 6.0%.

BENEFIT EXPENSES VS. CONTRIBUTION INCOME (2011-2015)

YEAR BENEFIT EXPENDITURE CONTRIBUTION INCOME $M $M

2011 44.028 43.743 2012 45.644 44.949 2013 48.790 46.851 2014 51.007 47.596 2015 53.290 51.713

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ASSETSFor the year in review, there was a slight increase of 2.1% in Total Assets and this was consistent with the marginal growth of 1.8% realized on the Investment Portfolio.

Similarly, at an amount of $381.351M, the Reserve PositionoftheFund improvedby2.0%witharesultingFunding Ratio of 6.23.

Year Admin Expenses

Total Expenses

Admin Expenses to Total Expenses

Total Income

Admin Expenses to Total Income

$M $M % $M % 2011 5.026 49.054 10.3 59.556 8.4 2012 5.202 53.045 9.8 60.568 8.6 2013 5.112 56.002 9.1 64.569 7.9 2014 5.331 58.488 9.1 64.599 8.3 2015 5.920 61.211 9.7 68.644 8.6

ADMINISTRATIVE EXPENSES VS. TOTAL EXPENSES & TOTAL INCOME (2011 – 2015)

Year ADMINISTRATIVE Expenses

BENEFITS plus CONTRIBUTIONS OF PRIOR

YEAR

ACTUARIAL LIMIT ACHIEVED

$M $M % 2011 5.026 83.085 6.0 2012 5.202 87.771 5.9 2013 5.112 90.593 5.6 2014 5.331 95.641 5.6 2015 5.920 98.603 6.0

ADMINISTRATIVE EXPENSES & ACTUARIAL LIMIT ACHIEVED (2011 – 2015)


2010 2011 2012 2013 2014 2015$M $M $M $M $M $M

Long-Term Branch 293.983 296.729 305.217 308.698 310.124 312.021Short-Term Branch 16.147 18.338 14.742 16.738 18.720 21.142Employment Injury Branch 6.402 8.48 10.384 12.467 14.602 16.949Redundancy 7.835 8.553 9.265 9.869 10.435 11.139Revaluation Reserve 3.176 3.176 3.697 5.259 19.892 20.100

TOTAL RESERVES 327.543 335.276 343.305 353.031 373.773 381.351

RESERVE POSITION 2010 to 2015

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INVESTMENT PERFORMANCEIn view of the prevailing poor investment climate, wherein opportunities for suitable investments continue to befewandfarbetween,coupledwiththetrendofdeclining

interest rates, the Investment Portfolio only registered a 1.81% growth while Return on Investments registered a decline of 0.6%.

2015 2014 2013 2012Investments Held to Maturity 240.234 240.362 240.491 235.052Investments in Originated Loans 55.128 48.856 40.925 39.824Investments Available for Sale 25.899 25.691 25.691 21.129Investments in Real Property 35.362 35.362 20.729 20.729

356.623 350.270 327.836 316.734

DSS INVESTMENT PORTFOLIO (2012- 2015)


2015 2014 2013 2012 2011

Loans 3.305 3.212 3.037 3.11 2.784Deposits 5.571 6.536 6.153 6.193 6.393Bonds 4.904 4.345 5.576 3.636 3.636Treasury Bills 0.780 0.789 0.895 1.224 1.146Equity 1.458 1.233 0.939 0.676 0.986Real Estate 0.352 0.354 0.34 0.38 0.358Total 16.370 16.469 16.940 15.219 15.303

INVESTMENT INCOME (EC$M)

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REvIEW OF INSURANCE OPERATIONSREGISTRATION OF INSURED PERSONSDuringtheyearunderreview,thetotalnumberofinsuredpersons who registered with the Dominica Social Securitydecreasedby11.2%,whencomparedwiththeprevious year. In 2015, there were 1,377 new registrants, whereas there were 1,551 in 2014. Among the 1377 new registrants—1,274 were employees, 101 self-employed and2voluntarycontributorswhereasin2014the1,551new registrants comprised 1,493 employees and 58 self-employed. We are pleased with the significant increase recorded in the registration of persons as self-employed, an increase of 74.1% and hope that this trend will continue.

As was expected, following the change in the legislation regarding the registration of persons as voluntary contributors,effectiveMarch2015,wearebeginningtoseetheregistrationofpersonsasvoluntarycontributors.

Although there were only two such persons, we are hoping that eventually there will be an increase. Thissmall number of registrations is no indication of thenumberofpersonswhoresideoverseaswhoaretakinguptheopportunitytocontributetotheDominicaSocialSecurity as many such persons were already registered andarenowbeingtransferredfromemployeestatustovoluntarycontributorstatusand,assuch,arenotbeingcounted among the new registrants.

As indicated in Table 1 below, 83.1% of registeredemployees were below age 30. The 20-24 age grouphad the largest percentage, 44.7%, of new registrants. In the case of persons who registered as self-employed, 36.7%werebelowage30,while57.5%registeredatolderages—i.e. between 30 and 54 years.Most registrantswere also within the 20 – 24 age group.

Table 1: New Registrations by Age Group Totals (2015, 2014)

Employees Self-Employed 2015 2014 2015 2014

Age Group No.

% of Total No.

% of Total No.

% of Total No.

% of Total

16 - 19 385 30.2 428 28.7 5 5.0 1 1.7 20 - 24 570 44.7 688 46.1 23 22.8 11 19.0 25 - 29 104 8.2 146 9.8 9 8.9 11 19.0 30 - 34 80 6.3 90 6.0 8 7.9 10 17.2 35 - 39 45 3.5 51 3.4 14 13.9 4 6.9 40 - 44 26 2.0 40 2.7 11 10.9 4 6.9 45 - 49 32 2.5 27 1.8 13 12.9 10 17.2 50 - 54 17 1.3 12 0.8 12 11.9 6 10.3 55 - 59 10 0.8 11 0.7 5 5.0 1 1.7 60 - 64 5 0.4 0 0 1 1.0 0 0 Total 1,274 100.0 1,493 100.0 101 100.0 58 100.0


Table 2 and the chart which follows give a comparative viewof thegenderbreakdownofemployees,voluntarycontributorsandself-employedpersonsbyagegroup.As indicated in the table, in theyearunder review, thetrend continued, as in the previous year, where the total

number of females (employees, voluntary contributorsand self-employed) who registered is higher than the numberofmales.In2015,femalesaccountedfor51.4%of the newly registered while, in 2014, they accounted for 51.3%.

Note: 2 persons registered as voluntary contributors

2015 2014

Employees + Vol. Contrib. Self-employed All Insured Employees Self-employed All Insured

Age Group Males Females Males Females Males Females Males Females Males Females Males Females

15 - 19 195 190 4 1 199 191 217 211 1 0 218 211 20 - 24 248 322 14 9 262 331 316 372 5 6 321 378 25 - 29 53 52 5 4 58 56 81 65 10 1 91 66 30 - 34 43 38 6 2 49 40 39 51 7 3 46 54 35 - 39 24 21 7 7 31 28 30 21 2 2 32 23 40 - 44 18 8 6 5 24 13 16 24 1 3 17 27 45 - 49 14 18 7 6 21 24 11 16 6 4 17 20 50 - 54 8 9 6 6 14 15 5 7 3 3 8 10 55 - 59 4 6 3 2 7 8 4 7 1 0 5 7 60 - 64 3 2 1 0 4 2 Total 610 666 59 42 669 708 719 774 36 22 755 796

Table 2: New Registrations by Age Group & Gender (2015, 2014

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REGISTRATION BY NATIONALITYThe percentage of non-nationals who registered in 2015 increased to 16.6%, from 13.4% in 2014, as illustrated in Table 3 and the chart below. This may have beendue to the increaseby24.7% in thenumberofHaitiannationals who registered in 2015. As for previous years, haitians made up the highest percentage (46.5%) of non-nationals who registered. During the year under review, 83.4% of total new registrants were Dominicans, 7.7% were haitians and 3.2% were other CARICOM nationals.

As illustrated below, 29 of the new registrants in 2015were OECS nationals and almost 50% of them are nationalsofAntiguaandBarbuda.Further,about66%of the CARICOM nationals, excluding Dominica and haiti are OECS nationals.

New Registrations – OECS Nationals, 2015

Employees

Self-Employed Totals

Antigua &Barbuda 13 1 14 Grenada 2 0 2 St. Lucia 8 2 10 St. Vincent 3 0 3 Totals 26 3 29


2015 2014

Country of Birth

Employees + Vol.

Contrib. Self-

Employed Total Employees Self-

Employed Total

Africa 2 0 2 6 1 7

Asia 8 2 10 3 3 6 CARICOM & Ass. States ( exc. Dominica & Haiti) 41 3 44 51 2 53

Dominica 1,072 77 1,149 1,297 46 1,343 Dominican Republic & Cuba 12 4 16 6 2 8

Europe 14 4 18 13 0 13 Guadeloupe & Martinique 9 0 9 9 0 9

Haiti 96 10 106 81 4 85

United States & Canada 14 1 15 17 0 17

Rest of World 8 0 8 10 0 10

Total 1,276 101 1,377 1,493 58 1,551

Table 3. New Registrations by Country of Birth (2015, 2014)

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SUMMARY OF NEW REGISTRATIONS – INSURED PERSONSTable 4 and the accompanying chart summarize the registration of insured persons for the last five years.

As illustrated, the number of new registrants in 2015decreasedby11.2%whencomparedwith2014.

Table 4: New Registrations – Insured Persons by Sex (2011 – 2015)

Note: There were 2 voluntary contributors

Employees + Vol. Contrib. Self -Employed All Insured

Year Males Females Males Females Males Females Total %

Change 2011 701 650 38 41 739 691 1,430 -18.8 2012 583 574 46 31 629 605 1,234 -13.7 2013 550 534 34 23 584 557 1,141 -7.5 2014 719 774 36 22 755 796 1,551 35.9 2015 610 666 59 42 669 708 1,377 -11.2


EMPLOYER REGISTRATIONSThe number of new employers who registered duringthe year under review was 10.1% lower than the number who registered in the previous year. Whilethere were 218 registrations in 2014, there were only 196in2015.Thesectorsrecordingthehighestnumberof registrations were “Other Community, Social & Personal Service Activities” – 26.5%, and “Hotels

& Restaurants”-16.3%. When compared with the registration of self-employed persons, the sectors with thehighestnumberofregistrationswere“Agriculture, Hunting & Forestry”- 29.7%, “Other Community, Social & Personal Service Activities”- 25.7% and “Wholesale & Retail”- 15.8%.

Table 5: New Employer Registrations By Economic Activity (2015, 2014)

2015 2014

No. % of Total No.

% of Total

Agric., Hunting & Forestry 11 5.6 12 5.5 Fishing 2 1.0 0 0.0 Manufacturing 6 3.1 0 0.0 Mining & Quarrying 0 0.0 0 0.0 Electricity, Gas & Water 1 0.5 4 1.8 Construction 27 13.8 43 19.7 Wholesale & Retail 27 13.8 29 13.3 Hotels & Restaurants 32 16.3 30 13.8 Transport, Storage & Com. 7 3.6 10 4.6 Financial Intermediation 2 1.0 4 1.8 Real Estate, Rent & Business 9 4.6 5 2.3 Public Admin. & Defence 0 0.0 0 0.0 Education 3 1.5 6 2.8 Health & Social Work 1 0.5 2 0.9 Other Com., Social & Pers. Service Act. 52 26.5 46 21.1 Private Households 16 8.2 26 11.9 Extra-Territorial Orgs. 0 0.0 0 0.0 Not Classified 1 0.5 1 0.5 Totals 196 100.0 218 100.0

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Table 6: New Self-Employed Registrations By Economic Activity (2015, 2014)

ACTIVE INSURED POPULATIONDuring the year under review, a total of 22,052 persons were active – i.e. at least one contribution was madeeither by them or on their behalf, during the year. Asillustrated in Table 7below,thisrepresentedadecreaseof 3.2% when compared to the revised figure – 22,790, for 2014. As was expected, there was an increase in

thenumberofvoluntarycontributors,sincethechangein the legislation regarding the registrationbyvoluntarycontributorswasimplementedin2014.Therewasmorethan a 200% increase in active voluntary contributors,increasingfrom11in2014to35in2015.Thenumberofactiveself-employeddecreasedby2.8%.

Economic Activity

2015 2014

No. % of Total No.

% of Total

Agric., Hunting & Forestry 30 29.7 15 25.9 Fishing 4 4.0 5 8.6 Manufacturing 2 2.0 0 0.0 Mining & Quarrying 0 0.0 0 0.0 Electricity, Gas & Water 3 3.0 3 5.2 Construction 5 5.0 0 0.0 Wholesale & Retail 16 15.8 12 20.7 Hotels & Restaurants 6 5.9 4 6.9 Transport, Storage & Com. 3 3.0 0 0.0 Financial Intermediation 0 0.0 0 0.0 Real Estate, Rent & Business 4 4.0 1 1.7 Public Admin. & Defence 0 0.0 0 0.0 Education 0 0.0 0 0.0 Health & Social Work 1 1.0 1 1.7 Other Com., Social & Pers. 26 25.7 13 22.4 Private Households 1 1.0 4 6.9 Totals

101

100.0

58

100.0


Table 7: Active Insured Population (2011 – 2015)

Note: The active insured population for 2014 has been updated.

• Itmustbenotedthatthefiguresforactiveinsuredaresubjecttochangeasandwhentheaccountsofemployers who pay contributions late in respect of the particular years are updated.

Active Population Active Self Employed

Active Voluntary Contributors

Year Males Females Un-

registered Total %

Change No. %

Increase No. %

Increase 2011 10,700 10,875 1,703 23,278 0.6 814 (10.5) 11 (8.3) 2012 10,412 10,683 1,768 22,863 (1.8) 746 (8.4) 8 (27.3) 2013 10,219 10,681 1,481 22,381 (2.1) 710 (4.8) 7 (12.5) 2014 10,182 11,117 1,491 22,790 1.8 710 (0.0) 11 57.1 2015 9,737 11,324 991 22,052 (3.2) 690 (2.8) 35 218.2

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ACTIVE EMPLOYERSThenumberofactiveemployersdeclinedfrom1,976in2014, to 1,845 in 2015, as illustrated in Tables 8 and 9 and the charts which follow. The economic activities withthehighestnumberofactiveemployersare“Other

Community, Social & Personal Service Activities”, i.e.26.1%,followedby“Wholesale&Retail”with17.8%.

Table 8: Active Employers by Economic Activity (2015, 2014)

Economic Activity

Active Employers 2015 2014

No. % of Total No.

% of Total

Agric., Hunting & Forestry 99 5.4 104 5.3 Fishing 5 0.3 4 0.2 Manufacturing 35 1.9 33 1.7 Mining & Quarrying 6 0.3 6 0.3 Electricity, Gas & Water 18 1.0 19 1.0 Construction 160 8.7 218 11.0 Wholesale & Retail 329 17.8 351 17.8 Hotels & Restaurants 211 11.4 212 10.7 Transport, Storage & Com. 57 3.1 55 2.8 Financial Intermediation 52 2.8 57 2.9 Real Estate, Rent & Business 69 3.7 67 3.4 Public Admin. & Defence 64 3.5 64 3.2 Education 49 2.7 55 2.8 Health & Social Work 64 3.5 67 3.4 Other Com., Social & Personal Service Act. 481 26.1 491 24.8 Private Households 142 7.7 168 8.5 Extra-Territorial Orgs. 4 0.2 5 0.3

Totals 1,845 100.0

1,976 100.0


Table 9: New Employer Registrations vs. Active Employers (2011 – 2015)

New Registrations Active Employers

Year No. %

Change No. %

Change 2011 282 -16.1 2,143 -1.6 2012 258 -8.5 2,063 -3.7 2013 259 0.4 2,004 -2.9 2014 218 -15.8 1,976 -1.4 2015 196 -10.1 1,845 -6.6

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Table10: Summary of Registration & Contribution Statistics

• Note:Thefiguresforactiveinsuredaresubjecttochangeasandwhentheaccountsofemployerswhopay contributions late in respect of the particular years are updated.

LONG TERM BENEFIT BRANCHThe pensionable age increased to 62 years, effectiveJanuary 2015, in keeping with the reform measureswhichwere implemented in 2012. The number of Agepensioners increased from 4,695 in 2014 to 4,805 in 2015, an increase of 2.3%, as illustrated in Table 11below.Although the number of age pensioners continues toincrease, the percentage increase over the last two

years has declined. The benefit expenditure increasedby4.7%from$39.875Min2014to$41.744Mintheyearunder review. This increase was much smaller than the two previous years. The expenditure on Age pensions was 88.5% of the expenditure of the Long Term Benefit branch,and78.3%oftotalbenefitexpenditure.

Table 11: Age Pension (2011 -2015)

2015 2014 % Change New Registrations -Insured 1,377 1,551 (11.2) Employees 1,274 1,493 (14.7) Self-employed 101 58 74.1 Voluntary Contributors 2 New Registrations -Employers 196 218 (10.1) Active Insured 22,052 22,790 (3.2) Employees 21,327 22,069 (3.4) Self-employed 690 710 (2.8) Voluntary Contributors 35 11 218.2 Active employers 1,845 1,976 (6.6)

Year No. in

Payment % Change Benefit Amount % Change

2011 4,335 4.3 34.025 9.1 2012 4,434 2.3 35.690 4.9 2013 4,578 3.2 37.664 5.5 2014 4,695 2.6 39.875 5.9 2015 4,805 2.3 41.744 4.7


The table and chart which follow highlight the agedistributionofpersons inreceiptofagepensionduring2015. There was a slight increase in the percentage of pensionersage70yearsandabove,from47.3%in2014,to 47.8% in 2015 while, in the case of pensioners 90 yearsandabove,thenumberincreasedto59,i.e.1.2%

of total pensioners. In total, male pensioners continue to outnumber total female pensioners; however, femalescontinuetodominatethenumberofpensionersabovetheageof90;representingabout70.0%ofthepensionersinthat age category.

Table 12: Age Pensioners by Age Group & Gender, 2015

Age Males Females Total % of Total

60 - 64 632 558 1,190 24.8 65 - 69 679 638 1,317 27.4 70 - 74 524 435 959 20.0 75 - 79 354 338 692 14.4 80 - 84 184 229 413 8.6 85 - 89 73 102 175 3.6 90 - 94 15 30 45 0.9 95+ 3 11 14 0.3

Totals 2,464 2,341 4,805

100.0

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ThecostofInvalidityPensionsgrewby8.9%,from$1.239Min2014to$1.349Min2015,whilethenumberof pensioners increasedby3.3%; from150 in 2014 to155 in 2015.

In the case of Survivors Pensions, the amount expended increasedby13.9%,from$2.845Min2014to$3.241M

in 2015. Similarly, the number of persons in receipt ofSurvivorspensiongrewby9.0%--i.e. from921 in2014to 1,004 in 2015.

The following table depicts the number of pensions inpaymentandgrantspaid,bybenefittype,overthelastfive years.

Table 13: Summary of Long Term Benefits (2011 – 2015)

Long Term Benefits

Year

Pensions Grants Age Invalidity Survivors Age Invalidity Survivors Funeral

2011 4,335 166 802 138 0 11 233 2012 4,435 159 864 146 4 4 222 2013 4,578 149 877 178 0 8 269 2014 4,695 150 921 109 1 6 247 2015 4,805 155 1,004 124 6 12 284

CLAIMS UNDER CARICOM AGREEMENT ON SOCIAL SECURITY

During the year under review, the DSS continued to honouritsobligationundertheCARICOMAgreementonSocialSecurity(CASS)byfacilitatingCARICOMnationalsinaccessingtheirbenefitsfromsisterinstitutionsacrosstheregionwhilepayingitsshareoftheirbenefitsasandwhen they becomedue. For the year 2015,DSSpaida total of $112,233.06 in respect of 44 persons whose pensionswerebeingpaidpursuanttotheprovisionsofthe said CASS. Of these 44 persons, 39 are in receipt of Age Pension while the other 5 are recipients of Survivor’s Pension.

EMPLOYMENT INJURY BENEFITS As was the case in the previous year, there was a decreaseinthenumberofpersonswhosufferedinjuryorcontractedanoccupationaldiseaseon the job.ThenumberofInjuryBenefitawardsdecreasedsignificantly,i.e. from 135 awards in 2014 to 94 awards in 2015 or 30.4%. At the same time, the number of pensionsin payment within that branch also decreased--withDisablementpensionsgoingfrom30in2014to26in2015whilethenumberofDeathpensionssimilarlydecreasedfrom 12 to 10. This represented a 13.3% decrease in Disablementpensionsandadecreaseof16.7% in thenumberofDeathpensions.


Despite the significant decrease in the number ofInjury Benefit cases, i.e. persons who suffered injury or contractedoccupationaldiseasesonthejob,duringtheyear under review, there was a noticeable increase inthe number of awards in respect of persons engagedin the “Public Administration and Defence” sector.

In fact, this sector had the highest percentage (22.3%), surpassing the Construction and Wholesale & Retail sectors which, in previous years, recorded the highest percentages.

Wecommendtheemployerswhocontinuetotakestepsaimedatreducingtheincidenceofaccidentsonthejobbyprovidingsaferworkenvironmentsfortheiremployees.

SHORT TERM BENEFITSThe number of Sickness Benefit awards during 2015reverted to its pre 2014 trend, with a decrease of 18.8%. As we may recall, the awards in 2014 shot up to 9,709 becauseoftheChikungunyaepidemic;however,in2015there were 7,887 awards. Similarly, the expenditure for Sicknessbenefitdecreasedby4.2%, from$4.927M in2014 to $4.720M for the year under review.

There were substantial increases in the expenditureon Maternity Allowances and Maternity Grants which were awarded in 2015. The cost of Maternity Allowance increasedby28.6%from$0.730Min2014to$0.939Min 2015, while Maternity Grant expenditure went from $0.113M to $0.133M, an increase of 18.6%. Such statistics reflects an increase in the birth rate amongwomen who are in employment.

Table 14: Injury Benefit by Economic Activity (2015, 2014)

2015 2014 Economic Activity Males Females Totals Males Females Totals

Agric., Hunting & Forestry 1 0 1 3 0 3 Fishing 0 0 0 0 0 0 Mining & Quarrying 1 0 1 4 0 4 Manufacturing 5 0 5 9 0 9 Electricity, Gas & Water 3 0 3 8 0 8 Construction 12 0 12 30 0 30 Wholesale & Retail 12 5 17 25 5 30 Hotels & Restaurants 11 5 16 5 3 8 Transport, Storage & Comm. 4 2 6 8 1 9 Financial Intermediation 0 0 0 2 0 2 Real Estate, Rent & Business 2 0 2 4 1 5 Public Admin. & Defence 10 11 21 8 7 15 Education 0 0 0 3 0 3 Health & Social Work 0 2 2 0 1 1 Other Comm., Social & Personal Services Act. 3 5 8 8 0 8 Private Households 0 0 0 0 0 0 Total 64 30 94 117 18 135

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Table 15 below summarizes the number of awardsmade under the Short Term and Employment Injury branchesforthelastfiveyearsandTable 16 summarises

thebenefitawardsandexpenditureforallbenefittypesfor 2014 and 2015.

Table 15: Short Term and Employment Injury Benefits (2011 – 2015)

Short Term Benefits Employment Injury Benefits

Year Sickness Maternity Injury

Benefit Medical

Expenses Disablement Death

Pension Allowance Grant Pension Grant 2011 7,630 352 327 149 10 32 1 13 2012 7,295 321 286 134 5 33 0 14 2013 7,882 352 324 144 5 29 0 13 2014 9,709 241 240 135 11 30 0 12 2015 7,887 307 266 94 3 26 0 10


Table 16: Benefit Expenditure (2015, 2014)

2015 2014

Grants Allowances/

Pensions Total Grants Allowances/

Pensions Total

Benefit No Value ($M) No

Value ($M)

Amount ($M) No

Value ($M) No

Value ($M)

Amount ($M)

Sickness 7,887 4.720 4.720 9,709 4.927 4.927 Maternity 266 0.134 307 0.939 1.073 240 0.113 241 0.730 0.843 Short Term 266 0.134 8,194 5.658 5.792 240 0.113 9,950 5.657 5.770 Injury 94 0.087 0.087 135 0.098 0.098 Disablement 0 0.000 26 0.188 0.188 0 0.000 30 0.211 0.211 Death 10 0.056 0.056 12 0.063 0.063 Medical Exp. 3 0.001 0.001 11 0.003 0.003 Employment Injury 3 0.001 130 0.330 0.331 11 0.003 177 0.372 0.375 Age 124 0.207 4,804 41.744 41.952 109 0.178 4,695 39.875 40.053 Invalidity 6 0.005 155 1.349 1.354 1 0.001 150 1.239 1.240 Survivors 12 0.003 1,004 3.241 3.243 6 0.002 921 2.845 2.846 Funeral 284 0.609 0.609 247 0.537 0.537 Refund of NPF 0.009 0.012 Long Term 426 0.824 5,963 46.334 47.166 363 0.717 5,766 43.959 44.688 Redundancy 0.001 0.173 Totals 695 0.958 14,287 52.323 53.290 614 0.832 15,893 49.989 51.007

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REPORT ON ADMINISTRATIONDuring the year under review, the administration of the Dominica Social Security continued in a manner which resulted in the attainment of its mandate in a cost effective way.

DELINQUENCYAttheendofDecember2015,therewere765delinquentemployersandthetotaldebtowedtotheDSSstoodat$6.354million;i.e.areductionofa$1.116millionor15%belowyearend2014.

Thedebtlevelreflectedasignificantreductionaseffortscontinued in getting delinquent employers to makepayments towards liquidation of their arrears.

Fortheyear2015,newdebtsdeterminedamountedto$1.068M, with the month of November recording thehighest level of $0.239M. A total of 169 new employers were added to the delinquency system during the course of the year.

In 2015, collections against arrears amounted to $2.248M, i.e. $1.179M over the amount of new debtdetermined and 161 employers cleared their balancesduring the year 2015. The payment of arrears surpassed newdebtenteredformostmonthsexceptOctoberandNovember2015.

Figure 2: Debt Entered VS Debt Paid


LEGALIn 2015, time allocated to the various core functions hadtobeadjustedaspreparationofdocumentsfortherevamped Student Loan Facility competed for time in the workday.

Greater efficiency was realized in the disposal of matters in the Magistrate’s Courts in 2015. Three main factors are tobecreditedforthis:-

1. theintroduction,bytheGovernment,ofathird Magistrate’s Court in Roseau replete with a Magistrate from late 2014, which meant that civilcourtdaysincreasedfromoneperweek, tothreeperweek;

2. theengagement,bytheDSS,ofaseasoned andreliableprocessserverlatein2014which producedrecordhighservicepercentages;and

3. thepursuitofdelinquentemployersinboth civil and criminal courts. This resulted in more courtattendancefortheLegalOfficerbutis viewed as a necessary evil and we achieved the desired results with regard to higher levels ofsuccessfuldisposalofmattersbrought beforethecourts.

The prosecution of delinquent employers as a private criminal complaint was introduced in 2012 as part of a broader strategic plan. Two noteworthy consequencesof utilizing the criminal courts are:-

1. theabilitytopursuedirectorsofacorporation/ companywhokneworcouldreasonablybe expectedtohaveknownofthefailuretopay theunpaidcontributions,sincetheyare consideredjointlyandseverallyliableforthe contributionsif,uponconviction,the corporation/companyfailstopayasorderedby the Court. hence directors are forewarned thattheycanbemadepersonallyliablefor contributionsowedbyacorporatebody;and

2. therecoveryofdebtsinexcessof$10,000.00 in the Magistrates’ Courts, which is the limit of sumsrecoverableinthecivilsectionofthesaid courts.

A summary of the matters filed in the Magistrates’ Courts in2015(whichiswherethebulkofmatterswerefiled),isgiven in Figure 1 while Figure 2 shows a comparison of the aforementioned data with the previous year, 2014.

NEW MATTERS FILED IN THE MAGISTRATES’ COURTS 2015

SUMMONS (civil) 43 COMPLAINTS (criminal) 5

JUDGMENT DEBTOR SUMMONS 37 COMMITAL WARRANTS 11

TOTAL 96

New Matters filed in Magistrates’ Courts 2014

New Matters filed in Magistrates’ Courts 2015

SUMMONS (civil) 51 43 COMPLAINTS (criminal) 10 5

JUDGMENT DEBTOR SUMMONS

18 37

COMMITAL WARRANTS 8 11 TOTAL 87 96

Figure 1

Figure 2

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As indicated, recoveryofdebt inexcessof$10,000.00which traditionally was pursued solely in the high Court, isnowbeingrecoveredintheMagistrates’criminalcourtsas well. Notwithstanding, 5 Claim Forms for the recovery ofoutstandingcontributionswerefiledintheHighCourtduring the course of 2015.

While activities aimed at collecting from delinquent employersconsumedalargepartoftheworkoftheUnit,other core functions such as Contract Management, Representation at Tribunals, Provision of Legal Adviceand Document Preparation and Drafting of Legislative Provisions were also handled in an efficient manner.

HUMAN RESOURCES2015 was another successful year as far as the staffing of theInstitutionwasconcerned.Wewereabletomaintainthe efficiency of operations with the same level of human resources—48 and the able assistance of two internsfrom the National Employment Programme.

Recognising the importance of maintaining a healthy workforce, the monthly visit of a health professionalto monitor the health status of staff members wasintroducedand,fromsuchvisits,membersofstaffwhorequire further attention are advised to do so.

Members of the Board, Management and Staff werealso afforded the opportunity to participate in training and/or meetings focusing on the following areas:

• ElectricalInstallation• InternationalSocialSecurityAssociation(ISSA) GovernanceWorkshop• StrategicHumanResourceManagement• AnnualRegionalLawConference• CISSGeneralAssembly• CARICOMHeadsofSocialSecurityMeeting• CharteredDirector’sTraining• AtlanticConnectionFinancialConference

The following members of staff attained milestoneanniversaries during the year:

Milestones HONOUREES

40 Years Ms Shirlyn Pond—Customer Service Representative 35 Years Mrs. Janice Jean-Jacques Thomas—Executive Director 25 Years Mr. Sam Martin—Compliance Officer

Ms. Vilna Gallion—Customer Service Representative Mr. Phillip Gallion—Driver Mr. Anthony Detouche—Customer Service Representative Ms. Deborah Baptiste—Customer Service Representative Ms. Jacqueline Wright—Compliance Officer

20 Years Ms. Margaret-Rose Tonge--Customer Service Representative 10 Years

Ms. Celia Delauney—Legal Officer Ms. Eslyne Ryner—Human Resource & Administration Officer Mrs. Annette Winston—Administrative Assistant –Legal


Honourees (Inset: Eslyne Ryner)

The Board and Management continue to value the contributionthattheyhavemadetotheinstitution,overtheyears,andwishthemtheverybestastheycontinuein the service of the institution.

CORPORATE SOCIAL RESPONSIBILITYThe Institution, once again, extended assistance to a numberoforganizationstoassistinthefulfilmentoftheirvarious mandates which were complementary to that of the Dominica Social Security. Recipient Institutions included:

• TheEducationTrustFund• DominicaInfirmary• CALLS• GrottoHomefortheHomeless• MahautSeniorCitizensHome• HouseofHope• St.Jerome’sMinistry--GrandBay• Chances• DominicaAssociationofPersonswith Disabilities• NorthernDistrictHomefortheAged• CancerPatients/DominicaCancerSociety

In addition to the above Institutions, who are regularbeneficiaries of our donations, assistance was alsoextendedtotheDominicaStateCollegeandanumberofsecondary and primary schools in the recognition of their

students at their Prize- giving and Graduation ceremonies.

Further, assistance was extended, in various forms—including housing, food and other supplies--to persons who suffered from the ravagesofTropicalStormErika.

Community Action: Following the passage of TropicalStormErika,membersofstaffjoinedefforts in cleaning the debris andmud fromthe immediate vicinity of the DSS building,andwithintheofficetoensurethatworkcouldresumewithoutmuchdelay.Staffmembersalso reached out to a displaced resident of Good Hope and her family by refurbishinga vacant property and providing household items so that the family could enjoy some level of normalcy.

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LOOKING AHEADEfforts at reducing delinquency will continue as we strive to have employers acknowledge the importance ofmakingregularcontributionsandensuringtheprotectionof their employees. In that regard, our education effortswill continueasweseek togetall stakeholdersto understand and appreciate the role and purpose of Social Security.

As a means to improve the efficiency with which the maintenance of employee records can be effectedwith the resultant faster turnaround in the processing andcalculationofbenefits,wewillbetargetingalllargeemployers who have not yet started submitting theircontributionsrecordselectronically.

Meanwhile, we eagerly await the recommendations that will emanate from the 12th Actuarial Review of the Fund which we expect to further strengthen our efforts at ensuringthe longtermsustainabilityof thesystem.Wecommit to work towards the timely implementation ofanyrecommendationssomadeforthewell-beingoftheFund and to continue delivering on the promise made to our insured.

The focus on attacking delinquency will continue toguide our efforts as we strive to capitalize on the reduction realised during the past year and as we give the necessary support to our Legal and Delinquency functionswhojointlyworkatachievingsuchreduction.

Whilewelookforwardtocollectingallcontributionsdueto the Fund, we recognise the importance played byInvestmentIncomeand,inthatregard,workwillcontinueto improve the returns on our investment portfolio to achieve an average rate of return which approximates thatexpectedbytheActuarialprojections.

At the same time, we will continue to strive to increase the level of coverage among our nationals so that we canseeeveryonewhoshouldbecontributingdoingso,and also to encourage those residing overseas to secure themselvesbytakingadvantageoftheflexiblevoluntarycontributorsprogramme.

Weintendtoreachouttoourvariousstakeholdersduringthe40thyearoftheestablishmentoftheDominicaSocial

Securityandlookforwardtocelebratingtheachievementsoftheinstitutionthroughtheyearsandtobuildonsuchfoundation for greater successes in the future.

ACKNOWLEDGEMENTSWe once again recognize the efforts of all those whose commitment and cooperation allowed the Dominica Social Security to achieve another successful year and to thrive amidst the many challenges.

TotheHonourablePrimeMinisterandMinisterofFinance,whoalsohas responsibility forSocialSecurity,we saythank you for your support and that of your Cabinetduring 2015. We also acknowledge the assistance oftheFinancialSecretary in facilitatingsuchcollaborationbetween theDSSand theMinistry of Finance and, byextension, the Government of Dominica. To the Chairman and Members of the Board andChairmanandmembersof the InvestmentCommittee,we convey appreciation for their policy directive and advice on investment related matters.

The members of the Student Loans Committee havedevoted much effort, during the year, to ensure the timely processing of loans and, thereby, contributed to thegrowthoftheprogramme;andforthiswearegrateful.

Our stakeholders are the ones who make the resultspossible, and in recognition of this, we commend allemployers who continue to meet their obligations topaycontributionsinatimelymanner,theself-employedpersons for recognizing the need to provide themselves with income security, to the many Dominican Nationals residing overseas who have taken advantage of theopportunitytopaycontributionsasvoluntarycontributors.

We also extend much gratitude to our friends in the various regional Social Security Institutions who reached out to us in theaftermathofTropicalStormErikaby sendingmuch needed water, food and other relief supplies which wewereable todistribute tosomepersonswhowereaffected.

SpecialmentionmustbemadeoftheSt.LuciaNationalInsurance Corporation, the Grenada National Insurance Board,theAntiguaandBarbudaSocialSecurityBoardand the St. Christopher and Nevis Social Security Board fortheirtangibleshowofsupport.


For the commitment of management and staff who continuetoputgreateffortintomakingitallpossible,weapplaud you.

Toallotherswhoreachedouttousand,thereby,aidedourefforts;wesayaspecialthankyouandlookforwardtoyourcontinuedcollaborationintheensuingyears.


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TABLE OF CONTENTS PAGE

Auditors’ Report F1

Statement of Financial Position F2

Consolidated Income and Expenditure Account F3

Statement of Income , Expenditure and Reserve:

Long-term Benefit Branch F4

Short-term Benefit Branch F5

Employment Injury Benefit Branch F6

Redundancy Fund F7

Statement of Changes in Reserves F8

Statement of Cash Flows F9

Notes to the Financial Statements F10 - F21

DOMINICA SOCIAL SECURITY BOARDFINANCIAL STATEMENTS

FOR ThE YEAR ENDED DECEMBER 31, 2015

Dominica Social Security — “Stemming the Tide of Employer Delinquency to Safeguard Employee Benefits!” F1

To The Dominica Social Security Board

We have audited the financial statements of Dominica Social Security Board set out on pages 2 to 21 for the year ended December 31, 2015.

Management’s Responsibility for the Financial StatementsManagement is responsible for the preparation and fair presentation of these financial statements in accordance with International Financial Reporting Standards and for such internal control as management determines is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

Auditors’ ResponsibilityOur responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with International Standards on Auditing. Those standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditors’ judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditors consider internal control relevant to the entity’s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by management, as well as evaluating the overall presentation of the financial statements.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.

As disclosed in note 4, there is uncertainty with regard to the realization on maturity of fixed deposits with certain regional insurance companies which are under judicial management. Because of this uncertainty, we are unable to satisfy ourselves as to the adequacy of the provision against those fixed deposits.

OpinionIn our opinion, except for the effect on the financial statements of the matter referred to in the preceding paragraph the financial statements present fairly, in all material respects, the financial position of Dominica Social Security Board as at December 31, 2015 and its financial performance and its cash flows for the year then ended in accordance with International Financial Reporting Standards and comply with the Social Security Act, Chapter 31:01 of the Revised Laws of the Commonwealth of Dominica (1990 Edition).

Roseau, DominicaJune 15, 2016 KPB CHARTERED ACCOUNTANTS Pedro Investments Building, Independence Street, P.O. Box 202, Roseau, Commonwealth of Dominica Tel. 448 2511/2 Fax 448 5201E-mail: [email protected] website: www.kpbcharteredaccountants.comPartners: Kieron Pinard-Byrne (CEO/Chairman), Marvlyn Estrado, Orlando Allan Richards

AUDITORS’ REPORT

F2 DominicaSocialSecurity,FinancialStatements:YearEndingDecember31,2015

DOMINICA SOCIAL SECURITY BOARD Statement of Financial Position As At December 31, 2015 (Expressed in Eastern Caribbean Dollars)

Notes 2015 EC$

2014 EC$

ASSETS

Cash and cash resources 3(d) 120,404,262

119,246,233 Accounts receivable (net of Provision) 3(e) 18,421,041

18,558,331

Prepayment

420,302

801,407 Inventory

263,831

292,830

Electricity deposit

10,000

10,000 Originated loans and advances 7 55,128,178

48,856,671

Investment Securities: held to maturity 5 124,390,298

123,471,907 Investment Securities: available -for-sale 6(a) 25,899,120

25,690,773

Investment properties 4 35,361,968

35,361,968 Property and equipment 8 3,741,377

3,817,798

TOTAL ASSETS

384,040,377

376,107,918 LIABILITIES Accounts Payable and Accrued Expenses

9

2,688,948

2,334,918 TOTAL LIABILITIES 2,688,948 2,334,918 RESERVES Long-term Benefit Reserve 312,020,794 310,124,574 Short-term Benefit Reserve 21,141,669 18,720,235 Employment Injury Benefit Reserve 16,949,414 14,601,991 Redundancy Fund 11,139,223 10,434,218 Fair value reserve -available-for-sale investments 6(b) 5,467,481 5,259,134 Revaluation surplus 12 14,632,848 14,632,848 TOTAL RESERVES 381,351,429 373,773,000 TOTAL LIABILITIES AND RESERVES 384,040,377 376,107,918

The accompanying notes form an integral part of these financial statements.

THESE FINANCIAL STATEMENTS WERE APPROVED BY THE DIRECTORS ON JUNE 15, 2016 AND SIGNED ON BEHALF OF THE BOARD BY: Anthony Joseph Janice Jean-Jacques Thomas Chairman Director

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DOMINICA SOCIAL SECURITY BOARD Consolidated Income and Expenditure Account For the Year Ended December 31, 2015 (Expressed in Eastern Caribbean Dollars)

Notes

2015 EC$

2014 EC$

Income Contributions 51,712,568 47,595,992 Other 10 16,931,263 17,002,871 68,643,831 64,598,863 Expenses Benefits Payments 53,290,479 51,006,543 Administrative and general expenses 5,920,355 5,331,458 Impairment on investments and receivables 5 2,000,000 2,150,000 61,210,834 58,488,001 NET INCOME FOR THE YEAR 7,432,997 6,110,862 TRANSFER TO RESERVE AND REDUNDANCY FUND

Long-term Benefit Reserve

1,896,220 1,426,110 Short-term Benefit Reserve

2,421,434 1,982,279

Employment Injury Benefit Reserve

2,347,423 2,134,695 Redundancy Fund

767,920 567,778

7,432,997 6,110,862

Net income for the year is arrived at after charging:

Depreciation

320,264 322,150 Audit fees

35,000 35,000



DOMINICA SOCIAL SECURITY BOARD Long-term Benefit Branch Statement of Income, Expenditure and Reserve For the Year Ended December 31, 2015 (Expressed in Eastern Caribbean Dollars)

2015

EC$ 2014

EC$ Income Contributions 41,207,802 37,696,294 Other 14,943,069 15,185,096 56,150,871 52,881,390 Expenses Benefit payments 47,166,379 44,687,154 Administrative and general expenses 5,327,465 4,853,049 Impairment on investments and receivables 1,760,807 1,915,077 54,254,651 51,455,280 NET INCOME FOR THE YEAR - transferred to Long-term Benefit Reserve

1,896,220

1,426,110 LONG-TERM BENEFIT RESERVE: Balance at beginning of the year

310,124,574

308,698,464

Net income for the year 1,896,220 1,426,110 Balance at December 31, 2015 312,020,794 310,124,574


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DOMINICA SOCIAL SECURITY BOARD Short-Term Benefit Branch Statement of Income, Expenditure and Reserve For the Year Ended December 31, 2015 (Expressed in Eastern Caribbean Dollars)

2015 EC$

2014 EC$

Income

Contributions

7,559,721

7,128,029 Other

1,081,802

991,459

8,641,523

8,119,488 Expenditure

Benefits payments

5,792,220

5,770,254 Administrative and general expenses

321,582

263,123

Impairment on investments and receivables

106,287

103,832

6,220,089

6,137,209 NET INCOME FOR THE YEAR - transferred to Short-term Benefit Reserve

2,421,434

1,982,279 SHORT-TERM BENEFIT RESERVE Balance at beginning of the year 18,720,235 16,737,956 Net income for the year 2,421,434 1,982,279 Balance at December 31, 2015 21,141,669 18,720,235 The accompanying notes form an integral part of these financial statements.


DOMINICA SOCIAL SECURITY BOARD Employment Injury Benefit Branch Statement of Income, Expenditure and Reserve For the Year Ended December 31, 2015 (Expressed in Eastern Caribbean Dollars)

2015

EC$ 2014

EC$

Income Contributions 2,126,265 1,999,995 Other 885,922 783,874 3,012,187 2,783,869 Expenses Benefits payments 331,018 375,839 Administrative and general expenses 250,840 195,994 Impairment on investments and receivables 82,906 77,341 664,764 649,174 NET INCOME FOR THE YEAR - transferred to Employment Injury Benefit Reserve

2,347,423

2,134,695

EMPLOYMENT INJURY BENEFIT RESERVE: Balance at beginning of the year 14,601,991 12,467,296 Net income for the year 2,347,423 2,134,695 Balance at December 31, 2015 16,949,414 14,601,991 The accompanying notes form an integral part of these financial statements.

SOCIAL SECURITY

DSS

DOMINICA


DOMINICA SOCIAL SECURITY BOARD Redundancy Fund Statement of Income, Expenditure and Reserve For the Year Ended December 31, 2015 (Expressed in Eastern Caribbean Dollars)

Note 2015 EC$

2014 EC$

Income Contributions 818,780 771,674 Other 20,470 42,442 839,250 814,116 Expenses Benefits payments 860 173,296 Administrative and general expenses 20,470 19,292 Impairment on investments and receivables 50,000 53,750 71,330 246,338 NET INCOME FOR THE YEAR - transferred to Redundancy Reserve

767,920

567,778

REDUNDANCY RESERVE: Balance at beginning of the year 10,434,218 9,868,543 Adjustment for redundancy receivable 14 (62,915) (2,103) Net income for the year 767,920 567,778 Balance at December 31, 2015 11,139,223 10,434,218 The accompanying notes form an integral part of these financial statements.

SOCIAL SECURITY

DSS

DOMINICA


DOMINICA SOCIAL SECURITY BOARD Statement of Cash Flows For the Year Ended December 31, 2015 (Expressed in Eastern Caribbean Dollars)

Note

2015 EC$

2014 EC$

CASH FLOW FROM OPERATING ACTIVITIES Contributions receipts 51,712,568 47,595,992 Other income 574,044 533,378 Administrative expenses (5,600,091) (5,009,308) Benefit payments (53,290,479) (51,006,543) Impairment loss in investment (2,000,000) (2,150,000) Operating profits before changes in operating assets (8,603,958) (10,036,481) Short term funds and debtors 547,394 (1,175,554) Accounts payable and accrued expenses 354,030 603,845 Net cash used in operating activities (7,702,534) (10,608,190) CASH FLOW FROM INVESTING ACTIVITIES Interest received 14,546,187 14,882,342 Dividend received 1,458,588 1,232,688 Rent 352,444 354,464 Staff mortgage and staff student loans (1,534,299) (2,177,920) Loans to Statutory Bodies (4,323,645) (5,275,785) Pool of secondary mortgages 3,849,203 326,878 Student loans (413,563) (128,438) Private bodies loans - (350,000) Acquisition of shares - (8) Purchase of equipment (243,843) (148,491) Recovery of redundancy receivable (net) (62,915) (2,103) Acquisition of bonds (4,767,594) (7,000,000) Net cash from investing activities 8,860,563 1,713,627 Net increase in cash and cash equivalents 1,158,029 (8,894,563) Cash resources - beginning of year 119,246,233 128,140,796 Cash resources - end of year 3(d) 120,404,262 119,246,233 The accompanying notes form an integral part of these financial statements.


DOMINICA SOCIAL SECURITY BOARD Notes to the Financial Statements For the Year Ended December 31, 2015 1. Incorporation

The Dominica Social Security Board is a body corporate established by the Social Security Act chapter 31:01 of the Revised Laws of the Commonwealth of Dominica (1990 Edition) to administer the Social Security Fund with the objectives of providing various insurance and retirement benefits to persons insured under the Act.

2. Adoption of Revised International Financial Reporting Standards

The Dominica Social Security Board has adopted the revised standards and interpretations issued by the International Accounting Standards Board (IASB) and the International Financial Reporting Interpretations Committee (IFRIC) of the IASB that are relevant to its operations. The adoption of these revised standards and interpretations has resulted in changes to the organization s accounting policies in the following areas:

Financial Instruments: Disclosure and Presentation (IAS 32) Financial Instruments: Recognition and Measurement (IAS 39)

IAS 32, Financial Instruments: Disclosure and Presentation

The impact of this standard has been to expand the disclosures provided in these financial statements in relation to the financial assets of the Fund.

IAS 39, Financial Instruments: Recognition and Measurement

IAS 39 requires that financial assets be valued at fair market value such that the carrying amount of the asset is reduced through the use of provision. Subsequent recoveries are credited to the particular provision in the Statement of Income and Expenditure.

The Dominica Social Security Financial Regulations does not allow for the write off of amounts receivable on the basis that all sums due to the Board shall be recoverable. Thus, an impairment reserve had been set up to adjust for additional impairment losses or recoveries of amounts previously deemed uncollectible.

The Dominica Social Security Board discontinued the treatment of impairment losses or recoveries as described in the preceding paragraph and accordingly allocated the impairment balance to the Reserves by way of a prior period adjustment.

Impairment losses are now being treated as directed by IAS 39.

SOCIAL SECURITY

DSS

DOMINICA


DOMINICA SOCIAL SECURITY BOARD Notes to the Financial Statements For the Year Ended December 31, 2015 3. Summary of Significant Accounting Policies

The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.

a. Basis of Accounting

These financial statements are prepared in accordance with International Financial Reporting Standards on the basis of the historical cost convention and the Social Security (Financial and Accounting) Regulations in force.

The preparation of financial statements in conformity with International Financial Reporting Standards requires management to use accounting estimates and to exercise its judgment in the process of applying the organization s accounting policies.

b. Actuarial Review

Triennial actuarial reviews are performed to assist the Board in assessing the financial condition of the fund and the adequacy or otherwise of contributions to support benefits.

c. Property and Equipment

Land and building comprise the Fund s offices. Land is not depreciated.

Depreciable assets are recorded at historical cost less accumulated depreciation. Historical cost includes expenditure that is directly related to the acquisition of the items. Depreciation is calculated on a straight line basis so as to write off their costs over their estimated useful lives as follows:

Buildings 40 years Furniture & Fittings 5 - 10 years Computer equipment/systems 3 - 10 years Computer software 3 - 10 years Motor vehicles 5 years

The assets residual value and useful lives are reviewed and adjusted if appropriate at each balance sheet date. Gains or losses arising from the disposal or retirement of an item are determined as the difference between the sales proceeds and the carrying amount of the asset and are recognized in the Statement of Income and Expenditure.

All repairs and maintenance are charged to the statement of income and expenditure during the financial period in which they are incurred.


DOMINICA SOCIAL SECURITY BOARD Notes to the Financial Statements For the Year Ended December 31, 2015 3. Summary of Significant Accounting Policies cont’d

d. Cash and Cash Resources Cash and cash resources are carried on the balance sheet at cost. For the purpose of the cash flow statement, cash and cash resources comprise cash on hand and at bank and deposits held on call with banks and/or insurance companies. 2015

EC$ 2014 EC$

Cash on hand and at bank 4,560,434 2,356,714 Fixed deposits ( note 5(I) ) 115,843,828 116,889,519 120,404,262 119,246,233

e. Accounts Receivable

A provision for non-collectable receivables is established when there is objective evidence that the institution will not be able to collect all amounts due according to the original terms of the receivable.

The amount of such provision is recognized in the statement of income and expenditure and represents the amount in respect of which the institution may not be able to enforce collection, legally. Thus, the provision made in respect of the current and previous years are reflected hereunder:

2015

EC$ 2014 EC$

Contribution: Government 1,356,175 1,326,586 Contribution: Non-Government 8,995,888 9,813,244 Interest and investment income 11,353,965 11,073,683 Dominica Unit Trust Corporation 1,834,208 1,834,208

Staff vehicle loans and advances 1,247,191 876,996 24,787,427 24,924,717

Provision for impairment on contribution

(1,567,280)

(1,567,280) Provision for impairment on EFPA’s (2,770,972) (2,770,972) Provision for impairment on DUTC (193,926) (193,926) Provision for impairment on DUTC (1,834,208) (1,834,208)

(6,366,386) (6,366,386)

Total (net of provisions) 18,421,041 18,558,331

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DOMINICA


DOMINICA SOCIAL SECURITY BOARD Notes to the Financial Statements For the Year Ended December 31, 2015 3. Summary of Significant Accounting Policies cont’d f. Financial Assets The fund classifies its financial assets into the following categories:

Originated loans and advances Held to maturity investments Available for sale financial investments Management determines the classification of such investments at initial recognition and their designation is reevaluated at every subsequent reporting date.

Originated Loans and Advances

Originated loans and advances are non-derivative financial assets with fixed or determinable payments that are not quoted in an active market. They arise when the fund advances cash to borrowers with no intention of trading the receivable.

Held-to-Maturity Investments

Held-to-Maturity investments are non-derivative financial assets with fixed or determinable payments and fixed maturities that management has the positive intent and ability to hold to maturity. Should management decide to sell other than an insignificant amount of such Held-to-Maturity investments, the entire category would be tainted and therefore, be classified as Available for Sale.

Available for Sale Investments

Available for Sale Investments are those intended to be held for an indefinite period of time, which may be sold in response to liquidity needs and/or changes in interest rates, exchange rates or equity prices.

The purchase and sale of financial assets held-to-maturity and available for sale are recognized on the trade date, i.e. the date on which the organization commits to purchase or sell the asset.

Financial Assets are initially recognized at fair value plus transaction cost. Such assets are unrecognized when rights to receive cash flows from them have expired or when the organization has substantially transferred all risks and rewards of ownership.

Available-for-Sale assets are subsequently carried at fair value while Originated Loans and Advances and held-to-maturity investments are carried at their amortized cost using the effective interest rate method.


DOMINICA SOCIAL SECURITY BOARD Notes to the Financial Statements For the Year Ended December 31, 2015 3. Summary of Significant Accounting Policies cont’d

f. Financial Assets cont’d

Gains and losses arising from changes in fair value of available for sale financial assets are included in the statement of income and expenditure in the period in which they arise.

The fair values of instruments quoted in active markets are based on current bid prices. If the market for the financial asset is not active, the organization establishes fair value by using available valuation techniques including the use of arm’ s length transactions, discounted cash flows and other valuation techniques commonly used by market participants.

g. Impairment of Financial Assets

At each balance sheet date, the organization assesses whether there is objective evidence that a financial asset or group of financial assets is impaired.

A financial asset or group of financial assets is impaired if there is objective evidence that the loss has occurred after the initial recognition of the asset and has an impact on the ability of management to reliably estimate future cash flows from the financial asset or group of assets. The organization assesses whether objective evidence of impairment exists individually for financial assets that are individually significant, and individually or collectively for financial assets that are not individually significant. Impairment loss is recognized if there is objective evidence that impairment loss on held-to maturity investments carried at amortized cost has been incurred or that the organization will not be able to collect all amounts due according to the original contractual terms of the loans. The amount of the loss is measured as the difference between the carrying amount of the asset and the recoverable amount, being the present value of the estimated future cash flows discounted at the original effective rate of the financial asset. The carrying amount of the asset is reduced through the use of the provision for loan impairment with subsequent recoveries being credited to such provision in the statement of income and expenditure.

SOCIAL SECURITY

DSS

DOMINICA


DOMINICA SOCIAL SECURITY BOARD Notes to the Financial Statements For the Year Ended December 31, 2015

3. Summary of Significant Accounting Policies cont’d

g. Impairment of Financial Assets cont’d The methodology and assumptions used for estimating future cash flows are reviewed regularly by the organization in order to reduce any differences between loss estimates and actual loss experience.

At each balance sheet date, the organization assesses whether there is objective evidence financial assets carried at fair value is impaired. Where there is a significant or prolonged decline in the fair value of the security below its cost, management determines whether the assets are impaired.

In that regard, management determined that investments in DUTC, of principal and interest on fixed deposits with British American Insurance Company and CLICO as well as amounts receivable from private sector delinquent employers are impaired, hence the provisioning in relation thereto.

h. Investment in Real Estate

Investment properties consists primarily of lands previously received in exchange for past due contributions and buildings being held for long-term rental yield and/or capital appreciation. Such properties are being treated as long term investments. Some of the lands have been revalued (see Note 12) with others carried at cost.

Land and buildings are being leased for periods of between 3 and 15 years with an option to renew for further periods not exceeding the original term of the respective lease, at the expiration of each lease term.

4. Investment Properties

2015 EC$

2014 EC$

Land 31,523,275 31,523,275 Land and building 3,513,660 3,513,660 Land (with construction plans) 325,033 325,033

35,361,968 35,361,968


DOMINICA SOCIAL SECURITY BOARD Notes to the Financial Statements For the Year Ended December 31, 2015 5. Investment Securities - Held to Maturity (Cash & Non cash)

2015 EC$

2014 EC$

(i) Cash Fixed Deposits British American Insurance Company

5,000,000

5,000,000

Less: provision for impairment (5,000,000) (5,000,000) Colonial Life Insurance Company 9,000,000 9,000,000 Less: provision for impairment (6,850,000) ( ,850,000)

NBD Mortgage Receipts Call Account

48,639,838

46,331,918

British American Insurance Company - Anguilla

1,500,000

1,500,000

Less provision for impairment (1,500,000) (1,500,000) National Mortgage & Financing Co. 3,000,000 3,000,000 NBD-DOMLEC Commercial Paper 16,998,834 18,352,445

NBD Fixed Deposit 45,000,000 45,000,000 Fixed Deposit re Lease 55,156 55,156

Total Investment Held-to-Maturity - Cash 115,843,828 116,889,519

(ii) Non Cash

Notes and Bonds Government of Dominica Bonds 104,882,202 100,114,608

Government of St. Lucia 5,000,000 5,000,000 Government of Barbados 2,552,996 2,552,996

112,435,198 107,667,604

Treasury Bills - Government of Dominica

11,955,100

11,955,100

Total Notes, Bond and Treasury Bills 124,390,298 119,622,704

Pool of Secondary Mortgages Agricultural Industrial & Development Bank - 3,849,203

Total Investment Held to Maturity-non Cash

124,390,298

123,471,907

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DOMINICA SOCIAL SECURITY BOARD Notes to the Financial Statements For the Year Ended December 31, 2015 5. Investment Securities cont’d Consequent upon Government’s debt restructuring exercise, the interest rate on

existing government Bonds has been reduced to 3.5% while the tenure of such bonds is now 30 years. New Government bonds interest rate is 6.99% and 7% for 5 years. The effective interest rates and terms on investments held to maturity varies as follows:.

Fixed Deposits: between 4% and 9.5% with maximum maturities of 3 years. Notes & Bonds: between 3.5% for 30 years, 6.99% for 5 years and 7.5% for 8 years Treasury Bills: 6.5% with maturities of 90 days.

As at December 31, 2015, the investments with certain regional insurance companies were as follows:

Colonial Life Insurance Company Limited (CLICO) EC$9,000,000. Of this amount EC$2,000,000 matured on July 18, 2009, $3,000,000 matured on November 16, 2010. The other investment matured on April 28, 2011. During the year, CLICO met none of their obligations in respect of interest on principal due. A provision of $8,049,113 representing $6,850,000 of the investment and $1,199,113 interest receivable has been made in these financial statements.

During the prior years CLICO Judicial Manager indicated that plans to restructure the company are being considered. Notwithstanding they failed to meet their obligations.

British American Insurance Company Limited (BAICO) - Dominica Branch EC$5,000,000: The maturity date for those investments was March 23, 2010. Past due interest receivables of EC$1,068,750 as at December 31, 2009 has been provided for in full. A provision of $5,370,764 has been made representing $5,000,000 the principal amount of the investment and $370,764 of interest receivable.

BAICO - Anguilla Branch EC$1,500,000: The maturity date for that investment was November 11, 2009. Past due interest receivable was EC$132,346 as at December 31. 2009. Both the principal amount and interest receivable (EC$1,632,346) were provided for in full.

BAICO is under Judicial Management. The Dominica Social Security Board has received no indication of intention to settle amounts due from the Judicial Manager.

Investment EC$

Provision

EC$

Interest Receivable

EC$

Provision

EC$

CLICO 9,000,000 6,850,000 1,199,113 1,199,113 BAICO 5,000,000 5,000,000 1,439,514 1,439,514 BAICO Anguilla 1,500,000 1,500,000 132,346 132,346 15,500,000 13,350,000 2,770,973 2,770,973


DOMINICA SOCIAL SECURITY BOARD Notes to the Financial Statements For the Year Ended December 31, 2015 6(a) Investment Securities: available-for-sale

2015 EC$

2014 EC$

Local AID Bank Ordinary Shares 5,000,000 5,000,000 NBD Ordinary Shares 2,002,850 2,002,850 DOMLEC Ordinary Shares (listed) see note 6(b) 8,542,215 8,333,868 DUTC Equity 1,000,000 1,000,000 Less provision for diminution of DUTC shares (825,000) (825,000) DUTC Growth Units 550,197 550,197 Less provision for diminution of DUTC Units (305,582) (305,582) Marpin 2K4 ordinary shares 4,358,420 4,358,420

20,323,100 20,114,753 Overseas

ECHMB Shares 2,326,040 2,326,040 ECSE Shares 150,000 150,000 Anguilla National Bank Shares 100,000 100,000

Bank of St Vincent Shares 2,999,980 2,999,980 5,576,020 5,576,020

25,899,120 25,690,773 6(b) Fair Value Reserve - available - for - sale investments

2015 EC$

2014 EC$

At beginning of year 5,259,134 5,259,134

Fair value adjustments

208,347

-

At end of year

5,467,481

5,259,134

Equity in DOMLEC was previously shown at cost. As required by International Financial Reporting Standards, these ordinary shares are now shown at their fair value of $4.10 per share for 31/12/15, and $4 per share for 31/12/14 which are the prices quoted on the Eastern Caribbean Securities Exchange.

The resulting revaluation reserve is shown retrospectively on restating the equity in DOMLEC at the market value at the balance sheet date.

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DOMINICA SOCIAL SECURITY BOARD Notes to the Financial Statements For the Year Ended December 31, 2015 7. Originated Loans and Advances 2015

EC$ 2014 EC$

Statutory Bodies 48,429,409 44,105,764 Student 1,951,936 1,538,374 Private Bodies 350,000 350,000 Staff 4,396,833 2,862,533

55,128,178 48,856,671

Some student loans represent funds disbursed to students, through the National Bank of Dominica, between 1990 and 1993 under the Dominica Social Security Student Loans Programme. A new programme commenced in last financial year managed by the scheme, with new loans disbursed amounting to $716,925.

Loans are at interest rates ranging from 5% to 8% per annum with principal repayable over a 4 to 20 years period.

8. Property and Equipment

Land EC$

Building

EC$

Furniture & Fixtures

EC$

Computer Equipment

EC$

Motor Vehicles

EC$

Total EC$

Cost

Balance at January 1, 2014 681,410 5,955,570 1,957,295 3,785,237 208,000 12,587,512 Additions - 104,744 41,220 2,527 - 148,491 Disposals - - (861,100) (1,338,041) - (2,199,141) Balance on December 31, 2014

681,410

6,060,314

1,137,415

2,449,723

208,000

10,536,862

Additions - 102,949 45,302 95,592 - 243,843 Disposals - - - - (58,000) (58,000) Balance on December 31, 2015 681,410 6,163,263 1,182,717 2,545,315 150,000 10,722,705

Accumulated Depreciation

Balance at January 1, 2014 - 3,232,277 1,620,224 3,615,241 128,313 8,596,055 Depreciation expense - 192,335 42,697 68,368 18,750 322,150 Disposals - - (861,080) (1,338,061) - (2,199,141) Balance on December 31, 2014 - 3,424,612 801,841 2,345,548 147,063 6,719,064 Depreciation expense - 201,016 38,869 61,629 18,750 320,264 Eliminated on disposal - - - - (58,000) (58,000) Balance on December 31, 2015 - 3,625,628 840,710 2,407,177 107,813 6,981,328 Net Book Value

December 31, 2014 681,410 2,635,702 335,574 104,175 60,937 3,817,798

December 31, 2015

681,410

2,537,635

342,007

138,138

42,187

3,741,377


DOMINICA SOCIAL SECURITY BOARD Notes to the Financial Statements For the Year Ended December 31, 2015 9. Accounts Payable and Accrued Expenses 2015

EC$ 2014

EC$ Provision for ex-gratia for staff in

employment as at 1998 and prior years

479,301

479,301 Provision for migration grant 23,037 23,037 Claims payable 1,030,052 906,204 Provision for gratuities 177,433 186,603 Other accrued charges 979,125 739,773

2,688,948 2,334,918 10. Other Income

2015 EC$

2014 EC$

Deposit interest 5,570,680 6,536,519 Treasury Bill interest 779,600 788,627 Bond interest 4,903,922 4,344,975 Loan interest 3,113,030 3,130,814 Dividend 1,458,588 1,232,688 Rent 352,444 354,464 Late fees 469,050 435,136 Interest on staff loans 192,013 85,868 Cash short/over 213 190 Others 91,723 93,590

16,931,263 17,002,871 11. Taxation The income of the Dominica Social Security is exempt from tax under Section

25, (1) (Q) of the Income Tax Act Chapter 67:01 of the Revised Laws of the Commonwealth of Dominica (1990) edition. However, Value Added Taxation is included in service and supplies cost.

12. Revaluation Surplus The Scheme’s investment properties were revalued by Senior Property Valuer at

the Ministry of Lands - Property Valuation Unit, Mr Wilfred T. Dalrymple in 2014.

Land at Cotton Hill & Bell Hall Estates were valued at $14,272,305 on September 19, 2014 and land at Warner Estate at $17,250,970 on December 9, 2014. This resulting surplus made up as follows have been included in reserves on the Balance Sheet.

Cotton Hill/Bell Hall Estate $ 11,661,648

Warner Estate 2,971,200

$ 4,632,848

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DOMINICA


DOMINICA SOCIAL SECURITY BOARD Notes to the Financial Statements For the Year Ended December 31, 2015 13. Derivatives and Financial Instruments

Credit and Risk Factors The notes to the financial statements present the fair values of the balance sheet

financial instruments of the Dominica Social Security Board on the valuation methods and assumption indicated.

There were no derivative instruments as at the balance sheet date.

Under IFRS, fair values represent the amount at which the financial instrument could be bought, sold or exchanged in a current transaction, between willing parties, other than in liquidation. If available, the quoted market price in an active market is the best evidence of fair value and should be the basis for measurement. In the absence of quoted market price, an estimate may be obtained using the best available information.

Quoted market prices are not available for a significant portion of the Dominica Social Security financial instruments.

Fair values disclosed exclude the values of assets and liabilities that are not considered financial instruments but which add significant values to the Dominica Social Security.

Due to their short-term maturity, the carrying values of assets of certain balance sheet financial instruments are assumed to approximate their fair values. These include cash resources.

Notwithstanding, notes 3(a) & 3(e), certain accounts receivable are before the High Court for a determination. Although some measure of provisions has been made in the accounts as required by IFRS, nothing shall be construed as preventing the Board from recovering any sums due to the Fund by means of civil proceedings.

14. Redundancy Fund Provisions are made in the event that an employer is unable to pay redundancy

benefit then the Redundancy Fund advances the sums due to the employee and in return, pursue the employer with the aim to recover all sums due. Management decided that any redundancy receivables should be netted against the redundancy fund.

15. Contingent Liabilities/Commitments 1. Legal

There are matters before the Courts for a determination wherein certain parties are claiming certain sums as general damages.

2. Other

There were no capital commitments or material operating leases at year end.


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CIAL SE C U R I T Y DOMINICA SOCIAL SECURITY BOARD … · 2017-12-11 · S O C IA L S E C U R I T Y...

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Transcript of CIAL SE C U R I T Y DOMINICA SOCIAL SECURITY BOARD … · 2017-12-11 · S O C IA L S E C U R I T Y...