Government of Canada Transformation of Pay Administration Initiative

Management Institute (FMI)

Presented By: Rosanna Di Paola, Acting Associate

Assistant Deputy Minister, Accounting, Banking and Compensation Branch
Public Works and Government Services Canada
September 25, 2014

system changes and service delivery

Outline funding and financial controls

Outline internal

and external stakeholders

Present key challenges

Share lessons learned

in the country
Provides pay services for 300,000 + employees

Services over 100 departments and agencies

Encompasses more than 100 collective agreements

Carries out 9 million annual transactions ($20+ Billion)

At end of 40+ year-old lifecycle
Technology outdated and system

increasingly difficult to maintain
Processes fragmented, decentralized and cumbersome
Compensation expertise being lost due to high attrition rates
Employees/managers demanding more flexible services
Benchmarking against other public/private sector organizations

with an available commercial off-the-shelf solution and business processes based

on industry-standard practices

Consolidation of Pay Services Project
Consolidating pay services from departments and agencies to the Public Service Pay Centre in Miramichi, New Brunswick

Prime Minister announced in August 2010 that the Government of Canada will transform its pay administration

Overall Strategic Outcome
Ensure the long-term sustainability of GC pay administration and services. When fully implemented, TPA Initiative will generate savings of up to $78.1M per year.

Transformation of Pay Administration (TPA) Initiative

asked to look at the efficiency and effectiveness of their

programs and operations to ensure value for taxpayers’ money, as well as to rethink business processes and service delivery platforms.”

TPA Initiative aligned with direction from recent successive budgets

Contributes to responsible
expenditure management by:
Implementing a government-wide solution and consolidating services to standardize the way it does business

Contributes to streamlining
administrative functions by:
Implementing processes and a system that reduces costs in areas of service delivery and administrative systems

Economic Action Plan 2013
“… Ensure that the public service is modern, affordable and high-performing.”

2014
Build: Started as planned in Jul

2013
Test: System testing began in Jun 2014
Transition: Transition activities began Jul 2014
Go-Live: 3 roll outs of new pay system in Jul, Oct, Dec 2015
Close-out: Feb 2016

Wave 2: First 2 stages completed. Stage 3 on
schedule, Stage 4 planning underway
Wave 3: Preparations underway for Stage 1
College: Negotiations underway
Ph-2 Study: Study and options analysis underway
Close-out: Dec 2015

Pay Consolidation

Pay Modernization

TPA Initiative: Status

309.5 million
Pay Modernization
Consolidation of Pay Services
100%

from fiscal framework
Vote 5 capital based on a new asset for the Government of Canada

Mix of Vote transfers from participating departments and fiscal framework
Majority of funds are Vote 1 Operating Expenditures

$ 122.9 million

$ 186.6 million

Pay

Financial Controls

Letters of Attestation
Service Level Agreement

Technical, Operational)
Key client groups: employees, managers, compensation community, HR, Finance,

IT
Key organizations: TBS, OCG, SSC, PWGSC
Key champions: Deputies, Heads of HR

Financial Institutions, Insurance Administrators
Unions
Suppliers
Academic Institutions
External Advisory Committee (EAC)
Media and Parliamentarians
Canadian Public

initiative: Maintaining momentum over long haul, from 2009 to 2015.

Outcomes slowly realized rather than ‘big bang’
Containing costs for implementation: working with vendor to plan cost estimates during planning / managing cost variances during implementation
Complexity of business in federal context underestimated by vendors
Overcoming systemic challenges in government context
Horizontal government-wide initiative impacting all departments requires more change management/BT support than originally planned
Requirement to recruit skills and competencies to manage large transformational initiatives within public service
Consolidating national services in regional setting (N.B.)

with recognized industry standards (COSO)
Controls embedded in business process workflows

& operational procedures focused
financial, process and service controls
Delineation of responsibility & accountability for controls between departments & PWGSC

* Designed to ensure accuracy, completeness, integrity & timeliness of pay services

Quality Assurance program to monitor & report compliance
Continuous internal & scheduled third party reviews
Enterprise approach to maximize results
Annual letters of representation to provide assurance of control effectiveness
Professional Development Program prepares employees to operate in an environment where controls are part of the culture

Pay Centre Control Framework