1 PERSONNEL SERVICES OR BUDGETING FOR STAFF. 2 Personnel Services May take up to ¾ of recurring operating costs It is one of the easiest items to budget.

11

PERSONNEL PERSONNEL SERVICESSERVICES

ORORBUDGETING FOR BUDGETING FOR

STAFFSTAFF

22

Personnel ServicesPersonnel Services

May take up to May take up to ¾¾ of recurring operating of recurring operating costscosts

It is one of the easiest items to budget It is one of the easiest items to budget accurately and completelyaccurately and completely

With a system is in place, yearly planning With a system is in place, yearly planning is simplifiedis simplified

A good system will strengthen capacity to A good system will strengthen capacity to manage staff size and growthmanage staff size and growth

33

COUNTING STAFF -- OPTIONSCOUNTING STAFF -- OPTIONS

1. How many individuals received pay during a month/year -- Head Count. Head Count.

OR

2. Measure of full time work needed to accomplish a task -- Full Time Full Time Equivalent StaffEquivalent Staff.

Which is a better indicator of effort?Which is a better indicator of effort?

44

STAFF MONTH/YEARSTAFF MONTH/YEAR

A Staff Month is defined as one full A Staff Month is defined as one full calendar month of paid employment (174 calendar month of paid employment (174 paid hours) paid hours) – Includes, overtime and all paid leave.Includes, overtime and all paid leave.

12 Staff Months equal one FTE Staff Year12 Staff Months equal one FTE Staff Year

Faculty and Students are based on Faculty and Students are based on different factorsdifferent factors

55

COMPUTATIONCOMPUTATION

Days in a Year Days in a Year 365365

Less: Weekends (52X2) Less: Weekends (52X2) 104104

Paid Days in Year Paid Days in Year 261261

Times: Work Hours in a Day Times: Work Hours in a Day 8 8

Paid Hours in a Year Paid Hours in a Year 2088 2088

Divided By: Months in a Year Divided By: Months in a Year 1212

Average Paid Hours in a Month 174Average Paid Hours in a Month 174

66

EDUCATION FTE’SEDUCATION FTE’S

Number of school days in year 180Number of school days in year 180

Students:Students:

Number of hours per day in class 5Number of hours per day in class 5

One student FTE (hours/year) One student FTE (hours/year) 900900

Faculty:Faculty:

Number of hours per day at school 8Number of hours per day at school 8

One faculty FTE (hours/year) One faculty FTE (hours/year) 14401440

77

WHY USE FTE’s?WHY USE FTE’s?

Better indicator of actual effort.Better indicator of actual effort.

Necessary when moving to Program or Necessary when moving to Program or Results Based Budgeting Results Based Budgeting

Can be used to assess staffing efficacyCan be used to assess staffing efficacy

Linked with “position control” can control Linked with “position control” can control staff growthstaff growth

Where demands are made to reduce staff Where demands are made to reduce staff levels can aid in planning smooth processlevels can aid in planning smooth process

88

THE PROCESSTHE PROCESS

The process of estimating Personal The process of estimating Personal Service costs is a 4 step process:Service costs is a 4 step process:

Collect Basic Data

Add Special Pay

Total Pay Spreadsheet

Employer Costs

99

Personnel Services BudgetingPersonnel Services Budgeting

STEP 1STEP 1

Collect Data --Collect Data --– How many people are working, How many people are working, – What are their job classifications, What are their job classifications, – What are current pay rates,What are current pay rates,– When are they due a pay increase,When are they due a pay increase,– What are their ID/Position Numbers,What are their ID/Position Numbers,– What the FTE per position is expected What the FTE per position is expected

(including overtime)(including overtime)

1010

STEP 1STEP 1

NAME ID POS FTE PAY RATE   INCREMENT

  NUMBER     31-Dec-06 H/M MONTH

D. Boss 679 Director 1.0 500 M February

D. Reala Bossa 225 Secretary 1.0 200 M May

U. Fileit 2787 Clerk 1 0.5 1.25 H December

I. Speed 1907 Driver 1.0 175 M September

M. Montpenny 402 Fiscal Specialist 2 1.1 300 M April

J. Cash 2175 Fiscal Specialist 3 1.1 320 M February

I. Watchit 2640 Examiner1 0.8 275 M April

U. Oweme 656 Tax Collector 2 1.0 400 M October

A. Scrooge 1257 Tax Collector 2 1.0 400 M October

N. Ron 990 Tax Collector 2 1.0 2.30 H August

N. Payup 1175 Tax Collector 1 1.0 2.16 H November

A. Tickmark 457 Tax Collector 1 1.0 375 M July

Y. Meworry 1756 Tax Collector 1 1.0 375 M June

C. Sweeper 408 Cleaner 0.3 1.10 H February

TOTAL 12.8

MINISTRY OF REVENUE

TOBACCO TAX COLLECTION

AREA 1

1111

STEP 2STEP 2

Determine, by position, what extra pay is Determine, by position, what extra pay is allowed.allowed.

Some examples are:Some examples are:– Overtime (Need to adjust FTE’s)Overtime (Need to adjust FTE’s)– Shift BonusShift Bonus– Field BonusField Bonus– Incentive PayIncentive Pay

1212

STEP 2STEP 2

MINISTRY OF REVENUETOBACCO TAX COLLECTIONAREA 1

NAME ID POS REGULAROVERTIME SHIFT FIELD INCENTNUMBER BONUS BONUS BONUS TOTAL

D. Boss 679 Director 7,100 7,100 D. Reala Bossa 225 Secretary 2,432 2,432 U. Fileit 2787 Clerk 1 1,307 120 1,427 I. Speed 1907 Driver 2,116 2,116 M. Montpenny 402 Fiscal Specialist 2 3,654 600 4,254 J. Cash 2175 Fiscal Specialist 3 3,906 600 4,506 I. Watchit 2640 Examiner1 2,676 2,676 U. Oweme 656 Tax Collector 2 4,824 1200 600 6,624 A. Scrooge 1257 Tax Collector 2 4,824 1200 600 6,624 N. Ron 990 Tax Collector 2 4,749 1200 600 6,549 N. Payup 1175 Tax Collector 1 4,526 1200 600 6,326 A. Tickmark 457 Tax Collector 1 4,548 1200 600 6,348 Y. Meworry 1756 Tax Collector 1 4,556 1200 600 6,356 C. Sweeper 408 Cleaner 707 120 827

TOTAL 51,924 1,200 240 7,200 3,600 64,164

ANNUAL GROSS SALARY

1313

STEP 3STEP 3

Now spread the salaries over 12 months Now spread the salaries over 12 months by position.by position.

Include all special pay provisionsInclude all special pay provisions

Give increments in the appropriate monthsGive increments in the appropriate months

1414

STEP 4STEP 4

Determine the proper rate for each of the Determine the proper rate for each of the employer paid benefitsemployer paid benefits– Percentage of gross payPercentage of gross pay– Flat rate per monthFlat rate per month– Specified in law or regulationSpecified in law or regulation– Can be done in the aggregate Can be done in the aggregate

1515

STEP 4STEP 4

MINISTRY OF REVENUETOBACCO TAX COLLECTIONAREA 1

1 2 3 4 5 6 7 8 9 10 11 12 TotalTotal Gross Pay 4,738 4,764 5,126 4,774 4,900 5,107 4,914 4,887 5,085 4,884 4,892 8,894 62,964

Disability Tax 711 715 769 716 735 766 737 733 763 733 734 1,334 9,445 Health Insurance 280 280 280 280 280 280 280 280 280 280 280 280 3,360 Unemployment Insurance 237 238 256 239 245 255 246 244 254 244 245 445 3,148

1,228 1,233 1,305 1,235 1,260 1,301 1,263 1,257 1,297 1,257 1,258 2,059 15,953

MONTH

Total Benefits

1616

NOTESNOTES

Each budget organization should Each budget organization should prepare the Personal Services prepare the Personal Services worksheets.worksheets.

Excel greatly simplifies the processExcel greatly simplifies the process

First year is most difficult – after that First year is most difficult – after that becomes almost routinebecomes almost routine

1717

VACANCIES/NEW POSITIONSVACANCIES/NEW POSITIONS

Every vacant/new position must listed.Every vacant/new position must listed.

Estimate when position will be filled.Estimate when position will be filled.

Use standard rate of pay for the position. Use standard rate of pay for the position.

If there is a range of pay, use the middle If there is a range of pay, use the middle amount.amount.

Assume the most common case for the Assume the most common case for the amount of benefits and other pay amount of benefits and other pay adjustments.adjustments.

1818

Budgeting for vacant/new positionsBudgeting for vacant/new positions

Determine amount of pay.Determine amount of pay.

Determine benefits.Determine benefits.

Calculate amount of year to be worked, Calculate amount of year to be worked, i.e., percentage or fraction of year left if i.e., percentage or fraction of year left if hired mid year. September through hired mid year. September through December is four months = 4/12 (or 1/3, or December is four months = 4/12 (or 1/3, or 33.3%) of a year.33.3%) of a year.

1919

During budget executionDuring budget execution

You receive monthly and cumulative reports You receive monthly and cumulative reports from the budget organizations you are from the budget organizations you are

responsible for.responsible for.

What do you do with the information?What do you do with the information?

You might ask the following questions:You might ask the following questions:

2020

Is the staffing pattern consistent with the Is the staffing pattern consistent with the budget plan?budget plan?

Does the staffing pattern follow known Does the staffing pattern follow known seasonal trends?seasonal trends?

Are vacant and new positions filled as Are vacant and new positions filled as planned?planned?

Is the overtime excessive?Is the overtime excessive?

Are projected staff years within plan?Are projected staff years within plan?

If you can not answer the questions to If you can not answer the questions to your satisfaction then talk to the your satisfaction then talk to the budget organization!budget organization!

2121

SPECIAL FACTORSSPECIAL FACTORS

1.1. Difficulty in recruiting qualified staffDifficulty in recruiting qualified staff

2.2. Unexpected increase in workloadUnexpected increase in workload

3.3. Poor planningPoor planning

4.4. Economic changesEconomic changes

5.5. Change in government policyChange in government policy

6.6. Labor disruptionsLabor disruptions

7.7. Mismanagement (Corruption)Mismanagement (Corruption)

8.8. Lack of strong civil service (personnel) systemLack of strong civil service (personnel) system

2222

SUMMARYSUMMARY

Personnel budgeting and position control Personnel budgeting and position control are necessary for good management.are necessary for good management.A good personnel budgeting system adds A good personnel budgeting system adds transparency and deters corruption.transparency and deters corruption.Initial work to establish system is time-Initial work to establish system is time-consuming; future efforts become almost consuming; future efforts become almost routine.routine.Analysts need to objectively assess the Analysts need to objectively assess the information not second-guess managers.information not second-guess managers.

2323