u.m a it s happe g Change Impact Document Project: Umoja Scenario: Payroll Process Group: Staff Payroll

Transcription

1 VERSION: u.m a it s happe g Change Impact Document Project: Umoja Scenario: Payroll Process Group: Staff Payroll Process: Payroll Post-Processing Process Number: HR

2 Process: Payroll Post-Processing Process Number: HR Version: Page 2 of 6 Meeting Date: 29 August 2013 PROCESS PARTICIPANTS OBJECTIVES Payroll Post-Processing Jason Bellone (OPPBA), Sunitha Korithiwada (OPPBA), Yoon Barker (OHRM), Andrew Radford (DFS), Simone Cheong (DFS), Vinod Nair (UNOG), Anushia Manoharan (UNOG), Francois Dang Tran (Umoja Payroll), Myung-Sun Chun (Umoja Payroll), Samira Gamrani (Umoja Payroll), Karwai Ann Lau (Umoja Payroll), Noel Reynado (Umoja OCM), Bikram Sandhu (Umoja OCM), Steven LeSage (Umoja OCM) To review, validate and enrich change impacts collected tt]rough a tactical three-step approach: 1. Review and update the current state and future state process steps - 20 minutes 2. Validate and enrich the change in]pacts across the transformation drivers - 45 minutes 3. Document and update tile policy considerations and open items - 20 minutes TO-BE PROCESS DESCRIPTION Payroll Post-Processing uses the results from the actual payroll run to prepare the disbursements to Staff/Non-Staff Members using the bank details/payment instructions updated for each Staff/Non-Staff Member. Banking instructions files are generated. Unless not possible, all the disbursements are done through EFT (electronic funds transfer). In some field locations where the banking system is not adequate, checks may have to be printed or a third party (e.g., UN agency) may be used for the disbursements or, in exceptional cases, cash payments may be made. The process also generates the remuneration statements which will be available through Employee Self Service (ESS). CURRENT STATE PROCESS STEPS FUTURE STATE PROCESS STEPS Payroll Post-Processing; UNHQ New York Example 1. Payroll Section (OPPBA) schedules process run #1 as per payroll cut-off schedule. I 2. Payroll Operations Unit (Payroll Section) reviews results of process run 411 by comparing to previous month's actual and sends a withhold release report to HR focal points to make the necessary ; corrections within the set deadline for the second trial run. 3. Depending on the issues identified, Payroll Operations Unit sends communication to the HR focal points i to take actions within the set deadline. 4. HR focal point makes any necessary corrections within the set deadline. 5. Payroll Operations Unit uploads DAAX input file (icall - UNHQ telephone deductions, MACC - MINUSTAH rental deductions, etc.). 6. Payroll Operations Unit reviews receivables and communicates with Travel Claims Unit and Education Grant team/payroll Operations Unit about recoveries happening. 7. Process steps 1-6 are repeated for process runs #2 and #3 (final trial) as per payroll cut-off schedule. 8. Payroll Operations Unit compares results of final trial run and second trial run. 9. Payroll Operations Unit executes actual run as per payroll cut-off schedule. 10. Payroll Operations Unit compares results of actual run and final trial run. 11. Payroll Operations Unit reconciles disbursement documents created from actual run. 12. Chief Payroll Section approves reconciliation and authorizes disbursement, which leads to the following actions: a. E-Payslips are sent automatically to staff members; b. Salary advances are paid to staff members not on payroll, based on HR focal point request; c. Treasury deposits the salary to staff members' bank accounts; d. Monthly Payment Order (MPO) is sent to field offices to disburse salaries;! e. Third party payments are paid, e.g., staff union membership, garage fees, credit union deductions, child support, etc.,, Payroll Post-Processing: Global Standard Process I 1. Payroll Administrator exits payroll by setting the payroll area control record to EXIT, which will allow the update of HR master data. 2i Payroll Administrator runs Pre-Data Medium Exchange (Pre-DME), which is a process that extracts I payment data from the payroll results. This separates banking information direct deposits and J paper checks into internal files for staging for next steps, j 3. Payroll Administrator prepares request for disbursement for EFT and non-eft payments. This J process will finalize the data required for the EFT and non-eft disbursements, which will be handled by Treasury. I 4. Payroll Administrator runs the programs to create/post general ledger documents. The payroll results will be used in conjunction with the accounting posting rules. Accounting documents will it's hÿppenmg If

3 Process: Payroll Post-Processing Page 3 of 6 Process Number: HR Version: Meeting Date: 29 August 2013 PROCESS IMPACTS (what new business process, being implemented in Umoja, will be transformational for the UN, e.g., employee self-service) be created and posted (updating general ledger accounts). Budgetary postings are simultaneously created in Funds Management module with no fund sufficiency restrictions. 5. Payroll Administrator manually creates/posts third party to accounts payable and runs reports. The payroll results will be used in conjunction with the relevant posting rules to generate the accounting postings corresponding to the payments to third parties. 6. Payroll Administrator generates payslip/e-payslip. These payslips/e-payslips will be available through the ESS Portal. Payroll Administrator can send a PDF version for Staff/Non-Staff Members without access to the FSS Portal. Integrated system and streamlined process There will only be one global integrated payroll system. Today, there are 8 different instances of IMIS and separate systems for local field payroll. There will be no more need for the transfer of HR data through scripts between IMIS duty stations and therefore no more delay in having the staff member on payroll upon transfer or assignment. This will facilitate the movement of staff members between duty station as their salaries and related entitlements will now be paid timely, leading to a corresponding decrease in the number of salary advance payments. Today, due to the lack of system integration, it takes months for a staff member moving from one IMIS duty station to another to be regularized in the payroll, which meant paying him/her salary advance while waiting for the IMIS scripts. Because of this geographical integration, the following tasks will be done centrally: (a) Update of scales and reference tables; (b) The management of payroll areas; (c) The scheduling of the payroll runs. Internal IOV/billing of payroll charges between UN Secretariat offices, as well as the related reconciliation process will be eliminated. The need for Monthly Payment Order (MPO) process with the peacekeeping missions will be significantly reduced. For local field payroll (non-imis), there will be a greater integration of HR, Payroll, Accounting and Disbursement processes. Treasury disbursement will be more centralised than it is today. Payments will be through one method of connectivity (SWIFT) supporting the different banking formats between the UN and the bank. The details of Treasury integration are still being configured. Major changes will occur in field duty stations (non-imis) for Payroll staff due to the functional integration and additional functionality and complexity of Umoja vis-a-vis current systems employed at those duty stations. In field missions and other non IMIS sites, the processes will be simplified: there will be no more duplicate data entries between IMIS/NUCLEUS, Matrix, ProGen, Sun and Chase Insight thanks to the full integration between HR, Time and Attendance, Payroll and Finance systems and substantial reduction of the manual processes due to the automated calculation of entitlements amounts, automated payroll calculations (e.g., in case of retroactivity) and the automation of the financial postings. Payment of entitlements such as assignment grant and relocation grant will be processed through HR/Payroll, instead of Travel as done today. Umoja is less customized to the United Nations than IMIS. While the overall process will be the same, there are a number of significant differences that, in some cases, could make the work of Payroll more complex: SAP HCM has, overall, less controls and validations as IMIS (e.g., each infotype and correction to an infotype can be processed and saved independently and not as part of a Personal Action). It is likely to generate more errors with pay implications. The entitlement calculations (generating the "normal" amounts) and the Payroll calculations are not in SAP segregated like in IMIS. It is likely to make the Payroll auditing more difficult. The integration between Accounts Payable/Travel and Payroll is not as seamless as in IMIS. For example, an enhancement has been needed to load in HCM the overdue travel advances. Some changes in HR processes, such as self-service, self-certification, different concept of personnel action and the reduction of approval steps will not only have a direct impact on the work of HR Partner (Administrator) but also an indirect impact on Payroll Administrators. On one side, there will be more risks of errors; on the other side, HR and Payroll will be forced to work in a more integrated way. This will require some behavioural adjustments among staff of Payroll, HR, Accounts Payable and Treasury, on the handling of transactions. Lack of 'as of date' logic in Umoja will require locking the HR master data by payroll area for a few days before payroll runs ('black out" period). During this period, HR will be prevented to process any action that could impact the prior and current It hÿp r 9

4 Process: Payroll Post-Processing Page 4 of 6 Process Number: HR Version: Meeting Date: 29 August 2013 payroll runs. Only HR actions that are processed to correct issues detected during the payroll trial runs will be allowed. This will impact the work of the HR Partners. ROLES / SKILLS / KNOWLEDGE IMPACTS (new roles that are created as a result of Unloja or current roles undergoing significant change) WORK VOLUME / COMPLEXITY IMPACTS (changes to the amount and difficulty of work, to a job group or part of the organization as a result of implementation of Umoja) Compliance with IPSAS There will be an impact on Umoja payroll postings and compliance with IPSAS Employee Benefits. This includes short-term benefits, post-employment benefits, termination benefits and other long-term benefits. Payroll posting to FI, FM, CO and GM, including retroactive postings in the context of IPSAS Employee Benefits is an on-going process. Payroll Administrator Payroll Administrator will need to be knowledgeable in using the system. Payroll Administrator will need to be conversant with the policies, SOPs and guidelines regarding payroll processes. Payroll Administrator will need to be knowledgeable on how to handle non-routine cases including authorized manual overrides in the system. Payroll Administrator will need to be familiar with the reporting functionality, and will have a more proactive role in reporting and monitoring. For Payroll Administrators currently usinq IMIS, the transition into Umoja is expected to be much faster because the type of work and the level of automation will be similar. It is possible though that Umoja will offer less automation for some tasks and less proactive audit capabilities, especially if the scope of what could be checked after the simulation/trial runs is reduced. For Payroll Administrators not currently usinq IMIS, the work is going to be very different due to the new functionalities, the integration and the increased automation. Hence, the skills and knowledge requirements will be different. HR Partner HR Partner will need to be knowledgeable in using the system, including the concept of personnel action in Umoja and the handling of retroactive corrections. HR Partner will need to be familiar with the policies, SOPs and guidelines regarding payroll processing. Chief of Payroll Chief of Payroll will need to be knowledgeable in using the system to approve payroll payments. EFFORT Payroll Administrator Payroll Administrator will have a slight reduction of effort arising from an expected decrease in the need for salary advance due to the introduction of an integrated global payroll system. However, there will be an increase in effort relating to reviewing/auditing payroll results. In field missions and other non IMIS sites, there will be a substantial reduction in manual processing thanks to the automated calculation of entitlements amounts, automated payroll calculations (e.g.: in case of retroacuvity) and the automation of the financial postings. HR Partner A number of processes that are currently handled in the Finance or Travel modules of IMIS will be handled in the HR/Payroll module such as salary advance, education grant advance and claim and assignment grant. This will have an impact on the work of the HR Partner as discussed in the relevant change impact documents. In respect of salary advance, there will be a reduction of effort arising from an expected decrease in the need for salary advance due to the introduction of an integrated global payroll system. HR Partner at IMIS duty stations will have no significant change in work effort as he/she will continue to perform similar actions related to payroll processing in IMIS. HR Partner at non-imis duty stations may experience a slight increase in work effort as he/she may have to perform actions relating to new functionalities and integration introduced by Umoja under the payroll processes. Chief of Payroll. No change in effort. VOLUME, There is no increase to the volume of payroll cases. DOA / APPROVER / RESPONSIBILITY IMPACTS (changes in delegations of COMPLEXITY. Because SAP is less customized for the UN, there will be a slight complexity for users.

5 Process: Payroll Post-Processing Page 5 of 6 Process Number: HR Version: Meeting Date: 29 August 2013 : authority or approval processes as a result of a process being implemented) WORK LOCATION IMPACTS (if the location of specific work is moving to a centralized or regional location, or from a HQ location to the field) REPORTING / ACCOUNTABILITY IMPACTS (impact of the reporting capability of Umoja on UN operations, e.g., whether the 'ÿ transparency of data impact accountability L or KPIs) STAKEHOLDER PAIN POINTS (issues that could potentially create pushback or colllplaill[5 rl o111 stakeholders as a result of a process being implemented) LEGACY SYSTEM IMPACTS (systems that are currently in used that will be replaced by Umoja) POLICY IMPACTS (policies that are changing that will i reshape the UN) NEXT STEPS This process can be performed remotely (global, regional, local). The system is envisaged to have a reporting capability that includes standard reports and ad hoc reports that will allow monitoring/auditing to support the payroll process. Global reporting will be possible from a central location eliminating the need to collect data from various duty stations. There will be initial pain points for Payroll Administrators not currently usinq IMIS in adapting to a different way of processing payroll due to the new functionalities, the integration and the increased automation in Umoja. IMIS and ProGen will be replaced by Umoja. Once Umoja is fully implemented, any homegrown systems will be decommissioned. Proration of monthly salaries will continue to be based on days per month. List open action items here.,, Create BI reports to support this process OPBBA / Umoja Set up, configure, test diagnostic tool (EPI- USE) Reporting requirements currently being identified Create SOPs and training materials on the 3 process 4 Create SOPs and training materials on monitoring/auditing 5 Review potential impact of black out period on Umoja ESS Review delegation of authority and 6 administrative instruction to ensure OPPBA alignment with Umoja process it's happening ÿ ÿ

6 h'ocess: Payroll Post-Processing Page 6 of 6 Process Number: ItR Version: Meeting Date: 29 August lo Review texts of automated system notification Standardize pay dates across the Secretariat -{byÿll-areas) Define transition strategy until full deployment of Umoja to all duty stations, including training impact Identify who will coordinate (and how) the global payroll scheduling Including 'black out' dates Review of policy on application of exchange rates, especially on payment of DSA rates Determine the impact of the absence in Umoja of a separate process for retroactive accounting Define how the Treasury area will operate (be organized) in a globally integrated system OPPBA L.U m_ojÿ OPPBA / OHRM / Umoja OPPBA OPPBA / OHRM / Umoja Specifically, in relation to tile handling of staff members moving from Umoja to non- Umoja duty stations (to include guidelines, SOPs, training for administrators, staffing table view, etc.) PROCESS OWNER ACCEPTANCE PROCESS OWNER(S) ACCEPTANCE OF THIS DOCUMENT AND ITS CONTENTS. Chandramouli Ramanathan Deputy Controller, OPPBA Name Signature Date TL's haÿpenÿu