Report No to the Audit Committee. Re: Deloitte Report HR/Payroll

Transcription

1 28 May 2012 Report No to the Audit Committee Re: Deloitte Report /Payroll ORIGINATORS: Michael E. Clarke, Chief Financial Officer Janice McCoy, Superintendent of Human Resources PURPOSE: 1. To provide information to the members of the Audit Committee with regard to the efficiency and effectiveness review of the data input and verification processes within the Human Resources Information System and Payroll divisions, conducted by Deloitte s in the spring and fall of BACKGROUND: 2. In the spring of 2011, Deloitte s was engaged to conduct a review of the data input and verification processes within the Human Resources Information System and the Payroll divisions of the Human Resources and Finance departments, respectively, with a specific view to identifying inefficiencies or gaps and potential areas for improvement. 3. Staff had recommended the area for review due to emerging concerns over the integrated IS/payroll software system (IPPS) and related processes. These processes are critical given that eighty per cent of the District s budget is spent on salaries and wages, processed through these two divisions. 4. The IS Division of Human Resources and Payroll are primary users of the Integrated Personnel and Payroll System (IPPS), a legacy software system that pre-dates amalgamation. Its basic operating capacities remained relatively unchanged since the 1980s. Human Resources and Payroll have organised many of the processes currently in place to accommodate the software s capabilities and limitations, and based on historical external reviews which emphasized the need for maintaining paper documentation of changes. Despite the software system s limitations, IPPS remains a dominant system among school districts in the province on the basis that it was specifically designed over 20 years ago to accommodate school districts unique IS and payroll needs. 5. Deloitte conducted its review of the IS processes in the spring and summer of 2011; the Payroll Division s processes were reviewed in the fall of A copy of the final report is attached at Appendix A.

2 STATUS: 6. Deloitte s mandate in conducting the review was to identify areas where improvements could and should be made in the current processes, many of which have been in place since or prior to the creation of the amalgamated board. In that regard, the report does not identify the many aspects of the input and verification processes that were reviewed and are working very well. 7. The final report includes a number of recommendations which have been categorized based on potential operational impact. The findings and recommendations fall into four broad categories: i) Software system limitations, that is, areas that are inconsistent with what can or should be available in a modern IS/payroll system. (Appendix C of the Deloitte report). ii) iii) iv) and Payroll process issues, that is, opportunities to improve internal processes to find greater efficiency and effectiveness. (Appendix D of the Deloitte report). and Payroll internal operation issues, that is, opportunities to improve internal operations within the two areas based on the way in which work is organized. In some cases, the processes identified have been established in response to software system limitations. (Appendix E of the Deloitte report). Contract terms issues, that is, processes that have been established to accommodate benefits contract issues. Staff does not necessarily support the changes recommended in this area as there may be implications beyond process efficiencies. (Appendix F of the Deloitte report). 8. While staff is, in general, in agreement with the major findings of the report, there are some areas where staff does not agree with the finding or proposed recommendation. For example, in some cases there may be implications, apart from efficiency, that were outside of the scope of the Deloitte review, such as cost implications, collective agreement requirements or operational realities, which need to be considered. In other cases, steps to address and rectify the efficiencies were already under way, are underway or have been completed. Because the IS review was completed in advance of the Payroll review, some areas for improvement identified in the report have already been implemented and these have been indicated with shading in the final report. 9. Many of the recommendations are inter-related and often successful implementation of one recommendation depends on another recommendation being implemented first. As indicated above, many of the recommendations are related to system limitations or capacity issues and so may not be possible to implement fully or at all with the existing software system. 10. With regard to the software system, staff is currently investigating whether IPPS can be upgraded to increase its capabilities and, if so, at what cost. This information will be valuable in assessing the feasibility of maintaining the current system or replacing it with a new software system. Preliminary estimates for the purchase and implementation of the system are in the range of $2 million, with one half for selection and purchase and the remainder for conversion and implementation. 11. Staff is planning to proceed with a preliminary feasibility study, including a more comprehensive cost benefit analysis and review of available suitable software systems. There are a limited number of systems that can handle the OCDSB s IS and payroll demands without also committing the District to significant ongoing costs related to licensing and upgrades.

3 12. The staff proposed budget for includes $2 million capital budget funded from existing reserves. It should be noted that approval of the budget does not automatically result in approval of a replacement system. The Board will have to approve both the issuing and awarding of the tender for a project of this size. CONSULTATION: 13. The report and its recommendations have been reviewed and discussed with the members of the Human Resources and Payroll departments who were involved in providing input. FINANCIAL IMPLICATIONS: 14. There is a potential cost of $2 million to replace the existing software system. The cost of the Deloitte review was covered through the existing budgets approved for and The preliminary feasibility study will also be funded from existing operating budgets. Submitted for information. Jennifer Adams Director of Education and Secretary of the Board Michael E. Clarke Chief Financial Officer

4 Review of the Data Input/Verification Processes in the Human Resources Information System (IS)/Payroll Divisions Final Report Ottawa-Carleton District School Board Findings and Recommendations Report May 11th, 2012

5 Table of Contents Introduction 2 Page Approach 3 Process Design Best Practices and Assessment 4 Summary of Data Entry & Data Verification Recommendations 38 High-Level Observations 44 Opportunities & Quick Wins 45 Next Steps 46 Appendices A Interview List B Current State Information Technology & Systems Environment C Software System Issues D and Payroll Process Issues E and Payroll Internal Operation Issues F Contract Terms Issues

6 Introduction Background The Ottawa-Carleton District School Board (OCDSB) is the largest school board in Eastern Ontario, serving students within a 2,760 square kilometer area known as the City of Ottawa. OCDSB is the seventh largest board by school population in the province of Ontario and its 150 schools offer a wide range of programs to promote learning excellence and meet the individual needs of students, parents, and the community at large. All of OCDSB schools are teaching communities where principals, vice-principals, teachers and support staff nurture and challenge students to achieve their best in academics, the arts, athletics and technology. Project Objectives Deloitte was retained by OCDSB to review the employee data input and data verification processes currently in place in the Human Resources Information System (IS) and Payroll divisions. There is also a requirement to analyze the workload created by other tasks and processes associated with maintaining the IS. Report Objectives The objectives of this report are to: Present the key findings from the consultations and analysis of the data entry and data verification processes currently in place at OCDSB; Identify areas for improvement; and, Provide recommendations for overall improvements. 2

7 Approach As illustrated on the following pages, two core methodological frameworks (Best Practices Criteria and an Organizational Impact Assessment Scale) have been used to guide data collection and analysis. In completing the analysis of OCDSB s data input and verification processes and the evaluation of the workload created by maintaining the IS (including Payroll), Deloitte undertook the following activities: Phase 1 Project Start-Up & Planning Phase 2 Capture Current State Phase 3 Key Findings Phase 4 Implementation Review work plan, confirm project expectations, approach, timing and scope. Identify 13 Human Resources and 10 Payroll stakeholders to interview and confirm timing of interviews. Obtain background material relating to the current IS/Payroll system and current departmental processes (i.e. process maps, workload, forms). Review process maps to gain an understanding of current workflows related to data input and data verification. Review OCDSB s organizational charts, paperbased forms and job descriptions for relevant departments. Conduct stakeholder interviews to gain an understanding of key business and functional requirements, process and system challenges and gaps. Identify process design best practices framework. Analyze, synthesize and document the results from the background material and consultations. Assess findings against best practices framework and determine the impact of the findings on the organization. Identify opportunities & quick wins. Liaise with relevant service providers to determine IS system and interface capabilities. Obtain OCDSB approval for recommended changes. Map in-scope proposed changes for OCDSB to implement. Present Draft Findings and Recommendations report to OCDSB. Where we are today Phase 4 will be implemented after the recommended changes have been approved by OCDSB. 3

8 Process Design Best Practices and Assessment OCDSB s current processes and systems used for data entry and data verification have been assessed according to the following process design best practices framework: Best Practice * Enter Data at the Source & Automate Open and Clear Communication Best Practice Description Processes are designed to address the underlying needs of the client. Clients have one contact point. Encourage standardization. Low-value added activities are eliminated or reconfigured. Reconciliation activities are minimized. Activities are performed where it makes the most sense. Optimize coordination; as few people as possible should be involved in the performance of a process. Break down barriers between team members - specialization improves efficiency but creates hand-offs and hand-offs create work. Data is entered only once by people who understand and require the data. Technology is used to create efficiencies. People involved in processes respond positively to having more responsibility for productive, meaningful outcomes. Open and clear communication between team members and departments improves productivity. The following pages provide an overview of this assessment conducted for the following departments. Please note a highlighted section indicates that the opportunity for improvement has been implemented: Departments Payroll Human Resources/IS 4 *In the context of this analysis, clients are defined as the employees served by OCDSB s, IS, and Payroll divisions. Further, it is assumed that these employees require timely and accurate data processing in accordance with established principles of privacy and data protection.

9 Dept. Findings Rating Processes are designed to address the underlying needs of the client Unnecessary transcription is occurring throughout the and Payroll Divisions. For example, when a client sends in a Manulife Benefit Enrolment Form it is being transcribed to the Business Source Document (BSD) (i.e. COMP 2 Staffing Benefits Administration), prior to entry into IPPS.Net and Manulife. There is no apparent reason for the transcription. The overall process for tracking seniority is cumbersome and manual. All calculations related to seniority and vacation entitlements are manual calculations that are data entered into IPPS.Net. Transcribing client data manually onto the BSDs is redundant. This could have a significant negative impact on clients: increasing processing times, errors with transcription and reducing the amount of time available for staff to focus on client service. The seniority tracking process is not conducive to enabling timely and accurate client service. Opportunities for Improvement If additional fields are required, customize the Manulife Benefit Enrolment Form with an internal use only section and add any fields required by OCDSB. This will eliminate any need for transcription. OCDSB should identify and consider a more sophisticated seniority tracking system that calculates seniority, leave impacts, vacation entitlements, etc. Other school boards have customized their IS systems to perform these calculations. Eliminate redundant processes such as transcription of information. OCDSB should identify and consider a more sophisticated seniority tracking system. 5

10 (Cont d) Dept. Findings Potential Organizational Impact Rating Opportunities for Improvement Processes are designed to address the underlying needs of the client In terms of privacy, access to Employee Wellness and Disability Management employee files is not adequately protected. The case managers within Employee Wellness and Disability Management have access to each other s files. Clients are not always aware of the applicable policies and procedures that impact them. For instance, when employees are on long-term disability (LTD), they are not informed that Revenue Canada requires that CPP, EI and taxes be paid for up front (resulting in a reduced pay since the taxation is different for LTD). While these funds will be reimbursed when the employee completes their annual tax return, the employee needs to be aware so as to manage the immediate impact of their reduced salary. Failing to adequately safeguard employee information creates privacy and data protection risks and is not compliant with privacy legislation. It is important that all necessary information be communicated to clients in a timely manner, to ensure their full satisfaction and understanding of the impact that certain actions may have on their pay. Upfront communication also helps reduce the volume of calls that are received within Payroll and/or. Access to Employee Wellness and Disability Management files should be restricted to those who require the information. and Payroll should jointly develop information packages to inform employees of their responsibilities and impact to pay while they are on various leaves. In addition, it should be determined who is accountable for advising employees of these types of pay impacts (i.e. Possibly Employee Wellness who manages other aspects of the leave). Access to Employee Wellness and Disability Management files should be restricted to those who require the information. Employees and departments should be educated on, Payroll and Benefit processes. Identify the role accountable for sharing policy and procedure information with the employee. 6

11 (Cont d) Dept. Findings Rating Opportunities for Improvement Approximately ninety (90) percent of all retirees who continue to teach as Occasional Teachers (OTs) omit to fill-out the TPP forms that cancel their contributions. This causes Payroll to prepare retroactive adjustments. Retroactive adjustments are labour-intensive for the Payroll department and limits the time they have to spend on valueadded activities. IPPS.Net should include a Retiree Status checkbox which would ensure that IPPS.Net automatically stops TPP contributions for retired OTs. Processes are designed to address the underlying needs of the client Currently, a new hire is required to pay the benefit premium for the entire month, regardless of the date of hire (e.g. if an employee is hired on the 30 th of the month, he/she is still required to pay the premium for the whole month). This practice is unfavorable for the employee and may prompt inquiries to and Payroll, limiting the time they have to spend on more value-added activities. Alternative premium (benefit) policies should be discussed with the benefits provider, such as employees only pay the premium if they start before the 15 th of the month. IPPS.Net should include a Retiree Status checkbox to ensure that TPP contributions are stopped for retired OTs. Investigate alternative benefit premium policy applications with the Benefits Provider. 7

12 (Cont d) Dept. Findings Rating Opportunities for Improvement Clients have one contact point In accordance with contemporary best practice, clients have one contact point for benefits in each division (i.e. a Salary and Benefit Administrator). However, staff are familiar with clients to the point where personal information change requests (i.e. COMP 1 - Marital Status Change) are accepted by telephone. Accepting verbal client data change requests could result in inaccurate data, poses a privacy risk, and creates an inability to verify the flow of changes. Written documentation from clients on standardized forms should be required for all personal data change requests. Written documentation from clients on standardized forms should be required for all personal data change requests. 8

13 Dept. Findings Encourage standardization The Employee Action Form (EAF) is a standardized paper form that is used for multiple staffing actions; however, the processes around the use of the form are not ideal because there is a requirement to rewrite unnecessary client information, such as the employee address, for actions that are unrelated to personal information. Inconsistent processes exist among divisions and there is a perceived need to distribute paper copies of the EAF to the IS and Payroll divisions. Potential Organizational Impact Transcription of unnecessary information is time consuming and can result in confusion at the data entry point as to what information is to be changed. The absence of consistent processes inhibits OCDSB s potential to grow effectively and may be confusing and costly to stakeholders in the long-run. Rating Opportunities for Improvement The following options are presented for consideration: Electronic EAFs could be reintroduced, accompanied by clear standardized processes to be followed by each division; and, The amount of client information entered onto the form could be reduced to what is required (i.e. only the employee number and name is needed to identify an employee). Reintroduce electronic EAFs and introduce standardized processes for divisions to follow. Only transcribe client data onto EAFs that is necessary for the successful completion of the process. 9

14 (Cont d) Dept. Findings Encourage standardization Recently, there have been issues observed with regard to the tracking of pension eligibility. Individuals with contracts of less than ten months are not eligible for OMERS; however, they become eligible if their contract status changes to a term of greater than ten months. In the event of a contract extension, will either send an EAF or a print screen of the status change to Payroll. The process is not standardized and as a result, some individuals who are eligible for OMERS do not get set up when their status changes. Although the omissions are usually identified when the verification report is run, the error creates inefficiencies as Payroll must engage with individuals who are eligible for OMERS to pay arrears. Potential Organizational Impact The absence of a consistent and automated process to transmit contract change information may create inefficiencies within Payroll and negatively impact the quality of client service. Rating Opportunities for Improvement A standardized process for transmitting contract status change information should be developed. A standardized process for transmitting contract status change information should be developed. 10

15 (Cont d) Dept. Findings Potential Organizational Impact Rating Opportunities for Improvement Encourage standardization As part of the collective agreement, when an Occasional Teacher (OT) becomes a Long-Term Occasional Teacher (LTO), they are entitled to a salary increase. Retroactive adjustments for the hours worked as an OT are required, as they are now entitled to the LTO rate of pay for time previously worked. Retro calculations are also required for sick leave, vacation holidays, and TPP as the benefits vary between an OT and LTO. The volume of changes can be as high as 300 per pay period. Preparing retroactive adjustments and calculations are tedious and creates inefficiencies, preventing Payroll staff from focusing on more value-added activities. While this is currently being done for known maternity leaves and long-term leaves. OCDSB should create a standard process for schools to hire staff as LTOs when the status change from an OT to LTO is imminent. Hire staff as LTOs when the change from an OT is imminent. 11

16 (Cont d) Dept. Findings Encourage standardization There are currently inconsistent procedures relating to the use of databases, database maintenance and reporting at OCDSB: For example, the Elementary and Administration and Staffing Support divisions maintain separate FileMaker databases, which they use to generate reports. FileMaker databases are maintained by these divisions due to concerns over the timeliness and integrity of data kept in IPPS.Net. The data integrity issues stem from the bi-weekly Payroll data entry schedule, which is driven by the perceived inability of IPPS.Net to run separate payroll verification reports for the two separate Payroll groups (i.e. teaching staff and the administrative support staff), who are paid on alternating weeks. Potential Organizational Impact Maintaining separate databases may decrease the quality of data and the amount of time available to OCDSB staff to provide client service. Rating Opportunities for Improvement Separate payroll verification reports should be developed so that data may be entered on a weekly basis in IPPS.Net. This will in turn eliminate the requirement for the divisions to maintain separate FileMaker databases. Separate payroll verification reports should be developed for the two payrolls to enable weekly data entry. Eliminate FileMaker databases when the specific Payroll reporting changes have been made. 12

17 (Cont d) Dept. Findings Potential Organizational Impact Rating Opportunities for Improvement Encourage standardization Four employees (out of thirteen) from the Payroll department are scheduled to retire in Payroll employees follow different processes when completing their work (e.g. each individual has created his/her own processes and protocols to administer the relative collective agreements). This proves to be a challenge when a staff member is away or sick, since there is minimal cross-training. The complexity of the current processes, and the fact that certain payroll processes are not standardized or documented pose serious challenges (such as incorrect pays) when the staff members retire. The complexity of the current processes, and the fact that numerous individual processes are not standardized or documented pose serious challenges (such as incorrect pays) when the staff member is away. In addition, it is not efficient to have different and fragmented processes for the same tasks. While certain steps have been taken to train payroll staff and document some processes, a formal succession plan should be developed to ensure that successors are identified and trained at the level required. Immediate steps to ensure appropriate knowledge management include more crosstraining and standardizing all processes within the Payroll department. While some standardized process have already been developed within Payroll, they should be developed for all processes, and cross- training provided to ensure that there is sufficient backup for each role. Develop a formal succession plan for the Payroll department. Standardized processes and procedures should be developed, and cross-training practices should be implemented for all areas within Payroll. 13

18 (Cont d) Dept. Findings Encourage standardization School Administrators must enter specific release codes (which are set-up by Finance) on timesheets to inform Payroll and Finance of the type of work that was completed by the teacher (e.g. workshops, field trips, special projects, etc.) and to determine which account the funds will come from. However, these release codes are not the same as the ASN codes (account numbers). School Administrators do not have access to the ASN codes. When Payroll receives a timesheet which includes a new release code, the Payroll Administrator must contact Finance to request the ASN code to use. Finance sends the ASN code by , and Payroll must then update its internal spreadsheet of corresponding release codes/asn codes and make copies for all team members. There can be anywhere between one and five new release codes per day. Potential Organizational Impact This task is labour-intensive for the organization, and requires Payroll to work with a code reference sheet that is continuously updated and that changes every year. This increases the risk of error and does not allow Payroll to focus on more value-added activities. Rating Opportunities for Improvement Finance should be responsible for updating the code reference sheet and sharing it with Payroll via a shared electronic folder. Ultimately, the code reference sheet should be standardized (e.g. school release codes should be matched to the same ASN codes, year-over-year, when possible). Finance should create a standardized electronic code reference sheet that is regularly updated with new release codes and corresponding ASN codes. 14

19 (Cont d) Dept. Findings Rating Encourage standardization Currently, a number of different timesheets are being used by internal clients (e.g. overtime, PA Days, etc.). Continuing Education Instructors have Letters of Employment (LOEs) which are standard contracts which include details on the instructor s schedule, hourly rate and duration of contract. Payroll enters the time information in the system every pay period (as is done with timesheets). Using various non-standardized timesheet forms adds unnecessary complexity to the process, both for the users that complete the timesheets (e.g. School Administrators) and the Payroll personnel. This process increases the risk of error, and impacts productivity. Time spent manually entering time data reduces the amount of time available for staff to focus on valueadded customer services. Opportunities for Improvement OCDSB should make timesheets as generic as possible and minimize the number of timesheets in circulation. This could be accomplished by including check-boxes on generic forms to indicate specific details, such as the type of employee, the type of day worked, etc. Payroll should enter the standard hours into IPPS.Net at the beginning of the contract, and set-up reoccurring Payroll batches which will omit the requirement for time entry each pay. (Batches are currently set up in the PATE system for instructors that only work on Saturdays). Create a generic timesheet. Set-up Payroll batches within IPPS.Net for hours that are reoccurring, such as for Continuing Education instructors. 15

20 (Cont d) Dept. Findings Potential Organizational Impact Rating Opportunities for Improvement There are multiple employee files within OCDSB (Payroll, Pension, Human Resources, Employee Wellness) resulting in duplication of information (i.e. EAFs). Having multiple copies of documents creates version control issues, causes extra work and makes it difficult to audit an employee. There should be one core Employee File that houses all core transactional employee information. This also highlights that processes need to be reviewed to create efficiencies. If work is organized correctly, it will take away the need for multiple employee files. Encourage standardization At times and in specific situations, Payroll is responsible for manually calculating the portion of funds to be transferred from a number of different general ledger accounts to compensate an employee (e.g. when an LTO replaces a teacher on sick leave, salary payment is shared between the School account, the account, and the Superintendent account). Manual calculations are labour-intensive, and increases the risk of errors. A contemporary payroll system could link multiple pay codes to General Ledger codes more efficiently, creating a simple process for account allocations. This is a standard feature of contemporary IS/Payroll systems. Maintain one core employee file for core transactional data. A modern payroll system could link pay codes to multiple general ledger codes. 16

21 (Cont d) Dept. Findings Potential Organizational Impact Rating Opportunities for Improvement Encourage standardization Due to a lengthy overtime approval process for the Payroll division (e.g. previously all overtime was approved by the Assistant Treasurer, Finance), overtime is not always documented and is often taken as time in lieu, which is not recorded in the Absence System (IPPS.Net), and which does not require approval from upper management. Please note that IPPS.Net is not able to show a Time in Lieu balance. Lengthy procedures for overtime approval and undocumented overtime will impact metrics that measure workload within the organization. When overtime is required, the approval process should be simple and clear, and employees should record all time worked in the Absence System (IPPS.Net). Please note that until IPPS.Net can be programmed to record Time in Lieu balances, it is recommended that it be tracked on an Excel Spreadsheet. Summary 17 of Recommendations: Implement simple and clear overtime approval procedures, and ensure that all overtime is recorded. 17

22 (Cont d) Dept. Findings Potential Organizational Impact Rating Opportunities for Improvement Low valueadded activities are eliminated or reconfigured Benefit Change forms are currently sent as a courtesy to clients with a life change (i.e. marriage, birth of a child, etc). Sending benefit change forms to individuals as a courtesy is not considered to be a valueadded activity. This practice was implemented due to the fact that Manulife has a 31 day period after the life event occurs to change coverage, otherwise medical evidence must be provided. In order to register a retired teacher for a retirement gratuity, Payroll needs copies of all employees service records. Only ten (10) percent of teachers supply them without a request. To get access to this information, Payroll must directly contact the retired employee (OCDSB s access to service records is limited to those within the Ottawa Carleton District School Board). Requiring staff to monitor client life changes and send out benefit change forms may reduce the amount of time available for staff to focus on providing other, more value-added, client services. This process creates inefficiencies and therefore reduces the amount of time available for Payroll staff to focus on more value-added client services. In accordance with contemporary human resources practices, clients should be responsible for maintaining their personal information. OCDSB should investigate if Manulife can extend the period beyond 31 days. Communicating to retired employees that they are responsible for providing Payroll with their service records (without a call) is important. Employees have direct access to the TPP website which includes the details of their service from all of the school boards (OCDSB does not have the same access). Clients should be responsible for maintaining their personal information. Clients should be accountable for providing service documentation to Payroll. 18

23 (Cont d) Dept. Findings Low valueadded activities are eliminated or reconfigured Some employees that require employment insurance (EI) apply to the program through Service Canada before their last day of work (and before receiving their Record of Employment (ROE)) using the information from their paystubs (e.g. earnings, projected date of leave, etc.). However, Payroll only submits the ROE through the Service Canada website following the employee s last day of work (which is a standard payroll process). Since the data entered by the employee is most often different from the accurate data listed on the ROE, Service Canada contacts Payroll to inquire about the discrepancies. This information is not communicated to the 10 and 10.5 month employees as part of their introductory package. Some employees that require employment insurance (EI) call Payroll to request an estimate of the earnings that they will be provided with while on a leave. Potential Organizational Impact Having to respond to various inquiries on a daily basis creates inefficiencies within Payroll and decreases the amount of time available for staff to focus on providing client service. Having to respond to various inquiries on a daily basis creates inefficiencies within Payroll and decreases the amount of time available for staff to focus on other valueadded activities. Rating Opportunities for Improvement As a contemporary practice, employees applying for EI should be responsible for submitting the accurate information based on their ROE after their last day of work. An organization-wide memo should be sent and/or posted for all employees outlining this process for future EI applications. If possible, Payroll should create sample salary calculation sheets that are provided to employees by when they submit their request for a leave. This would reduce the number of inquiries. Employees should be responsible for submitting accurate information when applying to programs such as EI. A memo outlining this procedure should be distributed to all employees. Payroll should create sample salary calculation sheets for employees to calculate their leave benefits. 19

24 (Cont d) Dept. Findings Activities are performed where it makes the most sense Opportunities currently exist to further centralize data entry. For example: Regarding the process to hire, currently the Salary and Benefits Administrator inputs client data into IPPS.Net and then forwards the EAF to the Coordinator Attendance Management, who inputs client data into IPPS ABSENCE MANAGEMENT to create vacation leave and sick leave accounts. Potential Organizational Impact Having multiple data entry points may increase the possibility of error and lengthen processing times. Rating Opportunities for Improvement With a view toward centralizing data entry, data input to hire and create vacation leave and sick leave accounts should be performed by the same individual (i.e. Salary and Benefits Administrators). With a view toward centralizing data entry, data input to hire and create vacation and sick leave accounts should be performed by the same individual. 20

25 (Cont d) Dept. Findings Activities are performed where it makes the most sense Payroll employees check their own work. For example, the employee that data enters the information from the EAF into IPPS.Net is also the one confirming the entry is correct. Also an employee that performs a calculation (e.g. statutory entitlement) would check their own calculations. Monitoring practices are in place within for -specific processes. However, Payroll employees continue to find a limited number of errors in the documents they receive from, and as a result, spend additional time reviewing all data received from that would impact pay (e.g. Benefit Source Documents (BSD)). Payroll must contact to acquire the accurate information and correct the entry. Payroll staff feel accountable for the accuracy of the data since they are the last team to receive the forms. Potential Organizational Impact Lack of peer checks and balances could have a significant negative impact on clients, increasing the risk of errors and processing times. Lack of role accountability causes confusion within the departments. Duplicate auditing by Payroll and is not productive and takes time that could be spent on other valueadded activities. Rating Opportunities for Improvement All processes within Payroll should be reviewed and reorganized to ensure that all work is being audited by someone else in Payroll. However, it will first be necessary to standardize all processes and provide cross-training within Payroll. As was mentioned previously, each individual has their own process for completing their individual work. Accountability for the accuracy of data should be assigned to specific departments and roles. In this instance, if owns the entries they should own the monitoring process and ensure the accuracy of all information being transferred to Payroll. Review and reorganize Payroll processes ensuring peer checks and balances are implemented. Ensure that departments and employees understand what they are accountable for. 21

26 (Cont d) Dept. Findings Activities are performed where it makes the most sense The following data verification issues were identified: Currently, the Salary and Benefit Administrator transcribes information from the Manulife Benefit Change Form to the BSD (e.g. COMP 1 - Marital Status Change Benefits Impact) - however, there is no verification of the transcription; There is no verification of the entries into the Employee Benefits System (EBS) made by the IS Administrator; and, There are instances where verifications are performed by those inputting the information (i.e. INSY 8, EAF Process - Long Term Disability*), where the IS Administrator is entering codes into IPPS.Net and verifying the entry as well. Potential Organizational Impact Transcribing employee data manually onto the BSDs and not ensuring sufficient verifications of client data in IPPS.Net and the EBS increases the possibility of errors. This could have a significant negative impact on clients, increasing processing times and reducing the amount of time available for staff to focus on client service. Rating Opportunities for Improvement Ensure that any transcription of client information from source documents to BSDs is verified, (if transcription is necessary); Ensure that EBS entries are verified for accuracy; and, Ensure that different individuals are responsible for the input of client data and coding into IPPS.Net and the subsequent verification of the input. Ensure verifications are performed for input into the EBS and the transcription of client information to BSDs. Ensure that different individuals are responsible for the input of client data into IPPS.Net and the subsequent verification of the input. *Please note that the documented process for INSY 8 EAF Process Long Term Disability differs from the process described in the consultations. 22

27 (Cont d) Dept. Findings Rating Activities are performed where it makes the most sense The IS division is primarily used for reporting and data verification, and views data integrity as its main responsibility. Sick leave credits are allotted at the beginning of each year. If employment is terminated and more sick leave has been taken than was earned, Payroll must request that the employee reimburse the paid sick days. Using the IS division as a reporting and data verification function may not deliver maximum value to OCDSB because this represents a missed opportunity for the IS division to conduct more strategic activities. This process creates risks and inefficiencies. Payroll has to follow-up with the former employees who will not always reimburse the required sick days, which creates a financial loss for the organization. In addition, the follow-up takes time that could be spent on more value-added activities. Opportunities for Improvement The IS division should take on a more strategic role by actively identifying areas for system and process improvements, instead of serving primarily as a reporting and data verification function. OCDSB should program IPPS.Net to accrue sick days as they are earned, and only allow employees to take what is in their sick bank. This is a standard feature of contemporary IS/Payroll systems. The IS division should take on a more strategic role by actively identifying areas for system and process improvements, instead of serving primarily as a reporting and data verification function. Sick leave credits should be accrued, not advanced. 23

28 (Cont d) Dept. Findings Rating Activities are performed where it makes the most sense There is a perception that the workload within Payroll is not evenly distributed amongst the team. Uneven workloads within a team can result in resentment, teamwork challenges, and increase in sick leave and potential turnover. Opportunities for Improvement Assessing individual workloads, updating process flows, and defining role requirements will ensure that the work is distributed in an effective manner. Updating process flows and defining roles for Payroll will create efficiencies. 24

29 Dept. Findings Optimize coordination; as few people as possible should be involved in the performance of a process Certain hand-offs of paper documents such as EAFs and BSDs between individuals and divisions may be unnecessary. For example: Salary and Benefits Administrators forward all EAFs to the Coordinator Attendance Management, whether they impact Leave Account allocations or not, who will then either action the EAF (i.e. revise the absence account (COMP 13 Absence Account Revision)) or dispose of the EAF if there is no impact. The number of steps and individuals involved in the process creates unnecessary work. Potential Organizational Impact Having multiple handoffs between individuals and divisions may result in increased incidences of error and slower processing times. Rating Opportunities for Improvement When modifying the employment status of existing client accounts, Salary and Benefits Administrators could also adjust the Leave Account allocations (i.e. COMP 13 Absence Account Revision) as applicable. When modifying the employment status of existing client (employee) accounts, Salary and Benefits Administrators could also adjust the Leave Account allocations. 25

30 (Cont d) Dept. Findings Optimize coordination; as few people as possible should be involved in the performance of a process The approval process to take a vacation within certain departments is lengthy and involves multiple handoffs and levels of approval. Although Employee Wellness manages the gradual return-to-work process, Payroll is responsible for calculating the number of teacher days in a given month. Payroll submits this information (hard copy) to the Employee Wellness group when needed. Potential Organizational Impact The requirement for vacation approvals to go through multiple levels is cumbersome and a source of inefficiency. Having multiple hand-offs between individuals and divisions may result in slower processing times. Rating Opportunities for Improvement The approval process to take vacation leave should only go up one level for approval. Since Employee Wellness has access to the necessary information and capabilities to calculate the number of teacher days for gradual return-to-work programs, this task should reside within the Wellness team. The process to take vacation leave should only go up one level for approval. Employee Wellness should be responsible for all tasks related to the gradual back-to-work process. 26

31 (Cont d) Dept. Findings Rating Break down barriers between team members - specialization improves efficiency but creates handoffs and handoffs create work Currently, the IS Division specializes in producing customized reports using SQL and distributes these reports as required to the and Payroll divisions. There is appetite for self-service reporting; however, the SQL reporting tool is not perceived to be user-friendly and the canned IPPS.Net reports do not meet OCDSB s business requirements. The requirement for staff to request reports from IS at regular intervals creates unnecessary handoffs of work and does not enable the IS division to pursue more strategic activities. Opportunities for Improvement Although there may be an initial time and financial investment to switch to a new reporting tool and train staff to generate reports, enabling self-service reporting or automatically ing reports will save time and effort for staff in the long run. IS would, in turn, have time to pursue more strategic and value-added activities. As such, alternative reporting tools to SQL should be considered. For example, Niagara School Board uses a more user-friendly tool called CRYSTAL. OCDSB should investigate reporting tools used by other school boards that enable self-service and automated reporting. 27

32 Dept. Findings Potential Organizational Impact Rating Opportunities for Improvement Data is entered only once by people who understand and require the data IPPS.Net does not currently offer extensive client self-service; however, the following client selfservice options exist: Approximately 250 users from schools, departments, facilities and seconded locations are able to directly input: Absences into ABSENCE.Net; Timesheets for custodian staff; and, All employees are able to directly input annual (criminal) offense declarations. The following client self-service options are in progress: A direct link from Apply To Education to IPPS.Net is in progress; and, OCDSB will transition to SharePoint this Fall, which will enable increased client self-service. The following self-service with respect to data entry onto EAFs was observed: Principals are permitted to complete EAFs for the Long-Term Occasional Staffing process. Although OCDSB is moving towards increased client self- service for data entry, the current level of client self-service is not conducive to reducing data entry time for the IS and Payroll divisions. The full functionality of SharePoint should be utilized to enable maximum client self - service. This would allow clients to make changes to personal and benefit information. The practice of allowing school staff to complete EAFs (i.e. principals filling out EAFs for Long- Term Occasional Staffing) could be extended to the Request to Hire process as well as other processes, where feasible. The full functionality of SharePoint should be utilized to enable client self-service to the greatest extent possible. The practice of allowing school staff to complete EAFs could be extended to other processes, where feasible. 28

33 (Cont d) Dept. Findings Rating Opportunities for Improvement Data is entered only once by people who understand and require the data There is evidence of double-entry of information in certain processes, for example, data entry to the Manulife Enrollment Site and IPPS.Net in (i.e. COMP 2 - Staffing Benefits Administration). Double data entry into IPPS.Net and Manulife is a significant source of inefficiency and creates opportunities for erroneous data entry. Significant efficiency could be realized by eliminating double data entry by transmitting monthly files to Manulife. It has been confirmed that the majority of the required information is already being stored in IPPS.Net and only dependent information would need to be updated. This is the current practice of other Ontario school boards, such as Algoma School Board. Benefits data files should be sent monthly to Manulife to eliminate double data entry. *Please note that the documented process for COMP 2 Staffing Benefits Administration differs from the process described in the consultations. 29

34 (Cont d) Dept. Findings Potential Organizational Impact Rating Opportunities for Improvement Data is entered only once by people who understand and require the data There are currently data entry issues for individuals that go on a leave without pay (LWOP). Currently, the process to capture leave details requires schools to input the absence information into ABSENCE.NET. The school then s the Coordinator, Attendance Management that a leave has been entered. A Leave Without Pay Form, which is a report generated by the Coordinator, Attendance Management, is run for each individual that goes on leave and forwarded to Payroll to adjust their pay. Sometimes the Coordinator, Attendance Management is not notified and the individuals who should be on a LWOP are overlooked until the monthly verification is performed. Multiple data entry points and unsophisticated processes can lead to missed information and rework for the various departments involved. Instead of relying on the schools to notify the Coordinator, Attendance Management of leaves, the Leave Without Pay Form could be run weekly to pick up all changes that need to be recorded. School Administrators can future date sick days for individuals that are on STD/LTD prior to their maternity leave. However, this causes retroactive adjustments if the individual goes on their maternity leave prior to their anticipated leave start date, as the sick days would need to be reversed and overpayment collected. Adjustments and having to collect overpayments impacts productivity and the time Payroll has to spend on value-added activities. School Administrators should only future date sick days until two weeks before the due date. At that time, they should be following up with weekly to confirm the status, prior to entering the time. The Leave Without Pay Form should be run weekly to capture changes. School Administrators should only future date maternity sick days until two weeks before the due date. 30