presentation on the management of the national mechanised payroll

Presentation on the Management of the National Mechanised Payroll

MANAGING THE MECHANISED PAYROLL

INTRODUCTIONTopics

Legal framework The Mechanized payroll system Functions of PPD and PPSs Calculation of Salaries Payroll cycle

Legal frameworkFinancial Administration Act 2003, (Act 654) Section 3

sets out the BROAD duties of the Controller and Accountant-General.

The Controller & Accountant-General is appointed in accordance with article 195 of the 1992 Constitution by the President in consultation with the Public Services Commission.

As the Chief Accounting Officer and adviser to the Minister-MoFEP and Government on accounting matters;

Legal framework receiving, disbursing and providing secure custody for moneys

payable into the Consolidated Fund and other funds.

• ensuring the custody, safety and integrity of the Consolidated Funds and other designated public funds.

Legal framework establish such accounts with the BoG and its agents as are

considered necessary for the deposit of the moneys.

A bank account shall not be opened for any department except under the authority of the Controller and Accountant-General

A bank shall not open an account for any department without the authority of the Controller and Accountant-General

keeping, rendering and publishing statements of Public Accounts as required by the FAA or any other enactment.

Legal framework in consultation with the Auditor-General, specify for

departments, the accounting basis, policies and the classification system to be applied in public accounting and ensure that a proper system of accounting is established in each case

ensure, in so far as is practicable, that adequate provisions exist for the safe custody of public money, securities and accountable documents.

Legal framework The Controller & Accountant is responsible for managing the

mechanised payroll as set out in the FAR Accounting Authorities R 294. For the purposes of these Regulations the term “accounting

authority” relates as appropriate to (a) the departmental pay and records section responsible

for general control of personal emoluments within the department;

(b) the local head of department responsible for notifying heads of department of circumstances affecting staff pay which arise within their jurisdiction; and

Legal framework (c) the Central Pay Processing Division of the Controller and

Accountant General’s Department responsible for preparation of mechanised payroll on the basis of information supplied by heads of departments.

296. When a public servant’s personal emolument is payable on Controller and Accountant General’s Department mechanised payroll or the Departments main payroll, payment by manual vouchers is prohibited except as approved by the Controller and Accountant-General and any other system used in payment of public servants shall be approved by Controller and Accountant-General.

Legal framework(FAR 291)

“personnel emolument” covers all payments due to public servants as remuneration for employment and includes

• Salaries payable to public servants• Wages payable to public servants employed in

daily rated post; and• Allowances and any additional remuneration

due to public servants as part of their conditions of service

Legal framework R 295. Procedures to be followed in payments of

salaries, wages and related allowances shall be provided in Departmental Accounting Instructions to be issued by the Controller and Accountant-General.

304. The Controller and Accountant-General shall issue Pension Instructions governing the preparation, computation and payment of retiring awards.

Responsibilities of Heads of Depts. Regulation 292(2) of the Financial Administration Regulation

2004 (LI 1802) requires every head of department to keep records of all personnel emoluments of staff employed in their departments, in a form that ensures that:

Payments are made as and when due Overpayments are not made All required deductions are made at the correct time Authorized establishments are not exceeded The rates authorized for payment are not exceeded Payments are not made to staff who do not belong to the

department or unit.

The Mechanized payroll system

IPPD -Integrated Personnel and Payroll Data base PPD -Payroll Processing Division PPS -Personnel Processing Section(s) ORACLE HRMS- Oracle Human Resources Management

System


The GOG mechanized payroll has been designed as an Integrated Personnel and Payroll Database (IPPD) system.

For control purposes the system has been divided into two major components.

1. Personnel Component2. Payroll Component

The Personnel Component is managed by the Personnel Processing Sections (PPS) of the various MDAs and the Payroll component is managed by the Payroll Processing Division (PPD) of CAGD


Personnel Processing Sections (PPS) are located at the Headquarters of the various Ministries, Department and Agencies. These offices are linked to the payroll system.They are responsible for initiating the mechanization of personnel data onto the payroll system.

The PPD is located at the Headquarters of CAGD and responsible for validating (payroll/personnel ) inputs captured by the PPSs. It is also responsible for the processing the monthly payroll and the payment of salaries to employees.


Current PPSs are MOH GES MLF MLGRD AUDIT SER CAGD MOFA GAEC OHCS IPS CAGD (SUBVENTED)

Functions of the Payroll Processing Division

Functions of the Personnel Processing Sections Personnel Processing Sections (PPSs) are located at various

Ministries, Department and Agencies. These offices are linked to the IPPD system.

PPSs are responsible for initiating the mechanization of personnel data onto the payroll system.

Setting up of new entrants unto the IPPD system as result of new establishments, replacement, and Contract appointments.


Promotion and change of grade Correction of date of birth Change of name Correction of wrongly spelt names Insertion and correction of wrong SSNIT numbers Change of bank details Correction of grade/job Posting and Transfer of names from one Management Unit to

another


Deletion of names of separated staff. Suspension/Stoppage of salaries Re-activation of salaries Processing Sanctions (Disciplinary awards) Processing leaves of absence like, Study Leave with/without

pay, annual leave, sick leave, etc. Processing secondment details Processing breaks in service


Payroll Processing Division (PPD) which is responsible for running and managing the payroll on day to day basis performs the following functions:

Processing Personnel/Payroll input forms from the PPS Validating Personnel/Payroll input forms from PPS Processing Payroll Input Forms from MDAs/MMDAs Checking test payroll reports before the final payroll is run. Reconciling post payroll reports Generating payroll related reports


Distributing payroll related reports to appropriate stakeholders

Receipt and examination of certified Payment Vouchers (PVs) from the MDAs/MMDAs for necessary corrections.

Resolving payroll related complaints from the MDAs. Preparing and distributing of pay schedules


Preparing and distributing monthly payroll time-table to stakeholders

Processing of input forms related to duty tours abroad Capturing third-party deductions Processing and paying third-party deductions Implementing global salary structures Running Reports

Computation of Salaries Salaries for each month are computed as follows:

For example: The following are details of an employee Job Principal Superintendent Grade SS PSH 16 Step 2 Basic Salary GHC 709.95 per month Allowance 15% Teacher Retention Premium

Computation of Salaries PAYMENTS Basic Salary GHC 709.95 Add 15% TRP GHC 106.49 Total Payments GHC 816.44 DEDUCTIONS Social Security Ded GHC 39.05 Income Tax GHC 114.34 GNAT Dues GHC 14.20 Credit Union Loans GHC 50.00 Total Deductions GHC 217.59 NET SALARY GHC 598.85

Tax Computation

Basic Salary GHC 709.95 Add 15% TRP GHC 106.49 Total Emoluments GHC 816.44 Less 5.5 % SSF (on Basic Salary) GHC 39.05 Taxable income GHC 777.39 Tax (PAYE) GHC 114.34

Tax Rates Income Chargeable Rate % Tax Cumm. Cumm.

Income Income Tax First 84 Free Nil 84 Nil Next 20 5% 1 104 1 Next 60 10% 6 164 7 Next 1,186 17.5% 207.56 1,350 214.55

Exceeding GHC 1,350 =25%

Calculation of Salary ArrearsExample ( Assume 20% increase in salaries)PAYMENTS Old Salary New Salary ArrearsBasic Salary GHC 709.95 851.94 141.99Add 15% TRP GHC 106.49 127.79 21.30Total Payments GHC 816.44 979.73 163.29DEDUCTIONSSocial Security Ded GHC 39.05 46.86 7.81Income Tax GHC 114.34 142.55 28.21GNAT Dues (2%) GHC 14.20 17.03 2.83Credit Union Loans GHC 50.00 50.00 -Total Deductions GHC 217.59 256.44 38.85NET SALARY GHC 598.85 723.29 124.44

o

Calculation of Salary Arrears

How arrears are displayed on payslips (a) payment of net amount between old and new salaries (

same salary structure) (b) Refund of old salary and payment of new salary (

different salary structures) new salary greater than old salary

(c) Total salary arrears paid in bulk

Payroll monthly cycle 22/09/11-30/09/11 9 days Data entry -pensions/payroll

30/09/11-01/10/11 1 day Buck up

01/10/11-03/10/11 3 days Data entry (cont.)

03/10/11-03/10//11 1 day Retro /Payroll runs for Pension

03/10/11-04/10//11 2 days FULL TUNINNG

04/10/11-04/10/11 1 day Creation and printing pension test report for pension

04/10/11-04/10/11 1 day Create sets for payroll for pension

04/10/11-05/10/11 1 day Dummy runs for payroll

05/10/11-07/10/11 2 days Retro notification for payroll

07/10/11-12/10/11 5 days Retro runs

12/10/11-13/10/11 2 day Test payroll run

10/10/11-13/10/11 1 day Final Pension reports to banks and regions

10/10/11 CAGD PAYDAY (PENSION)

14/10/11 PENSION PAY DAY(PUBLISHED)

13/10/11-14/10/11 2 days Test report table creation

14/10/11-14/10/11 1 day Test report generation & printing

14/10/11-14/10/11 1 day Test Report distribution

Payroll monthly cycle 14/10/11-15/10/11 1 days Back up

15/10/11-17/10/11 3 days checking of test reports/roll back

17/10/11-18/10/11 2 days Final payroll run

18/10/11-19/10/11 2 days Report table creation

19/10/11-20/10/11 1 day Report generation

20/10/11-21/10/11 2 days Printing of Bank Report 11/ credit vouchers

20/10/11-21/10/11 1 day Hologramming

21/10/11-21/10/11 1 day All banks (Accra)

21/10/11-21/10/11 1 day Mandate to Bank of Ghana

21/10/11-22/10/11 1 day Bank report (11)/Payslips/PVs to Regions

18/10/11 CAGD PAYDAY (SALARIES)

24/10/11 PAYDAY(PUBLISHED)

Contacts DCAG (FMS) 0302-667771 Head of Payroll 0302-662719 Deputy Head of Payroll 0302-662236 Client Service Unit 0302-673825 0302-678801 Public Relations Office 0302-678805 Toll free Nos. Vodafone 0800-10200

Expresso 10200MTN 18020

[email protected]

CAGD website- www.cagd.gov.gh

presentation on the management of the national mechanised payroll

Documents