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Highlights on the Proposal to Enter Staff List and Wage Information in

LGOBT

Ministry of Finance, Planning and Economic

Development

15th October 2013

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Presentation Outline1.0 Introduction2.0 Purpose of the Presentation3.0 Process of Information Collection4.0 How to Enter information in

LGoBT5.0 Role of key stakeholders6.0 Conclusion and Way forward

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1.0 Introductioni) In an effort to streamline the linkage between

expenditure incurred and output attained, Government started the use of Output Budgeting Tool (OBT) in FY 2008/09 under Framework of Output Oriented Budgeting (OOB);

ii) Currently, all MALGs use the OBT for Budget Preparation, Execution and Reporting;

iii) Whereas the tool captures all the detailed estimates for non-wage recurrent and the development budget, similar information is not provided for the wage and pensions component;

iv) This has led to poor estimation for wage and pension budget over the years;

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1.0 Introductionv)Secondly, there is no provision for reporting

on the performance of salary and pensions under the tool leading to a number of short comings, which include among others:

a)Over and under provisions in the various wage categories by vote. The under provisions, is a source of wage supplementary amidst savings within the overall wage bill;

b)Lack of accurate data on staff employed by cost centre has led to the use of the May payroll as a basis for wage estimation ;

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1.0 Introductionc)This hardly takes into consideration deletions,

reinstatements, staff on transit which manifests itself into wage arrears in the subsequent FYs;

d) The May payroll may include payment of outstanding arrears, over/under salary payments carried through the subsequent FYs, distorts the projection of the wage estimates;

e) Inadequate monitoring/reporting on the wage bill performance, has led to untimely salary payments since AOs are unable to pinpoint the causes of over/under provision under their Votes.

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1.0 Introductionf)As a result, the Head of Cost Centre (eg.

Departments, Schools, Health Centres, Projects, Police Post/Stations, Sub-Counties, etc) are not involved in budgeting process which has led to allocation of staff on wrong Programmes or cost centre, wrong salary scales and salary.

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1.0 Introduction (Cont’d) In a bid to mitigate the problem of poor salary

estimation, monitoring and reporting:i) A new window has been introduced in the OBT to

capture the staff lists by cost center and the corresponding wage bill requirement;

i) Under the reporting section, a window will be introduced to enable stakeholders produce monthly, quarterly, semi-annual and annual wage bill performance reports by cost centre and/or vote.

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2.0 Purpose of the PresentationThe purpose of this presentation, therefore, is to:1. enable the MoFPED come up with the

implementation guidelines to capture the staff lists and wage estimate in the OBT;

2. agree on the proposed modality to capture the information by the head of cost centres;

3. Agree on the timeframe that once the guidelines are issued, MALGs would take 2 weeks to capture the information in the OBT.

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3.0 Process for entering wage Information

i) An icon has been provided for capturing wage information in the OBT;

ii) The head of the cost centre e.g. a school, project/programme, health centre, e.t.c will capture the information under excel sheet;

iii) The information in the excel sheet will then be imported into the OBT;

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3.0 Process of Entering Wage InformationTo illustrate the entering of wage information in Education

Department under a Local Government (Excel sheet)Step 1: Physical Location1. A head teacher will fill a Form (see table) and indicate: (i) District name: Eg Ntungamo (A); (ii) Department: Education (B); (iii) County (where the school is): -------------- (C); (Iv) Sub-county (where the school is) ---------- (D); (vi) Parish (where the school is) ……………. (E); (iii) School name: Kagamba Primary School (F);Note: Ensure that the spelling on the form and in the

LGoBT are the same.

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3.0 Process for entering Wage Information

Step 2. Capture staff details:

(i) Name of the Staff (G); iii) Title of the Staff (H) e.g. Teacher, Midwife, Senior

Education Officer etc; Important: (a) Start with support staff and end with the Head of

Institution (e.g. H/M or Head of Department).(b) No body should be below the Head of Institution.

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3.0 Process for entering Information iii) Staff file number (I) – The head of the cost centre

MUST ensure that every public officer has a fileiv) Staff’s Payroll Computer number (J) Note: (a) Capture all staff properly recruited whether on

the payroll or not; (b) staff on payroll have both file and computer No. (c) staff off the payroll, has no computer number but

must have a file number;d) Staff erroneously deleted from the payroll; same

computer No. or not .

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3.0 Process for entering Information v). Salary Scale (say U7 upper, U7 lower, U8 upper, U8

lower etc) -- (K)Note: Capture actual gross salary as is in the

payslip. This should include all allowances paid through the payroll such as:

(a) Science teacher; (b) Hard to reach; (c) Retention allowance for Doctors at HCIV (d) Lunch allowance for health workers (e) Health allowancevi)Classification/category of payroll – (L) eg Primary,

Tertiary etc.

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3.0 Process for entering Information

viii)Each staff member signs the form with the Head of cost centre signing first under column M on the excel sheet. Incase of education institutions and health centres, the chairpersons of Management Committee will also sign:

Note: When a staff signs, he/she is confirming that: (a) this is his/her name and the details are

correct; and b) he/she knows every body on the list.

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4.0 Entering information in the LGoBT

i) The Head of the cost centre (school, Health unit) will submit a soft copy in excel and a signed hard copy to the Head of Department for LGs.

ii) The Head of Department – DEO (LGs) or Prgramme (BPED) will import the excel sheet into the OBT (baby Data base).

iii) A Head of Department will produce a report for that entity (school, Health unit) etc as a feedback.

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4.0 Entering information in the LGoBTiv) HoD submits the update OBT (baby file) to

the Planner;

v) The planner consolidates, produces a final version and submit to the AO;

vi) AO submits to MoFPED. (May seek an input of the HR before submission)

Note: Any other change must be effected based on the submission by the Head of the cost centre.

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5.0 Roles of Key Stakeholders

The roles of key stakeholders which include MOPs, MoFPED & MALGs are highlighted below:

a) The MoPS will issue circulars on salary scales and actual amounts to guide in payroll management and wage bill estimation;

b) The MoPS will issue circulars on allowances paid through the payroll so to guide on payroll management and wage bill estimation.

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5.0 Roles of key stakeholderc) The MoPS will also ensure that Accounting

Officers distribute payrolls and payslips to Heads of cost centres and public officers respectively;

d) The MoPS will issue other payroll and personnel management circulars as deemed necessary;

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5.0 Role of key stakeholders MoFPED will:a)Ensure that all the staff in post are adequately

provided for in the budget;b)Issue a circular on deployment of the updated OBT

providing the details on the information to be captured;

c) Issue circulars on wage transfers to Accounting Officers on a monthly basis.

MALGs(Votes) will:a) Ensure that the staff captured in the OBT are

consistent with the submissions by the head of the cost centres;

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5.0 Role of key stakeholdersb) Ensure that the deletion and accessing staff

to the payroll is initiated by the head of the cost centre;

c) Monitor the trends of changes in the number of staff on the payroll vis a vis the wage bill performance; and;

d) Ensure that all staff appear on the payroll with correct duty station (cost centre), salary scale and monthly salary in line with the Salary Circular Instructions issued by MoPS.

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5.0 Role of key stakeholders

e) Avail circulars related to allowances which are paid through the payroll to their staff;

f) Staff transfers by Accounting Officers should be well managed.

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6.0 Conclusion i) The actions on the wage estimation arise from

actions by various actors – Head of cost centre / Head of Department/Project, the chairpersons of management boards, the Head of Human Resource, the planner, the Accounting Officers, MoPS and MoFPED;

ii) The capturing of staff lists and wage estimates in the OBT will;

• provide a base for accurate budgeting of wages and monitoring wage bill performance and

• Clearly apportion responsibilities for each key stakeholder

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6.0 Conclusioniii) We seek your input in terms of

clarity of: (a) the proposed information to

be captured in the OBT;

b) time for a LG to capture the information in the OBT.

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THANK YOU FOR

LISTENING TO ME