Department of Personnel Management Reforms Workshop Report
This report outlines key business drivers, issues identified, impact assessment, recommendations, and a way forward for the Department of Personnel Management's reforms workshop held in Port Moresby. It discusses the purpose of realigning the public service through cost exercises and controlling expenditure in personnel emoluments and services. The report highlights the reasons behind the need for improvement in organizational structures, recruitment practices, salary classifications, allowances, productivity, and management procedures.
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Intellectual property of Department of Personnel Management Not to be used without written permission by Secretary DPM 14 November 2014 Rise Up, Step Up, Speak Up Department of Personnel Management Human Resource Advisory & Compliance Audit Wing SPECIAL GENERAL ORDER 11 (SGO 11) DPM Reforms Workshop National Agencies Port Moresby Day 4, 29thNovember 2023 Ground Floor, APEC Haus Ms. Christine RUPEN
OUTLINE Intellectual property of Department of Personnel Management Not to be used without written permission by Secretary DPM 14 November 2014 Rise Up, Step Up, Speak Up Key Business Drivers Purpose Issues Identified SGO 11 Impact Assessment Report NEC Recommendations & Status Deloitte Audit Report Findings & Recommendations Way Forward Department of Personnel Management
Intellectual property of Department of Personnel Management Not to be used without written permission by Secretary DPM 14 November 2014KEY BUSINESS DRIVERS Rise Up, Step Up, Speak Up Taking Back PNG Vision (NG Marape-Basil) NEC Decision 71/2017 of 30thMarch 2017 NEC Decision NG109/2019 of 16th October 2019 (subsequent issuance of CI NO. 15 of 2019) Department of Personnel Management
PURPOSE Intellectual property of Department of Personnel Management Not to be used without written permission by Secretary DPM 14 November 2014 Rise Up, Step Up, Speak Up A strategy to realign the PS in an undertaking of an immediate cost exercise Department of Personnel Management control
ISSUES Intellectual property of Department of Personnel Management Not to be used without written permission by Secretary DPM 14 November 2014 Rise Up, Step Up, Speak Up 1. Increasing cost in Public Service Personnel Emoluments (PE) & Goods & Services; Department of Personnel Management 2. Continuous increase in expenditure of PE and other financial wastages in the PS to be brought under control.
REASONS Intellectual property of Department of Personnel Management Not to be used without written permission by Secretary DPM 14 November 2014 Improper application of devolved powers in the areas of: organizational structures; recruitment, selection & appointment; salary classifications on positions; application and allowances; attendance & productivity; and basic administrative and management. Rise Up, Step Up, Speak Up Department of Personnel Management administration of punctuality verses
STRATEGY Intellectual property of Department of Personnel Management Not to be used without written permission by Secretary DPM 14 November 2014 1)NEC directed the Secretary for Department of Personnel Management to issue Special General Orders (SGO) on Cost Saving Measures. Hence the SGO No. 11/2019 came into effect on 1stOctober 2019 and was implemented for a period of two (2) years, with assessment based on 2020 and 2021. in its Decision No. NG109/2019 Rise Up, Step Up, Speak Up Department of Personnel Management
STRATEGY Intellectual property of Department of Personnel Management Not to be used without written permission by Secretary DPM 14 November 2014 2)The revoked all HR delegated agency heads Provincial Administrators, statutory bodies and CEOs of Provincial Health Authorities) effective 18thMay 2020 except the powers Training which remained with the Agency Heads. Secretary for DPM withdrew powers from Heads, CEOs or Rise Up, Step Up, Speak Up Department of Personnel Management (Departmental of of Discipline and
STRATEGY Intellectual property of Department of Personnel Management Not to be used without written permission by Secretary DPM 14 November 2014 1) The withdrawn HR powers as per the Public Services (Management) Act 1995 (As amended) were: - Rise Up, Step Up, Speak Up Department of Personnel Management Part VII Creation of Offices Section 33. Creation of Offices Section 34. Temporary Offices o o Part IX Recruitment Section 36. Recruitment Section 37. Temporary Employment o o Part XI Contract Employment Section 41. Contracts of Employment Section 37. Temporary Employment o o Part XV Resignation & Retirement Section 55. Persons who have resigned from the Public Service to become candidates at Elections Section 56. Age of Retirement Section 57. Retirement on account of infirmity or incapacity o o o
SGO 11 Impact Assessment Report Key Summary Findings Intellectual property of Department of Personnel Management Not to be used without written permission by Secretary DPM 14 November 2014 Rise Up, Step Up, Speak Up Department of Personnel Management Agency Heads not showing leadership and management of their agency PE and Staffing as these are the two most critical elements of organisations. Incompetent Agency Heads, indicating their non- performance and lack of managerial and leadership skills. Continuous changes in HR Managers and causing unawareness and instability of HR activities in the organisations. Incompetent HR Managers in most agencies especially Provincial Administrations.
Intellectual property of Department of Personnel Management Not to be used without written permission by Secretary DPM 14 November 2014Continue Rise Up, Step Up, Speak Up Agency Heads do not always take note of advice from their HR Managers in terms of HR matters, hence matters ending up in PSC. This contributes to increase in PE liabilities when PSC makes decisions on reinstatements and loss salaries are back paid and non-implementation of these PSC and Court decisions. Department of Personnel Management Unbudgeted items (Overtime payments; Gratuities; Overseas Travels). Unbudgeted items such as outstanding HDAs, outstanding entitlements etc., going back how many years, that have just been brought to DPM s attention, thus, causing agencies to liaise with Treasury for additional funding, and this is having a huge impact on the Budget allocated for the particular year.
Recommendations of NEC Intellectual property of Department of Personnel Management Not to be used without written permission by Secretary DPM 14 November 2014 NEC Decision No. 137/2022 with subsequent issuance of DPM CI No. 10 of 2022 Rise Up, Step Up, Speak Up Department of Personnel Management With the commencement of the GoPNG Payroll & HR Frameworks Audit upon the signing of the contract on 6thDecember 2021; 1. Retention of all HR Powers pending the outcome of the GoPNG Payroll & HR Framework Audit by Deloitte; and a final report be submitted once the independent auditis completed; 2. Directed DPM to advise all agencies on the status of the revocation of HR Powers of as per performance of individuals agencies in implementing SGO 11 and its report on implementation to date, further invoking the revocation of delegatedpowers untilfurthernotice; 3. Directed DPM to conduct immediate HR Audit of the 9 agencies identified as problematic who will have their HR Powers under continuous revocation and work with those agencies to immediately implement the recommendations of theHR Audit Reports by Department of Personnel Management; 4.Directed Treasury toallocateK1M to DPM for Directive 3 asmentioned.
Status Intellectual property of Department of Personnel Management Not to be used without written permission by Secretary DPM 14 November 2014 Rise Up, Step Up, Speak Up Department of Personnel Management The Department of Personnel Management has commenced the HR & Payroll Audits for the 9 agencies identified. They are: 1. Oro Provincial Administration 2. New Ireland Provincial Administration 3. Hela Provincial Administration 4. Jiwaka Provincial Administration 5. Western Highlands Provincial Health Authority 6. Simbu Provincial Administration 7. Western Provincial Administration 8. Central Provincial Administration 9. Southern Highlands Provincial Administration
Intellectual property of Department of Personnel Management Not to be used without written permission by Secretary DPM 14 November 2014 Rise Up, Step Up, Speak Up Department of Personnel Management
Deloitte Audit Report Intellectual property of Department of Personnel Management Not to be used without written permission by Secretary DPM 14 November 2014 11 Key Findings 1. Large amounts paid every fortnight (e.g. more than PGK100,000.00) are not thoroughly reviewed. 2. Lack of data validation & data cleansing 3. Lack of automatic calculations in Alesco 4. Lack of consistent IT Audit and lack of implementation of recommendations from previous IT Audits 5. Demarcation of functions (conflict of interest) Rise Up, Step Up, Speak Up Department of Personnel Management
Continued11 Key Findings 6. There is a need to upgrade the Alesco system from Version 12 to the most latest version available at the time of implementation 7. Leave Records are not updated in Alesco 8. There are inconsistent salary grades across public agencies 9. Lack of implementation of Disciplinary actions 10. Lack of Training for HR Officers/IT & system users 11. Operational (Goods & Services) funds even miscellaneous funds are often used to pay salaries of employees. These payments are not recorded in Alesco and therefore difficult to track. Intellectual property of Department of Personnel Management Not to be used without written permission by Secretary DPM 14 November 2014 Rise Up, Step Up, Speak Up Department of Personnel Management
RECOMMENDATIONS Next Steps Intellectual property of Department of Personnel Management Not to be used without written permission by Secretary DPM 14 November 2014 Rise Up, Step Up, Speak Up 1. Stream 1 HR & Policy Matters 2. Stream 2 Alesco System Updates; and 3. Stream 3 Training & Awareness Department of Personnel Management The complete process of these 3 streams is to be undertaken over a period of 5 years (2023 2027)
Way Forward Intellectual property of Department of Personnel Management Not to be used without written permission by Secretary DPM 14 November 2014 DPM to conduct HR audits and follow up audits of the 9 agencies and to facilitate implementation of the Audit Recommendations. And once all audit findings are properly implemented the 9 agencies will be given back their HR Powers. Rise Up, Step Up, Speak Up Department of Personnel Management Department of Personnel Management to restore all administrative HR Powers to all agencies with the exception of the 9 agencies who have fulfilled the criteria for implementation of all audit findings. With the conclusion of Deloitte Audit, DPM has re-evaluated the situation since agencies have taken steps to ensure conformity & instilled confidence that the areas causing the 11 key findings from this independent audit will be adequately addressed through the current Version Upgrade 22. System controls.
Way Forward Intellectual property of Department of Personnel Management Not to be used without written permission by Secretary DPM 14 November 2014 DPM Compliance in tandem with conduction of regular awareness of the PS Business Processes. The Department of Personnel Management is already implementing recommendations of the Deloitte Audit Report Findings as follows: 1) Version upgrade current V12 to V22 (this 5 year implementation plan will be fulfilled through the 3 main streams. This strategic reform will address all the 11 Key findings as the reviewed Policies, BPs sets the foundation of the version upgrade of the Ascender payroll system. strengthen function of Monitoring & Rise Up, Step Up, Speak Up Department of Personnel Management the various
Intellectual property of Department of Personnel Management Not to be used without written permission by Secretary DPM 14 November 2014 THANK YOU Rise Up, Step Up, Speak Up Department of Personnel Management
