1. 1 PERSONNEL SERVICES OR BUDGETING FOR STAFF

2. 2 Personnel Services May take up to ¾ of recurring operating costs It is one of the easiest items to budget accurately and completely With a system is in place, yearly planning is simplified A good system will strengthen capacity to manage staff size and growth

3. 3 COUNTING STAFF -- OPTIONS 1. Head Count. 1. How many individuals received pay during a month/year -- Head Count. OR 2. Full Time Equivalent Staff 2. Measure of full time work needed to accomplish a task -- Full Time Equivalent Staff. Which is a better indicator of effort?

4. 4 STAFF MONTH/YEAR A Staff Month is defined as one full calendar month of paid employment (174 paid hours) –Includes, overtime and all paid leave. 12 Staff Months equal one FTE Staff Year Faculty and Students are based on different factors

5. 5 COMPUTATION Days in a Year 365 Less: Weekends (52X2) 104 Paid Days in Year 261 Times: Work Hours in a Day 8 Paid Hours in a Year 2088 Divided By: Months in a Year 12 Average Paid Hours in a Month 174

6. 6 EDUCATION FTES Number of school days in year 180 Students: Number of hours per day in class 5 One student FTE (hours/year) 900 Faculty: Number of hours per day at school 8 One faculty FTE (hours/year) 1440

7. 7 WHY USE FTEs? Better indicator of actual effort. Necessary when moving to Program or Results Based Budgeting Can be used to assess staffing efficacy Linked with position control can control staff growth Where demands are made to reduce staff levels can aid in planning smooth process

8. 8 THE PROCESS The process of estimating Personal Service costs is a 4 step process: Collect Basic Data Add Special Pay Total Pay Spreadsheet Employer Costs

9. 9 Personnel Services Budgeting STEP 1 Collect Data -- –How many people are working, –What are their job classifications, –What are current pay rates, –When are they due a pay increase, –What are their ID/Position Numbers, –What the FTE per position is expected (including overtime)

10. 10 STEP 1 NAMEIDPOSFTEPAY RATE INCREMENT NUMBER 31-Dec-06H/MMONTH D. Boss679Director1.0500MFebruary D. Reala Bossa225Secretary1.0200MMay U. Fileit2787Clerk 10.51.25HDecember I. Speed1907Driver1.0175MSeptember M. Montpenny402Fiscal Specialist 21.1300MApril J. Cash2175Fiscal Specialist 31.1320MFebruary I. Watchit2640Examiner10.8275MApril U. Oweme656Tax Collector 21.0400MOctober A. Scrooge1257Tax Collector 21.0400MOctober N. Ron990Tax Collector 21.02.30HAugust N. Payup1175Tax Collector 11.02.16HNovember A. Tickmark457Tax Collector 11.0375MJuly Y. Meworry1756Tax Collector 11.0375MJune C. Sweeper408Cleaner0.31.10HFebruary TOTAL12.8 MINISTRY OF REVENUE TOBACCO TAX COLLECTION AREA 1

11. 11 STEP 2 Determine, by position, what extra pay is allowed. Some examples are: –Overtime (Need to adjust FTEs) –Shift Bonus –Field Bonus –Incentive Pay

12. 12 STEP 2 MINISTRY OF REVENUE TOBACCO TAX COLLECTION AREA 1 NAMEID POS REGULAR OVERTIME SHIFTFIELDINCENT NUMBERBONUS TOTAL D. Boss679Director7,100 D. Reala Bossa225Secretary2,432 U. Fileit2787Clerk 11,307 1201,427 I. Speed1907Driver2,116 M. Montpenny402Fiscal Specialist 23,654 6004,254 J. Cash2175Fiscal Specialist 33,906 6004,506 I. Watchit2640Examiner12,676 U. Oweme656Tax Collector 24,824 12006006,624 A. Scrooge1257Tax Collector 24,824 12006006,624 N. Ron990Tax Collector 24,749 12006006,549 N. Payup1175Tax Collector 14,526 12006006,326 A. Tickmark457Tax Collector 14,548 12006006,348 Y. Meworry1756Tax Collector 14,556 12006006,356 C. Sweeper408Cleaner707 120827 TOTAL 51,924 1,200 240 7,200 3,600 64,164 ANNUAL GROSS SALARY

13. 13 STEP 3 Now spread the salaries over 12 months by position. Include all special pay provisions Give increments in the appropriate months

14. 14 STEP 4 Determine the proper rate for each of the employer paid benefits –Percentage of gross pay –Flat rate per month –Specified in law or regulation –Can be done in the aggregate

15. 15 STEP 4 Total Benefits

16. 16 NOTES Each budget organization should prepare the Personal Services worksheets. Excel greatly simplifies the process First year is most difficult – after that becomes almost routine

17. 17 VACANCIES/NEW POSITIONS Every vacant/new position must listed. Estimate when position will be filled. Use standard rate of pay for the position. If there is a range of pay, use the middle amount. Assume the most common case for the amount of benefits and other pay adjustments.

18. 18 Budgeting for vacant/new positions Determine amount of pay. Determine benefits. Calculate amount of year to be worked, i.e., percentage or fraction of year left if hired mid year. September through December is four months = 4/12 (or 1/3, or 33.3%) of a year.

19. 19 During budget execution You receive monthly and cumulative reports from the budget organizations you are responsible for. What do you do with the information? You might ask the following questions:

20. 20 Is the staffing pattern consistent with the budget plan? Does the staffing pattern follow known seasonal trends? Are vacant and new positions filled as planned? Is the overtime excessive? Are projected staff years within plan? If you can not answer the questions to your satisfaction then talk to the budget organization!

21. 21 SPECIAL FACTORS 1. Difficulty in recruiting qualified staff 2. Unexpected increase in workload 3. Poor planning 4. Economic changes 5. Change in government policy 6. Labor disruptions 7. Mismanagement (Corruption) 8. Lack of strong civil service (personnel) system

22. 22 SUMMARY Personnel budgeting and position control are necessary for good management. A good personnel budgeting system adds transparency and deters corruption. Initial work to establish system is time- consuming; future efforts become almost routine. Analysts need to objectively assess the information not second-guess managers.

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