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A FRAMEWORK FOR RESULTS

Systemic and Structural Reform


Government of Nunavut

MILLENIUM PARTNERS
October 2011

TABLE OF CONTENTS
Executive Summary.. I-IX
1.

Introduction. 1

2.

Methodology... 1

3.

The Current Structure Of Government How It evolved 2


A)
B)
C)

4.

Why Change The Structure Of Government?........................................ 5


A)
B)
C)

5.

The Original Structure.. 2


The Current Structure... 4
Lessons Learned... 4

Typical Drivers Of Structural Change. 5


Practices to Avoid... 5
Achieving Tamapta Priorities .. 6

The Financial Context. 6


A)
B)
C)
D)
E)

Planning for sustainability


The Financial Situation in Plain Language..
The Question of Borrowing Capacity...
The Implications of Reaching the Debt Ceiling..
Are Simple Solutions Possible?....................................................

7
7
9
10
10

6.

What We Were Told... 11

7.

Auditor Generals Concerns 12


A)
B)

8.

Children Youth and Family Services 12


Human Resource Capacity 13

Processes and Systems The Toolkit for Success.. 13


A)
B)
C)

Legislative Development.. 14
Executive Council Decision Making Processes.... 15
Human Resource Support Processes.. 16
a)
b)
c)
d)
e)

D)

Recruitment Process. 17
Job Evaluation Process 17
The Leave Management System.. 18
Human Resource Planning 19
Government Staff Housing.19

Automated Budgeting System.. 20


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9.

Consistent Public Communications An Urgent Necessity 20

10.

Human Resource Capacity The Root of the Problem. 21


A)
B)

11.

The Vacancy Rate.... 22


Lack of Reliable Information.. 22

Are Structural Changes Needed? 24


Overview 24
A)

Health and Social Services Part of a Larger Network


a)
HSS - The Current Structure
b)
Qikiqtani General Hospital
c)
Social Services

B)

Human Resources.. 28
a)
Labour Relations.... 29
b)
Recruitment. 29
c)
Job Evaluation................................................ 29
d)
Organization Design 30

C)

Executive and Intergovernmental Affairs. 31


a)
b)
c)
d)
e)
f)

D)

Cabinet Office 31
The Social Advocacy Division. 32
The Energy Policy Division & Executive Director URRC. 32
Statistics Division Pangnirtung.. 32
Policy Planning and Evaluation Division... 33
Intergovernmental Affairs.... 33

Finance. 33
a)

E)

25
26
26
27

Expenditure Management 34

Culture Language Elders and Youth 34


a)
b)
c)

Public Libraries/Sport and Recreation. 34


Official Languages 34
Piqqusilirivvik Inuit Cultural Facility.. 35

F)

Education.. 36

G)

Other Departments. 36

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12.

Recommendations. 36
A)

Foundational Requirements. 36
a)
b)
c)

B)

Enabling Legislation.. 37
Enabling Policy 37
Letters of Expectation. 38

Structural Recommendations.... 39
a)
Guiding Principles.. 39
b)
Departmental Restructuring 39
i)
ii)
iii)
iv)
v)

C)

Systemic Change..
a)
b)
c)
d)
e)
f)
g)
h)
i)

D)

40
41
43
44
46
46

Communications 46
Executive Decision Making. 47
Human Resource Processes.. 47
Government Staff Housing. 47
Management Reporting 48
Spending Database 48
Automated Budgeting System . 48
Leave Management 48
Program Performance Measurement 49

Increasing Human Resource Capacity. 49


a)
b)

Recruitment Initiatives... 49
Staff Development Initiatives 49
i)
ii)
iii)

13.

Department of Family and Cultural Services.


Human Resources..
Finance.
Executive and Intergovernmental Affairs.
Department of Health.

Assessing Employee Skills and Knowledge 49


Establishing Consistent Job Levels.. 49
Training Certification and Promotion. 50

The Costs.. 51
A)
B)
C)

Compensation and Benefits. 51


Capacity Development Funding. 52
Infrastructure Funding.. 53

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14.

Implementation 53

15.

Conclusion 53

16.

List of Recommendations... 55
APPENDICES
APPENDIX A
APPENDIX B
APPENDIX C
APPENDIX D
APPENDIX E
APPENDIX F

Terms of Reference
Literature Review
Project Contacts
Establishment Policy - Finance
Streamlining of the Staffing Process
Implementation Plan

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EXECUTIVE SUMMARY
I.

INTRODUCTION

In his 2011/12 budget address, the Honourable Keith Peterson, the Minister of Finance
raised the question of whether the Government should reassess its current structure by
saying I suggest that we take a thoughtful look at the number of departments and
agencies, their mandates, and organizational designs. We should ask whether the
current government structure is appropriate, considering our priorities and goals.
The Department of Executive and Intergovernmental Affairs subsequently contracted
with Millenium Partners in June 2011 to conduct the review, so that Minister Petersons
commitment could be fulfilled.
II.

METHODS

The project began with a literature review to understand the context and to be sure that
any recommendations benefited from a clear understanding of the realities of the
Government of Nunavut and its needs. A variety of internal documents were reviewed
including the governments administration manual, the relevant legislation, all relevant
policies, Government strategy documents and the reports of the Auditor General of
Canada.
Research was also completed to review organizational structures of
governments across Canada to ensure that the resulting recommendations benefited
from lessons learned in other jurisdictions.
Interviews were conducted with all Deputy Ministers, a variety of government staff and
politicians to gather their views on the issues associated with the current government
structure and systems. The Minister of Finance also wrote to MLAs asking them to
provide input if they felt change was needed.
III.

THE STRUCTURE HOW IT WAS CONCEIVED

The initial Government organization was recommended by the Nunavut Implementation


Commission (NIC), in the reports entitled Footprints in the Snow and Footprints II.
Two of the guiding principles in the recommended design were:

The administrative structure of the Nunavut Government should be as simple as


possible in keeping with the relatively small population of Nunavut;
Central Agency type functions of the Nunavut Government should be
concentrated in the capital of Nunavut.

NIC appears to have recognized at the outset that a streamlined organization with a
simple structure would work best for Nunavut. Unfortunately, that conception of a
streamlined organization has been eroded over time as government moved towards a
more mainstream and southern oriented model. By 2001/02, the total of new and
existing government positions had risen to a modest 2717. However, the total has
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since grown to over 4000 positions.
Major changes were made in the structure at the beginning of 2004 to bring the current
organizational structure into being. However, there is no record of the rationale for
those decisions so it is difficult to determine what prompted the changes and whether
the desired outcomes were achieved.
IV.

WHAT WE WERE TOLD

There was no reluctance on the part of those who were interviewed to discuss the state
of the Government and the potential need for change. The comments received during
this phase of the project were constructive and aimed at making the organization more
productive.
There were many suggestions for organizational change, but suggestions were
balanced by a caution that the Government cannot handle huge amounts of change in a
short period of time. It was emphasized that recommendations must be practical and
shouldnt cripple the organization by diverting many program staff to bureaucratic
processes. Elected officials were concerned about whether the Governments current
structure is the best way to deliver programs and services in communities.
Comments were not limited to structural change. Respondents also highlighted the
problems with existing information, decision making and support systems and identified
many of these as barriers to success.
V.

WHAT WE FOUND
i)

The Fundamental Issues

The Government of Nunavut is not currently well structured to deal with the
demands of achieving strategic change as defined in Tamapta. Nor is it
positioned to deal with the challenges of operating with inadequate financial
resources. The Government will face a critical point in its operations as it
approaches the current debt ceiling of $200 million. At that point, there will be no
significant cash reserves to fund operating deficits. In the absence of any
serious effort to change spending patterns, the Government will have to cut
programs and services because it will simply not have enough money to operate
as it has in the past. This may occur as early as March 31, 2014.
We have been told that the Government has taken measures to curtail the
growth in spending beyond 2011/12. This may allow it to return to a balanced
budget by the end of the 2012/13 fiscal year with the potential for surpluses in
subsequent years. However, the Government must guard against any new
spending that is not offset by a corresponding reduction elsewhere in the budget.

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While the Government of Nunavut can solve some of its financial problems
simply through spending restraint, major efforts are still required to make
operations sustainable. Nunavuts infrastructure shortfall will inevitably require
major stimulus. It will not be possible to continue to limit capital spending to
balance the budget. Continued population growth and growth in demand for
programs and services will place additional strain on the budget.
Unfortunately, there is a serious lack of meaningful program and financial
information to allow for effective decision making when those difficult decisions
have to be made. The organization also has an extremely high historical
vacancy rate. To complicate matters further, many employees currently occupy
positions for which they do not have the required skills. This serious capacity
shortfall is common to all organizations in Nunavut and requires the Government
to take a strategic and holistic approach to solving the problem in the best
interests of all the parties.
ii)

Structural Problems Requiring Solutions

The analysis, supported by the recent reports of the Auditor General of Canada,
revealed that there are serious problems with the ability of the organization to
fulfill statutory obligations in Children and Family Services. The Government has
also experienced major difficulties in attracting and retaining public servants. This
capacity shortfall has had a detrimental effect on the organization as well as the
public it serves. These are serious problems and must be the focus of structural
solutions. However, the solutions must be implemented in a strategic fashion
and should, therefore, involve changes in a variety of departments.
The Social Services Branch of Health and Social Services does not receive the
priority it needs as part of such a large organization with a varied mandate.
Social Services would function more effectively in an organization that would
provide single window access to social and income support programs. The
organization must also deal with the challenges of becoming more reflective of
Inuit culture and traditions.
The mandate for the Department of Health and Social Services is so varied that
it is almost unmanageable in its current configuration. It should be more focused.
In addition to Social Services, the Department currently operates the Qikiqtani
General Hospital in Iqaluit as though it were a government operation. Acute care
hospitals cannot operate within the confines of restrictive government processes
and should be at arms-length from the Ministry.
The Department of Human Resources does not effectively function as a
separate department of Government. It must be reformed and parts of its
mandate should be transferred to other central agencies. No matter what choice

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is made, the functions that make up the Department are essential to the success
of the Government and they cannot be permitted to fail.
The Department of Executive and Intergovernmental Affairs has taken on
some functions that properly belong in other departments. These extraneous
functions have detracted from the organizations ability to carry out its core
mission. Some critical functions of EIA (Statistics Bureau/Evaluation) are located
in communities outside the capital where it is not possible for them to succeed.
Additional analytical resources are needed to effectively support Cabinet. This
would free the Policy and Evaluation Division from Cabinet support and allow
them to coordinate strategic planning and establish the framework for
government-wide program evaluation.
Additional resources are also needed in the Office of the Premier to ensure there
are enough resources for day to day political advice and for the satisfactory
analysis of the political implications of strategic directions. It will also be
necessary to provide additional resources to ensure sound political analysis and
advice with regard to advancing the relationship between the Government of
Nunavut and the Government of Canada.
The Department of Finance needs additional resources to provide more effective
analytical support to the Financial Management Board. This will free the
Expenditure Management Branch from FMB support responsibilities to allow
them to effectively coordinate government-wide budgeting and to carry out the
analytical work needed to support financial planning.
The Department of Culture Language Elders and Youth currently includes
functions that are not a natural fit with its mandate. With the approval of
language protection legislation, the Department has established a foundation for
the enhancement and strengthening of the Inuit language. However, that work
should now be transferred to an organization which has the authority and
mandate to provide central direction to all departments of Government. CLEY
has done good work to establish the Inuit Cultural Facility in Clyde River.
However, the Department does not have program delivery skills as its mandate is
primarily administration. Therefore, the facility should be transferred to an
organization with a supportive mandate and the resident skills to carry out the
function. The residual components of CLEY should be retained as part of a
larger department with a social and cultural orientation. Efforts should then be
focused on transforming operations to reflect Inuit Societal values.
The Department of Education carries out one of the most important mandates in
Government. It is the flagship for assisting children to achieve their potential and
to speak Inuktitut, Innuinaqtun and other official languages. The Department is
distracted from this mandate by the responsibility for income support and
employment development functions that would be a more natural fit in a

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EXECUTIVE SUMMARY
department where single window access to a full range of social and income
support programs is possible.
iii)

Systemic Problems

A wide range of systemic issues were identified that must be resolved if the
government is to function effectively:
There is no specific authority in legislation for the Executive to
establish/disestablish departments;
Executive Council are often involved in making decisions that are process
rather than policy oriented. This increases volumes and slows down
decision making;
Human resource support systems in recruitment and job evaluation act as
barriers to success;
Government does not have an overall communications strategy. Public
information is hard to access;
The Government suffers from a serious human resource capacity shortfall
and there is no cohesive strategy to improve it;
The Government lacks credible, reliable and easily accessible information
on program results and spending. The planning culture in the organization
needs major improvement.
VI.

WHAT WE RECOMMEND

Our structural recommendations have been developed to deal with the critical
organizational design needs of the organization. That is not to say that other changes
are not needed. However, the Government cannot deal with an organization wide
restructuring at this time. These proposals can be implemented as they are proposed,
or components of them can be implemented in a staged manner. The organization will
then be positioned to achieve its statutory and political objectives. A detailed listing of
the recommendations is included at the end of the report.
i)

Foundational

Amendments are recommended to the Legislative Assembly and Executive


Council Act to specify the authority of the Premier to make structural change.
This will be supported by establishment policies for each department to specify
mandates, functions and levels of authority. Ministers would receive annual
letters of expectation from the Premier. These expectations would form the
objectives against which the Departments performance would be assessed at
year end.

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EXECUTIVE SUMMARY
ii)

Structural

The Government would continue to consist of 10 departments. In spite of calls for


its dissolution, Human Resources would be retained as a separate department
with some of its functions transferred to Finance and a major reform of residual
functions. The Departments of Health and Social Services, and Education would
be streamlined to enable them to concentrate on their primary mandates.
The Departments of Economic Development and Transportation, and Community
and Government Services would be the recipients of program transfers from
other departments that are proposed for transformation.
The major
transformative initiative would be the creation of a department of Family and
Cultural Services. Over 300 positions would be directly affected by these
recommendations. Here are some of the details of the structural
recommendations:
a)

Family and Cultural Services

This department would bring together social programs from HSS and a
variety of other departments along with income support functions from
Education. The transformed department would also include the core
programs from CLEY after the Official Languages Division is transferred to
EIA and the Public Libraries and Sport and Recreation Divisions are
transferred to CGS.
b)

Executive and Intergovernmental Affairs

At least two additional positions should be provided to the Office of the


Premier to enable the Office to provide a satisfactory level of political
advice to Cabinet including advice on advancing the relationship of the
Government of Nunavut and the Government of Canada;
The Department of EIA would be transformed through the transfer of the
Energy Management Division and the Executive Director of the Utility Rate
Review Council to EDT. A separate Cabinet Secretariat would be
established to provide focused analytical support to Cabinet. The Deputy
Minister of Intergovernmental Affairs would be converted to an Assistant
Deputy Minister reporting to the Deputy Minister of EIA.
The Statistics Bureau and the Program Evaluation section of EIA are
currently located in Pangnirtung. These specialized organizational units
cannot function outside the capital and should be migrated to Iqaluit so
they can support overall government planning and decision making.
The Official Languages function would transfer from CLEY to EIA so that it
can be placed under the jurisdiction of the Premier and provided with the
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government-wide authority needed to implement the Inuit Language
Protection Act.
c)

Finance

The Finance Department would accept the transfer of the Labour


Relations function from Human Resources as collective bargaining,
collective agreement administration and HR information systems should
be under the jurisdiction of the Minister of Finance. A separate FMB
Secretariat would be established to free up the Expenditure Management
Division for budgeting and financial analysis.
d)

Health

The Department of Health would be streamlined to deliver its health care


mandate following the transfer of social services programs. The Qikiqtani
General Hospital should be placed at arms length from Government under
the direction of a Board of Management.
e)

Human Resources

The Department of Human Resources would remain in its current


configuration with the exception of the Labour Relations function that
would transfer to Finance. However, it would undergo a process of reform
to streamline its key service functions resulting in simplified, more user
friendly processes that would improve the level of client service and get
better results. This would require the hiring in some cases of specialized
talent in the critical areas of responsibility.
The Staffing responsibility would be delegated immediately to the
Departments of Finance, CGS, Education, Health and Justice. Further
delegation would occur as departments develop the capacity to take it on.
The residual role of the Staffing Division would be staffing standards
development, audit of delegated responsibilities, and training and
certification of staffing officers.
iii)

Systemic Solutions

A range of recommendations to deal with the systemic problems identified in


Section V. iii) has been proposed including the streamlining of the Executive
decision making process and the simplifying of recruitment and job evaluation
processes.
Practical recommendations for improved information and control systems have
been put forward including the establishment of a more credible spending
database, a government-wide leave management system and the development
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of a program performance measurement system aimed at helping to assess the
performance of programs compared to their expected results. Scheduled and
consistent management reports should be provided to all departments to allow
for management decision making. These standard reports would include both
human resource and financial management information.
The Government staff housing policy should be revised by the Nunavut Housing
Corporation to include initiatives aimed at increasing home ownership and
increasing the supply of staff housing through the most cost effective methods.
Finally, detailed recommendations have been made to address the human
resource capacity problems. A structured process has been proposed for
concentrated recruitment initiatives, standardizing levels within job categories to
promote consistency amongst similar occupational groups across government,
and the design of standardized training programs to increase skill levels.
VII.

IMPLEMENTATION

It will be important for the Government to implement any approved changes in a


thoughtful and structured manner. Ideally, all the approved changes should be in place
with new structures fully operational by the end of the 2012 calendar year. The budgets
for 20012/13 are already in the final stages of preparation. Therefore, it is not practical
to make the associated budget changes until after the current main estimates
development process is complete.
Affected departments would have the remainder of the 2011/12 fiscal year to prepare
their new organization designs for Executive approval. It would then make sense to
provide these Departments with an interim supply of money (3 months) to enable them
to restructure their budgets to conform to the new departmental designs. A detailed
implementation plan is shown in Appendix F.
VIII.

COSTS

The costs associated with these proposals are difficult to quantify at this stage in the
process. Although some new positions are proposed, it is inevitable that there will be
additional positions and resources required. It will not, however, be necessary to create
incremental positions. With a high vacancy rate, and with many positions vacant for
over 1 year, it should be possible to utilize existing compensation funding.
IX.

CONCLUSION

The recommendations in this report will result in an organizational structure that


maximizes the Governments potential for resolving many of these problems. Not all of
the structural reform needs have been addressed as it would not be possible to deal
with the resulting volume of change. However, none of the recommended changes for
structural reform will be productive unless action is taken to locate additional qualified

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EXECUTIVE SUMMARY
staff to implement the reforms and to establish the systems needed to support effective
decision making.

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1.

INTRODUCTION

In his 2011/12 budget address, the Honourable Keith Peterson, the Minister of Finance
raised the question of whether the Government should reassess its current structure by
saying I suggest that we take a thoughtful look at the number of departments and
agencies, their mandates, and organizational designs. We should ask whether the
current government structure is appropriate, considering our priorities and goals.
The Department of Executive and Intergovernmental Affairs subsequently contracted
with Millenium Partners in June 2011 to conduct the review, so that Minister Petersons
commitment could be fulfilled.
The review was designed to assess current
organizational structures to determine whether alternatives might provide better results.
As well, the contractor was asked to identify change opportunities with the potential to
reduce costs. The full text of the Terms of Reference for the study is attached as
Appendix A.
It has also become clear that in order to avoid major cutbacks to essential programs
and services, the Government must consider some alternatives to current work methods
and organizational structures.
2.

METHODOLOGY

The work on this project was overseen by a steering committee consisting of the
Minister of Finance, the Deputy Minister of Finance and the Deputy Minister of
Executive and Intergovernmental affairs. The steering committee met 4 times in Iqaluit
to agree on objectives, approve work plans and review progress.
The starting point for this project was a literature review to ensure that proposals
reflected the realities of Nunavut. A variety of internal documents were reviewed
including the governments administration manual, the relevant legislation, all relevant
policies, Government strategy documents and the reports of the Auditor General of
Canada. Appendix B includes a detailed listing of the content of the literature review.
Research was also completed to review organizational structures of governments
across Canada to ensure that the resulting recommendations benefited from lessons
learned in other jurisdictions.
Interviews were conducted with all Deputy Ministers, a variety of government staff and
elected officials to gather their views on the issues associated with the current
government structure and systems. The Minister of Finance also wrote to MLAs asking
them to provide input if they felt changes were needed. A detailed listing of those
interviewed or who provided input in writing is attached as Appendix C.
Following the initial interviews, draft recommendations were completed. These were
reviewed by the Steering Committee. Following the steering committee meetings,
subsequent meetings were held with individual deputy ministers to ensure they
understood the recommended direction and had the opportunity to comment on the
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proposals. A draft report was submitted in late September and the document was
finalized on September 30 after taking steering committee feedback into account.
3.

THE CURRENT STRUCTURE OF GOVERNMENT - HOW IT EVOLVED

The Government of Nunavut has a unique organizational structure. However, it was


influenced by the structure of the Government of the Northwest Territories and, to some
extent, other governments across Canada. Many of the original departments were
identical to those in the NWT, while others represent unique combinations of programs
and functions.
A)

The Original Structure

The initial organization was recommended by the Nunavut Implementation Commission


(NIC), in the reports entitled Footprints in the Snow and Footprints II. In a 1995 letter
from the Chairman of NIC, John Amagoalik transmitted the action plan to the parties.
One of the main elements of the plan was an organization design for the new
government. This was updated in 1996 after the decision was made to designate Iqaluit
as the capital of Nunavut.
Two of the key guiding principles in the recommended design were:

The administrative structure of the Nunavut Government should be as simple as


possible in keeping with the relatively small population of Nunavut;
Central Agency type functions of the Nunavut Government should be
concentrated in the capital of Nunavut.

Initially, both the GNWT and DIAND contracted with Coopers & Lybrand to provide
advice on the projected cost of the proposed government in Nunavut. The consulting
firm suggested 17 departments and between 930 and 1180 new positions. The NIC
recommended (subsequently approved) 600 new positions and 10 departments. NIC
appears to have recognized at the outset that a streamlined organization with a simple
structure would work best for Nunavut.
Unfortunately, the NIC conception of a streamlined organization has been eroded over
time as government moved towards a more mainstream and southern oriented model.
By 2001/02, the total of new and existing government positions had risen to a modest
2717. However, the total has subsequently expanded to over 4029 positions.
The first structure included the departments shown in figure 1 below. The structure is
fairly consistent with the Footprints recommendations. However, it was agreed to have
workers compensation services delivered by a single body for both Nunavut and the
NWT. The Office of the Interim Commissioner began implementation with the hiring of
the first deputy ministers in 1998.

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For a period of time after 1999, the GN contracted with the NWT to manage some
functions to give Nunavut the time needed to staff and implement home grown
operations. The most notable examples of this were in the management of some
elements of social housing and the provision of electrical power to Nunavut residents. It
is useful to give a brief overview of the original departmental structure so that
recommendations for change can be understood in relation to the founding concepts:
GOVERNMENT OF NUNAVUT

Original Structure 1999

Executive Council of
Nunavut

Executive &
Intergovernmental
Affairs

Justice

Health & Social


Services

Education

Public Works
Telecomm. &
Technical Services

Finance

Sustainable
Development

Commun. Govt
Housing &
Transportation

Human Resources

Culture Language
Elders & Youth

Figure 1

The Departments of Culture, Language Elders and Youth (CLEY), Sustainable


Development (SD) and Community Government Housing and Transportation (CGHT)
were interesting as they were unique in Canada. CLEY, in particular was notable. The
departmental mandate made it clear that Inuit leaders were committed to placing their
own stamp on the organization through the incorporation of Inuit Qaujimajatuqangit and
the use of the Inuit language in the provision of programs and services.
The Department of Sustainable Development included the sometimes conflicting
functions of Environmental Protection and Economic Development. The intention was to
promote and maximize economic opportunities in a way that was sensitive to the
environment and resources in Nunavut.
The Department of CGHT combined the functions of community development, the
support and funding of community governments, the management of the Nunavut
transportation system and public housing. Although the Nunavut Housing Corporation
existed on paper, the Deputy Minister of CGHT served as the President of the
Corporation. The Housing Corporation subsequently became a separate organizational
entity early in the mandate of the 1st Assembly following the recommendations from a
Housing Task Force established by the responsible Minister. A President was then hired
with specific responsibility for the Corporation.
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B)

The Current Structure

The Government still has 10 departments as shown in figure 2 below, but the
configuration of departments was changed in 2004/05. It has not been possible to locate
a rationale for the changes that happened at that time, in spite of a thorough review of
available records. Therefore, it is not possible to determine whether the current
structure has been successful in achieving the objectives of the decision makers of the
time. The following changes were made on April 1, 2004:

The Sport and Recreation function in CGHT was transferred to CLEY along with
The Public Library system from Education;
The Employee Housing function was transferred from CGHT to the Nunavut
Housing Corporation;
The Transportation function was transferred to the new Department of Economic
Development and Transportation. This followed the splitting of the Department of
Sustainable Development into two separate departments;
The Environmental protection, Wildlife Management, Fisheries and Parks
functions in Sustainable Development were transferred to a new Department of
the Environment:
Municipal and Community Affairs, and the functions of Public Works
Telecommunications and Technical Services were combined in a new
department of Community and Government Services.

THE CURRENT STRUCTURE Implemented April 1, 2004


Executive Council

Executive and
Intergovernmental
Affairs

Justice

Health and Social


Services

Education

Finance

Human Resources

Environment

Culture Language
Elders and Youth

Community and
Government
Services

Economic
Development and
Transportation

Figure 2

C)

Lessons Learned

The changes made to the Government structure in 2004 appear to have been under
planned and there is no record of the rationale for change. As a result, it is not possible
to determine whether the objectives of the decision makers were achieved.
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Although decision makers assume the Premier has the authority to approve the
establishment or disestablishment of departments, there are no explicit provisions in
Nunavut legislation to authorize this action. Simple legislative changes will resolve that
matter and eliminate doubt.
With minor exceptions, Nunavut legislation does not define the mandates of
departments or specify which minister has responsibility for administering legislation.
The only documents that specifically outline the mandate of departments are the
departmental business plans and budgets. This shortcoming could be resolved by
defining departmental mandates through policy. This would avoid confusion and specify
accountability.
4.

WHY CHANGE THE STRUCTURE OF GOVERNMENT?

A)

Typical Drivers Of Structural Change

The purpose of this review is to determine whether it is necessary to change existing


government structures to enable the organization to achieve the objectives of the 3rd
Assembly, while being sufficiently adaptable to serve the needs of successor
governments. This must be done within the context of the governments Tamapta
objectives, its continuing obligations for responsive public services and the capacity of
the organization as it is currently structured, to achieve those objectives.
Structural change is the tool of choice for governments across the country and around
the world to resolve systemic problems and signal change. Governments in all
Canadian jurisdictions have been doing this since their inception and the changes have
had mixed results. We can learn from some of these initiatives and benefit from best
practices across the country.
We can also learn from experiences around the world. The British Institute for
Government published a report in 2010 (Making and Breaking Whitehall Departments A guide to machinery of government changes) aimed at providing insights into the
British Governments restructuring practices. The report indicated At best, these
machinery of government changes provide a way to adapt government departments to
meet long term policy and administrative goals .. and signal new priorities to the
electorate.
B)

Practices to Avoid

While changes are often necessary, the research conducted by the Institute identified 4
major problems with the change process. The problems experienced by the British
government are common to the majority of government structural initiatives:
1.

No time to plan: New departmental structures are often announced by the


leader with little or no prior planning;

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2.

Lack of funding: New departments are seldom allocated sufficient budgets to


cover the set-up of corporate overhead costs;

3.

Overloaded staff: once departments are live, top officials and transition teams
find themselves with a double workload, running day-to-day operations while
also undertaking the strategic planning needed for new or reorganized
departments;

4.

Little central support: The Cabinet office and the Treasury do not have the
resources to provide effective support to new departments during the transition.

The difficulties noted above are very similar to those experienced by the Nunavut
Government when the last round of structural changes were implemented in 2004.
Fortunately, the 3rd Assembly did not rush structural change and implement a new
design before gaining an understanding of the complexities of GN operations. Almost
two years of the current mandate are left to decide on the right structure and to fully
implement it before the mandate ends.
C)

Achieving Tamapta Priorities

TAMAPTA PRIORITIES
2009-2013
- Improve education &
training outcomes;
- Reduce poverty;
- Increase housing
options;
- Increase culture/arts
support;
- Help at risk residents;
- Support community
based sustainable
economies;
- Address social
concerns at roots;
- Improve health
through prevention;
- Enhance Nunavut
recognition in Canada
and the world;
- Strengthen the public
service.

5.

The Government of Nunavuts political priorities are described very


effectively in Tamapta. These priorities are varied, and range from
improving educational outcomes through poverty reduction to
increasing housing stocks and supporting sustainable economies.
The Government has also identified five major priorities from
Tamapta on which they will focus over the remainder of their
mandate:

Investing in Nunavummiut;
Poverty reduction;
Greater infrastructure support;
More and better housing;
Focus on large capital projects to provide maximum benefit
to Nunavummiut.

These priorities may not be achievable within the existing


organizational structure and this report will focus on identifying the
structural and systemic changes needed to support these important
priorities.

THE FINANCIAL CONTEXT

Structural reforms should never be considered in isolation of the financial realities facing
the Government.
Reform recommendations should always be influenced by
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considerations of affordability and sustainability. The design of the organization should
promote accountability, resulting in structures with good management controls and
positive program results. What follows is an outline of the financial picture for Nunavut.
This should be kept in mind when considering alternatives to the current structure.
A)

Planning For Sustainability

The Government of Nunavut is not alone in the struggle to deliver programs and
services with limited operating resources. All governments are examining current
spending patterns with a view towards identifying efficiencies and program reductions
that will make their operations more sustainable. The Federal Governments media
communications on the subject of Canadas economy consistently reiterate the
elimination of the national budget deficit as one of the key underpinnings for a strong
economic recovery. Most analysts promote a planned approach utilizing a combination
of initiatives aimed at increasing revenues (taxes) and cutting costs.
Nunavut faces many challenges in its movement towards affordability. Over 90% of GN
revenues flow from the Federal Government. However, with a limited population, an
underdeveloped economy, and high rates of poverty, Nunavut cannot simply raise taxes
to increase revenues. Nor can it significantly cut social programs given high
unemployment rates and limited prospects for job growth in the short term.
B)
The Financial Situation in Plain Language
Decision makers in Nunavuts Legislative Assembly are presented with a sometimes
confusing array of financial documents when they are asked to vote for the GN
operating budget (main estimates) and to approve additional money throughout the year
when the original budget was insufficient (supplementary appropriations).
A complete picture of the Governments financial performance over the course of each
year is contained in the Governments annual public accounts (consolidated financial
statements) that are required by law under section 44 of the Nunavut Act. For the
purpose of this review, two components of the statements have to be considered and
understood.
In simple terms, the first component tells us how much money was approved by the
Legislature over the course of the year compared to how much was spent by the
Government. Figure 3 below, shows that over the period 2007/08 to 2009/10, the
Government spent less in capital and O&M than the authorized budgets. There was an
accounting surplus of over $100 million in each of the three years. Most of the surplus,
an average of 79% per year, resulted from a failure to complete capital projects in the
year in which they were budgeted. This resulted in large capital carryovers with
unspent capital funds rolled over into the next fiscal year:

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Accounting Surplus 2007/08 - 2009/10 (000's)

Fiscal Yr.
2007/08
2008/09
2009/10

Original Budget
Capital & O&M
$
1,026,320
$
1,134,369
$
1,131,803

Supplementary
Funding
$
215,862
$
257,483
$
149,275

Total approved
funds
$ 1,242,092
$ 1,391,852
$ 1,281,078

Surplus
(Deficit)
$ 105,235
$ 113,289
$ 123,358

Total Spending
$ 1,136,857
$ 1,278,563
$ 1,157,720

Source: GN Public Accounts

Nature of
Surplus
79% capital
73% capital
85% capital

Figure 3

This information is very misleading. It would appear that these major surpluses mean
the Government had more money than it needed to do the work. In fact, it only means
that the government did not spend all the money that was voted (approved).
When considering the real financial health of the government, it is more appropriate to
assess how much money was available to spend (assets/revenues) compared to how
much was actually spent or owed (liabilities) by year-end. In figure 4 below, you will
see that the real financial picture is much less positive. For all three years there was, in
fact, a growing operating deficit.
OPERATING DEFICIT (DEBT) 2007/08 - 2009/10 (000's)
2007/08
2008/09

Category
Financial Assets
Cash
investments
Due from Federal Government
Other receivables
Inventories for resale
Loans receivable
Total Financial Assets

$
$
$
$
$
$
$

392,751
14,395
60,209
76,708
51,043
20,742
615,848

$
$
$
$
$
$
$

325,464
14,917
73,617
61,380
93,646
18,400
587,424

$ 250,327
$ 15,541
$ 85,750
$ 88,249
$ 93,243
$ 15,860
$ 548,970

Liabilities
Accounts payable/accrued liabilities
Employee future benefits
Pension liabilities
Long term debt
Capital lease obligations
Deferred revenue & capital contributions
Total Liabilities

$
$
$
$
$
$
$

266,913
22,188
5,479
94,850
118,080
147,688
655,198

$
$
$
$
$
$
$

270,949
20,461
4,867
90,335
110,416
183,396
680,424

$ 272,521
$ 19,956
$
5,454
$ 85,608
$ 97,755
$ 282,324
$ 763,618

Net Debt (deficit)

(39,350) $

Source: GN Public Accounts

2009/10

(93,000) $ (214,648)
Figure 4

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The governments cash position has declined dramatically over the three year period
from a total of $392,751,000 in 2007/08 to $250,327,000 on March 31, 2010. This is a
reduction of $142 million, or 36% over the 3 year period. If historical spending patterns
continue, cash reserves will continually decline over the foreseeable future.
C)

The Question of Borrowing Capacity

The Government has a current debt ceiling of $200 million. As shown in figure 4 above
the long term debt as of March 31, 2010 was $85.6 million. This does not mean that the
GN is borrowing money. At this time, the makeup of the Governments long term debt
does not actually result from borrowing. Instead, it represents a guarantee of the long
term debt for the Qulliq Energy Corporation (QEC) and the NHC. There is also a small
government mortgage. However, the $85.6 million figure for long term debt shown in
the public accounts is not complete. Other amounts must also be considered when
looking at debt. Specifically, the QEC bank overdraft and Nunavut Development
Corporation (NDC) credit facilities bring the total long term debt to $96.2 million. We
must also add the maximum guarantee for QEC of 26.3 million. With these additions,
the actual long term debt at March 31, 2010 was $122.6 million.
As a result, on March 31, 2010, the GN had the ability to borrow $77.4 million before
reaching the current debt ceiling of $200 million. If historical spending patterns were to
continue unabated, the cash reserves would be exhausted by the end of 2012/13. At
that point, it would not be possible to follow past practice and use the reserves to pay
down the deficit. In this scenario, it would be necessary to start borrowing to finance day
to day operations by the beginning of the 2013/14 fiscal year. As a result, the available
borrowing capacity would be used up at the very latest by March 31, 2014. If this
happens, the combination of loan and interest payments would continually erode the
resources available for programs and services.
We have been told that the Government has taken measures to curtail the growth in
spending beyond 2011/12. This may allow it to return to a balanced budget by the end
of the 2012/13 fiscal year with the potential for surpluses in subsequent years.
However, the Government must guard against any new spending that is not offset by a
corresponding reduction elsewhere in the budget.
D)

The Implications of Reaching the Debt Ceiling

If the Government exhausted its cash reserves and reached the borrowing limit, it would
not be possible to borrow more. There would be no option at that point, but to take
drastic action to reduce or totally eliminate the deficit. The projected deficit for 2011/12
alone is in the neighborhood of $50 million. Eliminating a deficit of this magnitude could
not be done by tinkering or by reducing budgets across every department by a
percentage equal to the desired savings. Some savings could be achieved by major
cutbacks in non-program (staff) departments, but these organizations represent only 8%
of the governments overall budget and could not sustain all the necessary cuts. It is

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more likely that cuts to line departments such as Education and Health would be
needed as they represent approximately 45% of the entire budget.
E)

Are Simple Solutions Possible?

While the Government of Nunavut can solve some of its financial problems simply
through spending restraint, major efforts are still required to make operations
sustainable. Nunavuts infrastructure shortfall will inevitably require major stimulus. It
will not be possible to continue to limit capital spending to balance the budget.
Continued population growth and growth in demand for programs and services will
place additional strain on the budget.
A comprehensive sustainability plan is needed to reduce expenditures to affordable
levels going forward.
This review is not the best mechanism to recommend a sustainability plan. Such a plan
must be done internally and hard, politically difficult choices have to be made. The
areas that have the most potential for significant savings are outlined below:
Capital

Place tighter controls on the capital project management process to limit the
project overruns and attempt to bring projects in within budget;
Do not publish the capital funding allocated to each project in the capital
estimates. It encourages potential bidders to tailor submissions to the published
ceilings;
Consider the adoption of standard models for major building projects such as
schools and for public housing.
Nunavuts current standards may be
unaffordable for structures such as schools. Standard designs will not eliminate
the need for some additional design work, but every new project would not have
to be designed from scratch. There should also be opportunities for savings if
some of the structures could be modularized.

Programs
Program cuts represent the most difficult restraint decisions. However, given the
magnitude of reductions that will be needed, it will be essential to eliminate or seriously
reduce some programs;

Measurement criteria should be developed centrally to define how programs and


services would be analyzed to determine the best possibilities for savings.
These criteria could include value for money, the effects on the territorial
economy, the extent to which programs satisfy basic human needs and the
impact of reductions or eliminations on affected clients;
All departments would participate by reviewing all their programs against the
measurement criteria;
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In the end, options would be presented to Executive Council for their decision. If
a program is to be reduced/eliminated, associated program staff would also be
laid off.

A continuation of historical spending patterns will inevitably result in long term


unsustainable debt. A gradual approach to restraint will provide the government with
experience in managing change and help avoid a situation where massive and
destabilizing cuts to programs and services become necessary.
6.

WHAT WE WERE TOLD

In-depth discussions were held with all deputy ministers, some program and support
staff, and those politicians who requested input. There was no reluctance on the part of
those who were interviewed to discuss the state of the Government and the potential
need for change. The comments received during this phase of the project were
constructive and aimed at making the organization more productive.
Deputy Ministers, in particular, had many suggestions for organizational change, but
their comments were balanced by a caution that the Government cannot handle huge
amounts of change in a short period of time. They warned that recommendations must
be practical and they shouldnt cripple the organization by diverting many program staff
to bureaucratic processes. Deputies want to avoid having staff tied up for months in
time consuming amendments to organization charts and job description re-writing when
they should be delivering programs and services.
Comments were not limited to structural change. Deputy Ministers also highlighted the
problems they face with existing information, decision making and support systems and
identified many of these as barriers to success. As a result, this report is not restricted
to making structural change recommendations. It includes a range of recommendations
that should improve the organization and provide the public service the tools needed to
deliver effective and efficient programs and services.
Here are some examples of the type of comments we received:

Departments need to be more balanced in terms of their size. Some are so big
they are almost unmanageable while others are so small they can easily be
handled by working 9 to 5;
The Department of Human Resources is broken. There is no service orientation
and their systems are too time consuming;
It takes too long to locate qualified staff and by the time interviews are scheduled
many of the best applicants have found jobs somewhere else;
Reconfiguring departments isnt going to do us much good unless we can find a
way to hire more qualified staff;
Social Services is not working well in Health and Social Services;
We have to make social programs like child protection more relevant to Inuit by
taking into account traditional practices;
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7.

Cabinet and FMB decision making processes are too complicated. It would be
useful if more things could be decided by managers;
The financial system makes us work too hard. There are few consistent
management reports and we have to do too many things by hand;
We need an automated budgeting system and an automated leave management
system, otherwise it all has to be done by hand;
We have too many committees. Im having a hard time doing my job because
Im always in meetings.
AUDITOR GENERALS CONCERNS

Since Nunavuts inception, the Auditor General of Canada (AG) has completed several
reviews of the Governments financial and program management practices. All these
reviews cite the issue of limited human resource capacity as the underlying cause of the
Governments failure to the address the AGs concerns.
However, two recent reports by the AG are of more immediate concern with regard to
structural reform. They highlight problems so serious that their solutions must be the
top priorities of this review:
A)

Children Youth and Family Programs and Services

HSS is not
adequately
meeting its key
responsibilities
for the
protection and
well-being of
children, youth
and their
families.
Auditor
General of
Canada 2011
While a third of
its community
social worker
positions are
unfilled, the
Dept. does not
provide the
social workers in
place, the
training they
need to do their
jobs in the
communities.
Auditor
General of
Canada 2011

This comprehensive report tabled in 2011 highlighted major problems with


the manner in which HSS is managing these programs and services. With
regard to program management, the Auditor Generals Office indicated
that, in their opinion, the Department of Health and Social Services is
failing to fulfill its mandate under the Child and Family Services Act. The
2011 report goes on to say that Because it lacks sufficient information
about the children in care, the Department cannot adequately track their
status, understand their needs, and adjust its activities to provide
adequate support.
The AG also commented on how the Department fulfills its human
resource management responsibilities by observing that in spite of the
high vacancy rate amongst social workers, HSS is failing to provide critical
training to existing staff.
The AG also touched on the fact that programs and services for children
and youth are divided amongst the Departments of HSS, Education, CLEY
and Justice and that a formal coordinated approach to children, youth and
family programming is lacking.
The content of this report was alarming. A failure to fulfill the
Governments obligations under the Child and Family Services Act has
serious legal implications and could place children and families at risk.
This prompted us to conduct an examination of the Department of Health
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and Social Services and those departments managing other elements of
the social safety net to determine whether structural reform could improve
performance in this critical area of government responsibility. A more indepth review is currently being conducted as a separate project aimed at
identifying gaps in the social safety net.
B)

Human Resource Capacity

A lack of
capacity has
hampered the
Governments
ability to deliver
some programs
and perform
certain tasks.
Auditor
General of
Canada 2010

Department of
HR does not
conduct any
analysis to
whether and to
what extent the
lack of success
is caused by
systemic
problems.
Auditor
General of
Canada 2010

8.

The AGs 2010 report on Human Resource Capacity observed that the
Government continues to experience problems in fulfilling its mandate due
to high vacancy rates. The report stated that filling positions in the public
service is an ongoing challenge for the Government, with 800 positions
(23 percent) vacant at the end of March 2009. The Auditor General found
that the staffing process was not timely with an average of 318 days
required to fill positions. The report indicated almost of the staffing
competitions undertaken by the 5 departments in the 2007-08 and 200809 fiscal years were unsuccessful.
The AG observed that the
Department of Human Resources has not been proactive in determining
the reasons for the lack of recruitment success and the extent to which
some of the problems could be related to the process that is used.
The Department of Human Resources, according to this report has not
exercised any leadership in the coordination of system-wide human
resource planning. Thus, very little is known about the Governments skill
needs and the reasons why people leave the organization. The AG noted
The Department has received 386 exit survey responses over the years,
but the responses are neither analyzed nor communicated to the
departments.
Given the Governments critical human resource shortage, the content of
this report is troubling. A review of human resource practices was
undertaken to determine whether structural change is needed.

PROCESSES & SYSTEMS THE TOOLKIT FOR SUCCESS

The processes and systems that underpin government operations represent the basic
toolkit allowing for effective and efficient operations. Simple and useful systems reduce
the time taken to do things such as pay the bills, track spending, document new
government employees, account for employee absences, process salary payments and
manage the maintenance of buildings. If systems and processes are well designed, they
also provide the databases that are needed to inform decision makers so that they can
assess whether recommended directions will achieve the desired results. The
existence of this toolkit is essential to efficient operations and the sustainability of

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Government. We looked at the critical systems and processes used by all departments
to assess the health of Government operations.
We found that the Government of Nunavut is hampered by some internal processes that
are slowing progress and making it difficult to achieve results. These processes all
share the same flaw. They are too complicated. The Government has adopted an
approach to doing business that is very similar to the Government of Canada. Such a
labour intensive and very structured approach is sometimes necessary in a large, high
volume organization, but in a government such as the GN, the staff sometimes have
difficulty with such a degree of sophistication.
The business plans of the Government are the best example of this complexity.
Departments are required to complete a new business plan each year when each
successive plan adds little value to the previous versions. The spending projections in
the plan are not rigorously developed and are, therefore, not credible. A better approach
would be to develop a business plan during the first or second year of the Governments
mandate which covers the entire mandate and takes into account the strategic
objectives of each new government.
Some key processes requiring early attention are outlined below:
A)

Legislative Development

The current legislative process is unnecessarily cumbersome and complex. The time
delay between the point where a decision is made to develop legislation and the point
when it is approved in the House takes far too long. The complexity of the current
process may be one of the contributing factors to the absence of any new and
meaningful legislation at this point in the mandate of the current government:
Some of the problems that hamper the process include:

Too many committees have a role to play in reviewing each phase of the
process;
There is a lack of capacity in the area of policy analysis across the Government;
There is a requirement in the NLCA for consultation outside the government with
organizations that suffer the same capacity shortages in policy analysis.

Solutions are needed to resolve the problems with the legislative development process.
However, we have refrained from detailed analysis of the legislative process or the
making of recommendations in that area. The Department of Justice has contracted
with subject experts to complete an in-depth review of the process and come forward
with recommendations for improvement. The contractors report will be available within
the same timeframe as this report.

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B)

Executive Council Decision Making Processes

Efficient decision making processes are essential to the functioning of good


government. Cabinet and Financial Management Board meetings are generally held
every two weeks. Meetings are sometimes held more frequently during sessions of the
Legislative Assembly or to deal with major issues such as budget development or the
need for supplementary appropriations. Work has been underway for the past few
months to improve the administrative process surrounding Executive decisions. Since
these improvements do not represent policy changes, they can be approved within the
authority of the Deputy Minister of the Executive and do not need to be discussed in this
report.
However, there is a problem with the kind and quality of submissions that are being
forwarded for Executive Council review and approval. A review of some recent
decisions makes it clear that Cabinet and FMB are often asked to make decisions that
are administrative rather than political.
Cabinet should avoid making some decisions which properly belong in the mandate of
the public service specifically those which deal with human resource management.
Human resource decisions should be made by managers within the policy direction set
by Cabinet.
Unfortunately, the status of human resource policy is non-existent other than the
contents of The Public Service Act. The GN web page apparently shows four human
resource policies, but they have all expired and are no longer in effect, including the
policy which specifies the approvals necessary for restructuring:

Workforce Harassment Policy

- Expired April 20, 2010;

Treatment of Management
and Excluded Employees
Affected by Reorganization

- Expired March 31, 2003;

Priority Hiring Policy

- Expired March 2010

Government Organization Policy - Expired April 30, 2009

Apparently, these policies were approved with expiry dates in an attempt to trigger
prompt policy review on the date of expiry. Given the capacity shortages identified
earlier, it is not surprising that no reviews were undertaken to update the policies. As a
result, the Government now lacks policy in these critical areas.
The Nunavut Public Service Act is based on the NWT Public Service Act which was
originally written prior to the advent of ministerial government. Very few substantive
changes have been made to this Act since its inception. As a result, the content reflects
to some extent, the semi-colonial mindset of a government headed by a commissioner
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leading a council of appointed members. Although changes have been made over the
years to recognize the existence and the role of ministers and to recognize the right of
employees to strike, no in-depth action has been taken to normalize the roles and
responsibilities of elected officials vis-a-vis those of the leaders in the public service. As
a result, Cabinet has a more hands on role in public service human resource
management than any other jurisdiction in Canada. The obvious exception of course, is
the NWT which shares similar legislation.
This includes such things as Executive Council approving direct appointments of public
servants, and the Minister responsible for the Act having final authority for some
dismissals and for ruling on the subsequent appeals. Some of these anomalies can be
dealt with through delegation from the Minister to Deputy Ministers for things such as
direct appointments. For matters that the Minister cannot delegate, the resolution is to
change the legislation to reflect 21st century practices. A review of the Nunavut Public
Service Act has been underway to do just that, but relatively little progress has been
made on legislative changes.
The researchers reviewed a variety of requests for Executive approval. Many of the
documents are extremely detailed and often include a combination of policy and
process issues. These kinds of very detailed decision documents can contribute to role
confusion between deputy ministers and ministers. At a minimum, they are energy
sapping for ministers and detract from their key role of approving effective public policy.
In preparing for Executive meetings, Ministers should have the time to review
documents and prepare themselves for discussion. The Secretary to Cabinet and the
Secretary of FMB are hard pressed to deal with the volume of decision making requests
they currently receive, therefore, they are not able to give the Executive the lead time
they need to absorb the content of the requests. As a result, decisions are often
rushed.
Executive Council should focus their efforts on policy making and strategic planning.
Deciding on methods of implementation detracts from this focused approach. Process
decisions belong with the bureaucracy. To correct this situation, the Secretary to
Cabinet and the Secretary of the FMB should be empowered to reject submissions that
clearly do not belong on the Executive agenda. This would reduce the volume of
decision making requests and could allow for meetings to be held every 3 weeks to a
month rather than the current bi-weekly schedule. Early action is needed to cut the red
tape and simplify decision making by delegating responsibility to the proper levels.
C)

Human Resource Support Processes

There are some structural issues associated with the Department of Human Resources
that have negatively affected the Governments ability to achieve its objectives.
Structural recommendations will be made to improve that performance. However, no
amount of structural change will improve results unless changes are made to the
processes and systems that underpin the organization. A variety of key processes
require a major overhaul before success is possible:
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a)

Recruitment Process
Section 7 of this report reiterated the concerns of the Auditor General in her 2010
review of human resource capacity. Changes to the current system should be
made to correct these problems. Our assessment of the recruitment process
identified the following practices as problematic:

b)

Human Resources has historically required all departmental recruitment


requests to be reviewed by the Job Evaluation Division who, in the past
have significantly delayed recruitment with unnecessary analysis of
positions that have already been rated;

Methods of sourcing are often confined to limited distribution newspaper


advertising.
This is the least effective sourcing method used by
professional recruiters;

The employing department has not been permitted to review applications


as they are received; instead they must wait to see resumes until the
competition has formally closed;

Staffing has taken on the role of the enforcer of the Inuit Employment
Policy, instead of recognizing that the employing department is
accountable for achieving beneficiary targets. Staffing enforces rules that
do not allow any other applicants to be interviewed if any beneficiary
appears to be qualified. By the time the first lengthy, and often
unsuccessful round of interviews is over, many qualified candidates have
found other jobs with more flexible employers;

Departments in the past, have not been permitted to vary the composition
of the interview panel for fear that it will be perceived as a failure to be fair
and consistent in the assessment of candidates. In reality, there are often
good reasons to change membership on the selection panel; for example,
when one of the members from the employing department leaves his or
her position during the process.

Job Evaluation Process


The Job Evaluation function has been administered in a manner that has caused
it to be a major barrier to the attraction and retention of employees in the
Government of Nunavut. There is no doubt that HR officials in the past have
seen their role as that of a central agency responsible primarily for control. As a
result, they have established processes that are so labour intensive that they
have negatively impacted the ability of the entire organization to get results and
move forward. The methods by which Job Evaluation is administered should be
changed to correct these practices. Examples of the inflexible approach taken to
managing the function are shown below.
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The Government
still maintains
manual leave
records despite
having some
2300 employees.
.Around 50% of
leave records we
reviewed
contained errors.
Auditor
General of
Canada 2006

Job evaluators have insisted in the past, that all jobs of a casual nature be
rated through the system. This is an unnecessary delay in hiring staff for
temporary work especially since casual pay rates are already shown in the
collective agreement;

Job Evaluation has not been historically receptive to the practice of


benchmarking positions. Benchmarking allows one job description to be
rated for all positions that do the same level of work. There are many jobs
such as finance officers and social workers which are identical from one
department to the next and they do not have to be individually rated. To
put it into perspective, there may only be 750 to 1000 discrete (different)
jobs in the organization as compared to the 4029 positions shown in the
main estimates. Rating 1000 positions would be a drastic reduction in the
review time; thus improving the level of service to clients;

The position description form used to rate each position is unnecessarily


complex and time consuming. Efforts to simplify the document and make
the process more user friendly have not been successful in the past;

Very little (if any) pay research has been completed by the Government in
the 12 years of the governments existence. Therefore, it is difficult to
determine whether pay rates are competitive. Ongoing pay research is
essential to keep pay rates competitive within similar occupations. This
may be a contributing factor to the governments lack of hiring success;

The Department has not been receptive to introducing flexibility into the
system by allowing for labour market supplements.
These pay
adjustments allow for the payment of higher salaries for occupations that
are temporarily in high demand across the country and are therefore hard
to recruit.
c)

The Leave Management System

There is no central computerized leave management system in


Government. This is a major problem because the lack of information and
the failure to apply consistent controls results in a great deal of abuse in
the actual administration of the benefits. The value of lost time across
government is difficult to gauge because of the shortage of reliable data.
Given the reality of a 25% 30% vacancy rate, the Government cannot
afford lost time. All existing employees are needed at work to the
maximum extent possible within the rules.
The Auditor General commented on this situation in 2006 when the
organization had 2300 employees and expressed surprise that the GN
continued to rely on error prone manual processes. At that time, the GN
indicated that the problem would soon be solved through the
implementation of a new personnel system that was capable of generating
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Systemic and Structural Reform


automated leave records. Currently, there are over 4000 positions and
the problem persists.
d)
None of the
departments
audited have
developed
strategies to fill
ongoing gaps in
skill sets and
qualifications.
Where gaps are
government wide
HR has not
developed overall
strategies.
Auditor General
of Canada 2010

Human Resource Planning

In order for any organization to be successful, it has to be able to attract


and retain skilled workers. Most effective organizations are supported by
human resource plans with 3 essential components:
Recruitment
This component of the plan identifies the positions where staff will be
brought into the organization through recruitment. Ideally, in a mature
organization, recruitment efforts will focus on entry level jobs and
specialized occupations where it is not feasible to train employees
internally for transfer and promotion;
Training and Development
This component of the plan identifies the training mechanisms that will be
used to prepare employees to take on greater responsibility. A
performance management system is an essential tool for maximizing the
performance of employees. This is complemented by a combination of
internal courses and post secondary professional development. Training
plans, career development plans and succession plans are part of the
process of identifying employees with potential;
Transfer and Promotion
This part of a human resource plan identifies those positions that will be
targeted for transfer and promotion of existing employees.
The Government of Nunavut does not have a human resource plan and
the Department of Human Resources has not been able to provide the
leadership to develop one. In its absence, recruitment is unplanned and
often unsuccessful. This has contributed to a high historical vacancy rate.
It is not possible to be more precise about the actual vacancy rate due to
the fact that the data from the Governments HR module (e-personality)
are not reliable.

e)

Government Staff Housing


Any review of hiring must also include reference to the Governments inadequate
supply of staff housing. This shortage is one of the biggest barriers to solving the
problem of insufficient human resource capacity. The reality is that there will
continue to be a heavy reliance on specialized labour from outside Nunavut until
the skills of residents reach the required levels. The practice of external
recruitment carries with it the obligation to provide housing. Creative solutions
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Systemic and Structural Reform


are needed to provide homeownership incentives to increase the stock of
housing. At the same time, additional staff housing units should be built or
leased in the most affordable manner to increase staff housing stocks so that
employees currently in public housing can move out and make room for those
whose need is greater.
D)

Automated Budgeting System

The Auditor General has observed that budgets for most departments do not represent
a plan for spending money. For example, departments know they will not spend their
full compensation budget on wages and benefits each year, yet they continue to budget
as though all the jobs were filled. As shown in Figure 5 below, over the period 2005/06
to 2009/10, an average of almost $18 million per year was diverted from Compensation
to Other O&M as a direct result of these vacancies.

GOVERNMENT OF NUNAVUT - COMPENSATION SPENDING


Fiscal Year
2005/06
2006/07
2007/08
2008/09
2009/10

Main Estimates
$ 298,971,000.00
$ 318,373,000.00
$ 322,146,000.00
$ 340,892,000.00
$ 371,564,000.00

Actual Spending
$ 281,167,000.00
$ 302,247,000.00
$ 299,996,000.00
$ 322,960,000.00
$ 355,918,000.00

Under Main Est. % Diverted to Other O&M


$ 17,804,000.00
6%
$ 16,126,000.00
5%
$ 22,150,000.00
7%
$ 17,932,000.00
5%
$ 15,646,000.00
4%

Source: GN Public Accounts

Figure 5

The Expenditure Management Division should lead the development of an automated


budgeting system to support effective budget planning and reduce the need for onerous
manual work by all departments. Expenditure Management also needs to do more
central analytical work to identify and interpret spending trends. This would require them
to work directly with the Comptrollership to ensure departments are coding their
payments in a manner that will allow for the central compilation and analysis of overall
government spending.
9.

CONSISTENT PUBLIC COMMUNICATIONS- AN URGENT NECESSITY

The Nunavut Government does not have a unified corporate image. This is reflected in
the wide variety of messaging shown on departmental websites; all of which appear to
be determining their own image. All elements of government public relations should
bear a corporate stamp.
This includes advertising that contributes to Government
image making such as recruitment advertising for the public service. Recruitment
advertising is the most visible of all government public relations. It appears in
newspapers cross the country and its effectiveness reflects on the image of Nunavut.
The current advertising is worn out and should be replaced with something more
appropriate. The slogan Canadas newest Territory has outlived its novelty and should
be replaced by something that conveys a more mature image.
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Systemic and Structural Reform


The Governments main website is another key element of the GN image. Anybody
who accesses the site develops a perception of what the Government is about on the
basis of the messaging that appears. Unfortunately, the site suffers in comparison to
Government websites across the country. The website is not live. For example, every
other province in Canada had a message posted on the government website about how
to access social assistance during the recent mail strike. No reference was made on
the website to the strike or government plans to minimize its impact on Nunavut.
Another major failing on the website is the staff phone directory. Researchers are
constantly seeking information from government employees. Residents of Nunavut
have questions about government programs and services. However, unless you know
the exact name, or title of a person, you cannot find them on the website from outside
the government system. If you ask for a departmental listing, you are given an
alphabetical listing which is not broken down by division or section. It takes inordinate
amounts of time to locate a telephone number and people often give up in frustration.
The Government needs a professional webmaster who can develop and maintain an
interesting, communicative and useful website.
There is also inconsistency in the Governments media releases. Releases often fail to
take into account the need to communicate consistent messages that reference
government-wide strategy. This reflects the fact that departmental communications staff
are usually single person operations. It is not always possible to attract candidates for
these jobs who are sufficiently seasoned to add value to departmental public relations
initiatives. As a result, Deputy Ministers do not often have the quality of advice needed
to respond effectively to situations requiring sound media relations, particularly in times
of crisis management. In order to ensure consistency and to help the staff develop their
skills it may be useful and necessary to bring them together in one department so that
they can benefit from collegiality with more experienced practitioners and be under the
supervision of skilled media relations experts.
10.

HUMAN RESOURCE CAPACITY THE ROOT OF THE PROBLEM

The single biggest problem facing the Government of Nunavut is a shortage of skilled
and qualified workers. Unless this problem is dealt with, no amount of structural change
will be effective. As stated earlier, the weaknesses of the current recruitment and job
evaluation systems constitute a major barrier to the success of government. Four
serious outcomes of this weakness are:

An extremely high vacancy rate;


The appointment of many staff to positions for which they do not qualify and for
which no amount of internal training will develop the required skills sets;
A serious shortage of reliable information and of useful automated data
processing systems;
A GN image amongst job seekers as an undesirable potential employer.

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Systemic and Structural Reform


As indicated earlier in this report, the researchers were hampered by a lack of reliable
data in all areas. However, the data shown is from the best sources available and
provides at least a snapshot of the situation.
A)

The Vacancy Rate

As of April 1, 2011, the total number of budgeted positions was 4029.6. Figure 6, below
shows that, in August 2011, 1043 positions were vacant for a vacancy rate of over 25%.
DURATION OF JOB VACANCIES August 2011
Length of Vacancy
Positions never filled
Less than 6 months
6 months to 1 year
1 to 3 years
3 to 5 years
5 years or more
TOTAL

# of Positions
297
279
100
269
71
27
1043

Source: Dept. of Human Resources

Value of Vacancies
$30,591,000
$28,737,000
$10,300,000
$27,707,000
$7,313,000
$2,781,000
$107,029,000
Figure 6

This vacancy rate is consistent with the historic average for vacant positions. The
Government of Nunavut has always struggled with attraction and retention of
employees.
A surprising revelation of the vacancy analysis is that a total of 297 funded positions
were never filled. This could be the result of a failure in the recruitment process, but with
the limited information available, it is not possible to assign a reason for the vacancies
in this category. Needless to say, it appears that Departments are often so anxious to
proceed with new initiatives they fail to recognize that they are failing to achieve earlier
and equally important objectives.
The volume of these vacancies makes it clear that any additional positions
recommended by this review can be funded internally through the vacancy rate.
We also found
that departments
spent 37% to
112% of their
unused payroll
budgets on people
working on
contract, overtime,
and as casuals to
do the work of
vacant positions.
Auditor General
of Canada 2010

However, it must be said that compensation funding is often diverted to


Other O&M to offset shortfalls in program funding or to pay for individuals
employed as casuals or contractors. Therefore, although the vacancy
analysis shows that vacant positions currently have a dollar value of over
$100 million, very little of that funding is available for diversion.
B)

Lack of reliable information

The lack of information available to support management decision making,


planning and program evaluation is directly linked to having insufficient
staff in the proper areas. In some cases, existing staff do not have the
required academic credentials and experience to carry out this complex
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Systemic and Structural Reform


work. This lack of reliable data will make it very difficult for the
Government to make decisions about financial restraint when it is no
longer possible to offset operating deficits through cash reserves. As
stated in Section 6, this could occur by 2014. The most serious
deficiencies include:

Human Resource information that is not sufficiently reliable to generate reports


from the E-Personality database. This is a direct result of poor data entry;

Unreliable data on spending due, in large part, to poor financial coding of


invoices. This data shortcoming makes it impossible for financial analysts to drill
down into spending records to obtain detailed information for trend analysis;

Virtually no credible program performance measurement indicators are


consistently collected to provide managers with information about the
performance of programs and to support evaluators who are gathering data to
determine whether programs are providing effective and efficient services to
residents.

Neither the Department of Finance nor Human Resources supply departments with
structured management reports that provide reliable data for variance reporting, Inuit
Employment Plan monitoring or budgeting. Instead departments have access to raw
data from the central information systems that is subsequently manipulated and
analyzed independently by each department. This lack of central agency direction
contributes to inconsistent decision making as departments interpret different data in a
different fashion. Little wonder that variance reporting is weak and the quality of
financial projections is suspect.
The Government of Nunavut has not yet reached the stage where it is operating like a
mature organization. The Auditor Generals Financial Management Capability Model
(Figure 7 below) is good tool to use in assessing the capacity of the Government of
Nunavut for both program and financial management. The model has 5 levels. The first
level shows the management capacity you would expect from a newly created
government and level 5 shows the capacity expected of a mature organization that
continues to improve programs and services.
According to the most recent financial audit of the Auditor General in 2009, the
Government still lacks some basic controls. However, it appears that the GN may be
able to table the Public Accounts for the 2010/11 fiscal year within the legislated
deadline for the first time ever. This is a very positive sign that the necessary controls
have been established and they are now being fine tuned to improve daily operational
performance. The GN needs to begin the process of preparing to improve performance
in level 2 and to move onward to level 3 and 4 by setting in place the systems and
controls needed to go beyond the operational stage and on to excellence:

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Systemic and Structural Reform


MANAGEMENT CAPABILITY MODEL

Source: Adapted from Office of the Auditor General of Canadas financial management capability model
Figure 7
The Govt of
Canada will
recommend to
Parliament ..a
new Nunavut
Territory, with
its own
Legislative
Assembly and
public
government,
separate from
the GNWT.
Article 4 NLCA

11.

It is important to note that the existence of acceptable accounting controls


is not the only obligation of a public government as provided for in Article 4
of the Nunavut Land Claims Agreement. Accounting controls may ensure
that the Government has the necessary systems in place to document
how money is being spent. What is equally important, and vitally
necessary for any organization accountable to the public, is the availability
of credible, easily accessible information about the results that are being
achieved through the spending of public funds.
At the time this report was prepared, results information was not available
and very little work was underway to establish government-wide systems
to capture these data.

ARE STRUCTURAL CHANGES NEEDED?

Overview
An analysis has been completed to assess the current organization, the problems it
faces and the barriers to success. It has become clear, over the course of the project
that changes to the structure of government are needed and will be welcomed by the
majority of employees. It is also clear that structural change alone is not enough to deal
with many long standing problems.
Since the Government was established in 1999, it has done a good job of establishing a
Legislative Assembly and implementing Executive Council decision making processes.
A totally new organization was put in place, foundational legislation was approved and
information networks were developed to complement newly created data processing
systems for key areas. The new public service of Nunavut was provided with office
space, equipment and staff housing in many communities across Nunavut.

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Systemic and Structural Reform


Those were huge accomplishments in a relatively short period of time, but now the
government has to move beyond the creation stage in its evolution and on to the stage
of effective operations. This evolution will require improvements to human resource
capacity, as well as financial, human resource and data management. A new focus is
needed to emphasize planning and evaluation. These improvements are essential if the
organization is to be sustainable.
This section of the report focuses on the issue of structural reform. However, it will be
supported by recommendations for systemic change to support more effective
operations by providing managers with the tools they need to efficiently and effectively
manage programs and services.
A)

Health and Social Services Part of a Larger network

In dealing with the need to examine options for improving the success of Children and
Family Services, it is important to recognize that Health and Social Services is part of a
much larger network of social programs to support residents who need intervention.
The Nunavut Department of Health and Social Services follows the NWT design model
in most respects. The Government of the Northwest Territories decided in 1995 to
combine the departments of Social Services and Health. The foundation for the
decision to combine the departments was a perception that health care workers and
social service workers would benefit from being in the same department working in
multi-disciplinary teams.
At the same time, the NWT Cabinet decided to transfer the responsibility for social
assistance from Social Services to the Department of Education, Culture and
Employment to be utilized as part of a larger income support program designed to
prepare people for more productive life through employment. The Nunavut Government
decided to use a similar model for the breakdown of functional responsibility between
HSS and Education.
Another major element of the social safety net is social housing. It is managed by the
Nunavut Housing Corporation through Local Housing Authorities. The NHC also has the
responsibility for initiatives aimed at dealing with homelessness. Other departments
also have responsibility for social initiatives, including the Department of Justice which
administers the Family Abuse Intervention Act.
This review identified two other major social initiatives which are delivered by EIA and
EDT. The first is the Social Advocacy unit in EIA which was established to coordinate
the development of policies and programs to assist disadvantaged and vulnerable
groups as well as to work towards the development of a child advocates office. The
second is the Nunavut Anti-poverty Secretariat in EDT which was established to
develop a Poverty Reduction Strategy to meet the Governments Tamapta goals in this
area.

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Systemic and Structural Reform


a)

HSS - The Current Structure


Health and Social Services has the largest budget in Government with a
current budget of over $300 million and 943 positions. Since it was
established in 1999, it has struggled to provide health care and social
services to a jurisdiction with some of the most urgent needs in Canada.
The health status of Nunavut residents is amongst the lowest in the
country. High levels of unemployment and poverty, coupled with a severe
shortage of housing, and very high rates of suicide makes the job of front
line workers very demanding.

HSS does not


develop budget
work plans, nor is
there a
departmental long
term plan.

.Auditor
General of
Canada 2009

With only one acute care hospital in the Territory, Nunavut must depend
heavily on southern facilities to provide services unavailable territorially.
This results in heavy usage of airlines for medical transportation and
medevacs. The Department struggles to balance the budget in an
environment where costs are escalating far beyond those experienced by
other programs and services. The Public Accounts show that over the
period 2005/06 - 2009/10, HSS saw spending increases averaging 7.6%
per year compared to an average of 4.9% per year over the same period
for all other departments. The budget for 2011/12 exceeded the 2010/11
budget by 12%. First quarter variance reports for 2011/12 predict a deficit
of over $19 million for the department by year-end. The Department
appears to be under such intense pressure simply to deliver services that
it does not have the time or inclination to develop a long term plan to
address the issue of sustainability.
The Department struggles with high vacancy rates in its community health
and social service operations as well as the hospital in Iqaluit. Agency
(contract) nurses and social workers are heavily used across Nunavut.
The AGs 2011 report on Children, Youth and Family Services in Nunavut
was critical of the Departments performance in areas such as child
protection and Public Health Strategy implementation.

b)

Qikiqtani General Hospital


The hospital in Iqaluit is the only acute care hospital in Nunavut. The
hospital has been operated by the Department since 1999 when the 3
regional health boards of management were eliminated in Nunavut.
The accepted mechanism for governing and operating hospitals across
the country and in most developed nations is through a board of
management. Having hospitals governed and managed at arms length
from government allows these organizations to eliminate much of the
bureaucracy that goes along with government. Hospitals must have
control of their own hiring and have the flexibility to respond to emergency
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Systemic and Structural Reform


situations without reference to outside authorities.
The Board of
Management is ultimately accountable to the public and the government
for effective operations. They would have the flexibility to do public
fundraising given their ability to obtain status as a charitable organization
for tax purposes.
Hospitals are very complex and demanding businesses. Government, by
its very nature, is not equipped to run a business and they are not able to
provide quick turnaround in decision making. The Qikiqtani General
Hospital has been hampered by its current status as a government run
operation, and this should be corrected by placing it at arms length from
government.
The Government of Nunavut eliminated Health and Education Boards in
1999 on the recommendation of the Nunavut Implementation Commission.
It was felt that with a consensus oriented government and a variety of new
organizations which could conceivably provide input on government
decision making, there was no real need for regional boards. It is
important to differentiate between the former Regional Health Boards and
the kind of management board needed to direct the efforts of a hospital.
Regional Health Boards were organizations that focused on bringing their
community or regional concerns to the forefront to ensure the issues
would be addressed. On the other hand, a hospital board of management
oversees the operation of the hospital and makes management decisions
very similar to the way a town or city council operates. They are much
more hands on than the former health boards. The existence of a Board
of Management also aids in the accreditation process as the Boards are
the recognized form of governance for Canadian hospitals.
The Regional Health Centers in Rankin Inlet and Cambridge Bay are not
acute care hospitals and can continue to operate effectively as part of
government operations.
c)

Social Services

Social Services is limited in its effectiveness both at headquarters and in


the regions. In HQ, the Social Services Division is part of the Policy and
Standards Branch which has no authority over regional operations. The
authority over regional operations rests with the Assistant Deputy Minister
of Operations who oversees the combined operations of Health and Social
Services. Thus, there is no connection between those who deliver
programs in Social Services and those who set the standards.
Both at headquarters and in regions, the leaders in the Operations Branch
are so consumed by the unavoidable demands of the Health side, that
they have limited time to devote to Social Services. In spite of best
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Systemic and Structural Reform

The Government
of Nunavut will
respect Inuit
values. Inuit are
85% of the
populationThe
Agreement is
protected by the
Constitution of
Canada. The
Government
must work in
ways that respect
Inuit rights.
Plain
Language Guide
to the NLCA

intentions, the Department has simply not had the time to devote to Social
Services since Nunavut was created. Operational employees have
suffered from a lack of direction and the absence of a long term plan. In
addition to the many issues identified by the Auditor General in the
Children and Family Services report, there has been a continuing demand
from the public to establish child welfare practices that are more in
keeping with Inuit tradition and culture.
There is no doubt that Social Services is understaffed, with most
communities having only one social worker.
However, when the
organization has to compete with higher priority funding needs such as
health treatment, it inevitably loses.
According to main estimates
documents, Social Services has grown by only 7 positions since 2008/09,
whereas Health has grown by 35 over the same period. Social Services
cannot succeed in an organization such as HSS where life and death
decisions around health treatment inevitably trump child welfare.
Social workers also suffered a separation from their clients when the
social assistance function was placed in the Department of Education.
Having responsibility for issuing social assistance ensured that social
workers saw their clients at least monthly and allowed them to gauge
problems in needy homes.
Social Services would have much better
success if it were part of a department where it had all the tools it needs to
provide effective programs and services and where its priorities get the
necessary attention.
The current review of the social safety net by the Social Advocacy unit and
the concentrated effort to reduce poverty are important priorities for the
Government. In that context, it makes sense to bring together the most
important elements of the net in one department where culturally
relevant programs and services can provide one stop access to integrated
social supports. This would mean bringing together resources from HSS,
Education, Executive and Intergovernmental Affairs, Economic
Development and Transportation, and CLEY.

B)

Human Resources

The management of human resources is one of the most important responsibilities of


leaders in the public service. If employees are not productive, efficient and effective, it
is not possible to fulfill the responsibility of delivering quality programs and services to
the public. The compensation and benefits budget for employees for 2011/12 is over
$420 million. This represents 31% of the entire operational budget.

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Systemic and Structural Reform


a)

Labour Relations
The labour relations responsibility rests with the Employee Relations Division of
the Department of Human Resources. Labour Relations includes the critical
responsibility for negotiating with bargaining agents for unionized employees and
administering the provisions of the collective agreements on behalf of the
employer. A collective agreement represents a contract between the bargaining
agent and the employer covering employee terms and conditions of employment.
If the government is lax in its administration of the agreement, it can be very
costly for the employer.
The responsibility for labour relations in most governments rests with Treasury
Board which is closely akin to the GN Department of Finance. The Minister
responsible for Finance should be the Minister responsible for administering the
Public Service Act; thereby ensuring that there is appropriate financial control of
programs and human resources. A more important reason for this minister
administering the legislation is that the Nunavut Public Service Act, is the labour
legislation that guides the Government in its management of the public service
and the Labour Relations Division is the only structure in government established
with a mandate to deal with internal labour matters.

b)

Recruitment

We found that
almost of the
staffing
competitions
undertaken by
the 5
departments
were
unsuccessful.
..Auditor General
of Canada. 2009

c)

The staffing process within the GN has not satisfied the organizations
needs. The Auditor Generals (2009) observations about the inordinate
amount of time it takes to fill jobs and the 50% failure rate in competitions
are characteristic of the failures of this process since 1999. The process
is rigid, unnecessarily complex and it takes away the rights of managers to
make hiring decisions.
Managers appear to have become so
disenchanted with the recruitment process that, with some exceptions,
they no longer make a meaningful effort to participate. They leave it
largely in the hands of Human Resources who follow a structured process
with limited room for flexibility.

Job Evaluation
The classifying of jobs in the Nunavut Public Service has been one of the most
rigid elements of all human resource processes. The current job evaluation
process is the Hay System. This system is a universal, gender neutral job
evaluation system that supports the concept of equal pay for work of equal value.
It is essential to have such a system in place to avoid pay inequities between
genders.
In the absence of such a system prior to 1999, the Government of Nunavut
inherited a liability for $14 million in equal pay settlements for employees whose

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Systemic and Structural Reform


positions transferred to the Nunavut Government from the Government of the
NWT.
Although the system is perceived to be rigid and inflexible; it does not have to be.
There have been many calls over the years for the system to be replaced with
something simpler, but in reality, these bureaucratic problems result from the
inflexible approach taken to operating the system; not from weaknesses in the
system itself.
While it is important for Job Evaluation to be service oriented, it is not possible to
ignore the need for strong central controls on job ratings. With a $420 million
compensation budget, it is not hard to visualize how costs would skyrocket
without effective controls on the rating process.
Human Resources is now beginning to make efforts to solve these problems, but
it appears to be solely as a result of the AGs report. The Department of Human
Resources has consistently failed to recognize that their primary reason for
existing is to serve the needs of other departments. Instead, they have focused
on the need to control departments in the way they manage their human
resources. As stated earlier, this approach deprives program managers of their
biggest responsibility; that of recruiting, hiring and managing their human
resources to deliver quality programs and services.
The Department of Human Resources does not appear to be able to provide
effective human resource support to the Government of Nunavut utilizing existing
processes and systems. It is time to consider how their important work can be
carried out in a more efficient manner if some elements are transferred to other,
more appropriate departments and existing processes are reformed.
d)

Organization Design
The responsibility for developing organization design standards and for analyzing
departmental proposals for organizational restructuring rests with the Department
of Human Resources. No substantive work has been done in this area within the
life of the Department and they do not have the expertise to do this work.
Any analysis of organizational change proposals over the years has been very
basic and has usually meant that HR provides Cabinet with a summary of the
proposal with very little value added analysis. In point of fact, EIA has completed
most of the analytical work. The Government Organization Policy which
regulates organizational change is a policy of the Executive, not the Department
of Human Resources.
It would make better sense for this function to be carried out by the Department
of Executive and Intergovernmental Affairs in conjunction with their responsibility
for supporting the Senior Personnel Secretariat.

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C)

Executive and Intergovernmental Affairs

Executive and Intergovernmental Affairs (EIA) is critically important for the effective
operation of government. The Department provides high level analytical support to
Cabinet in the same manner as the Department of Finance provides analytical support
to the Financial Management Board (FMB). The Deputy Minister of the Executive (also
Secretary to Cabinet) is the senior bureaucratic advisor to Cabinet and, although the
authority is not defined in legislation, the position is widely recognized as the head of
the public service in the same way as the Clerk of the Privy Council is the head of the
Federal Public Service.
The Department also coordinates liaison amongst all Governments in matters where
there is shared interest. EIA takes the lead on government-wide initiatives requiring
intergovernmental negotiation. The best example of this is the negotiation process for
devolution. EIA also coordinates the policy development and program evaluation
functions across government and manages the Nunavut Statistics Bureau which
represents a major source of information to support government planning and decision
making.
EIA must be streamlined and efficient in order to focus on its key areas of responsibility.
Otherwise, Cabinet will not have the level of policy and analytical support needed to
achieve the primary objectives of its mandate. Unfortunately, the current organizational
structure of the Department does not lend itself to excellence. There are too many
unrelated functions in place which have a tendency to divert the Department from its
mission.
a)

Cabinet Office
The Cabinet Office is made up of the Premier and Ministers, plus the Principal
Secretary, Executive Assistants and ministerial staff. The Premier and Cabinet
depend on the Principal Secretary to provide high level political advice. This
advice is significantly different than the strategic analytical advice provided by the
Cabinet Secretariat and the Financial Management Board Secretariat. It deals
primarily with the political implications of a desired or recommended course of
action including advice on the advancing the relationship between the
Government of Nuavut and the Government of Canada. The respective
Secretariats cannot provide this level of political advice, nor is it expected of
them.
The Principal Secretary is, however under-resourced. With no analytical support
to rely on, it is virtually impossible for the position to cope with the volume. As a
result, some decisions could be made that lack the benefit of specialized political
insight and evaluation.

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b)

The Social Advocacy Division


This Division was established to coordinate a review of the social safety net for
the purpose of identifying gaps in the system that result in hardship for clients. It
was also established to develop the framework for the Child Advocates Office.
These functions clearly belong in the Department responsible for Social Services.

c)

The Energy Policy Division and Executive Director URRC


The Government has a legitimate mandate for developing Nunavut energy policy.
However, this mandate belongs in the Department of Economic Development
and Transportation which has a strong role to play in encouraging energy
management initiatives as part of the larger economic development strategy.
EDT is also the counterpart to the Federal Department of Natural Resources
Canada which controls the minerals and energy portfolios for Canada. The
current reporting relationship of the Executive Director (ED) of the Utility Rates
Review Council (URRC) to EIA is primarily due to the fact that the funding for the
position is paid by EIA. The EDs real responsibility is to provide administrative
support to the URRC. Because the URRC mandate is energy regulation, this
function could also be resident in EDT.

d)

Statistics Division Pangnirtung


The decision to decentralize the Statistics Division from Iqaluit to Pangnirtung
was made in the early days of the Government before decision makers realized
that the work of the Division was so critical to the Governments operation. The
Statistics Division in a more mature government, is an extremely valuable and
well used resource because the data generated and obtained by this Division are
part of the foundation for effective planning and intergovernmental negotiations.
Almost all planning efforts require statistical data related to the economy,
education, health, justice, the labour market and social services. Negotiators
involved in critical discussions around devolution, training and the environment
all need reliable statistical data to support their efforts.
This Division has not been able to function well in Pangnirtung due to a capacity
shortfall and, as a result, planners have been denied valuable information that
would affect the direction of programs and services. Trend analysis and
demographic modeling are impossible without good information. It is not
possible to attract this kind of specialized talent to a small, relatively isolated
community. The available bandwidth is not sufficient to support the kind of
communications that are necessary to operate at a distance. This Division
belongs with the Governments headquarters in Iqaluit. The NIC recognized this
reality when they prepared their Footprints planning documents.
They
recommended that Central Agency type functions of the Nunavut Government
should be concentrated in the capital of Nunavut.

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e)

Policy Planning and Evaluation Division


The Policy and Evaluation Division is one of the busiest Divisions in Government.
The staff are challenged to coordinate planning for major government policy
initiatives such as Tamapta, they are accountable for the central evaluation of all
government programs, and finally, they must provide effective analytical support
to Cabinet. The volume of planning initiatives and requests for Cabinet decisions
makes it difficult for this Division to operate proactively.
To make matters worse, the Evaluation section of the Division is located in
Pangnirtung. The comments made earlier about the Statistics Bureau having
difficulty in attracting specialized staff apply equally to this Section. Over time,
this Section must relocate to Iqaluit as there is almost no work being done in the
Government to measure program results and determine whether expenditures
are justified in all areas. This work will become even more critical as
Government spending increases and it becomes necessary to borrow to fund
operations. At that point, when borrowing capacity has been exhausted, there
will be a need for reliable analytical data to support difficult discussions around
cutbacks and possible reductions in service levels.
This Division must be co-located in Iqaluit and freed up to do the planning and
evaluation work that is critical to the Governments success. The best way to
free the Policy and Evaluation Division from Cabinet support duties is to establish
a new Division (Cabinet Secretariat) with additional staffing resources.

f)

Intergovernmental Affairs
This is currently a department within a department. It is headed up by a separate
Deputy Minister even though there is already a deputy minister in the Executive.
To the outside observer, it is difficult to make sense of this structure.
Intergovernmental Affairs is a very important function, but not so important that it
warrants an additional deputy minister in addition to the DM of the Executive.
This could cause conflict if the two deputies in the department disagree. A more
logical arrangement would be for the DM of Intergovernmental Affairs to be
converted to an Assistant Deputy Minister. The position could then have the
status it needs to be recognized at intergovernmental forums, but the DM
(Secretary to Cabinet) would clearly be the superior officer. The ADM would
have a functional reporting relationship to the Premier in recognition of the direct
work relationship in many matters.

D)

Finance

Earlier sections of this Report made note of the need to relocate Labour Relations from
Human Resources to Finance in line with the Treasury Board type organizations that
are common across the country. While this will require some restructuring of Finance,
there is another area of Finance that needs attention.
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a)

Expenditure Management
This Division is accountable for coordinating the development of budgets for the
entire government. The Division coordinates variance reporting, and rolls up the
expenditure projections for the entire government for FMB review. The Division
also contributes to the Three Year Fiscal Plan. In addition, this group provides
analytical support to the Financial Management Board in the same fashion as the
Policy Planning and Evaluation Division in EIA provides analytical support to
Cabinet. FMB relies heavily on this analytical advice to make decisions on
strategic initiatives.
The Division does not have the resources to do all this work. As a result they do
the best they can in all areas, but they have difficulty being proactive. The
budgeting area needs a great deal of attention.
This Division has more than enough important work to do with the responsibility
for budgeting and financial forecasting. To free them up for this function, a
separate Financial Management Board Secretariat should be established in
Finance to provide analytical support to FMB.

E)

Culture Language Elders and Youth

CLEY was established at the outset of Government in 1999 to assist in the


transformation of Government from a Eurocentric orientation to one which reflected Inuit
traditions and values. It was also envisioned that CLEY would lead the effort to make
the Inuit language the working language of government. The Department has struggled
with this mandate for many years. Although it seems like a fairly straightforward
concept, it has often been difficult to achieve unanimity on issues such as values and
traditions. To complicate matters, in 2004, the Sport and Recreation Division from CGS
and the Library Services Division from Education; two Divisions that were not obvious
matches with the CLEY mandate, were transferred in.
a)

Public Libraries/Sport and Recreation


These divisions are closely linked with community governments. Sport and
Recreation, in particular has close linkages with community governments for
Arctic Winter games planning and implementation, and in the management of
community arenas and recreation facilities. In most parts of the country
community libraries are managed by hamlets, towns, villages and cities. Given
this close linkage to communities, these divisions would function more effectively
in the Department of CGS.

b)

Official Languages
This Division has received the most attention since the Department was created.
The Inuit Language Protection Act was recently approved to preserve and
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strengthen the language. On September 1, 2011, Taiguusilluqtit (Inuit Language
Authority) will be established at arms length from government to monitor the
implementation of the Act. The creation of the Act was a major accomplishment.
However, CLEY has done as much as it can to support the Inuit Language by
developing the legislation and the independent monitoring mechanism. The
Department does not have a lot more to offer in strengthening the language as
they do not have a program delivery function, nor do they have any perceived
authority to compel government departments to comply with the requirements of
the new law.
This function continues to be a major priority for Government as a whole. That
priority should be emphasized by placing it under the jurisdiction of the Premier
as part of the Department of EIA. This would ensure that it has sufficient central
agency authority to enforce regulatory requirements. Consideration should,
therefore be given to transferring the Division to EIA.
c)

Piqqusilirivvik Inuit Cultural Facility Clyde River


This facility is budgeted at over $4 million with 14 positions. It was established to
allow for the transfer of traditional Inuit culture, heritage, lifestyle and values to
individuals based on Inuit Qaujimajatuqangit guiding principles. Fulfilling this
mandate will require a similar approach to that used by adult training institutions.
This involves curriculum development, instruction, student assessment,
institutional management and the control of a co-ed residence.
CLEY has done a good job with the foundational work of building this facility and
preparing it for operation. However, the Department does not have the resident
skills to operate the institution and deliver on its cultural and educational
mandate. Piqqusilirivvik cannot afford to fail, but it will not be effective under the
management of leaders whose skill sets are more administrative. Piqqusilirivvik
should be under the management of Nunavut Arctic College (NAC) which has the
mandate for training adults in Nunavut. NAC has a full complement of curriculum
development staff and is already experienced in the management of sensitive
issues such as co-ed residences.
With these functions transferred from CLEY, the Department could concentrate
on its mandate of transforming government. The best way to do this is by
combining CLEY with a major organization such as the proposed social services
department. This program has been criticized over the years for not reflecting
Inuit culture and traditions in programs such as child protection and adoption.
There has also been a need for debate and consultation on the issue of whether
Inuit custom adoption in its current form, meets the needs of modern Inuit. This
kind of discussion could occur more readily in a department which has a cultural
orientation.

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F)

Education

The Department of Education has one of the most important mandates in government.
It has the responsibility for educating residents so that they can lead fulfilling and
productive lives. However, they are also accountable for delivering Education in the
Inuit language. This will require a massive effort to educate teachers who have the
skills to teach in Inuktitut and Innuinaqtun. Language competency targets must be
developed along with a full range of supporting curriculum.
The Department is hampered in some ways, from carrying out their primary mandate by
being responsible for the management of employment and career development
programs aimed at preparing adults for the world of work. Education also manages
Nunavut income support programs which provide support for basic living as well as
training allowances.
These programs would work much more effectively in a
Department which provides complementary social service supports. By bringing
together these employment development and income support systems in the
department responsible for social services, it would be possible to integrate the income
support mechanisms to promote seamlessness and improve accessibility. It is a reality
in Nunavut that most residents take advantage of these supports over the course of
their lives as they move towards employment and self reliance.
Education would then be freed up to fulfill its primary mandate of capacity development
through education.
G)

Other Departments

The Departments of Justice, CGS, EDT and Environment were also assessed in this
review . However, given the short time left in the mandate of the 3rd Assembly, it would
be counterproductive to consider the less urgent changes that might be useful in these
4 departments. The Government does not have the capacity to implement wholesale
changes across the entire organization. Any effort to do so would detract from the
efforts of the public service to implement Tamapta initiatives.
12.

RECOMMENDATIONS

A)

Foundational Requirements

In conjunction with the implementation of structural reform, it is important to develop


legislation to authorize the establishment and elimination of departments and to make
changes to the array of functions carried out in the Departments. It is also necessary to
develop policy to specify the mandates of departments and to outline the breakdown of
authority and accountability.

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a)

Enabling Legislation
Currently, even though there is a perceived authority for the Premier to make
structural change, there is no specific legislative authority to permit that action.
To correct that problem and to provide certainty, it is recommended, subject to
review by the Department of Justice and advice from the Legislation Division of
that Department, that amendments be made to the Legislative Assembly and
Executive Council Act.
It is recommended that simple changes to section 67 of the Legislative Assembly
and Executive Council Act be drafted for consideration by the Legislative
Assembly along the lines of the following:
67.1 (1) The Commissioner in Executive Council, on the advise of the Premier,
may determine the organization of the Executive Government and the various
departments.
(2) For the purposes of subsection (1), the Commissioner in Executive Council,
on the advise of the Premier, may do one or more of the following:
(a)

establish, vary or disestablish a department;

(b)

determine the department that will exercise any of the duties


or functions under an enactment;

(c)

transfer duties and functions from one department to


another;

(d)

determine or change the name of a department.

67.2 If, under 67.1, powers, duties and functions of a department are
transferred to another department, The Commissioner in Executive Council, on
the advise of the Premier, may order that all or part of the money authorized by
the Legislature to be paid and applied for the purposes of those powers, duties
and functions and remaining unexpended, be expended by and through the other
department to which those powers, duties and functions are transferred, and that
money may be expended for those powers, duties and functions.
b)

Enabling Policy
In addition to the legislative amendment referred to above, it is important to have
an organization policy to define the authorities for making changes within each of
the approved departments. This policy specifies those organizational changes
that are within the authority of deputy ministers and those for which Executive
Council approval is required.

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The Government Organization policy that expired on April 30, 2009 satisfies the
need for Executive direction in this area with one shortcoming. That shortcoming
could be corrected with the insertion of the following wording at the beginning of
the policy:
The authority, responsibilities, and functions of departments and agencies of the
Government of Nunavut shall be established through Departmental
Establishment Policies.
It is therefore recommended that the Government Organization Policy be
reinstated with the inclusion of the wording shown above.
The Department of Justice is alone in having its mandate specified in legislation.
In the absence of specific foundational legislation, most organizations develop
policies which specify the mandate for departments, the breakdown of
accountability and authority, and the overriding authority of Executive Council.
The Government of Nunavut does not have establishment policies and, as a
result, there is no clear policy foundation for any department. The only
explanatory material that is available is in business plans and the main
estimates.
It is recommended that establishment policies be developed and approved for all
GN Departments which:

Clearly outline the departmental mandates;


Outline the breakdown of responsibility amongst Executive Council, the
responsible minister and the deputy minister;
Specify the range of programs and services which the Department is
authorized to administer.

A draft establishment policy for the existing Department of Finance (attached as


Appendix D) could serve as an example to policy drafters.
c)

Letters of Expectation
While Deputy Ministers receive what is called an annual mandate letter from the
Premier, it is really a letter of expectation that outlines the objectives to be
achieved by the Department over the course of the upcoming year. Since the
Premier assigns both Ministers and Deputy Ministers their duties, it would be
more appropriate for the Premier to expand this practice by sending mandate
letters to Ministers. The Premier would continue to hold Deputies accountable by
sending annual letters of expectation explaining the results against which their
performance will be assessed at year end. This process should be implemented
starting in the 2012/13 fiscal year.

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B)

Structural Recommendations

a)

Guiding Principles
Recommended changes should be aimed at supporting the Government in
achieving its political objectives and fulfilling its responsibility for providing
effective and meaningful programs and services;
Changes should equip the Government to face the challenge of operating with a
limited budget that allows for little flexibility beyond the provision of basic
programs and services;
All the functions and resources needed to fulfill departmental mandates should
be under their direct control;
The magnitude of change should be manageable within the Governments
human resource capacity;
Changes should not be made unless they are essential. If programs and
services are working reasonably well, it would be counterproductive to relocate
them unless they are crucial to the achievement of another departments
mandate;
Simple, easily understood organizational designs should be supported by
functional, simple and efficient administrative processes and systems.

b)

Departmental Restructuring
Based on the Analysis in this report, recommendations for structural change will
affect Culture Language Elders and Youth, Health and Social Services, Human
Resources, Executive and Intergovernmental Affairs, Finance, Economic
Development and Transportation, and Community and Government Services. The
number of departments will remain the same (10). There will be 10 deputy ministers
as opposed to the current total of 11. Over 300 existing positions could be affected if
these recommendations are approved.
The proposed changes are explained in the following sections and supported by
high level charts showing the functional breakdown for all new elements of
responsibility for each organization. The charts show functions rather than positions
and are intended to show the range of recommended responsibilities for each
department. The charts do not show operational functions such as corporate
services and policy although it is assumed that all departments will have these
critical resources as a matter of course:

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i)

Department of Family and Cultural Services


It is recommended that the proposed Department of Family and Cultural Services
(Figure 7 below) be approved to bring together many elements of the social
safety net in one department. This transformed department will provide a single
window for access to programs and services aimed at supporting the goal of safe
and secure families provided with all the necessities of life. It will include
integrated support mechanisms ranging from financial assistance for basic
needs, through training and employment development initiatives.
The Department of Family and Cultural Services (FACS) would be structured
around the existing Department of Culture Language Elders and Youth. The new
department will be transformed by:
Transferring responsibility and resources from CLEY to CGS for the Sport and
Recreation and the Public Library Services Divisions;
Transferring the responsibility from CLEY to Nunavut Arctic College for
Piqqusilirivvik, the Inuit Cultural facility in Clyde River. The College is best
equipped to run this kind of facility having skills in curriculum development,
student assessment and residence management;
Transferring responsibility and Resources from CLEY to EIA for the Official
Languages Division. This Division will function more effectively in EIA which is a
central agency having the authority to provide overall direction to departments on
a variety of issues including the implementation of Official Languages. The Inuit
Language Authority (Taiguusiliuqtiit) would remain independent from
Government, but should ideally be under the direction of the Premier;
Accepting the transfer of responsibility for Social Services from the Department
of Health and Social Services including child protection, adoption, guardianship,
adult support, residential care and family violence services. It will also be
important for this department to have responsibility for community based services
such as psychological counseling, addictions treatment and counseling, and
suicide prevention. There is also a range of federally funded, community based
initiatives in the Health Promotion area which properly belong within the mandate
of FACS. In determining whether programs or initiatives are within the mandate
of FACS, the guiding principle should be that community programs/initiatives
should stay in Health if their delivery involves a certified medical practitioner;
Accepting the transfer of responsibility from Education for income support
including employment development and training support and social assistance;
Accepting the transfer from EIA of the Social Advocacy Division;
Accepting the transfer from EDT of the Anti-Poverty Secretariat;
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Accepting the mandate from NHC for dealing with homelessness in Nunavut.
GOVERNMENT OF NUNAVUT
Family and Cultural Services
Proposed Functional Breakdown

Minister Family and Cultural Services

Family Services

Child Protection
Adoptions
Pubic Guardian
Family Violence Services
Disabled Adult Services
Residential Care
Mental Health Counseling
Social Advocacy Division
Anti-Poverty Secretariat
Homelessness
Suicide Prevention
Psychological Counseling
Alcohol & Drug Counseling

Income and Training


Support

Inuit Qaujimajatuqangit

Social Assistance
Daycare Subsidies
Senior Fuel Subsidy
Training Allowances
TrainIng-on-the-job

Inuit Qaujimajatuqangit

Culture and Heritage

Archeology
Toponymy
Museums
Archives
Heritage and Arts
Elder & Youth Support

Functions Transferred In
Existing Functions

Figure 7

ii)

Human Resources
The Department of Human Resources would remain as a stand-alone
department. The Department will be required to implement comprehensive
reforms to its recruitment and job evaluation processes so that it can effectively
serve the organization. Guidelines for streamlining the recruitment process are
attached as Appendix E.
Full staffing authority should be delegated immediately to the major departments
of Justice, Finance, Health, Education and CGS. The resources to carry out this
work should be transferred from Human Resources at the time of the delegation.
Transferring staffing authority to all departments immediately may not be viable,
but delegation should be maximized to those who have the capacity and size to
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carry out this responsibility with the ultimate goal of having recruitment managed
completely by employing departments. Human Resources would continue to
coordinate government-wide recruitment campaigns.
The residual role of the Staffing Division in HR would be standards development,
audit of hiring departments and certifying human resource practitioners across
Government through a standardized training program.
Although the Job Evaluation Division would remain in Human Resources, the
function of organizational design properly belongs in the Department of EIA. In
fact, while the responsibility for organization design was within the original
mandate of Human Resources, it was never able to carry out this responsibility.
Historically, the analysis of organization design proposals from departments was
assessed by EIA prior to Cabinet approval. The Government Organization
Policy, which regulates the design of organizations and specifies the applicable
authorities, is an Executive, rather than an HR policy. This function should be
transferred to EIA.
The functions normally associated with Treasury Board operations including
Labour Relations, collective bargaining, collective agreement administration and
management of the Human Resource information system should be transferred
to the Department of Finance. The Minister of Finance would be also be
designated the minister responsible for administering the Public Service Act. This
does not mean that the Minister of Finance would also be the Minister
responsible for the Human Resource Department. There will be a continuing
need for a minister to be accountable for the Department and, although it would
be ideal to have the Minister of Finance with responsibility for both HR and
Finance, it is not essential that the dual responsibilities fall under this Minister.
The functions for which Human Resources would continue to have responsibility
are shown in figure 8 below:

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Systemic and Structural Reform

GOVERNMENT OF NUNAVUT
Human Resources

Proposed Functional Breakdown


Minister Human
Resources

Staffing

Training and
Development

Government Staffing Campaigns


Staffing Standards and Delegation
Audit of Delegated Staffing
Staffing Officer Certification and Training

Government wide training and


development

Job Evaluation

Job Evaluation
Compensation Research

Policy and Planning

HR Policy
HR Planning
Inuit Employment Monitoring

Existing Functions

Figure 8

iii)

Finance

It is recommended that the Department of Finance be transformed as shown in


Figure 9 below, to enable more effective support to FMB. In addition, in this
scenario, Finance would take on responsibility for human resource functions that
are traditionally carried out by Treasury Boards. The addition of these
responsibilities will give the Finance Minister control of overall government
spending through the Office of the Comptroller General as well as the specific
accountability for controlling expenditures for compensation and benefits across
the Public Service. The transformed department will continue to fulfill its existing
functions, but will be enhanced by:
Accepting the transfer from the Department of Human Resources of the
Labour Relations Division. The Minister of Finance should be designated the
Minister Responsible for The Public Service Act with responsibility on behalf
of the employer for dismissals, dispute resolution with unions and
employees, administering collective agreements, obtaining mandates for
collective bargaining from FMB, health and safety of public servants and
collective bargaining with authorized unions;

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Accepting the transfer of resources and staff from Human Resources for the
maintenance and utilization of the human resource information system (EPersonality);
Providing additional resources to establish a Financial Management Board
Secretariat. These devoted resources should provide dedicated analytical
support for the FMB and free up the Expenditure Management Division to
focus their efforts on budget development, financial forecasting and
determining the Governments overall financial information needs.
GOVERNMENT OF NUNAVUT
Finance
Proposed Functional Breakdown
Minister Finance

Liquor Management

Labour Relations &


Compensation

Comptrollership

FMB Secretariat

Expenditure
Management

Liquor Management

Collective Bargaining
Collective Agreement Administration
Labour Relations
HR IS
Payroll
Benefits Administration

Accounting Policy
FMB Analytical Support
Financial Systems Management
Internal Audit
Financial Reporting & Controls
Payables
Revenue Management

Fiscal Policy

Budget Development
Taxation
Spending Projections/Operations
Fiscal Policy
Spending Projections/Business Plan Risk Management

Functions Transferred In
Existing Functions
Functions Transformed

Figure 9

iv)

Executive and Intergovernmental Affairs

It is recommended that the Department of Executive and Intergovernmental


Affairs should be restructured as shown in Figure 10 below. The Department
should divest itself of many of the extraneous functions that do not properly
belong in its mandate. This clutter of unrelated functions detracts from the
achievement of the primary mandate. The Department will be transformed by:

Adding at least two additional positions to the Office of the Premier to


enable the Office to provide a satisfactory level of political advice to
Cabinet including advice on advancing the relationship of the Government
of Nunavut and the Government of Canada;

Providing additional resources to establish a Cabinet Secretariat which


has the ability to provide detailed analytical services to Cabinet. This will

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allow the Policy and Evaluation Division to focus on their key role of
strategic planning and program evaluation;

Relocating the Statistics Division and the Evaluation Section of EIA, over
time, from Pangnirtung to Iqaluit in recognition that the functions are
critical to Executive decision making, that it is not possible to hire qualified
specialists for Pangnirtung and that the network does not have the
capacity to support such functions outside Iqaluit;

Accepting the transfer of the Official Languages Division from the


Department of CLEY to place it under the authority of the Premier through
EIA. The Inuit Language Authority would report directly to the Premier;

Accepting the mandate for organizational design from the Department of


Human Resources;

Transferring the Social Advocacy Division from EIA to the proposed


Department of Family and Cultural Services as this function falls within the
mandate of that new organization;

Transferring the Secretary to the Utility Rates Review Council from EIA to
EDT;

Transferring the Energy Management Division from EIA to EDT;

Transforming the existing Deputy Minister of Intergovernmental Affairs to


an Assistant Deputy Minister reporting to the Deputy Minister of Executive
and Intergovernmental Affairs on a daily basis with a functional reporting
relationship to the Premier.

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GOVERNMENT OF NUNAVUT
Executive and Intergovernmental Affairs

Proposed Functional Breakdown

Taiguuisiliuqtit
Inuit Language
Authority

Assistant DM
Intergovernmental
Affairs

Premier

Cabinet Secretariat

Inuit Language Authority

Cabinet Analytical Support


Cabinet Records
Organization Design

Statistics Bureau

Statistics Bureau

Language Bureau
Official Languages

Existing Functions
Functions Transformed
Location Change/Existing
Functions

Intergovernmental Affairs
Government Liaison Office
Devolution Negotiations
Claims Monitoring
Ottawa Liaison Office
Aboriginal Affairs

Government Public Relations


Protocol

Official Languages

Functions Transferred In

Communications

Policy Planning/
Evaluation

Strategic Planning
Cabinet Strategy Preparation
Government Transition Planning
Legislation Coordination
Program Evaluation

Figure 10

v)

Department of Health

The current Department of Health and Social Services would be transformed into
a stand-alone Department of Health. The Qikiqtani General Hospital would be
placed at arms length from Government and provided with funding through
contributions. A Board of Management appointed by the Minister of Health would
oversee the Hospital with accountability to the public and the Minister.
C)

Systemic Change
a)

Communications

The Nunavut Government needs to pay more attention to its public image
displayed on the main website and through all advertising such as public service
recruiting. Therefore, it is recommended that:

The Governments main website should be revamped by a professional


webmaster to project a professional image and to make government
information more accessible to the public. A user friendly phone directory
that is updated to reflect staff changes as they occur is essential;

Government recruitment advertising should be examined carefully to


revamp the way in which government employment opportunities are
presented and the resulting image that is conveyed to the public. The
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phrase Canadas Newest Territory should be replaced by something that
conveys a more mature image;

EIA should coordinate the effort to develop a unified appropriate corporate


image for the Government that is consistently used across the entire
organization;

The Government should bring together all the communications resources


in EIA and centralize the function. EIA would assign individual Public
Affairs officers on a rotational basis to departments to provide service as
needed.

b)

Executive Decision Making

It is recommended that:

c)

A review of items requiring Cabinet and FMB approval be completed to


determine whether it is possible to delegate some decision making to
deputy ministers in areas that are within their administrative mandate;

Requests for Executive decision making should be carefully reviewed by


the Secretary to Cabinet and the Secretary of the FMB. These senior
advisors to the Executive should have the authority to reject submissions
which do not belong on the Executive agenda;

Improved analytical support , combined with delegation of some functions


to deputy ministers should reduce the volume of requests and allow
Cabinet and FMB meetings to be reduced in frequency to once every
three or four weeks.
Human Resources Processes

It is recommended that the Streamlining of the Staffing Process Document


attached as Appendix E guide the revised process for hiring staff in the Nunavut
public service.
Recruitment standards to be developed by the Department of Human Resources
should conform to the general processes defined in this document.
d)

Government Staff Housing

It is recommended that the NHC, in consultation with all government


departments, rewrite the Staff Housing policy to incorporate elements that will
increase the stock of staff housing by constructing or leasing units through cost
effective financing mechanisms. Enhanced incentives should be made available

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to encourage home ownership. This is essential to solving the human resource
capacity problems for the entire government.
e)

Management Reporting

It is recommended that the Department of Finance develop and make available


to all departments scheduled management reports that convey consistent and
reliable information from the central databases it controls by:

f)

Improving data entry to the human resource information system so that


reliable, user friendly and structured reports can be distributed monthly to
all departments. These would include clear, system generated reports
showing deputy ministers all the positions on their establishment, the
occupants of every position, their rates of pay and tombstone data such as
gender, ethnicity and seniority;

Formatting and distributing quarterly Inuit Employment reports for each


department based on the data resident in the pay system;

Working with departments to determine the need for structured monthly


management reports from Free Balance that would convey spending
information in a useful format that all departments could access without
the need to manipulate data on Excel spreadsheets.
Spending Database

It is recommended that the Department of Finance identify the Governments


requirements for centralized spending information and issue coding instructions
to departments to ensure that invoices are coded consistently so that information
can be gathered for planning purposes.
g)

Automated Budgeting System

The Department of Finance should develop an automated budgeting system


across Government to reduce the volume of manual work currently being done.
h)

Leave Management

It is recommended that the Department of Finance develop and implement a


centralized leave management system that will eliminate the need to maintain
manual spreadsheets. This system would also provide data as a matter of
course for the annual leave and termination liability calculation for the GN. This
system is essential to control and report on lost time. The built in controls in the
system should reduce the potential for violations of the rules.

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i)

Program Performance Measurement

It is recommended that the Government develop and implement a system of


program performance measurement that would apply to all government
departments and agencies. This system would establish performance indicators
for all programs and services so that there is an historical database to allow for
trend analysis and to assist in program evaluation.
D)

Increasing Human Resource Capacity


a)

Recruitment Initiatives

The Government must make a concentrated effort to deal with their capacity
shortfall. It is recommended that each deputy minister identify the key leadership
vacancies in their organizations and take action to fill these positions as their
number one priority. It is no longer acceptable to continue working harder to
offset key vacancies. The process of working harder demands so much effort
that no time is left to deal with the real problem of not enough qualified staff.
When the key leadership positions are filled, the primary job for the new
managers will be to find the key support staff they need to make their operations
function effectively. Achieving recruitment objectives is the first test of a
seasoned manager.
b)

Staff Development Initiatives

In conjunction with a concentrated effort to recruit essential personnel, the GN


must develop and implement a plan with the following elements aimed at
increasing the capacity of current employees.
i)

Assessing Employee Skills and Knowledge

This will require an individualized assessment of each employee to


determine their current capacity. The training element of the plan will then
be designed to:

ii)

Increase/improve (where necessary) skills to allow individuals to fulfill


the requirements of their current job;
Increase skills and knowledge to allow employees to take on jobs at a
more responsible level.
Establishing Consistent Job Levels Within Categories

To lay a foundation for the staff development plan, it is important to


examine the way the government is handling the rating of jobs. Since
1999, organization design within the GN has been very unstructured.
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Each department has determined its own design and then prepared job
descriptions for each position without reference to any organizational
standard for jobs at similar levels. With very little commonality, it has been
difficult to design training programs to develop common skills.
The Government has allowed the job evaluation system to determine the
ratings for all 4029 positions. This has resulted in a great deal of
inconsistency amongst departments as even the common jobs have been
described differently by managers. In many cases the jobs have been
overstated to achieve higher ratings and higher salaries.
Every department has employees doing work similar to their counterparts
in other departments. These include jobs such as clerks, administration
officers, secretaries, receptionists, finance clerks and officers, human
resource clerks and officers, and policy officers/analysts.
Cabinet should provide direction to implement benchmarking of jobs and
specifically direct departments to cooperate with the Job Evaluation
Division who will coordinate an effort across departments to define the
common jobs and to establish the levels which should commonly exist.
This will be followed by the preparation of benchmark job descriptions to
describe the different levels in each occupational category. This will
require the Government to make conscious decisions about how many
levels are needed in each category. For example, would it be better to
have 5 levels of Finance Officer rather than 15? Reducing the number of
levels lessen the requirement for job description writing, but it will also
define the skills needed for each level within the category.
It will not be possible to benchmark for specialized jobs, but the practice
can be applied to all the positions that fit into the management,
paraprofessional and administrative support positions which make up 60%
of the entire public service. It may also be possible to establish levels for
some professional jobs (lawyers, engineers, accountants) where
departments employ several levels of professionals in the same category.
These benchmark job descriptions can also serve as pay research
comparators with other organizations who normally compete with Nunavut
for qualified staff. This compensation research will allow the GN to make
adjustments to pay ranges for some categories to make them more
competitive in the recruitment marketplace.
iii)

Training, Certification and Promotion

Following the benchmarking exercise, it will be possible, based on the skill


requirements outlined in the job descriptions, to design training programs
for some, if not all the levels. There will be a need in some cases to make
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completion of training programs mandatory, particularly where the
government requires an individual to be certified to move to the next level
in the job category. Mandatory certification is advisable for categories
such as finance and human resource officers.
The Human Resources Department should then approach Nunavut Arctic
College; the GNs primary training tool mechanism, to design affordable
programs for public servants that could also be made available to the
public. The Department of HR should enter into contribution agreements
with NAC to satisfy all the Governments training needs. There will also
be a need for academic upgrading for some existing staff to give them the
literacy and numeracy skills to access post secondary education.
Finally, it will be necessary to provide educational mechanisms for staff
who wish to improve their educational levels for promotion. Nunavut
Arctic College will be able to provide many of these opportunities for
employees through distance education designed for public servants. In
other cases, it may be necessary for NAC to broker programs from
institutions such as Carleton University who delivered the Certificate in
Nunavut Public Service Studies program from 2002 to 2008 for GN
employees.
13.

THE COSTS

A)

Compensation and Benefits

The recommendations in this report focus on structural changes that should position the
Government to do business more effectively. The recommendations do not touch on
the actual organizational design for each transformed organization; instead they
describe the functions for which departments would be held accountable. The actual
design of each department must be left to the responsible deputy ministers who have
the detailed knowledge needed for this task.
It is difficult to predict the shape of the revised organizational structures, but it is
reasonable to assume that there may be some additional costs associated with the
shortage of staff resources in social services. Again, the magnitude of those costs will
be determined by the organization model that is chosen.
There are no immediate cost savings as all the affected positions will continue to exist.
This report does recommend some new positions for EIA and Finance in each of the
new Cabinet and FMB Secretariats. The average cost of a position in the Government
of Nunavut is $103,000 per year. However, as detailed in an earlier section of this
report, there is an annual vacancy rate of around 26%. The total value of the 1,043
positions that are currently vacant is over $107 million. Unfortunately, the excess salary
dollars are typically reprofiled by Departments at the end of each fiscal year to make up
for shortfalls in program funds or to pay casuals and contractors.
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In any event, the Government should eliminate a range of positions that have been
vacant for the longest periods of time, preferably those which have never been filled, to
fund these important new positions. It will be important to specify which vacant
positions will be eliminated across the entire government to establish the new positions
in the Secretariats and any others that may be needed to provide additional leadership
skills in transformed organizations. A similar practice could be followed for additional
administrative positions required when new departmental organizational designs are
approved.
B)

Capacity Development Funding

The most expensive element of the change recommendations is staff development and
training. However, it is the most important initiative the government can undertake over
the next 10 to 15 years. The Department of Human Resources spent $1.18 million in
training courses in 2010/11. Of those courses, only about $600,000 was spent on the
kind of training that would get significant results. This budget is inadequate at best.
All organizations who represent Nunavummiut at the political level and who deliver
public programs and services have similar training and developmental needs. This
includes Inuit organizations, municipal governments and governments at the territorial
and federal level.
The people of Nunavut have achieved their objective of establishing their own public
government. However, the quality of programs and services is now at risk because of
the limited skills base in the Territory. The Government of Nunavut is preparing to
negotiate with the Government of Canada for the devolution of Federal powers. All
parties agree that it makes sense for Nunavut to control its own destiny through the
direction of its own affairs. However, it seems unlikely that the Federal Government
would devolve further responsibilities unless some action is taken to deal with the issue
of capacity shortfalls.
This is not a problem that Nunavut can solve alone. Training solutions have to benefit
Nunavut as a Territory, not just the Government and its staff. A partnership amongst
municipal, territorial and federal governments along with Inuit organizations should be
established to:

Identify the common training needs of all the affected organizations;

Design the array of training mechanisms needed to satisfy the needs and
establish the costs;

Develop a funding strategy to increase capacity in the best interests of all the
parties;

Establish an evaluation mechanism to review progress every five years.

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C)

Infrastructure Funding

The Government does not currently have sufficient office space for all the positions on
the establishment. While it may be possible in some areas to shoehorn new staff into
existing space, there will ultimately be a need for additional office space in Iqaluit. It is
not possible to project the costs of that space without details of the number of new
positions.
However, CGS is working to establish a standard cost per employee for the
infrastructure associated with a new position including office space, information network
costs, computer and electronic hardware and office furniture.
The infrastructure cost for each new employee is currently being developed by the
Department of Community and Government Services. When this is complete, it will be
possible to calculate the total cost of the new organization when it is approved, by
applying these figures to the total numbers. Ideally, these costs will be funded through
existing resources.
14.

IMPLEMENTATION

It will be important for the Government to implement any approved changes in a


thoughtful and structured manner. Ideally, all the approved changes should be in place
with new structures fully operational by the end of the 2012 calendar year. The budgets
for 20012/13 are already in the final stages of preparation. Therefore, it is not practical
to make the associated budget changes until after the current main estimates
development process is complete.
The affected departments would have the remainder of the 2011/12 fiscal year to
prepare their new organization designs for Executive approval. It would then make
sense to provide these Departments with an interim supply of money (3 months) to
enable them to restructure their budgets to conform with the new departmental designs.
The implementation of all or part of these recommendations could be staged as shown
in the implementation plan attached as Appendix F.
15.

CONCLUSION

The Government of Nunavut is not currently well structured to deal with the demands of
achieving strategic change as defined in Tamapta. Nor is it positioned to deal with the
challenges of operating with inadequate financial resources. The Government will face
a critical point in its operations when it reaches the debt ceiling. At that point, there will
be no significant cash reserves to fund operating deficits. In the absence of any serious
effort to change spending patterns, the Government will have to cut programs and
services because it will simply not have enough money to operate as it has in the past.
This could occur by March 31, 2014.

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Unfortunately, there is a serious lack of meaningful program and financial information to
allow for effective decision making when those difficult decisions have to be made. At
the same time, the organization has an extremely high historical vacancy rate. To
complicate matters further, many employees currently occupy positions for which they
do not have the required skills.
This serious capacity shortfall means that the
Government has to take action quickly to remedy the situation.
The recommendations in this report will result in an organizational structure that
maximizes the Governments potential for resolving many of these problems. Not all of
the structural reform needs have been addressed as it would not be possible to deal
with the resulting volume of change. However, none of the recommended changes for
structural reform will be productive unless action is taken to locate additional qualified
staff to implement the reforms and to establish the systems needed to support effective
decision making.
A final word is necessary about the people who make up the public service of Nunavut.
In general, they are hard working, loyal and committed to their jobs. There is a solid
core of skilled and dedicated staff who consistently put in long hours to make the
system work. Unfortunately, that core group is thinly stretched and may be reaching the
breaking point due to the pressures of working with limited resources and support staff.
Dealing with the capacity shortfall must be the primary job for the leaders in the
organization. If they are unable to build up the skills base in the organization to
adequate levels, turnover will increase and production will decline.

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16.

LIST OF RECOMMENDATIONS

For ease of reference, this list of recommendations includes a summary of each of the
recommendations grouped in the same order as in the body of the report.
1.

FOUNDATIONAL

1.1

Simple changes to section 67 of the Legislative Assembly and Executive Council


Acts should be drafted to provide explicit authority for the Premier to
establish/disestablish departments and to vary the array of programs for which
they are responsible.

1.2

The Government Organization Policy should be reinstated with the requirement


that establishment policies be developed and approved for all GN Departments.
This will define roles, levels of authority and mandates.

1.3

The Premier should provide annual mandate letters to Ministers outlining the
priorities in each ministry. These expectations will constitute the objectives
against which a departments annual performance will be measured and should
be reiterated by the Premier in an annual letter of expectation to each Deputy
Minister.

2.

STRUCTURAL

2.1

A Department of Family and Cultural Services (FACS) should be approved to


bring together many elements of the social safety net in one department. This
transformed department will provide a single window for access to programs and
services aimed at supporting the goal of safe and secure families provided with
all the necessities of life. It will include integrated support mechanisms ranging
from financial assistance for basic needs, through training and employment
development initiative.
The Department of CLEY will form the foundation of the Department of FACS
and will concentrate on transforming programs and services where necessary to
reflect Inuit Societal Values and traditions. In order to take on this role, CLEY will
transfer elements of its current responsibility to other departments that are more
suited to carrying out the responsibilities including:

Sport and Recreation to CGS;


Public Libraries to CGS;
Official Languages to EIA
The Inuit Cultural Facility in Clyde River to Nunavut Arctic College.

The following resources would be transferred into FACS to complement the


residual CLEY programs:

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The Social Services Branch and a variety of community wellness


initiatives from Health and Social Services;
Income Support, and Employment Development functions from Education;
The Social Advocacy Division from EIA;
The Anti-Poverty Secretariat from EDT.

2.2

The Department of Finance should be transformed by adding an FMB


Secretariat to provide more effective support to FMB. This will allow the
Expenditure Management Division to carry out its mandate for budget
development, expenditure projections and financial analysis. The Labour
Relations function would be transferred from Human Resources to Finance so
that collective bargaining, collective agreement administration and Human
Resource Information Systems would fall under the mandate of the Minister of
Finance who would also be designated the Minister responsible for the Public
Service Act.

2.3

The Department of Executive and Intergovernmental Affairs should be


transformed. The Department has taken on too many extraneous functions that
do not properly belong in its mandate. This clutter of unrelated functions
distracts from the achievement of the primary mandate. This would involve:

Adding at least two additional positions to the Office of the Premier to enable
the office to provide a satisfactory level of political advice to Cabinet;
Providing additional resources to establish a Cabinet Secretariat which has
the ability to provide detailed analytical services to Cabinet. This will allow
the Policy and Evaluation Division to focus on their key role of strategic
planning and program evaluation;
Transferring the Social Advocacy Division to FACS;
Transferring the Energy Management Division and Executive Director URRC
to EDT;
Unifying the Executive and the Intergovernmental elements of the Department
by transforming the current DM of Intergovernmental Affairs to an Assistant
Deputy Minister reporting to the DM of the Executive;
Migrating the Statistics Bureau and the Evaluation section from Pangnirtung
to Iqaluit over a period of time.

2.4

The current Department of Health and Social Services would be transformed


into a stand-alone Department of Health. The Qikiqtani General Hospital would
be placed at arms length from Government and provided with funding through
contributions. A Board of management would be appointed to oversee the
hospital with accountability to the public and the Minister.

2.5

The Department of Human Resources would remain in its current


configuration. However, it would undergo a process of reform to streamline its
key service functions to simplified, more user friendly processes. This would
improve the level of client service and get better results. This would require that
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the Department hire some specialized talent to fill in some gaps in their skills
capacity. The Labour Relations function would be transferred to Finance so that
collective bargaining, collective agreement administration and Human Resource
Information Systems would fall under the mandate of the Minister of Finance who
would also be designated the Minister responsible for the Public Service Act.
The Staffing responsibility would be delegated immediately to the Departments of
Finance, CGS, Education, Health and Justice. Further delegation would occur as
departments develop the capacity to take it on. The residual role of the Staffing
Division would be standards development, audit of delegated recruitment
responsibilities and training and certification of staffing officers;
3.

SYSTEMIC

3.1

The Nunavut Government needs to pay more attention to its public image
displayed on the main website and through all advertising such as public service
recruiting. A unified corporate image is needed and a professional webmaster
should be hired to make the GN website responsive. A functioning telephone
directory should also be added;

3.2

The Government should bring together all the communications resources in


EIA and centralize the function. EIA would assign individual Public Affairs officers
on a rotational basis to departments to provide service as needed.

3.3

Executive Decision making should be streamlined by:

3.4

Completing a review of items requiring Cabinet and FMB approval to


determine whether it is possible to delegate some decision making to
deputy ministers in areas that are within their administrative mandate;

Requests for Executive decision making should be carefully reviewed by


the Secretary to Cabinet and the Secretary of the FMB. These senior
advisors to the Executive should have the authority to reject submissions
which do not belong on the Executive agenda;

Improved analytical support combined with delegation of some functions


to deputy ministers should reduce the volume of requests and allow
Cabinet and FMB meetings to be reduced in frequency to once every
three or four weeks

The Streamlining of the Staffing Process Guidelines attached as Appendix


E should be the foundation for a revised process for hiring staff in the Nunavut
public service. Recruitment standards to be developed by the Staffing Division of
the Department of Human Resources should conform to the general process
defined in this document.

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3.5

The NHC, in consultation with all government departments, should rewrite the
Staff Housing policy to incorporate elements that will increase the stock of staff
housing by constructing or leasing units through cost effective financing
mechanisms. Enhanced incentives should be made available to encourage
home ownership. This is essential to solving the human resource capacity
problems for the entire government.

3.6

The Department of Finance should develop and make available to all


departments, scheduled management reports that convey consistent and
reliable information from the central databases it controls.

3.7

The Department of Finance should identify the Governments requirements for


centralized spending information and issue coding instructions to departments
to ensure that invoices are coded consistently so that information can be
gathered for planning purposes.

3.8

The Department of Finance should develop and implement an automated leave


management system that will eliminate the need to maintain manual
spreadsheets. This system would also provide data as a matter of course for the
annual leave and termination liability calculation for the GN. This system is
essential to control and report on lost time. The built in controls in the system
should reduce the potential for violations of the rules.

3.9

The Department of Finance should develop an automated budgeting system


across Government to reduce the manual process currently in place.

3.10

The Government should develop and implement a system of program


performance measurement that would apply to all government departments
and agencies. This system would establish performance indicators for all
programs and services so that there is an historical database to allow for trend
analysis and to assist in program evaluation.

4.

INCREASING HUMAN RESOURCE CAPACITY

4.1

The Government must make a concentrated recruitment effort to deal with


their capacity shortfall. It is recommended that each deputy minister identify the
key leadership vacancies in their organizations and recruit these positions as
their number one priority. It is no longer acceptable to continue working harder to
offset key vacancies. The process of working harder demands so much effort
that no time is left to deal with the real problem of not enough qualified staff.

4.2

In conjunction with a concentrated effort to recruit essential personnel, the GN


must develop and implement a staff development plan aimed at increasing the
capacity of current employees.

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a)

Assessing Employee Skills and Knowledge

This will require an individualized assessment of each employee to determine


their current capacity. The training element of the plan will then be designed to:

b)

Increase/improve (where necessary) skills to allow individuals to fulfill


the requirements of their current job;

Increase skills and knowledge to allow employees to take on jobs at a


more responsible level.

Establishing Consistent Job Levels Within Categories

Every department has employees doing work similar to their counterparts in other
departments. These include jobs such as clerks, administration officers,
secretaries, receptionists, finance clerks and officers, human resource clerks and
officers.
Cabinet should provide direction to implement benchmarking of jobs and
specifically direct departments to cooperate with the Job Evaluation Division who
will coordinate an effort across departments to define the common jobs and to
establish the levels which should commonly exist. This will be followed by the
preparation of benchmark job descriptions to describe the different levels in each
occupational category. This will require the Government to make conscious
decisions about how many levels are needed in each category. For example,
would it be better to have 5 levels of Finance Officer rather than 15? This will
reduce the requirement for job description writing, but it will also define the skills
needed for each level within the category.
It will not be possible to benchmark for specialized jobs, but the practice can be
applied to all the positions that fit into the management, paraprofessional and
administrative support positions which make up 60% of the entire public service.
It may also be possible to establish levels for some professional jobs (lawyers,
engineers, accountants) where departments employ several levels of
professionals in the same category.
These benchmark job descriptions can also serve as pay research comparators
with other organizations who normally compete with Nunavut for qualified staff.
This compensation research will allow the GN to make adjustments to pay
ranges for some categories to make them more competitive in the recruitment
marketplace.
c)

Training, Certification and Promotion

Following the benchmarking exercise, it will be possible, based on the skill


requirements outlined in the job descriptions, to design training programs for
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some, if not all the levels. There will be a need in some cases to make
completion of training programs mandatory, particularly where the government
requires an individual to be certified to move to the next level in the job category.
Mandatory certification is advisable for categories such as finance and human
resource officers.
The Human Resources Department should then approach Nunavut Arctic
College; the GNs primary training tool mechanism, to design affordable
programs for public servants that could also be made available to the public. The
Department of HR should enter into contribution agreements with NAC to satisfy
all the Governments training needs. There will also be a need for academic
upgrading for some existing staff to give them the literacy and numeracy skills to
access post secondary education.
Finally, it will be necessary to provide educational mechanisms for staff who wish
to improve their educational levels for promotion. Nunavut Arctic College will be
able to provide many of these opportunities for employees through distance
education designed for public servants. In other cases, it may be necessary for
NAC to broker programs from institutions such as Carleton University who
delivered the Certificate in Nunavut Public Service Studies program from 2002 to
2008 for GN employees.

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APPENDIX A
TERMS OF REFERENCE
GOVERNMENT OF NUNAVUT STRUCTURAL REVIEW
INTRODUCTION
The Government of Nunavut incurred a deficit of approximately $33 million in
2010/2011. This situation will continue in 2011/12 with a projected deficit of almost $50
million. In order to avoid having to cut back essential programs and services, the
Government must consider some alternatives to current work methods and
organizational structures. A structural review is currently underway and will be
completed by Millenium Partners no later than September 30, 2011. The review will
assess current organizational structures to determine whether alternatives might
provide better results. As well, the review will identify change opportunities that have
potential to reduce costs and make more effective and efficient use of public funds.
The review will also consider the recommendations of the Office of the Auditor General
of Canada outlined in a variety of reports focusing on financial and human resource
management practices and children and family services.
PURPOSE
The purpose of the Structural Review is to recommend selected improvements to
government organizational structures, programs and processes to achieve:

Greater economies of scale for common functions across a variety of


departments;
Efficiencies and cost reductions which would allow the Government to free up
funds for high priority initiatives;
More effective departmental organizational designs allowing for better results
within existing government program mandates;
Streamlining and simplifying of bureaucratic processes to provide managers with
more time to manage;
Potential improvements to central agency service levels;
Reduction of program overlap and duplication across government.

This review will not recommend sweeping, labor intensive changes that could have a
destabilizing impact. Instead, the goal is to identify specific opportunities for change
that can be achieved within the mandate of the current government. The Review will be
completed within the context of the existing budgets and business plans of the GN, the
priorities identified in Tamapta, and the issues raised in the reports of the Auditor
General of Canada.

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APPENDIX B
LITERATURE REVIEW
Tamapta
Qanukkanniq The GN Report Card
Ikuma ll Report Meeting Nunavuts Energy Needs -2002
Footprints I and ll Nunavut Implementation Commission 1998
Government of Nunavut Office Space Needs Assessment CGS
Nunavut Law Commission Review Commission Second Report to the Premier -2003
Cabinet Decision-Making in Canada Institute on Governance 1999
Making and Breaking Whitehall Departments - A Guide to Machinery of Government
Changes Institute For Government Britain
Auditor Generals Report on Children, Youth and Family Programs 2011
Auditor Generals Report on the Nunavut Housing Corporation May 2008
Auditor Generals Report on Human Resource Capacity 2010
Auditor Generals Report on Financial Management Practices 2009
Auditor Generals Report on Financial Management Practices HSS 2009
Auditor Generals Report on Financial Assistance for Nunavut Students 2007
Building Nunavut Through Decentralization Evaluation Report 2002
Nunavut Social Services Review Child Welfare League of Canada 2011
Knowledge Sharing Forum A review of child welfare practices in Nunavut 2010
Evaluation Report Carleton University Certificate in Nunavut Public Service Studies
Executive Council and Legislative Assembly Act
Nunavut Public Service Act

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Nunavut Financial Administration Act
Nunavut Child and Family Services Act
Nunavut Business Credit Corporation Act
Nunavut Housing Corporation Act

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APPENDIX C

Eva Aariak

PROJECT CONTACTS
Premier

Keith Peterson

Minister of Finance/Justice

Hunter Tootoo

Speaker

Daniel Shewchuk

Minister Human Resources/Environment

Jeannie Ugyuk

MLA Nattilik (written input)

John Ningark

MLA Akulliq (written input)

Daniel Vandermeulen

Secretary to Cabinet

Aluki Rojas

Deputy Minister Intergovernmental Affairs

Chris DArcy

Deputy Minister of Finance

Joe Kunuk

Deputy Minister of Human Resources

Louise Wasson

Deputy Minister of Human Resources

Cathy Okpik

Deputy Minister Education

John Quirke

Clerk of the Legislative Assembly

Peter Ma

Deputy Minister Health and Social Services

Kathleen Lausman

Deputy Minister Community and Government Services

David Akeeagok

Deputy Minister Environment

Simon Awa

Deputy Minister Culture Language Elders and Youth

Robert Long

Deputy Minister Economic Development and Transportation

Janet Slaughter

Deputy Minister of Justice

Lorne Levy

Assistant Deputy Minister CGS

Sonya Mathews

Director Property Management CGS

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Alain Barriault

President Nunavut Housing Corporation

Patrick McClarty

Acting Director Expenditure Management - Finance

Jeff Chowns

Comptroller General - Finance

Crystal Tobin

Director Job Evaluation and Employee Relations HR

Rachel Mark

Director Policy and Planning - EIA

Mike McPherson

Manager Staff Housing - NHC

Bob Carson

Assistant Deputy Minister - EIA

Sandy Tieman

Director Income Support - Education

Norman Tarnow

Director Legal Services - Justice

Susan Hardy

Director Legislation - Justice

Norm Murray

Director Social Programs - HSS

Lynn MacKenzie

Executive Director Social Services - HSS

Pam Coulter

Director Communications - EIA

Ed McKenna

Executive Director Poverty Reduction Secretariat - EDT

Alex Baldwyn

Director Research - Legislative Assembly

Sherry Mulak-McNeil

Director Social Advocacy - EIA

Alma Power

Director Financial Services - CGS

Penny Ballantyne

Secretary to Cabinet - GNWT

Paul Crowley

Principal Secretary

Judy Wolfe

Consulting Matrix Inc. Toronto

Stephanie Merrin

Oliver Wyman Ltd, - Toronto

Michelle Jones

Lawson Lundell Barristers & Solicitors - Vancouver

Sheila MacPherson

Barrister/Solicitor Yellowknife

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Brenda Jancke

Dir. Career & Early Childhood Services Cambridge Bay

Ron Elliott

MLA Quttiktuq

Joe Enook

MLA Tununiq

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APPENDIX D

Finance
FINANCE ESTABLISHMENT POLICY
1.

Statement of Policy
The Government of Nunavut will establish a Department called the Department
of Finance, under the direction of a Minister.
Mandate
The Minister and the Department of Finance have the mandate for obtaining,
managing and controlling the financial resources required to implement the
Government of Nunavuts policies and programs. This mandate includes,
negotiating major financial arrangements with the federal government, providing
analysis and advice to the Financial Management Board, and ensuring that
financial and information resources are managed effectively, efficiently and
economically. The Minister and the Department are also mandated with
regulating the insurance industry and controlling the sale of alcohol products in
Nunavut.

2.

Scope
This Policy applies to all employees of the Government of Nunavut.

3.

Authority and Accountability


(1)

General
This Policy is issued under the authority of Executive Council. The
authority to make exceptions and approve revisions to this Policy rests
with the Executive Council. Authority and accountability is further defined
as follows:

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(a)

Minister
The Minister of Finance (the Minister) is accountable to the
Executive Council for the implementation of this Policy.

(b)

Deputy Minister
The Deputy Minister of Finance (the Deputy Minister) is
accountable to the Minister and responsible to the Minister for the
administration of this Policy.

(2)

Specific
(a)

Executive Council
The Executive Council may approve a change to the mandate of
the Department of Finance

(b)

Minister
The Minister is:

(c)

(i)

responsible for carrying out the mandate of the Department


of Finance and shall preside over the operation of the
Department; and

(ii)

authorized to carry out the duties described in this Policy in a


manner the Minister deems appropriate for the efficient and
economical fulfillment of the Departments mandate.

Deputy Minister
The Deputy Minister:
(i)

is responsible for the management of the Department of


Finance including the planning, administration and other
functions necessary to fulfill the Departments mandate;

(ii)

is accountable to the Minister for the proper conduct of the


business of the Department;

(iii)

shall carry out the responsibilities of the Secretary of the


Financial Management Board and is accountable to the
Minister for those duties specifically assigned by the
Financial Management Board, the Financial Administration
Act and other Government of Nunavut legislation; and
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(iv)

4.

shall ensure that the duties of the Comptroller General are


performed as specifically assigned by the Financial
Administration Act and other Government of Nunavut
legislation.

Provisions
(1)

Mandate Establishment
Pursuant to the Government Organization Policy, the mandate, including
the authority, responsibility and functions of the Minister and the
Department of Finance is established in this Policy.

(2)

Duties of the Minister


The Minister shall develop and carry out programs and services of the
Department as may be appropriate to fulfill the mandate of the Minister,
the Department and the Financial Management Board.
The Minister shall have charge of and be responsible for:
(a)

obtaining the financial resources


Governments obligations;

(b)

taking the lead in negotiating major federal-territorial fiscal


arrangements, including the Formula Financing Agreement.

(c)

supporting the Financial Management Board:


(i)

necessary

to

meet

the

in the conduct of its meetings by developing the agenda,


assessing submissions, and monitoring the implementation
of decisions;

(ii)

by providing to the Financial Management Board information


and advice required for sound financial management
decision-making relative to the allocation, management and
control of the resources of the Government of Nunavut;

(iii)

by coordinating the development of department estimates


and Public Accounts, as required under the Financial
Administration Act, including the design and coordination of
all related processes and documents;

(iv) by providing accurate and timely financial reports and


information on the Governments financial position and on
the results of operations;
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(v)

by monitoring and enforcing where


Governments legislation and policies; and

(vi)

by providing periodic revenue projections.

required,

the

(d)

providing a comprehensive and effective framework of policies,


processes and systems that are well understood and used by
departments and agencies to achieve the effective, efficient and
economic acquisition, custody and use of financial, knowledge and
physical resources.

(e)

providing to Government departments and agencies information


and advice relative to the management and control of the
resources assigned to them by the Financial Management Board.

(f)

Analyzing and making recommendations respecting:


(i)

the Governments position in intergovernmental fiscal issues,


in support of intergovernmental negotiations and of
representations made to other governments, agencies and
individuals;

(ii)

negotiating mandates directly affecting expenditures;

(iii)

tax and fiscal policy issues;

(iv)

the Governments macroeconomic policy options, including


the use and effects of fiscal policy instruments such as
taxation, spending, investment and on the achievement of
the Governments economic objectives; and

(v)

economic aspects of fiscal policy.

(g)

managing and administering the Governments tax, insurance,


banking, borrowing and investment programs.

(h)

providing internal audit services, centralized credit/collections


services and general accounting services.

(i) managing the Governments insurance program and regulating the


insurance industry.
(j) regulating and controlling the sale of alcohol products.

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(3)

Administration
The Department of Finance shall be administered in such a manner as to
ensure that Government requirements as expressed in statutes, acts,
agreements, regulations, policies and directives are satisfied.

5.

Prerogative of Executive Council

Nothing in this Policy shall in any way be construed to limit the prerogative of the
Executive Council to make decisions or take action respecting the Department of
Finance outside the provisions of this Policy.

_________________
Premier and Chair of
Executive Council

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APPENDIX E
STREAMLINING THE STAFFING PROCESS
Introduction
The authorization for hiring in the Public Service is outlined in the Public Service Act.
The requirement to fill positions in the Nunavut Public Service through the competition
process is specified in Section 17. Section 18 of the Act allows for the appointment of
individuals without competition. The Public Service Appeals Procedure Regulations
provide appeal rights to qualified applicants. The other authority that has to be
considered when hiring is Article 23 of the Nunavut Land Claims Agreement which
commits the Government to achieving representative levels of beneficiary employment.
Issues
The Department of Human Resources has established a structured process for hiring
that is consistent with the kind of processes used by major governments such as the
Government of Canada. The process is designed to minimize appeals and litigation
and ensure that all candidates have fair and consistent treatment. These are all
important considerations, but they should not be achieved by assuming that a rigid and
structured hiring process will eliminate the possibility of errors and complaints.
The second issue that has hampered hiring success is the method by which the Inuit
Employment Policy has been enforced by Staffing Officers. The Department of Human
Resources has taken on an inappropriate role in the enforcement of the Inuit
Employment priority. The obligation to hire beneficiaries in pursuit of representativeness
is shared by all departments.
The third issue that must be considered is that of ownership. Hiring departments have
ownership of the hiring decision within the Policies established by Executive Council. In
the final analysis they have to achieve their goals through the employees they hire and,
all things being equal, they should have the final say in the selection.
This document cannot be so detailed that it specifies the detailed process to be followed
in hiring employees. However, it can provide high level advice on the manner in which
the process is carried out and the roles of the parties.
Recommended Changes

Instead of requiring Deputies to complete a Job Evaluation and Staffing Action


Request Form and attaching an up to date job description and organization chart,
DMs should be able to start the hiring process for new or vacant positions with a
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simple e-mail including the position title and number. The e-mail would request
the Director of Staffing to begin the hiring process;

The staffing officer who receives the assignment will accept the e-mail, and
review the position file in Job Evaluation;

The Staffing Officer will take a copy of the job description and organization chart
from the Job Evaluation file. The officer will review the previous competition file if
one was concluded within the last 12 months and extract a copy of interview
questions and the advertisement that was used;

The Staffing Officer will go to the office of the representative from the hiring
department to verify that the documents extracted from the files are correct;

The Staffing Officer will ensure that they understand the key functions of the job
to be filled and agree with the hiring department on the interview questions, the
content of the advertisement and the methods by which candidates will be
sourced. In all cases, advertising will be utilized, but departments will have the
flexibility to use their own contacts to encourage candidates to apply;

Prior to advertising, the staffing officer will agree with the hiring department on
which elements of the knowledge, experience and education identified in the job
description will be used for the screening criteria. It is not necessary for
exhaustive analysis to identify equivalencies as they should be obvious from the
material on file. Any effort to nail it down with certainty will only contribute to
more delay;

The screening process should be flexible to avoid imposing so much structure


that it represents a barrier to making selection decisions. The representative
from the hiring department should be permitted to review the competition file at
any point in time. When a meeting is convened to screen the file, it should not be
delayed because the staffing officer has other commitments. The hiring
department should be permitted to proceed with a preliminary screening and brief
the staffing officer when that person is available;

Decisions about who is to be interviewed do not require unanimous agreement


amongst those who screen. A reasonable number of candidates should be
interviewed. If a beneficiary appears to have the necessary qualifications, that
person should be screened in and interviewed with other applicants;
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If, during the competition process it is necessary for good reasons to change one
of the members of the selection panel, this should not invalidate the competition.
The modified panel should proceed and ensure they follow the same process as
the original group;

In cases where an applicant(s) is brought in from out of town, the hiring


department should be encouraged to pick up the applicant and spend time with
them to show them the community and answer any questions they may have
about the job and its location;

The final hiring decision is in the hands of the hiring department. The role of the
staffing officer is to ensure that the policy rules are followed. If the candidate
desired by the employing department is qualified, and the requirements of the
Priority Hiring Policy have been met, the staffing officer is not in a position to
disagree. The employing department cannot be required to hire an individual
preferred by the staffing officer;

In cases where the job has technical requirements, the employing department
can insist that they carry out the reference checks using the form supplied by HR.
It is not necessary to get the candidates written permission to check references.
Instead during the interview, the candidate should be asked to supply a list of
referees, or for their agreement to allow the government to check the references
listed on their resume;

Job offers will continue to be signed by the Human Resources department unless
recruitment authority has been delegated to the department. At that point, the
job offers will be signed by the Deputy Minister of the employing department;

The staffing division and regional offices of the Department of Human Resources
or its successor will continue to complete the data entry to ensure that the new
employee is paid appropriately and is documented for benefits purposes.

CONCLUSION
The guiding principle behind the hiring process is that there is no scientific method that
will guarantee that the best employee will be hired. Therefore, recruiters should not
look for ironclad processes to guarantee results and avoid error. Errors are inevitable,
but they will be minimized if all the involved parties cooperate, follow a reasonably
standard process and recognize that the mutual goal is to deliver quality public
programs and services.

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APPENDIX F
IMPLEMENTATION PLAN STRUCTURAL REFORM
INTRODUCTION
The simultaneous implementation of all the structural recommendations in the report
may not be viable given the magnitude of the proposals. With 7 departments and over
300 positions affected by the proposals, it would be wise to stage the implementation so
that the proposed changes are phased in over the period starting in December 2011
and ending in December 2012.

What follows is the schedule for implementation depending on decisions by Cabinet.


Cabinet Approval-in-Principle
November 2011 - Report along with Executive Summary distributed to Cabinet for
reading;
November 2011 - Deputy Ministers committee provided with a copy of the report at
the regularly scheduled Deputy Ministers committee meeting;
November 2011 -Report analyzed and recommendations prepared by EIA in
consultation with Finance and Human Resources for approval-inprinciple;
December 2011

- Following Cabinet approval, affected Deputy Ministers notified of


Cabinet decision and provided with direction on next steps;

December 2011

-Human Resources meets with Nunavut Employees Union to make


them aware of Executive Councils decision.

Design and Final Approval


December 2011

Premier confirms the appointment of a Deputy


Minister for FACS to ensure that there is strong
leadership for the transformed department as
changes are planned and implemented;

December 2011

Deputies of the affected departments scheduled for


transformation in Phase I of structural reform begin
discussions on the positions, programs and financial
resources to be transferred in accordance with
Cabinets decision;
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Human Resources Department to develop and submit


an FMB submission for the transfer of staffing
resources to the five designated departments who will
receive delegated staffing authority immediately;
December - Jan. 2012

Departmental working committees established to


develop and finalize detailed organization designs
aimed at integrating new resources and/or to transfer
resources to recipient departments;
Wherever possible, and without impairing the
requirement for seamlessness and program linkage,
departments should try to keep existing organizational
units intact to minimize the need for revised job
descriptions;
Affected departments will consult extensively with EIA
throughout the design process to minimize delays
when submissions are analyzed by central agencies;

February 15- March 15, 2012

Departments to submit organization designs including


a breakdown of interdepartmental resource transfers
to FMB for approval;
FMB submissions will include a request for approval
of the critical new leaders required to lead the
transformation effort. Human Resources will assist in
the writing of the new position descriptions and
developing a recruitment campaign to hire those
leaders who will be brought in from outside the
Nunavut Public Service;
Minister of Finance to request 3 months interim
supply of funding for the GN until budgets are
restated following reorganization;

Implementation
March 15 - 30, 2012

Following FMB approval, affected departments to


consult with Human Resources on the content of
individual letters to be sent to each affected
employee. The Deputy Ministers of the department
receiving employees will transmit the standard letters
under their signature to the employees joining them
from other organizations.

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April 2- May 15, 2012

Affected departments to incorporate transferred staff


into their organizations and begin the planning work to
integrate programs and services;
Discussions will be ongoing with the property
management group in CGS to determine a time line
for the possible co-location of organizational units in
the transformed departments. This may not be
possible in the short term;
Affected departments to submit revised organization
charts and position descriptions for changed positions
to Human Resources for review. In cases where the
transferred positions continue to perform the same
function, the only changes to the description may be
the Departmental name, supervisor and salary coding
and these descriptions may be submitted as they are
completed throughout the remainder of the fiscal year;
Affected departments to submit establishment policies
for transformed departments to Cabinet for approval;
Departments to restate their budgets to reflect
resource transfers;

May 15-December, 2012

Affected departments to identify the linkages needed


between programs, establish the mission, guiding
principles and values of the new organizations;
Operating frameworks to be developed and
distributed to all departmental employees to explain
the organizational changes, to identify roles and
responsibilities of each Division and region and to list
contacts who can provide more information.

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STRUCTURAL REFORM GOVERNMENT OF NUNAVUT


Implementation Sequence

2011

ID

Task Name

Start

Finish

Q4

1
2
3
4
5
6

Overall Cabinet Approval


Deputy Minister Confirmed for Family
and Community Services
Interdepartmental Consultation
Resource Transfers
Organization Designs Developed
Positions integrated into new
Departments.
Programs and Services Integrated into
new departments

2012

2014

2013

Duration

10/3/2011

15/11/2011

6w 2d

10/3/2011

15/12/2011

10w 4d

21/11/2011

30/12/2011

6w

15/02/2012

15/03/2012

4w 2d

02/04/2012

15/05/2012

6w 2d

15/05/2012

14/12/2012

30w 4d

Q1

Q2

Q3

Q4

Q1

Q2

Q3

Q4

Q1

Q2

Q3

Q4

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