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MILLENIUM PARTNERS
October 2011
TABLE OF CONTENTS
Executive Summary.. I-IX
1.
Introduction. 1
2.
Methodology... 1
3.
4.
5.
7
7
9
10
10
6.
7.
8.
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
Page 1
TABLE OF CONTENTS
9.
10.
11.
B)
Human Resources.. 28
a)
Labour Relations.... 29
b)
Recruitment. 29
c)
Job Evaluation................................................ 29
d)
Organization Design 30
C)
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
F)
Education.. 36
G)
Other Departments. 36
Page 2
TABLE OF CONTENTS
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
Recruitment Initiatives... 49
Staff Development Initiatives 49
i)
ii)
iii)
13.
The Costs.. 51
A)
B)
C)
Page 3
TABLE OF CONTENTS
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
Page 4
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.
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
A Framework for Results: Executive Summary
Page i
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 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.
Page ii
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
Page iii
Page iv
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
Page v
Structural
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)
Page vi
Finance
Health
Human Resources
Systemic Solutions
Page vii
IMPLEMENTATION
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
Page viii
Page ix
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
A Framework for Results
Page 1
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.
Page 2
Executive Council of
Nunavut
Executive &
Intergovernmental
Affairs
Justice
Education
Public Works
Telecomm. &
Technical Services
Finance
Sustainable
Development
Commun. Govt
Housing &
Transportation
Human Resources
Culture Language
Elders & Youth
Figure 1
Page 3
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.
Executive and
Intergovernmental
Affairs
Justice
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.
A Framework for Results
Page 4
A)
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.
Page 5
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)
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.
Investing in Nunavummiut;
Poverty reduction;
Greater infrastructure support;
More and better housing;
Focus on large capital projects to provide maximum benefit
to Nunavummiut.
Structural reforms should never be considered in isolation of the financial realities facing
the Government.
Reform recommendations should always be influenced by
A Framework for Results
Page 6
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:
Page 7
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
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
(39,350) $
2009/10
(93,000) $ (214,648)
Figure 4
Page 8
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)
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
Page 9
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;
Page 10
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.
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;
A Framework for Results
Page 11
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)
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
Page 12
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.
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
Page 13
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.
Page 14
Treatment of Management
and Excluded Employees
Affected by Reorganization
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
A Framework for Results
Page 15
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:
A Framework for Results
Page 16
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)
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.
Page 17
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;
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)
Page 18
e)
Page 19
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.
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
Figure 5
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.
A Framework for Results
Page 20
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:
Page 21
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
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
Page 22
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:
Page 23
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.
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.
Page 24
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.
Page 25
.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)
Page 26
Social Services
Page 27
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
Page 28
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
Page 29
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.
Page 30
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.
Page 31
c)
d)
Page 32
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.
A Framework for Results
Page 33
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)
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
A Framework for Results
Page 34
Page 35
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
Page 36
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)
(b)
(c)
(d)
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.
Page 37
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.
Page 38
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:
Page 39
Page 40
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
Inuit Qaujimajatuqangit
Social Assistance
Daycare Subsidies
Senior Fuel Subsidy
Training Allowances
TrainIng-on-the-job
Inuit Qaujimajatuqangit
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
A Framework for Results
Page 41
Page 42
GOVERNMENT OF NUNAVUT
Human Resources
Staffing
Training and
Development
Job Evaluation
Job Evaluation
Compensation Research
HR Policy
HR Planning
Inuit Employment Monitoring
Existing Functions
Figure 8
iii)
Finance
Page 43
Liquor Management
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)
Page 44
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;
Transferring the Secretary to the Utility Rates Review Council from EIA to
EDT;
Page 45
Taiguuisiliuqtit
Inuit Language
Authority
Assistant DM
Intergovernmental
Affairs
Premier
Cabinet Secretariat
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
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:
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b)
It is recommended that:
c)
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Management Reporting
f)
Leave Management
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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)
ii)
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THE COSTS
A)
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.
A Framework for Results
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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:
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;
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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
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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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
1.2
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
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2.2
2.3
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
2.5
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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
3.3
3.4
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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
3.7
3.8
3.9
3.10
4.
4.1
4.2
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b)
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)
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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 C
Eva Aariak
PROJECT CONTACTS
Premier
Keith Peterson
Minister of Finance/Justice
Hunter Tootoo
Speaker
Daniel Shewchuk
Jeannie Ugyuk
John Ningark
Daniel Vandermeulen
Secretary to Cabinet
Aluki Rojas
Chris DArcy
Joe Kunuk
Louise Wasson
Cathy Okpik
John Quirke
Peter Ma
Kathleen Lausman
David Akeeagok
Simon Awa
Robert Long
Janet Slaughter
Lorne Levy
Sonya Mathews
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Alain Barriault
Patrick McClarty
Jeff Chowns
Crystal Tobin
Rachel Mark
Mike McPherson
Bob Carson
Sandy Tieman
Norman Tarnow
Susan Hardy
Norm Murray
Lynn MacKenzie
Pam Coulter
Ed McKenna
Alex Baldwyn
Sherry Mulak-McNeil
Alma Power
Penny Ballantyne
Paul Crowley
Principal Secretary
Judy Wolfe
Stephanie Merrin
Michelle Jones
Sheila MacPherson
Barrister/Solicitor Yellowknife
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Brenda Jancke
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.
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)
(ii)
Deputy Minister
The Deputy Minister:
(i)
(ii)
(iii)
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(iv)
4.
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)
(b)
(c)
necessary
to
meet
the
(ii)
(iii)
Page 3
(v)
(vi)
required,
the
(d)
(e)
(f)
(ii)
(iii)
(iv)
(v)
(g)
(h)
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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.
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
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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;
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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;
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.
December 2011
December 2011
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Implementation
March 15 - 30, 2012
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Page 3
2011
ID
Task Name
Start
Finish
Q4
1
2
3
4
5
6
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