OPTIONS ANALYSIS

1
OPTIONS ANALYSIS

• Human Resources and Financial Operations
• in Military Family Resource Centres

2
Purpose of this Presentation

• to review the rationale for considering options
  to strengthen human resources (HR) and financial
  operations in MFRCs
• to review the options outlined in the Options
  Analysis Report and some of the concerns
  expressed about the options
• to outline the Way Ahead and the role of the
  Family Services Review Working Group

3
Rationale

• Concerns expressed about human resource
  management and financial operations in the MFRCs
  in two reports
• the July 2000 Executive Overview of DRIA Audits
  on MFRCs and
• the February 2001 CRS Draft Report for the
  Follow-up Program Evaluation of the MFSP

4
Issues - HR

• lack of and/or inconsistently applied HR policies
  and procedures
• disparate employee incomes and benefits
• personnel files not consistently maintained
• lack of and/or inconsistent performance
  appraisals
• lack of and/or inconsistent policies and
  procedures concerning overtime
• lack of proper contracts with employees
• employees being dismissed without cause or
  without proper procedures being followed

5
Issues - Financial

• lack of accounting policies and procedures
• funds (DMFS/local command/other) not
  adequately segregated in the Chart of Accounts
• bookkeeping and accounting staff may not have
  requisite education and training
• various accounting systems ranging from manual to
  automated
• lack of consistency from one MFRC to the other
• lack of fiscal performance evaluation as measured
  against the business plan
• unreliable records management

6
Process

• CFPSA convened a Working Group of Subject Matter
  Experts (SMEs) to study how NPF CFPSA resources
  might be utilized by MFRCs to address concerns
  about human resource and financial management
  with MFRCs

7
Major Options

• The study considers three options
• Option A Enhanced Status Quo
• Option B Contracting with CFPSA for HR and
  financial services
• Option C Conversion of staff, payroll and
  accounting services to NPF status while
  preserving the governance role of the BODs.

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Option A Enhanced Status Quo

• Employer/employee relationship would continue
  to be between the Board and staff
• A variety of measures - to be determined in
  consultation with MFRCs - would be put into place
  to strengthen HR and financial operations

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Potential Elements of Option A

• Measures could include
• standardized HR and financial policies and
  minimum standards
• increased consultation with DMFS Regional Reps
• continued access to professional HR advice
• improved Board training on HR and financial
  management

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Option B Contracting with CFPSA for HR and
financial services

• MFRCs would contract with CFPSA to receive
  standardized accounting, payroll and HR services
• Roles, responsibilities and status of Board would
  remain unchanged

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Option B (contd)

• A standardized HR policy would be developed for
  MFRC employees (MFRC HR Policy) but employees
  would continue to be subject to provincial
  legislation such as employment standards
• BOD would continue to be responsible for
  establishing salary levels and benefits for all
  MFRC employees

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• Option C
• Conversion of all positions within the MFRC,
  payroll and accounting services to NPF status
  while preserving the governance role of the BODs.
  

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Option C (contd)

• As in option B, CFPSA professional staff would
  provide HR, payroll and accounting services
  according to standardized policies and procedures

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Option C (contd)

• The employer/employee relationship would be
  between the CFPSA and the MFRC staff
• BODs would continue to be involved in some HR
  issues
• Employees would be subject to federal legislation

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Option C (contd)

• Non-managerial employees at those locations where
  bargaining units exist would come under
  collective agreements with respect to their terms
  and conditions of employment and rates of pay
• All MFRC positions would be evaluated using the
  CFPSA Job Evaluation Plan, abiding by salary
  scales established at the local levels by Wage
  Review Boards or as in applicable agreements for
  non-managerial employees

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Option C (contd)

• In the event that a former employees former pay
  rate is above that identified by the Job
  Evaluation process, the employee could continue
  to receive their former rate of pay (Grandfather
  clause)
• As each Base/Wing has its own established salary
  scales reflecting local market conditions, some
  differences between rates of pay from one MFRC
  to another would continue to exist

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Summary

• Enhanced Status Quo, while the least disruptive
  in the short term, is only feasible with
  substantive changes that address HR and finance
  issues
• In options B and C, HR, payroll and accounting
  policies, practices and procedures would be
  consistently delivered by NPF CFPSA
  professionals this is not the case in Option A

18
Summary (contd)

• There is no significant difference between B and
  C with respect to accounting and payroll.
• MFRCs would still be responsible for the overall
  financial management of the MFRC including
  identifying sources of revenue, approving and
  monitoring the annual operating budget, etc.

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Summary (contd)

• In all options, MFRCs would continue to be
  incorporated as non-profit organizations with
  community-based Boards of Directors
• In all options, MFRCs would continue to operate
  at arms-length from the military Chain of
  Command

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Concerns About Options

• The report doesnt address what Option A would
  include
• NPF accounting services may not be delivered in a
  sufficiently timely and flexible manner
• The report doesnt address the costs associated
  with each option and how the various options
  would be funded

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Concerns About Options

• Concern that Option C might impact on an MFRCs
  status as an incorporated organization or on
  charitable status
• Questions about whether Option C would include
  all employees
• Concerns about the potential impact of some
  employees being part of collective bargaining
  units

22
Concerns About Options

• Concerns about impact of Options B C on MFRC
  employees currently responsible for payroll,
  accounting and HR administration
• Questions about the impact of Options B C on
  the Boards legal liability for
  employment-related matters
• Questions about how NPF would deal with MFRC
  funds from other sources

23
Questions about the Way Ahead

• Would variations on the options be possible?
• What further study or consultation would be
  required?
• What would the implementation timetable be?
• What will be the role of the FSRWG?

24
The Way Ahead

• Each MFRC deliberates and provides a (qualified
  or unqualified) statement of preference Option
  A, B or C
• MFRC responses are provided to the Family
  Services Review Working Group

25
The Way Ahead (contd)

• Further consultation with MFRCs is expected to
  take place
• The FSRWG will make a recommendation to ADM (HR -
  Mil)