How Controller manages National Payroll System of Public Sector Workers

Controller and Accountant-General's Department (CAGD)
Controller and Accountant-General's Department (CAGD)

The Payroll Management Division is one of the six divisions of the Controller and Accountant-General’s Department (CAGD). It is headed by a Deputy Controller and an Accountant-General.

The Division has two Directorates – the Active Payroll Directorate, which has ten sections and over 160 staff, and the Pension Directorate with two sections and staff strength of more than 90. Its main responsibility is to process and pay compensation of employees to active and retired public servants and their beneficiaries under the CAP 30 Pension Scheme as required under the Public Financial Management Act 2016, Act 921 and its Regulations, and the CAP 30 Pension Act. In this regard, the Division is responsible for the management of the National Salary and Pension payroll.

There are laid down procedures, responsibilities and clear timelines for the management of the national payroll. It is a shared responsibility between the CAGD and employer institutions or covered entities. Covered entities have Transaction Processing Centres which have been connected and given local access to the Payroll Processing System at the CAGD.

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It is the responsibility of the employer institutions to ensure that the biodata, job classification and other relevant human resource information of each staff member is captured or updated on the payroll system. They are also to validate the payment vouchers before the final payroll run.

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The Payroll Management Division validates the data inputted at the employer level and processes the payment by the pay day for each pay period.

In addition to the main function of running the national payroll, other activities of the Division include:

1. Determination of the means of transmitting employee compensation.

2. Publishing dates for payment of salaries and pensions.

3. Generation and transmission of monthly salary payment vouchers for validation by covered entities before final payroll run.

4. Preparation of payroll reports for management.

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5  monitoring of expenditure on compensation of employees.

6. Prescription of procedures and actions required for the retrieval of unearned salaries and pensions paid out.

7. Processing of deductions from salaries and pensions for payment to both statutory institutions and other third parties.

8. Notification and prescription of sanctions for officers who fail to validate salary payment vouchers.

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9. Migration of subvented organisations unto the Mechanized payroll.

The Division ensures the efficiency of the payroll system through controls, such as, the segregation between data inputting and processing responsibilities, the requirement for biometric registration of new entrants, the verification of financial clearance for new entrants, checks by Payroll Quality Assurance Team, the validation of salary payment voucher before.

source: CAGD

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