Amendments to Directive on Financial Management of Pay Administration

Section 3.2 and 3.3

3.2  Payroll accounting and financial control over the pay administration processes are part of financial management, whereas the application of employee compensation policies and supporting directives are part of human resources management.

3.3  The chief financial officer and human resources senior management share the responsibility for pay administration in departments. However, the chief financial officer is responsible for the effectiveness of the financial controls related to pay administration.

Revised and combined Section 3.2 and 3.3 in order to clarify the responsibilities of chief financial officer and human resources senior management.

3.2 The chief financial officer and human resources senior management share the responsibility for pay administration in departments.The chief financial officer is responsible for the effectiveness of the financial controls related to pay administration and payroll accounting, as well as payment requisitions.  The heads of human resources are responsible for the compensation policies and function.  They also have joint responsibilities for garnishments that respect the Garnishment, Attachment and Pension Diversion Act and all appropriate provincial and territorial laws. Timely and accurate processing is essential for all pay administration functions including garnishments.

This amendment is to further clarify and strengthen departmental garnishment administration responsibilities and accountabilities in order to reinforce the importance of timely garnishment remittance in compliance with the Garnishment, Attachment and Pension Diversion Act.

5.1 Objective

To establish adequate financial controls over pay administration in a manner that ensures its accuracy and integrity.

5.1 Objective

To establish adequate financial controls over pay administration in a manner that ensures its accuracy, integrity and timeliness.

This amendment is to underline importance of pay administration being performed in a timely manner, including the processing of garnishment in the federal government.

5.2 Expected results

Added bullet 4 to section 5.2 Expected results

Bullet 4: Timely and effective processing of garnishment payments through the establishment and maintenance of appropriate internal controls.

This amendment is to reflect the importance of timely garnishment remittances.

6.3 Garnishment of salaries and wages and assignment of Crown debts

Clarified language and organization of responsibilities of key players

Chief Financial Officers and Heads of Human Resources are jointly responsible for:

This amendment is to further clarify the responsibility and accountability of the chief financial officer and heads of human resources in the terms of garnishment administration in order to facilitate compliance with the Garnishment, Attachment and Pension Diversion Act.

6.3.1 Establishing a process that is in compliance with Part I and the appropriate division of the Garnishment, Attachment and Pension Diversion Act, its regulations, and relevant provincial or territorial laws to permit creditors and others to garnish salaries and other remuneration paid, as well as money owed to individuals employed under contracts for services. This process includes ensuring adherence to all prescribed time frames; and

6.3.1 Establishing and maintaining the departmental process for timely and accurate garnishment from salaries payable to employees and fees owing to personal services contractors
and remittance to the Courts and the provincial and territorial maintenance enforcement programs in compliance with the Garnishment, Attachment and Pension Diversion Act, the associated regulations and relevant provincial or territorial laws; and

Chief Financial Officers are responsible for:

6.3.2 Verifying that financial officers who administer garnishee processing have undergone the necessary training and apply the relevant procedures and information as found in the Receiver General Guidelines on Garnishment, the Receiver General Directive 1983-5R2, Garnishment of public servant's salaries and monies owing to individuals employed under contracts for services, the Garnishment, Attachment and Pension Diversion Act, and its regulations and relevant provincial or territorial laws;

6.3.2 Ensuring that financial officers who administer payment requisitions are aware of their responsibilities for processing garnishments in a timely and accurate manner consistent with the Garnishment, Attachment and Pension Diversion Act, and its regulations and relevant provincial or territorial laws as well as the Receiver General Guidelines on Garnishment, Garnishment of public servant's salaries and monies owing to individuals employed under contracts for services; and

Heads of Human Resources are responsible for:

6.3.3 Ensuring that human resources personnel in the garnishment process, including individuals delegated as contacts with the Department of Justice, are aware of their responsibilities and process garnishments in a timely and accurate manner consistent with the Garnishment, Attachment and Pension Diversion Act, the associated regulations and relevant provincial or territorial laws as well as the Office of Chief Human Resources Officer Guidelines for the Processing of Garnishments. 

Monitoring and Reporting requirements

Added Section 6.7.2 on Monitoring and reporting requirements

6.7.2 Chief Financial Officers in conjunction with Heads of Human Resources will monitor compliance with the Garnishment, Attachment and Pension Diversion Act, the associated regulations and relevant provincial or territorial laws and ensure that any undue delays are remedied in a manner to prevent their recurrence.

This amendment is to clarify the shared responsibility of both chief financial officer and heads of human resources for monitoring and reporting as it relates to the timely processing of garnishments. This is consistent with the shared responsibilities concept that was part of changes explained above.

Roles and Responsibilities of other departments

Added subsection 8.3 on the role of the Department of Justice

8.3 Department of Justice

• The Department of Justice is responsible for the administration of the Garnishment, Attachment and Pension Diversion Act. The Garnishment Registries are served the relevant garnishment documents required under the Garnishment, Attachment and Pension Diversion Act to garnish against salaries of public servants and fees owing to personal services contractors.  The Garnishment Registries are responsible to validate and forward the documents to the appropriate department or agency for action in accordance with the Garnishment, Attachment and Pension Diversion Act and its regulations.

For the information only of readers, this amendment explains the role and responsibilities of the Department of Justice in Section 8 – Roles and responsibilities of government organizations in the processing of garnishment in the federal government.