Rescinded [2017-10-18] - Guideline On Common Financial Management Business Process 5.1 - Pay Administration

This document, the 'Guideline on Common Financial Management Business Process for Pay Administration' or 'FM-BP/PA', defines the HR/Finance Pay Administration Model (referred hereafter as the Pay Administration Model or PAM), which documents common HR and finance pay-related processes, data, roles and responsibilities, and authoritative sources. The HR/Finance Pay Administration Model is a 'should be' model that reflects best practices and definitions under the current Government of Canada (GC) systems and policy frameworks, specifically identifying how financial policy and the Financial Administration Act (FAA) and other legislation apply to the pay administration process.
Date modified: 2013-03-15


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The figure is a process flow diagram comprising subprocesses, connectors, inputs/outputs and decisions. Some subprocesses are grouped into subprocess groups.

This diagram depicts the Level 2 process flow for Business Process 5.1 – Pay Administration. It starts with a connector from Business Process 1.1 - Manage Planning and Budgeting, which provides input in the form of an approved budget to the Manage Pay Administration Requirements Subprocess Group, beginning with Subprocess 5.1.1 - Determine HR Requirements.

The flow continues to Subprocess 5.1.2 - Determine/Exercise Expenditure Initiation Authority, which is performed concurrently with the Subprocess 5.1.3 – Manage Funds Availability, subprocess 5.1.4 – Manage Commitments and Subprocess 5.1.5 – Update Salary Forecast. Completion of the four subprocesses results in the output of a request for an HR Transaction, used in the HR Pre-Payroll subprocess group. The HR Pre-Payroll Subprocess Group comprises Subprocess 5.1.6 – Manage HR Pre-Payroll and outputs of FAA section 34 certification and transaction authority for the transaction request.

The flow advances to the Pay Pre-Payroll Subprocess Group, where input in the form of the certified transaction request is used in Subprocess 5.1.7 – Manage Pay Pre-Payroll. The flow then continues to the Subprocess 5.1.8 Perform Account Verification (compensation), followed by Subprocess 5.1.9 Perform Payment Authority, which corresponds to authorization under FAA, Section 33.  The Pay Pre-Payroll Subprocess Group results in an authorized request for pay transaction.

This authorized request for pay transaction is used within the Payroll Subprocess Group by the subprocess 5.1.10 – Issue Payment. which is performed by the Receiver General and results five different outputs:

First, the Pay Register. Second, the Detailed Expenditure Extract File.  Payments in the form of  third, Pay Cheques and Stubs and fourth, Electronic Payments.  The  fifth output is the payroll control and payroll account balance reports.

Payroll control and payroll account balance reports are inputs into the Common Financial Management Business Process 8.2 – Manage Financial Close.

The Detailed expenditure extract file and the Cheques and stubs are inputs into the subsequent Subprocess Group, Post-Payroll, specifically into the Subprocess 5.1.11 Manage Post Payroll.

In order to complete Subprocess 5.1.11 Manage Post Payroll, Subprocess 5.1.2 – Complete Account Verification (FAA, Section 34) must also be completed.  Recovery of overpayments are addressed through an input into the Common Financial Management Business Process 2.1 – Manage Revenues, Receivables, and Receipts.

Once Subprocess 5.1.1 is completed, the flow advances to the decision titled "Quality assurance performed?". The NO flow for this decision leads to the connector for Business Process 8.1 - Manage Post-payment Verification before continuing with the YES flow to Business Process 8.2 - Manage Financial Close, where Business Process 5.1 – Administer Pay ends.

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