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Mission Statement Performance Measurement Indicator Fiscal Human Resources Board of Management Department of Finance Communications Branch Department and Management Services Division Financial/Administrative Services Information and Technology Services Human Resource Services Management Services Taxation and Fiscal Policy Division Federal-Provincial Fiscal Relations Tax Policy Fiscal, Economic and Statistical Policy Budget and Financial Management Division Budget Preparation and Monitoring Performance Measurement Alternative Service Delivery

Treasury and Debt Management Division Financial Policy and Debt Management Treasury Management Trust Fund Administration/Sinking Fund Management Revenue Division Policy and Communication Accounting, Audit and Central Services Account Management System Development and Support Tax Review and Appeals Human Resources Management Division Labour Relations Services Compensation and Staffing Policy Executive Development and Corporate Learning Official Languages and Workplace Equity Strategic Services Human Resource Information Public Service Employee Benefits Tables Table 1 / Expenditure Status Report by Primary Table 2 / Adjudication totals for Parts I, II and III Table 3 / Competitions by Department Table 4 / Complaints by Department/Agency/Institution Table 5 / Pension Plans Table 6 / Insured Benefits Summary

Department of Finance

Indicator

Target

Results

This means a budgetary surplus over the four-year period is well within reach. The financial results for 1997-1998 show a surplus of $61.7 million which has been applied against the net debt following a surplus of $125.4 million in 1996-1997. Projections in the budget predict surpluses of $18.5 million for 1998-1999 and $10.2 million in 1999-2000.

Source of Information

Goal - Human Resources

Indicator

A primary indicator of "individual and organizational effectiveness" is the degree of success in linking individual performance to organizational strategy through performance management. The role of the Human Resource Management Division is one of providing a policy and collective agreement framework and providing a source of expertise on performance management. This helps managers and staff to leverage improved organizational results from the talents and efforts of the N.B. government's workforce.

The "pay for performance" approach, initially introduced and approved by Board of Management for management and non-union employees of Part I of the public service, provides a key management tool for leveraging results.

Target

Part I - Bargain and implement, where appropriate, for remaining nine collective agreements by year 2001.

Part II - Introduce for management, where appropriate, and bargain for three collective agreements, where appropriate, by year 2002.

Part III - Bargain, where appropriate, for five collective agreements by year 2003.

Results

Pay for performance has been implemented successfully for the following collective agreements:

Education (non-instructional);

Agriculture, Veterinarians and Engineers;

Rehabilitation and Therapy/Recreation and Cultural Program Officers, and

Administrative Support, Part I.

Sources of Information

• management and non-union policies and Board of Management minutes approving each department's performance management implementation plan, and

• collective agreements pertaining to bargaining employees.

• financial management, including budget estimates, expenditures, accounts, fees and revenues;

• review and approval of initiatives which bind the government to long-term financial commitments;

• establishment of the government's multi-year expenditure plan and annual departmental spending targets;

• review of departmental budgets to ensure they are consistent with government policy and expenditure targets;

• development and preparation of the government's annual capital budget;

• approval of performance measurement indicators and targets;

• administrative policy in the public service;

• the organization of the public service or any portions thereof, and the determination and control of establishments therein;

• human resource management, including training, development of personnel, pay regulation and hours of work;

• determination of the human resource requirements of the public service, and collective bargaining in the public service.

• collective bargaining in the public service.

The Budget and Financial Management Division of the Department of Finance provides secretariat services to the Board of Management and acts as the liaison between the board and all government departments and agencies. Staff of the division consults with departments and agencies on issues that are to be brought to the attention of the board. These issues are analyzed to assess financial and human resource implications and to determine any additional information that board members may require to make informed and accurate decisions.

In March 1998, the Board of Management comprised the following cabinet ministers:

John Mallory is the secretary of the Board of Management and deputy minister of the Department of Finance.

Table 1

	Budget ($000)	4th Quarter ($000)	Variance ($000) over (under)
Personal Services	15,391.4	14,211.1	1,180.3
Other Services	5,832.3	6,006.3	(174.0)
Materials and Supplies	405.1	335.3	69.8
Property and Equipment	212.2	558.8	(346.6)
Contributions and Grants	45.8	50.1	(4.3)
Debt and Other Charges	0.0	0.0	(0.0)
Contracts and Projects	(3,343.3)	(3,015.0)	(328.3)
TOTAL	18,543.5	18,146.6	396.9

The net budget surplus of $397.0 results mainly from the transfer of departmental staff and functions to the federal government, following the introduction of the Harmonized Sales Tax.

Financial/Administrative Services Branch

The branch's 1997-1998 work plan consisted of the following key result areas:

• co-ordination of the budget process for the above noted departments;

• monitoring of the above departmental budgets;

• provision of sound accounting and auditing practices;

• co-ordination of departmental legislative procedures;

• documentation of government-wide policies and publication of the department's annual report;

• provision of central records management, and

• general administration and support services.

During 1997-1998 fiscal year, the branch focused on the following key result areas and related activities:

• Support and Consulting: implementation of a strategy to correct the systems identified as problematic under the Year 2000 strategy;

• Information Technology Infrastructure: implementation of a strategy to upgrade the current infrastructure;

• Electronic Operations: the branch has supported the department in its effort to utilize the Internet as a means to access departmental information by the public and by employees;

• Data Management: management of various databases to provide the department with better information for decision making, and

• Information and Technology Organization: the branch has been involved in a number of internal and government-wide committees established to improve the management of information and technology.

• staffing;

• classification;

• labour/management issues;

• performance management;

• second-language training;

• training and development;

• benefits;

• Equal Employment Opportunity Program;

• Employee Assistance Program;

• Employee Suggestion Program, and

• official languages.

• co-ordination and facilitation of the transfer of employees to Revenue Canada as a result of the harmonization of sales taxes;

• staffing for an accelerated audit program;

• completion of 29 competitions;

• reviews of internal classifications;

• hiring of five Equal Employment Opportunity candidates;

• co-ordination of training programs;

• conducted 11 workplace harassment information sessions;

• transfer of staff from New Brunswick Investment Management Corporation to Part IV;

• redeployment of staff affected by workforce adjustment;

• participated in labour negotiations for New Brunswick Public Employees Association contracts;

• assisted other departments in the conduct of investigations under the Workplace Harassment Policy, and

• general support functions were provided to managers and employees on a continuous basis.

All services are provided with an emphasis on "best management practices" including participative problem solving, emphasis on people, innovative work styles, a strong client orientation, and a mindset that seeks optimal performance. The branch provides the government flexibility in addressing multi-departmental issues which do not naturally fit under the mandate of any one government department.

In 1997-1998 the following services were provided to line departments:

• provision of a project manager for the Corporate Enterprise Registry project which involved the participation of seven departments;

• facilitation and support for the strategic planning process for the Department of Intergovernmental and Aboriginal Affairs;

• assistance with a restructuring initiative in the Department of Municipalities, Culture and Housing;

• assistance with the regional integration of services project in the Department of Environment;

• assistance with a quality of service initiative in the Department of the Solicitor General;

• facilitation assistance and support to the renewal of a five-year business plan for Service New Brunswick Corporation;

• assistance with an organizational review of the district human resource function in the Department of Transportation, and

• commencement of a consulting project in the New Brunswick community college network.

• a consultation with industry and research for a review of the Liquor Control Act;

• continuation of project management and support to the Harmonized Sales Tax project including completion of a final report documenting participation of
• the three key departments: Finance, Justice and the Office of the Comptroller;

• provision of support to the business planning processes for information technology decisions for the department;

• provision of consulting services to the Revenue Division in its efforts to formalize a human resource plan, and

• facilitation and co-ordination of quarterly meetings of Finance's senior and middle management team.

The division is also responsible for federal-provincial negotiations concerning various agreements, tax issues and the operation of federal grant programs. As well, the division represents the Province's interests through participation in intergovernmental forums, thereby providing a guarantee the Province's financial interests are protected with respect to its taxation and fiscal relations with the Government of Canada. The division ensures those positions are clearly communicated to the federal government as well as to other provinces and departments.

The division has administrative responsibilities concerning personal and corporate income taxes and reciprocal taxation and is responsible for ensuring that provincial legislation reflects government tax and fiscal policy.

Federal-Provincial Fiscal Relations Branch

The branch forecasts, monitors and analyzes:

• the flow of payments from Canada, concerning personal and corporate income taxes;

• the federal Equalization Program which is an unconditional transfer;

• federal contributions in support of social programs, i.e., the Canada Health and Social Transfer which provides funding for health, post-secondary education, social assistance and services.

The branch has been heavily involved in federal-provincial consultations on the renewal of the Equalization Program, and will continue to do so through program renewal, effective April 1, 1999.

During the past year, the branch has played a lead role in advancing the agenda set forth for Finance ministers at the 1997 Annual Premiers' Conference. The branch has been involved in the chairmanship of working groups of provincial-territorial Finance officials. To date, provincial-territorial Finance ministers have endorsed six joint papers, which present a unified position on key fiscal issues confronting provinces and territories. These include papers on the Canada Health and Social Transfer and the Equalization Program, on which the branch had lead responsibilities. The branch continues to be involved in work to identify a common provincial-territorial position on federal-provincial fiscal relations.

The branch was also involved in the negotiations and the reform of the Canada Pension Plan (CPP).

Tax Policy Branch

The branch conducts an ongoing assessment of the tax climate and tax structure found in each province and in the United States. The branch also continually monitors the competitiveness of the Province's tax system. The branch is involved in negotiations with the federal government and other provinces in the area of tax policy.

During 1997-1998, the branch was responsible for the tax policy issues associated with implementation of the HST. The branch also was involved in the design and implementation of four new tax credits: the New Brunswick Child Tax Benefit and Working Income Supplement, the Low-Income Seniors' Benefit, and the New Home Construction and Home Renovations HST Credit. In addition, the branch was involved in the second computer rebate program, Get Connected II.

During this period, the tax policy branch played a key role in the reform of the property tax treatment of charitable and non-profit organizations. The new Assessment Reduction Program for these former value-in-use properties became effective Jan. 1, 1998.

The branch is responsible for ensuring that legislation and regulations are prepared in relation to any tax measures contained in the annual budget speech.

In 1997-1998, the Tax Policy Branch continued its participation on a number of interdepartmental and inter-governmental committees.

Fiscal, Economic and Statistical Policy

Key elements of the branch's mandate are monitoring the budget, and developing and co-ordinating the revenue forecast.

During the year the branch supported the Tax Policy Branch in preparatory work leading to the establishment of the New Brunswick Highway Corporation. As well, it acted as liaison with the Department of Transportation selection committee.

During 1997-1998, the Fiscal, Economic and Statistical Policy Branch prepared forecasts of provincial revenues for multi-year fiscal framework presentations and the annual budget.

In 1997, the branch completed the drafting and co-ordination of the budget speech, prepared information for other speeches, and completed presentations to communicate the fiscal outlook of New Brunswick.

The branch continues to monitor the current balanced budget legislation requiring an overall budgetary balance over the four-year period 1996-1997 to 1999-2000. Briefing material was prepared for use in review of the Province's fiscal position, and analyses of the federal and provincial budgets were prepared and circulated. The branch compiled data for use by the Premier's Office and other departments, as requested.

The branch provides socio-economic research, analysis and information services to the government. Its mandate includes monitoring and reporting on current trends in the economy, preparing an economic forecast for budget planning and other government decision-making, assessing the impact of economic developments upon the province, and assisting departments and agencies in accessing statistical information on the province.

The statistical role of the branch is conducted under the Statistics Act. During the year the branch responded to over 2,500 inquiries, with about one-third coming from outside the Government of New Brunswick. Population and economic statistics were presented in bulletins distributed to provincial government users on a regular basis. Population projections were prepared and socio-economic profiles were assembled for provincial regions. The branch has a close working relationship with Statistics Canada and represents the Province in federal-provincial discussions of statistical issues through the Federal Provincial Consultative Council on Statistical Policy and its committees.

During the year, the branch continued to document and analyze economic trends in the province and its major export markets and to report on the economic recovery from the 1990-1991 recession. The review of the Province's economic performance in 1997 and the outlook for 1998 were presented in The New Brunswick Economy, 1998 which was tabled in the Legislative Assembly on Feb. 19, 1998. Economic forecasts were developed throughout the budget planning cycle. The branch reviewed and reported on provincial economic outlooks prepared by other forecasters. The branch conducted economic impact studies, upon request from provincial departments, using available models such as the provincial forecasting model of the Conference Board of Canada and the input/output tables and the Social Policy Simulation Database/Model from Statistics Canada.

Data from the 1996 Census was disseminated as released.

The division provides services in four core business areas: Board of Management Secretariat Services, Budget Preparation and Monitoring, Performance Measurement and Alternative Service Delivery.

The divisional goals established for 1997-1998 were met during this period. This included the preparation of the 1998-1999 budget within the parameters established by government.

In conjunction with government's strong commitment to the four-year fiscal plan, the division began reviewing departmental budget estimates in early September 1997 for presentation to the Board of Management. Once again, this earlier start to the budget process allowed the government sufficient time to analyze all policy and program measures. The Board of Management also had more time to review new Performance Measurement Indicators which were again presented as a supplement to the 1998-1999 Main Estimates.

Activities within the scope of public-private partnering continued to be a focus of the Budget and Financial Management Division. The division co-ordinates the completion of financial evaluations for partnering opportunities, participates in the overall evaluation processes, and assists in the finalization of partnership contracts.

Budget Preparation and Monitoring

The division achieved the following objectives during the 1997-1998 fiscal year:

• prepared forecasts of provincial expenditures for multi-year fiscal framework presentations and the annual budget;

• developed and implemented the 1998-1999 budget process for ordinary, capital, special purpose and special operating agency accounts consistent with government's fiscal plan, and the requirements of the Balanced Budget Act;

• prepared the 1998-1999 Main Estimates;

• monitored implementation of the 1997-1998 ordinary, capital, special purpose and special operating agency accounts on behalf of the chair of the Board of Management. A number of departments underspent their 1997-1998 expenditure budgets;

• several new net budgeting accounts were approved as part of the 1998-1999 budget process, and

• on a monthly basis, a report was prepared to indicate the projected yearly cash flow for major projects approved as part of the capital budget process.

In the first two years departments identified their "core business areas" and performance indicators for most of these areas. With the performance indicators and targets identified for 1998-1999, departments filled most of the gaps, with an intent to continue to improve. While the approach to implementation has been gradual, the government is well on the way to meeting its commitments.

Performance Measurement - Supplement to the Main Estimates provides all performance measurement indicators and targets identified by various departments. This report is tabled annually by the Minister of Finance in the legislature. In their annual reports, departments describe the progress made toward achievement of targets identified in Performance Measurement - Supplement to the Main Estimates. Initial reporting of results began this year with results for 1996-1997, which were addressed by departments through the Public Accounts Committee.

Alternative Service Delivery

The Department of Finance continues to play an evaluator's role in all privatization proposals submitted to the Board of Management. This evaluation ensures all proposed privatizations are consistent with the objectives and criteria identified in the privatization policy, and that all implications of privatization have been identified.

Financial Policy and Debt Management

During 1997-1998, the branch negotiated the sale of one $300-million domestic issue, two $250-million domestic issues and one $150-million private placement. The total of these borrowings was $950 million, all of which was for provincial purposes. Approximately $454 million was to refinance maturing issues.

The branch is responsible for the service of public debt expenditure which is estimated at $586 million for 1997-1998. The major portion of the expenditure is the interest on 186 individual debenture issues. The branch must ensure that the Province complies with the covenants of the issues. During the year, the branch entered into 26 foreign exchange forward contracts totalling approximately $222 million to hedge interest and principal payments on foreign-denominated debt.

Two debenture issues, totalling $70.5 million, were negotiated by the New Brunswick Municipal Finance Corporation. Administration of the corporation involves canvassing the municipalities for borrowing requirements, determining and disbursing each municipality's share of the proceeds of debenture issues, acting as registrar for several debenture issues, obtaining cabinet approval of the Province's guarantee for debenture issues, arranging and attending board meetings and preparing the corporation's annual report.

During the year, the Financial Policy and Debt Management Branch provided advice to the government on matters of a financial nature. The branch also arranged and participated in presentations to credit rating agencies and prepared the Province's Annual Report on Form 18-K and filed it with the US Securities and Exchange Commission.

Treasury Management

During 1997-1998, receipts totalled approximately $4.4 billion and payments were $4.4 billion. Short-term borrowings averaged $716 million and short-term investments averaged $370 million. In addition, short-term investments of various sinking and trust funds averaged $1,040 million.

Trust Fund Administration/Sinking Fund Management

New Brunswick Investment Management Corporation provides the minister and the board with certain investment advisory and administrative services as specified in various contractual agreements.

The Trust Fund Administration Branch is responsible for advising on trusteeship issues. The branch administers the trustee functions required by legislation, including financial controls, preparation and analysis of financial statements, custody of securities, authorization of payments out of the funds, analysis of pension liabilities and the receipt of sinking fund installments.

The Sinking Fund Management Branch is responsible for managing the Province's and NB Power's sinking funds including preparation of financial statements.

Investment policies are developed for 14 funds having a total market value of $3.0 billion as of March 31, 1998. The four Board of Management trusteed funds are managed by external investment counsellors who follow investment policies developed internally.

The Hospital Canadian Union of Public Employees Pension plan earned 10.1% and the three School District plans each earned 8.9% for the fiscal year which ended Dec. 31, 1997. For the four fiscal years ended Dec. 31, 1997, these funds earned 10.2% and 9.2% respectively.

To accomplish its mandate, the division is organized into five branches: the Policy and Communication Branch; the Accounting, Audit and Central Services Branch; the Account Management Branch; the System Development and Support Branch, and the Tax Review and Appeals Branch.

Policy and Communication Branch

The mandate of the branch now encompasses the following responsibilities in relation to the division's mandate and operations:

• development of policies and procedures;

• provision of expert advice and consultation;

• development and stewardship of the division's legislative package;

• liaison with stakeholders and special interest groups, and

• development of tax and regulatory guides and bulletins, tax interpretation, public education, internal training and leadership in the preparation of training, development and operational manuals.

The branch provides staff to support the mandate of the Lotteries Commission. The commission is responsible for the development and delivery of provincial gaming policy and regulations for harness racing, video lottery and charitable gaming.

The branch also:

• oversaw implementation of the recommendations in the department's Video Lottery Program Review, a report issued in February 1997;

• assisted in negotiations with the New Brunswick Coin Machine Operators Association (NBCMOA) to remove video lottery machines from non-liquor licensed locations;

• worked with other provinces, the Maritime Provinces Harness Racing Commission and the Council of Maritime Premiers, which resulted in a recommendation to the Atlantic Lottery Corporation board that the corporation become actively involved in the industry;

• participated in an ongoing review of the Liquor Control Act and Regulations.

• the extension of the Farm Land Identification Program to include municipal properties;

• the introduction of new legislation on extensions to licensed premises under the Liquor Control Act, and

• the introduction of new legislation pertaining to room service in hotel operations under the Liquor Control Act.

• the implementation of a program of marking tax-exempt diesel, stove and furnace oil to strengthen the enforcement of fuel tax legislation;

• the simplification of licensing procedures under the Gasoline and Motive Fuel Tax Act, the Tobacco Tax Act and the Pari-Mutuel Tax Act, and

• the clarification and strengthening of record-keeping requirements under the Gasoline and Motive Fuel Tax Act, the Tobacco Tax Act and the Pari-Mutuel Tax Act.

In addition, the branch monitors the various vehicle transactions to maintain fairness and consistency in tax application.

The communication unit within the branch is responsible for providing information and interpretation under the consumption tax statutes and regulatory programs. The unit responded to 23,097 requests for information and interpretation. Communication staff also explained legislation, policies and procedures pertaining to the provincial vehicle tax under the Harmonized Sales Tax to the general public.

Within the unit, a centralized telephone communication centre was established in December, 1997 to ensure that the division was able to respond quickly to public inquiries. The telephone communication attendants responded to 49,614 calls during the 1997-1998 fiscal year.

Accounting, Audit and Central Services Branch

• processing of property and consumption tax payments and reports;

• processing of Provincial Vehicle Tax Payments (PVT) and Harmonized Sales Tax (HST) from Service New Brunswick centres and provincial revenue offices;

• provision of accounting functions relating to revenue and receivables;

• delivery of a comprehensive tax auditing program;

• processing of all property and consumption tax refunds;

• processing of HST rebates and PVT refunds;

• administration of the Low-income Property Tax Allowance program;

• issuance of annual property assessment and tax notices and supplementary notices;

• administration and auditing under the International Fuel Tax Agreement;

• administration of the federal grant-in-lieu of property tax program;

• budget monitoring and forecasting for the Revenue Division, and

• records management.

During the 1997-1998 year, the branch processed approximately 450,000 payment transactions involving $820 million in property and consumption tax revenue. The payment option, which enabled property tax payments to be made at most financial institutions, has been well received. Approximately 15 per cent of total payments were made in this manner during its initial full year of availability. Also, during the 1997-1998 fiscal year, the branch introduced a further payment option for taxpayers, utilizing telephone banking and personal computer-based payment services offered by financial institutions.

Under the accelerated audit program, the tax audit section hired and trained 33 additional auditors and four support staff to complement existing staff in completing the audit requirements. The audit unit also dealt with transfers of existing staff to Revenue Canada under the terms of the Harmonized Sales Tax agreement and replaced these positions with new employees for the duration of the audit project.

The audit unit completed 3,619 audits totaling $19.5 million in identified tax revenue during the year. The unit also established a specialized audit team to perform audits under the International Fuel Tax Agreement. Information sharing and joint co-operative efforts with Revenue Canada continued on the overall monitoring of tax compliance and combating the underground economy.

The refund section of the branch processed 29,149 refund claims and refunded in excess of $22.7 million in tax revenue. Included in these totals were rebates granted under the Province's successful Get Connected II program for home computer purchases. This program ran from Sept. 2, 1997 to Dec. 31, 1997, and 10,709 rebate claims were received resulting in a total rebate of $3.6 million. The branch also processed 4,568 rebates for $2.6 million under the New Home Construction and Home Renovations HST Credit program.

Under the Low-income Property Tax Allowance program, 35,359 allowances were granted for a reduction of $6.8 million in property tax revenue.

Account Management Branch

• Licensing and Registration;

• Field Operations (Collections and Compliance), and

• Tax Receivables (including both consumption and property taxes).

• to provide licensing/registration services for division taxation programs, liquor regulation and charitable gaming;

• to enforce existing legislation relating to charitable lotteries, liquor, tobacco, fuel and video lottery, and

• to collect outstanding receivables.

A new consolidated registration application form was introduced, which requires customers to complete two pages of basic information along with an appropriate schedule, depending on the licence type for which they are applying. This new form significantly reduces the amount and length of forms to be completed upon application.

Process simplification was introduced for retail tobacco, retail gasoline and motive fuel and tobacco wholesalers' licences. Effective September 1997, these licences became permanent. Licensees are no longer required to renew or pay fees on these licences annually.

The accounts receivable call centre, established as a result of the accelerated audit program, consists of six representatives who continue to contact taxpayers with outstanding property and sales taxes to remind them of their tax obligations.

Compliance inspectors continue to track compliance activities. The system provides for the generation of management reports to ensure that regulations are being enforced in a fair and consistent manner across the province.

A contact management system was developed for field collection officers and accounts receivable call centre staff. Information gathered about debtors is stored in one place and can be easily accessed by field staff.

The Account Management Branch hired an additional 10 inspectors to enforce the regulations of the video lottery program. The hiring of additional resources was recommended by the department in its review of the video lottery program. New inspectors participated in a comprehensive training program.

Linkages with Revenue Canada for the purposes of underground economy initiatives were continued in this fiscal year.

The tax receivables section, which now addresses all receivables for both consumption and property taxes, has increased the level of negotiations on all receivables. The result is a larger percentage of the receivable accounts being covered by payment arrangements.

A strong effort is being put towards the consumption accounts in an attempt to have the sales tax account completely cleared by the end of December 1999. The section is working with the policy branch to develop a collection cycle to improve the overall collection effort for delinquent property tax arrears.

System Development and Support Branch

The branch is committed to working with management and staff through team building, workshops and presentations in order to institute change in the organization effectively and efficiently. The branch continues to have an impact on service delivery and on the administration of the Revenue Division. It has and will continue to work towards achieving the following goals:

• construct systems that minimize tax loss;

• simplify customer interaction;

• reduce work duplication;

• implement a user-friendly and meaningful information bank;

• activate an effective method of file storage and delivery;

• institute an effective decision-making support system;

• respond to new demands;

• oversee the existing mainframe systems until replaced, and

• work with management in determining ongoing technology needs.

The following represents the major accomplishments of the System Development and Support Branch as a result of a team approach with the other branches:

• An analysis was finalized concerning the impact of the Year 2000 problem on the property assessment and taxation system. A contract was negotiated and signed with a consulting company to modify the code, and this initiative is progressing well.

• Branch upgraded hardware and software in the division to meet current requirements. Further analysis is ongoing.

• A new generic rebate application was developed and implemented which currently supports the home construction and renovations rebate and the computer rebate program.

• Branch continued to support management in the area of decision support information / benchmarking data through monthly reports, graphs and ad-hoc reports.

• Branch played an active role in the continued enhancement of the consolidated registration system.

• Branch continues to support all stand-alone applications for the division as well as its two large mainframe systems.

• Branch took over the responsibility for forms management and design to ensure standardization and system support.

• Branch assisted the Accounting, Audit and Central Services Branch with the introduction of further payment channels via tele-banking and computer-banking.

During the 1997-1998 fiscal year, 303 tax objections were reviewed. This figure represents approximately 10 per cent of audit assessments conducted during the period under review. Of the 303 files, 16 decisions were appealed, 11 of which were affirmed by the minister.

Labour Relations Services Branch

This branch promotes the development of employee relations that are responsive to the needs of departments, schools, hospitals and their employees while meeting overall government objectives. Responsibility areas of the branch include:

• negotiation of collective agreements covering all unionized employees in Parts I, II and III of the public service. Training courses in labour relations are provided to line managers and human resource specialists;

• development and administration of management pay plans and personnel policies for non-bargaining employees of Part II (schools) and Part III (hospital corporations);

• a compensation information and costing service is provided to support the collective bargaining and management compensation determination processes for Parts I, II and III of the public service;

• development and administration of research systems to support collective bargaining and grievance/ adjudication processes, and

• development and ongoing administration of the Workplace Harassment Policy covering all employees in Parts I, II and III of the public service.

Part I, Court Stenographers, signed on April 30, 1997;

Part I, Industrial Training and Certification Officers, signed on July 23, 1997;

Part I, Clerical and Regulatory; Secretarial, Stenographic and Typing, and Office, Data Processing and Duplicating Equipment Operation*, signed on Nov. 6, 1997;

*For the first time, these three bargaining groups negotiated together, resulting in one baseline agreement covering common issues together with clauses individual to each group.

Part I, Rehabilitation and Therapy and Recreation and Culture, signed on Nov. 18, 1997;

Part I, Resource Services, signed on Nov. 27, 1997, and

Part III, Nursing, signed on Feb. 19, 1998.

During the fiscal year, a revised pay structure linking pay increments to individual performance was introduced into the collective agreement covering civil service administrative support workers. The revised pay structure is similar to the pay structure for non-bargaining employees in Part I of the public service and is also supported by the Hay point rating job evaluation system.

Restructuring of the school system involved the transfer of a number of employees based in school district offices from Part II (schools) to Part I (civil service).

As of March 31, 1998, negotiations were in progress for the following bargaining groups:

Part I, Nursing;

Part I, Education (Instructional);

Part I, Laboratory and Medical*;

Part I, Engineering and Field*;

Part I, Technical Inspection*;

Part I, General Labour and Trades (Supervisory)*;

*These four groups are bargaining together for the first time, with the objective of one rationalized technical agreement.

Part II, Teachers;

Part II, Clerical;

Part II, General Labour, Trades and Services;

Part III, Pharmacy, Mental and Physical Rehabilitation;

Part III, Para Medical, and

Part III, Nursing Supervisory.

Compensation and Staffing Policy Branch

This branch is responsible for the development and implementation of pay plans, pay policies, job evaluation methodologies, pay for performance and for the administration of the position classification system for Part I of the public service. The branch is also responsible for the corporate staffing function and for providing training and consultative services to clientele from within the civil service and to the general public. The branch administers the Civil Service Act and is responsible for any amendments to the legislation.

The Compensation and Staffing Policy Branch is also responsible for human resource policies and provides research and development services respecting a variety of public service policy, planning and administration issues.

Compensation/Classification

In connection with the converted classification schemes, the branch is also leading the implementation of performance based pay plans. In 1997-1998 one collective agreement was signed containing the revised classification/compensation schemes. The concepts were also introduced in negotiations with an additional bargaining unit.

During 1997-1998, 194 classifications and 436 reclassification requests were processed. Eight classification appeals were heard covering eight employees.

The following achievements were identified in addition to the ongoing responsibility of providing advice and other services to client departments:

• revised the classification review process to accommodate the Hay methodology;

• completed job evaluation projects for eight bargaining units;

• finalized the Workforce Adjustment Program which expired March 31, 1998;

• launched the NB Employment Opportunities web site on the Internet;

• designed an automated pay for performance reporting system;

• commenced development of an internship program for the public service, and

• revised the Civil Service Act to accommodate casual, non-continuous work.

Staffing

• Evaluation of Staffing Activities - During 1997-1998, evaluations of delegated staffing practices were conducted in the Departments of Education, Solicitor General and Finance with respect to appointments by competition for the period Jan. 1, 1994, to Dec. 31, 1997. The results indicated that appointments were made in compliance with the provisions of the Civil Service Act. Recommendations were made to departments where improvements were required.

Competitions by Department (1)

April 1, 1997 to March 31, 1998

(1) Responsibility for the activity has been delegated to each department

(2) Does not include seasonal and term appointment competitions

Executive Development and Corporate Learning Branch

This year, 1,247 employees participated in 60 corporately sponsored learning events.

Executive Development

Official Languages and Workplace Equity Branch

Equal Employment Opportunity Program

• Term placements - 60 candidates received funding against their term positions. Departments were encouraged to make every effort to offer successful candidates regular full-time employment.

• Student Summer Jobs - 103 target group students benefited from career-related summer employment by being employed with the provincial government, municipalities or non-profit organizations.

• Job Creation - 63 individuals received on-the-job training opportunities for periods ranging up to 20 weeks. Useful job skills were developed and some of the trainees were offered extended terms of employment.

Workplace Equity

The Official Languages and Workplace Equity Branch coordinates the Summer Mentorship Program for Female Students. The program formally pairs female students with civil servants working in non-traditional or senior level jobs. A total of 50 female students were matched with mentors during the summer of 1997.

Official Languages

During the fiscal year 1997-1998, the following work, co-ordinated by the Office of Official Languages, Department of Finance, was accomplished in response to the recommendations contained within the study report:

• A Deputy Ministers' Committee on Official Languages, mandated to oversee government's response to the study, was formed and met three times during the fiscal year.

• The Official Languages Policy was revised.

• Implementation guidelines were developed for Parts I and IV of the public service and another set for the hospital sector.

• A management framework was developed.

• Guidelines were developed respecting the levels of second-language capability required for various job functions.

• In July 1997 and again in February 1998, two rounds of consultation were held with all departments, agencies and Crown corporations requesting their input on the revised draft policy and guidelines documents.

• A new logo and slogan were designed and will be featured on active offer signs to be displayed in all government offices. The message conveyed by the logo and slogan is that members of the public can obtain government services in their language of choice. Work was also underway on posters, brochures, bookmarks, as well as Internet and intranet sites for the Office of Official Languages.

Linguistic Requirements for Competitions

Of the 274 open competitions held during the fiscal year, 107 were English essential, 21 were French essential and 139 were bilingual essential. Seven competitions required competence in either English or French.

Of the 220 in-service competitions held during the year, 112 were English essential, 16 were French essential and 82 were bilingual essential. An additional 10 in-service competitions required competence in either English or French.

Official Languages Complaints

Of the 66 complaints investigated, all but six were found to be substantiated. In most cases, departments and agencies took speedy corrective action and developed procedures aimed at preventing problems in the future.

Complaints by Language Cited

Complaints by Type

Complaints by Region

Examples of complaints and corrective measures are reported in the annual reports of individual departments.

No complaints were filed concerning the services, staff or materials prepared by the Department of Finance during 1997-1998.

Complaints by Department

April 1, 1997 to March 31, 1998

Strategic Services Branch

A number of initiatives were initiated and completed in the year in question, including:

• pay and benefits study;

• activity-based costing of the human resources function;

• review of the Civil Service Act;

• revision of human resource policies;

• design and implementation of the Intellinet intranet site;

• development of the NB Leadership program, and

• development of a revised Employee and Family Assistance Program.

• manage the corporate human resource information system so that the operational and decision support subsystems are fully exploited by the organization;

• evolve the system by expanding its functionality;

• extend client coverage;

• ensure the system's long-term self-sufficiency, and

• ensure that all corporate payroll functions are performed in a fashion consistent with government policy and federal and provincial legislation.

A number of initiatives were taken to ensure the system would increasingly be used to support business requirements. Three system releases were implemented during the year which provided automation in a number of new areas including new functionality supporting the revised federal Employment Insurance program amd implementation of a new course registration module. Other improvements include the enhanced ability to scroll by employee name or department and the ability to mass update FIS codes and group/sub-group codes. Also, a new deduction was established for Workers' Investment Fund and a comment field was added to all deduction screens. These, and numerous other minor enhancements, help lower the cost of providing high quality human resource management and payroll services within government because they allow human resource and payroll staff to work more efficiently and effectively.

In addition to these enhancements to the operational system, the decision support system was modified to include new data resulting from operational system enhancements. Also, the security system was modified to provide new features that maintain the previous high level of security while making management information more accessible to those with access privileges. This change assists departmental human resource decentralization initiatives. During 1997-1998, a new database server was installed which doubled the previous level of computing power for users of this part of the HRIS application. As in the past, numerous corporate management information reports on a variety of subjects were produced.

Preliminary technical work was done to assess technology which would allow the HRIS application to be web enabled. This work is still in progress and it is expected that, when completed, this approach will reduce the effort associated with technical support for the application at the client level. Technical work was also done to develop a web application allowing managers to access their human resource information easily using a browser. Implementation of this application started in 1997-1998 and will continue in the following fiscal years. In conjunction with this new application, an application for more specialized users was also developed which allows direct access to current human resource and payroll information at the local level.

During 1997-1998, the number of registered users of the operational system increased from 414 to 439 and the number of users of the decision support system increased from 110 to 121. Client coverage was also extended as a result of the branch actively supporting the work done in several major departments to delegate human resource and payroll activities to line managers. This has increased use of the system and, by year-end, almost 50 per cent of operational system users were located outside of the capital region. During the year, operational system users executed 1.9 million transactions.

In order to ensure the long-term viability of the system, the HRI Branch has continued its research to improve both the cost effectiveness and user productivity of the HRI System. Also, a number of training events were offered during the year. As well, 135 units of system documentation have been produced during the year. These will be made available using web browser technology in the new fiscal year.

As in the previous year, the corporate payroll group ensured that the payroll process for Part I employees and pensioners conformed with all federal and provincial legislation and policy. In achieving this outcome, the branch maintained control tables, administered the taxable benefits program, monitored payroll discrepancy reports and resolved issues, ensured that all payroll accounting functions were done consistent with established accounting practice, completed all tax and fiscal year-end functions, remitted source deductions to the federal government, unions and benefit providers, and prepared a variety of reports including the employee portions of the public accounts.

Public Service Employee Benefits Branch

PSEBB fulfils its mission by carrying out the management and administration of legislated and contractual pension plans and selected insured benefit programs for employees under Parts I, II, III, and IV of the public service, as well as some quasi-public organizations. This also includes special or short-term programs such as early retirement programs. Table 6 provides statistical information for the various pension plans for which the branch is responsible. Table 7 provides similar details for the insured benefit programs.

* Number of members includes active, inactive and members on leave / *Nombre de participants inclut les participants actifs, non actifs et ceux en congé.

PSEBB officials work in an advisory capacity with pension committees and the Standing Committee on Insured Benefits (SCIB) and co-ordinate the activities of these committees. The branch also works with other sections of the department toward successful collective bargaining resolution. Staff also work closely with the Office of the Comptroller, Treasury and Debt Management Division and outside actuaries in the preparation of annual accounting letters to be used as input to the public accounts.

Most pension plans experienced amendments throughout the year. Due to negotiations, changes such as those required by the federal Income Tax Act and provisions to meet the spirit of the Pension Benefits Act were arrived at through consultations. These changes flow over to the next fiscal year. Amendments were made to the legislated and negotiated pension plans to allow for the division of pension benefits upon marriage breakdown. Amendments were made to the legislated pension plans to define "spouse" as in the Income Tax Act (Canada) which recognizes common-law relationships between persons of the opposite sex.

The School Board Management Pension Plan has gone through a partial wind-up, and there are no longer any contributing members in this plan. This group now contributes to the Public Service Superannuation Act pension plan. Each member had to choose from options by March 31, 1998. This was accomplished through presentations, counselling sessions and individual information packages.

For the pension plans sponsored by the Province, there is an actuarial valuation periodically. In this year, valuations were completed for the following pension plans: Pension Plan for Certain Bargaining Employees of N.B. Hospitals, Teachers' Pension Act Pension Plan and Public Service Superannuation Act Pension Plan.

The last of the scheduled releases of the Pensions and Insured Benefits Administration (PIBA) system was implemented in August 1997. Full functionality of PIBA will not be realized until several conversion projects are completed.

Conversion activities which must yet be undertaken by the branch include individual pensionable service histories for hospital employees and non-teaching persons from school districts. Insurance information from two systems must be merged and converted into PIBA. Employers are assisted by branch personnel in verifying this critical information.

The imaging system continues to evolve to take advantage of technology advances and meet the users' needs.

Both PIBA development and imaging system changes continue to be guided by a steering committee, comprised of various public sector union representatives and representatives of certain government departments.

The branch has instituted a new budgeting process commencing for the next fiscal year. In order to improve accountability to stakeholders, a consolidated budget was compiled to include the expenditures processed (and recovered) through the Province's consolidated revenues for the pension plans and certain programs such as long-term disability. The applicable committees have approved their respective portions of the budget. The Minister of Finance approves the overall budget. Any variances from planned budget will be reported to the stakeholders. This practice flows from suggestions made by the Auditor General in his 1997 report.

Table 6 (continued)