Request for retroactive approval of individual HR budget line

[Executive Director]

Dear Faisal,

I would like to draw your attention to the difficulties we are facing in overspent individual HR budget line in 2012.

According to the high staff turn over rate of the Global Fund Project, PGK has requested the budget revision of Year 2 of the Global Fund as a part of reprogramming during 2012. While waiting for the approval of the Year 2 reporgramming budget, annual audit exercise for Global Fund project 2011 period was conducted . PGK was suggested to practice grading and salary scheme according to individual performance of each staffs and not based on the budgeted figures. 

Thus, PGK conducted staff performance review and appraisal in early 2012 using the process under here; 

• Self-grading by staffs and review by each immediate supervisor
• Discuss with the result with each staffs by performance appraisal review team which included ED, PC, Admin/HR officer and one executive committee member.
  
• Submit to the chairperson of the organization for approval for all grading and salary. 
  
• Revised contract according to the grading.

As a results, there is a changes in performance rating of each staffs, salary grading and staff are contracted according to their grading and performance. We also realized that there are some difference between re-programming individual budget line and  our performance rating of each staff's salary.

Even though PGK ensured that the total HR costs is within the approve budget of the GF project, some of the individual human resource budget lines of the project are unfortunately over spent for 2012.   

 We  only added the budget line number 1.5.1.9 for Salary of Field facilitators ( Care and Support ) to  HR course category .

In phase II, we don't have any overspent individual HR budget line in Phase II because we planned our HR cost according to changes of grading and salary.

Thus, PGK would like to request retroactive approval of PR especially for the overspend HR individual budget in 2012.

 In future, PGK will take care not to overspend individual HR budget by taking this case as a very big lesson learn. In case of any changes is required in the budget, PGK will request the advance approval and will never use the budget until the approval is officially received from PR and the Global Fund. 

Thank you very much for your kind understanding and continuous supports.

nwe zin win

[Executive Director]

Dear Dr.Faisal